Goldman Sachs sees gold prices hit $3,000 by December 2025

Goldman Sachs has projected that gold prices could reach as high as $3,000 per ounce by December 2025, driven by increased central bank demand and US interest rate cuts. As the gold market sees a potential surge, Nigeria has made a significant move by signing a Memorandum of Understanding with France to promote and diversify the critical minerals value chain in the solid minerals sector. Nere Emiko, the Vice Chairman at Kian Smith Refinery, joined CNBC Africa to discuss the implications of this partnership. Emiko highlighted that the agreement with France aligns with Nigeria's government agenda for the mining sector, focusing on developing regional value chain processing centers across the geopolitical zones. The emphasis on critical minerals is in line with global trends, as the World Bank encourages a shift towards these minerals for energy transition purposes. Despite the positive outlook for the sector, Emiko noted that the timing of the announcement raised concerns due to France's recent political tensions with other West African countries such as Niger, Mali, and Burkina Faso. The collaboration with France is expected to involve minerals like copper, lithium, nickel, and cobalt, crucial for various technological and industrial applications. Emiko expressed optimism about the potential benefits for Nigeria's mineral sector, anticipating increased investor interest and participation. He suggested that state-owned mining companies like Kaduna Mining Development Company could leverage this partnership to attract more investments and enhance mineral exploration efforts. Regarding the impact on existing players in the sector, Emiko emphasized the need for swift action to capitalize on the opportunities presented by the MOU. He encouraged companies with mining licenses and assets to proactively engage with the government and potential investors to accelerate mineral extraction and processing activities. Emiko acknowledged that uncertainty prevails in the sector, given the complex regulatory environment and the diverse range of stakeholders involved. When asked about the possibility of new entrants into Nigeria's mineral sector following the collaboration with France, Emiko was cautious about expecting a flood of foreign players. He pointed out past instances where major industry players like Elon Musk's Tesla expressed interest in Nigeria's lithium sector but faced challenges navigating the fragmented licensing system. Emiko stressed the importance of a coordinated national approach to attract large-scale investments and ensure sustainable development of the critical minerals value chain. In conclusion, the MOU between Nigeria and France signifies growing international interest in Nigeria's mineral resources, particularly in the context of the global energy transition and increasing demand for critical minerals. While the partnership has the potential to benefit both the government and private sector stakeholders, the success of the collaboration will depend on effective coordination, regulatory clarity, and a conducive investment environment. As the mining industry awaits further details on the implementation of the agreement, stakeholders are urged to seize the opportunity to drive economic growth and innovation in Nigeria's mineral sector.