Steel Forum: Experts advocates for ESG standards, local value addition in Steel Development

By: Goodluck E. Adubazi, Abuja.

The Steel Forum opened with a Welcome Address from Dr. Chris Isokpunwu, Permanent Secretary, Federal Ministry of Steel Development, followed by the Ministerial Address and Official Opening by Honourable Prince Shuaibu Abubakar Audu, Minister of Steel Development. The session highlighted“The Vision for Nigeria’s Steel Industry – A Master Plan for Growth”, setting the tone for discussions on the country’s steel sector development

Fireside Chat:Nigeria’s Abundant Resources – The Foundation for a Thriving Steel Industry

This session provided an in-depth look at Nigeria’s vast mineral reserves critical for steel production, including high-grade iron ore, coking coal, limestone, and other key minerals. Experts discussed the current status of NIOMCO’s Itakpe operations, how NSRMEA is leveraging exploration data to prioritize new deposits, and the potential of Ajaokuta to position Nigeria as a regional steel hub, offering investors data-driven insights into resource quality and accessibility.

Stakeholders at the Steel Development Session of the Nigeria Mining Week 2025 also called for deeper integration of Environmental, Social, and Governance (ESG) standards into mining operations, stressing that responsible practices will attract sustainable investment and drive industrial growth.

“Integrate ESG by Design” — Panelists Tell Industry Players

Speaking during the session, experts emphasized the need for mining firms to embed ESG principles from the earliest stages of project planning.

“You can’t start with your financial report before you start with ESG,” one panelist noted. “From impact assessment to governance, every stage must reflect sustainability if you want investors’ confidence.”

Panelists urged companies to nurture strong community partnerships, stressing that no project can survive without the support of host communities. “If your community turns against you, your operations stop automatically,” a speaker warned, underscoring the social dimension of sustainability.

Decarbonization and Transparency Take Center Stage

As the global mining industry aligns with climate action, Nigerian stakeholders were urged to innovate for decarbonization while maintaining transparency across value chains.

“The global North views sustainability through climate change, but for us in the global South, it means socio-economic development,” another expert explained. “We must align these interests by decarbonizing our supply chains.”

The panel also called for improved governance frameworks and transparency, insisting that investors now demand measurable and reportable ESG compliance before committing funds.

Financing the Future: Exploration as the Missing Link

Discussions also turned to the chronic challenge of exploration financing, described as the “biggest bottleneck” in Nigeria’s mining ecosystem. Without proper funding for exploration, participants warned, the country cannot build a pipeline of viable commercial mining projects.

According to data shared during the session, exploration can consume millions of dollars before a project even reaches the construction stage.

“Between 2017 and 2020, one company spent $4 million just on exploration, and $10 million by the time construction began,” a panelist revealed.

To address this, the Solid Minerals Development Fund (SMDF) is supporting early-stage projects through a Project Development Facility—a move aimed at helping miners move from concept to feasibility and financial close.

Government’s New Push: Early-Stage Grants for Junior Miners

In a major development, the Minister of Steel Development announced a new grant rollout targeted at early-stage miners and prospectors. The initiative aims to build a stronger pipeline of local mining projects by funding exploration studies and sample testing—particularly for junior miners, who are critical to the sector’s growth.

“Globally, exploration by junior miners has declined sharply,” an SMDF representative noted. “We must catalyze these small players to unlock Nigeria’s mineral wealth.”

The facility will also cover part of the costs for geological studies and sample analyses in Canada, helping indigenous miners meet international standards and attract global investors.

Key Takeaways from the Steel Development Session

ESG compliance is now a prerequisite for financing mining projects.

Community engagement and waste management must be built into project design.

Exploration financing remains the weakest link in Nigeria’s mining value chain”, The Penalists stressed.

According the penalists, The SMDF and government are stepping in to support early-stage exploration.

The penalists concluded: “Nigeria must balance climate goals with socio-economic realities to attract responsible capital..