Australian Miner Chariot Secures Major Lithium Licenses in Nigeria, Marking Industry Milestone
Reported by Nexio News
Nigeria’s lithium sector has taken a significant leap forward with the approval of six mining licenses for Australian firm Chariot Resources Limited, marking the first entry of an ASX-listed company into the country’s high-potential lithium market. The Nigerian Mining Cadastre Office (MCO) greenlit the transfer of four exploration permits and two small-scale mining licenses—previously held by Continental Lithium Limited—to Chariot’s local subsidiary, C&C Minerals Limited.
A Strategic Footprint in West Africa
The licenses cover key projects in Kwara and Oyo states, including the Fonlo and Gbugbu exploration sites and the Saki small-scale mining operation. Chariot, which holds a 66.6% stake in C&C Minerals, aims to complete full acquisition of Continental Lithium’s remaining 33.3% by May 2026, pending regulatory approvals.
Shanthar Pathmanathan, Chariot’s Executive Chairman, hailed the approvals as a “monumental” step for both the company and Nigeria’s lithium industry. “This is an undrilled, high-potential region already supplying spodumene to China,” he said. “Our goal is to make large-scale discoveries using systematic exploration.”
High-Grade Lithium Confirmed
Independent lab tests by the University of British Columbia revealed spodumene concentrations of 28.4% to 75.3% across sampled sites, with lithium oxide grades reaching up to 5.96%—well above commercial viability thresholds. The absence of lower-value lepidolite further boosts the projects’ prospects. Elevated caesium levels, including a 9.5% pollucite reading at Iganna, also signal strong lithium-caesium-tantalum (LCT) pegmatite potential.
Nigeria’s Mining Ambitions and Challenges
The deal aligns with Nigeria’s push to diversify its oil-dependent economy by attracting foreign investment into mining. However, the sector faces rampant illegal operations, with unlicensed miners—often using hazardous methods—dominating regions like Pasali, a lithium hotspot. Child labor, environmental damage, and smuggling remain persistent issues.
Lanre Afebuameh, Vice-Chairman of Continental Lithium, emphasized that Chariot’s involvement could bring much-needed regulation. “This strengthens ties with Nigerian authorities and enables systematic exploration,” he said.
Legal and Economic Implications
Nigerian law firm Aluko & Oyebode, which advised Chariot on the transaction, noted the deal’s broader significance. “Chariot’s expertise can unlock long-term value for Nigeria’s critical minerals sector,” said partner Ajibola Asolo. Cephas Caleb, an energy specialist at the firm, added that lithium’s role in renewable energy storage makes this a strategic priority.
The Road Ahead
Chariot plans to fast-track drilling and secure offtake partners to revive small-scale mining. Yet Nigeria must balance investor-friendly policies with stricter enforcement against illegal operations. Recent crackdowns on Chinese-run mines highlight the urgency: unregulated activities have cost Nigeria billions in lost revenue while fueling labor abuses and environmental harm.
As global lithium demand surges—driven by electric vehicles and battery storage—Nigeria’s ability to attract credible players like Chariot could determine whether it emerges as a key supplier or remains hampered by informality.
— Reported by Nexio News
