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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentFEDERAL REPUBLIC OF NIGERIA
2nd NIGERIAN INTERNATIONAL INVESTMENT FORUM
A PRESENTATION
TO
Arc. Musa Mohammed Sada, fnia, fnmgsHon. Minister of Mines & Steel Development
October, 2012
ON
MINING AND MINERALS- NIGERIA’S ABUNDANCE OF UNTAPPED RESOURCES
BY
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
NIGERIA ONCE A FLOURISHING MINING NATION
■ Globally known for Tin, Columbite and tantalite
production and export;
■ Worlds leading producer of Columbite at a time;
■ Coal exploited as local energy source and for export;
■ Recorded volumes of gold production;
■ Industrial minerals produced for local industries.
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
YEAR PRODUCTION1916 24,511 1920 180,122 1924 220,161 1928 305,745 1932 256,860 1936 310,308 1940 318,640 1944 669,158 1948 610,283 1952 613,374 1956 790,030 1960 565,681 1964 698,502 1972 264,258 1976 249,446 1980 114,875 1984 139,744 1992 27,686 1996 17,797 2002 41,771
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
THE DECLINE OF THE MINING SECTOR
Neglect caused by:
■ Second World war in 1945;
■ Discovery of oil in commercial quantities;
■Indigenisation policies of the 1970s
■Collapse in the international tin price in the mid 80s.
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
OUTCOME OF SECTOR NEGLET
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Large numbers of Informal mines ravaging natural Mineral assets
Low income and lack of investment
Low productivity Inadequate & inappropriate technology
Environmental degradation, health and safety hazards
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
GOVERNMENT STRONG NEED TO REVAMP THE SECTOR
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Government’s emphasis on developing non-oil sectors to diversify and balance the economy
Solid minerals sector has great potential (Minerals available in all parts of the country
Need to boost sector’s contribution to GDP and Earnings Need to create non-farm wealth and employment
opportunities through Artisanal and Small Scale Mining Production of industrial minerals as input factors for
industrial growth and wealth creation
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
Moving towards Investor-Led Mining Sector Growth:What investors want
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
ADOPTED TRANSFORMATION PATHS FOR GROWTH
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Regulatory Framework
Institutional Capacity Building
Generation of Reliable Data
Sustainable Mining Environmental and Social Framework
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
REFORM OUTPUT CURRENTLY IN USE
A minerals and metals policy that makes government a regulator / facilitator with the Private Sector as Owner/ Operator;
A modern Minerals and Mining Act and Regulations that are in line with international standard and guarantees security of tenure;
A transparent mineral title administration that grants titles on first come first served and use it or lose it basis; and
Readily available geosciences data for prospective investors (the entire country covered by airborne geophysical survey)
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AIRBORNE GEOPHYSICAL SURVEY COVERAGE MAP
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
Availability of indigenous professionals and technical manpower
Available basic infrastructure to support mining operations
National Rail Network
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
Attractive investment incentiveso Capital allowances up to 95% of qualifying capital
expenditureo Waiver of customs and import duties for plant,
machinery and equipment imported for mining operations
o Three to five years’ tax holiday as applicable; and o Free transferability of funds and Permission to retain
and use earned foreign exchangeo Deductibility of Environmental Costso Annual Capital Cost indexationo Ease of entry into the country 10
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
NIGERIA’S ABUNDANT MINERAL RESOURCES
■ Nigeria is endowed with a variety of solid minerals made up of industrial minerals, metallic minerals, mineral fuel, gemstones, precious metals, and dimension stones.
■ They have been found in more than 500 locations across the country.
■ All 36 States of the Federation and the FCT have more than one mineral type.
■ Control of all Mineral Resources in Nigeria is vested on the Federal Government.
■ The Ministry of Mines & Steel Development is responsible for facilitating beneficial Development of the Minerals and metals potential of Nigeria.
MINERAL MAP OF NIGERIA
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
World Class Minerals for Immediate DevelopmentMinerals UsesCoal (About 2.7 bt) Utilized in the generation of electricity and for making heating oils,
chemicals and medicines. Coal briquette for domestic uses to check deforestation, desertification and erosion.
Bitumen (About 27billion bbl of oil equivalent
Used as energy source and for roads surfacing. Its other uses are for bituminous waterproofing products and petro-chemicals.
Iron Ore (About 10bt) Principally used as a source for iron to manufacture steelLimestone (About 3tt) A major component in cement manufacture and steel makingBarytes (About 15mt) The largest application for barytes is as a weighting agent in
natural gas and oil drilling mud, etc.Lead/Zinc ore (Proven reserves of 5mt)
Used as source of lead & zinc metals respectively used in producing batteries /radiation shielding and as rust inhibitor for steel in the construction of cars, building, bridges, ships and trains.
