A company linked to Chinese capital has agreed to acquire Nigeria's Agbaja iron ore project for $5.67 million, marking the latest move by Chinese investors to build positions across Nigeria's iron ore and steel industry with the aim of creating a complete industrial chain from mining to steel production.

On August 17, Australian-listed Macro Metals signed a non-binding term sheet with RSIN Nigeria Limited to sell 100% of its KCM Mining Limited shares. KCM Mining holds the Agbaja iron ore project on the Agbaja Plateau in Kogi State, approximately 200 kilometres from Abuja.

The project has a JORC-compliant probable reserve of 205 million metric tonnes at an iron grade of 45.7%, and a total mineral resource of 586 million tonnes at an in-situ iron grade of 41.3%.

RSIN Nigeria Limited is affiliated with the RSIN Group, which is based in Fuzhou, Fujian Province, China, and has been active in mining, beneficiation, smelting and steel manufacturing in Nigeria for nearly 20 years.

According to the term sheet, completion of the transaction is subject to several conditions, including the buyer completing due diligence, obtaining regulatory approvals from Nigerian and Chinese authorities, and extending the development agreement with the Agbaja community to December 2031.

Macro Metals expects net proceeds of approximately A$5.1 million after transaction costs, with about A$4.6 million to be received upon completion.

The Agbaja project had previously planned to develop an integrated facility combining an open-pit mine and steel plant, with an annual mining rate of 1.7 million tonnes, steel billet production capacity of 500,000 tonnes per year, an initial mine life of 25 years and an estimated capital requirement of $557 million.

However, the project struggled to advance, ultimately prompting the Australian junior miner to consider selling its interest.

Chinese investment in Nigeria extends well beyond the Agbaja project. In May 2025, Sinomach-HE, a subsidiary of China National Machinery Industry Corporation, partnered with Nigerian firm Chart & Capstone Integrate Ltd to plan the construction of a $2.5 billion steel plant in Kogi State.

Around the same time, the RSIN Group and another Chinese company, Galaxy Group, jointly backed Stellar Steel Company's planned $450 million industrial project in Ogun State, which included a local iron ore supply system and steel production facility. In October 2025, the Nigerian federal government formally signed a $400 million strategic cooperation agreement with Stellar Steel.

Additionally, an unidentified Chinese entity has reportedly joined efforts to revive the state-owned Ajaokuta Steel Company. Nigeria currently produces approximately 2.2 million tonnes of steel annually, while domestic demand is estimated at 10 million tonnes, with the country spending about $4 billion per year on steel imports.

However, most of these projects remain at early stages. Nigeria's iron ore resource potential is estimated at 3 billion tonnes, valued at approximately $700 billion, yet the mining sector still contributes less than 1% of the country's gross domestic product.

The Agbaja project has been in development for more than a decade since its first mineral resource estimate, changing hands multiple times without ever reaching production.