Australian mining company Chariot Resources Limited has secured six lithium mining licences in Nigeria, marking a significant step in the country’s push to formalize and expand its solid minerals sector amid rising global demand for battery materials.
The licences—comprising four exploration permits and two small-scale mining leases—were approved by the Nigerian Mining Cadastre Office and transferred to C&C Minerals Limited, Chariot’s Nigerian subsidiary. The permits were previously held by Continental Lithium Limited.
According to the company, the approvals cover key lithium prospects at the Fonlo and Gbugbu exploration sites, as well as small-scale mining operations at the Saki project spanning Kwara State and Oyo State.
Chariot’s Executive Chairman and Managing Director, Shanthar Pathmanathan, described the approvals as a milestone not only for the company but also for Nigeria’s emerging lithium industry.
“These approvals are monumental for the company and indeed the global lithium sector,” he said, noting that the deal represents the first entry of an Australian Securities Exchange-listed lithium firm into Nigeria’s largely untapped lithium market.
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Expanding foothold in Nigeria
The six licences consolidate Chariot’s position across some of Nigeria’s most prospective lithium zones. The company is also awaiting final approval for four additional licences—three linked to the Saki project and one at Iganna.
Chariot currently holds a 66.6 percent stake in C&C Minerals, with Continental Lithium retaining the remaining 33.3 percent. The Australian firm expects to complete full acquisition of the assets by May 2026, subject to regulatory and shareholder approvals.
High-grade lithium potential
Early geological results suggest strong commercial potential. Independent laboratory analysis conducted by the University of British Columbia confirmed the presence of high-value spodumene across sampled sites at Fonlo and Iganna.
Spodumene—a key lithium-bearing mineral used in battery production—accounted for between 28.4 percent and 75.3 percent of crystalline content in samples. Lithium oxide grades ranged from 2.66 percent to 5.96 percent, indicating high-grade mineralisation.
The analysis also revealed elevated caesium levels, including pollucite concentrations of up to 9.5 percent in one Iganna sample, pointing to strong lithium-caesium-tantalum pegmatite potential.
Chariot said the findings support its strategy to fast-track exploration and develop drill-ready targets across its Nigerian portfolio.
Next phase: exploration and partnerships
Mr Pathmanathan said the company plans to deploy modern exploration techniques to unlock large-scale discoveries.
“We will generate high-quality technical data and advance drill-ready targets across an undrilled portfolio,” he said, adding that the firm is in talks with potential offtake partners and financiers to accelerate development and restart small-scale mining operations.
Legal advisory for the transaction was provided by Aluko and Oyebode, which handled due diligence, structuring, and mineral title transfer agreements.
Balancing opportunity and risk
The deal comes as Nigeria seeks to diversify away from oil by developing its vast mineral resources. Alongside lithium, the country holds deposits of gold, limestone and granite, positioning it as a potential hub for critical minerals.
Global demand for lithium has surged in recent years, driven by the rapid growth of electric vehicles and renewable energy storage systems.
However, Nigeria’s mining sector continues to face significant challenges. A parliamentary probe has found that illegal mining operations cost the country billions of dollars annually, while also contributing to environmental degradation and insecurity.
Artisanal mining remains widespread, particularly in lithium-rich regions. In many areas, informal miners operate in unsafe conditions using rudimentary tools, with reports of child labour and exposure to hazardous dust and collapsing pits.
The International Labour Organization estimates that over one million children are engaged in mining and quarrying globally, with Africa disproportionately affected.
Efforts to curb illegal mining have intensified in recent months, including the deployment of a government-backed “mining marshals” unit and tighter regulatory oversight. Authorities have also stepped up enforcement against foreign operators, including several high-profile cases involving Chinese nationals accused of illegal mining activities.
A turning point for Nigeria’s lithium sector
With Chariot’s entry, Nigeria is signaling a shift toward more structured, transparent, and large-scale mining operations.
The Fonlo, Gbugbu, Saki and Iganna assets together represent one of the country’s most significant lithium portfolios. If successfully developed, they could position Nigeria as an emerging player in the global supply chain for critical minerals.
Still, analysts say the government faces a delicate balancing act—attracting credible foreign investment while tackling entrenched illegal mining networks that continue to undermine the sector.
As demand for lithium accelerates worldwide, the stakes for Nigeria’s mining future are rising just as quickly.