Gold (1mil Oz in Osun State and inferred reserves of 200mil Oz)
Ornaments, Currency exchange medium
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
JOB CREATION MINERALS AND ROCKS FOR DEVELOPMENT
Minerals / Rocks Uses
Talc Used in the manufacture of medical and cosmetic products, ceramics / refractory products, paper and rubber products, etc.
Kaolin Used for the manufacture of soap/detergents, plastics, ceramics, paints, paper, Pharmaceutical products, fertilizer etc.
Calcium Carbonate (Dolomite, Marble, Limestone, etc)
Many uses according to purity and character. Clayey type used for cement manufacture with brighter resources used for the manufacture of paint, paper, soap /detergent, glass, chemical, etc
Granite (Stone Aggregates)
Used as construction material in the form of stone aggregates, tiles and slabs, etc
Sand Used as construction material and for glass production
Clay Used to produce ceramics and bricks 13
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
GEMSTONES AND DIMENSION STONES FOR THE DEVELOPMENT OF SMEs
Mineral Type Examples Uses
Gemstones Tourmaline, Sapphire, Emarald, Garnet, Topaz, Amethyst, etc
Used in jewelry making and as decorative stones
Dimension Stones(Granite, Marble, Limestone, etc)
Zebra, Tiger Yellow, Zaria Red, African Multi Colour,
Used in buildings as tiles, slabs and skirting; monuments; furniture; etc for their aesthetic appeal, durability and ease of maintenance.
Zebra - Ondo Tiger Yellow- OndoZaria Red African Multi Color14
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
PROJECTS
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
IRON ORE
Two broad types of iron ore resources occur in Nigeria: Banded iron formations in folded bands in the
Precambrian rocks e.g. Itakpe, Tajimi Sedimentry (oolitic) iron ore deposits Fe contents range between 35 – 50% Itakpe iron ore deposit is ready for exploitation with a
mine and processing plant in place Several other iron ore occurrences are located in the
north western and north eastern zones of the country
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
Iron Ore ProjectsDeposit Location Reserves (Mil. t)Itakpe Itakpe, Kogi State 310
Ajabanoko Ajabanoko, Kogi State 62Agbado-Okudu Agbado-Okudu, Kogi State 60
Chokochoko Chokochoko, Kogi State 60
Agbaja Agbaja, Kogi State 1,150Kotonkarfe Kotonkarfe, Kogi State 850
Tajimi Tajimi, Kogi State 20Ebiya Ebiya, Kogi state 10Gidan Jaja Gidan Jaja, Zamfara State 20
Jaruwa Jaruwa village, Kaduna State
>60 (Preliminary Estimates)
Lamba Lamba village,Bauchi State
>60 (resource)
Gidan Buzu Gidan Buzu, Yobe State >65(resource)
Gyaza Gyaza, Katsina State >40(resource)) 17
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
COAL RESOURCES OF NIGERIA
Coal exists in 13 States of the country
Current exploration results indicate over one trillion tonnes
Development of Coal for power generation – a priority of government
Clean coal exploitation techniques desired in view of our experiences in oil and gas exploitation
Coal & Lignite bearing States
Taraba
Bauchi
Kogi
Kwara
Benue
Edo
Adamawa
Delta
PlateauNasarawa
Ondo
Imo
EnuguAnambra
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
SOME COAL PROJECTS
Deposit Location Reserves
Obi -Lafia Coal
Obi, Obi LGA, Nasarawa State
128.3 million tonnes
Lamza-Chikila Coal
Lamza, Guyuk LGA, AdamawaState
Not determined
Maiganga Coal
Maiganga, Akko LGA, GombeState
760 million tonnes (inferred)
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
GOLD Gold is known to occur in
several locations Primary belt stretches
from Osun-Ondo States in the southwest to Niger, Kaduna, Zamfara, Kebbi States in the northwest
Already Ratel has a proven gold reserve of over 620,000 ounces in their Iperindo property in Osun state
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
GOLD PROJECTSState Location Mineralization Grade
Zamfara Maru In Maru – Zuru Schist belts, the mineralization is made up of gold-quartz-sulphide veins and occurs as structurally controlled primary veins,
Au = 30ppm in MaleleAu = 123-6320 ppb in Anka
Anka
Malele
Kaduna Tsohon Birnin Gwari In Kushaka schist belt, the gold mineralization occurs in reefs between 3-7km long, an associated with pyrite, sphalerite, galena and magnetite.
