FG Endorses $400m Rare Earth Plant, Signalling Regulatory Compliance and Economic Ambition
The Nigerian federal government has lauded the significant progress at a $400 million rare earth processing plant under construction in Uke, Nasarawa State, underscoring the project’s adherence to regulatory frameworks and its potential to transform the nation’s mining sector. A high-level delegation, including key officials from the Federal Ministry of Solid Minerals Development (MSMD), conducted an on-site assessment, expressing satisfaction with the compliance levels and the project’s commitment to international standards.
The facility, being developed by Hasetins Commodities Limited, is poised to substantially augment Nigeria’s rare earth processing capacity. Upon completion, it will add 12,000 tonnes per annum to the company’s existing output, bringing its total capacity to 18,000 tonnes per annum. This expansion is set to position Nigeria as the leading African nation in rare earth processing, a critical component for global green energy technologies.
During the inspection, Mr. Ganiyu Imam, Director of Mining Inspectorate at the MSMD, and Dr. Vivian Okono, Director of Mines Environmental Compliance (represented by Mr. Oladehinde Oladusi, Deputy Director), observed the meticulous construction and operational planning. Imam specifically urged Hasetins to maintain its rigorous approach to precautionary and safety measures. Oladusi, acting on behalf of Dr. Okono, commended the quality of work and the deployment of modern, standard equipment, noting that the company’s approach deviates from the historical narrative of mere resource extraction.
“The commitment that we have seen so far in respect of the way the company is starting is different from the narrative of just bumping into our environment, break the ground and carry our minerals away,” Oladusi remarked, highlighting the organised site clearance, administrative block, and initial testing machinery. He further praised Hasetins for conducting a comprehensive environmental assessment and integrating advanced technology designed to minimise mining-related hazards.
The Deputy Director emphasised the importance of the Environmental and Social Impact Assessment (ESIA) as a prerequisite for such large-scale projects. He expressed particular satisfaction with Hasetins’ proactive approach to environmental stewardship, noting the company’s intention to implement mitigation measures outlined in the ESIA. Oladusi also pointed out the advanced technological capabilities at the plant, capable of separating radioactive elements to “zero level,” aligning with stringent UK standards. He suggested that Nigeria could benefit from adopting similar UK standards, ensuring accountability for environmental polluters.
“One of the first things that impressed me when you are putting up something like this is definitely the environment will be touched and for this company to take the initiative to prepare a sound environmental and social impact assessment which is one of the prerequisites to commence this kind of big project,” Oladusi stated. He added that the ministry is actively engaged in sensitising companies on obligatory environmental documentation, such as the Environmental Protection and Rehabilitation Plan, to ensure responsible land use and waste management.
While commending Hasetins for its robust security arrangements, Oladusi advised the company to formalise a community development agreement. This, he explained, is crucial for preventing future conflicts as operations scale up and economic benefits become more apparent. He stressed that such agreements are vital for ensuring the equitable transfer of socio-economic benefits to host communities, fostering a win-win scenario and a stable working environment. The Ministry of Solid Minerals Development, under the directive of Honourable Minister Dr. Dele Alake, is prioritising this aspect to manage expectations and ensure broad-based economic upliftment.
Prince Jidayi, Managing Director and CEO of Hasetins, expressed gratitude for the federal government’s support, particularly from Dr. Alake and his Special Assistant, Kehinde Bamigbetan. Jidayi outlined Hasetins’ commitment to revolutionising rare earth and critical metals processing in Nigeria, moving beyond the traditional model of raw extraction and export. The Uke plant will process not only rare earth metals but also other critical minerals such as Tantalum and Tungsten.
“We are strictly deploying advanced, closed-loop processing technologies designed to minimize environmental impact, manage Tailings responsibly and protect local water bodies and air quality,” Jidayi affirmed. He added that Hasetins is establishing regional and satellite separation centres to integrate artisanal and small-scale miners into a formalised, safe supply chain, providing them with equipment, training, and off-take structures to enhance rural economic stability. This initiative aims to ensure that the extraction and processing of minerals essential for the global green energy transition do not compromise local environmental integrity.