Variable gold mineralizationreaching 5-100gm/t
Kwaga
Kebbi Bin-Yauri In Zuru schist belt with gold sulphide -carbonate veins in a fault zone at the contact of granodiorite batholith.
Gold grades indicatingbetween 5-15ppm have been recorded in vein materials.
Niger Gurmana Located in the southern part of Kushaka schist belt. Gold – quartz sulphide veins are found in amphibolite and gneisses with pyrite chalcopyrite and galena
Kogi Okolom-Dogondaji In Egbe-Isanlu schist belt SW Nigeria with gold-quartz veins hosted in N-S, NNE –SSW trending shear zones as gold sulphide reef system with a total length of 3km 21
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
LEAD/ZINC Lead-Zinc mineralization is
located along Northeast – Southeast belt (Taraba, Bauchi, Plateau, Ebonyi, Zamfara, Benue, Nasararwa, etc)
Three belts are outstanding: Lower Benue Through
mineralization (Abakaliki, etc) Middle Benue Through
mineralization (Anifu, Awana) Upper Benue Through
mineralization (Isimiya, Digi etc)
New exploration findings in several parts of Nigeria 22
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
TAR SAND Huge reserves of oil sands in
Nigeria (Ondo, Ogun, Lagos, Edo, etc)
Occur as surface/near surface impregnated sediments and as subsurface bitumenous sands
Extensive exploration work carried out in the belt
Documentation of study results available including correlation panels of wells drilled and cored and unprocessed 2D seismic data
Blocks delineated for concessioning soon 23
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
GEMSTONE Nigeria is endowed with many varieties
of coloured gemstones. Six types identified for commercial
development: Aquamarine Tourmaline Emerald Sapphire Garnet
Other gems of less value occur in abundance; Topaz Amethyst Flouride Zircon
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Map of Nigeria showing Gemstone Mineralization
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
DIMENSION STONES
Nigeria has vast deposits of colorful granites and marbles
Granite, Marble and Limestone of Dimension Stone Quality are found in Nasarawa, Cross River, Bauchi, Kaduna, FCT, Jigawa, Edo, Kwara, Ogun, Osun, Oyo and Ebonyi States
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Bauchi GreenJuparana Nigeria
Ikara Yellow Elegance
Miero Black MarbleNassarawa Rose Marble
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
■ Nigeria is endowed with world class resources of industrial minerals suitable for development to produce raw material required by local manufacturing industries as well as for export.
Market Sector Mineral Resources for Development
Locations (Not Exhaustive)
Filters, Adsorbents and Dessiccants
Diatomite, Sand & Gravel
Alangafe (Yobe State)Jigawa, Bauchi, Gombe, Onitsha, etc
Abrasives Quartz, Quartz- Lokoja, Kogi State
Construction Uses Stone Aggregate, Limestone Sand , Dimension Stone
VariousShagamu, Egbese, Ashaka, Gboko, etcJigawa, Bauchi, Gombe, Onitsha, etcObudu, Bauchi, Jibia, Ilorin, etc
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INDUSTRIAL MINERALS & ROCKS
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
INDUSTRIAL MINERALS & ROCKS
Market Sector Mineral Resources for Development
Locations (Not Exhaustive)
Agricultural Uses Phosphate rock,
Potash,
Magnesite, Calcite/Limestone,
Dolomite /Marble
Gypsum, etc
Dange, Gwadabawa (Sokoto), Ososun, Papalanto, Ifo (Ogun) Maimalari (Yobe State), Kargidi (Jigawa), Maiduguri (Borno) Tsakasimta (Adamawa)Shagamu, Egbese, Ashaka, Gboko, etcKwakuti (Niger), Jakura (Kogi), Ugya (Nasarawa)Nafada (Gombe), Fika (Yobe)
Chemicals Rock SaltLimestone
MagnesiteAnhydrite
Kaseyo (Benue),Shagamu, Egbese, Ashaka, Gboko, etcTsakasimta (Adamawa)Nafada (Gombe), Fika, (Yobe) 27
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
INDUSTRIAL MINERALS & ROCKSMarket Sector Mineral
Resources for Development
Locations (Not Exhaustive)
Well Drilling Materials Barite
BentoniteMica, Quartz Sand,
Graphite,
Limestone, Diatomite
Azara, Wuse, (Nasarawa), Gboko (Benue), Ibbi , Didango (Taraba)Damboa, Ngala (Borno)Gungur, Mambyam (Plateau)Isanlu-Esa, Lokoja (Kogi), Maye (FCT),Gumel Garki (Jigawa)Tsohon B/Gwai Kuyelo (Kaduna), Haya (Jigawa)Ashaka, Gboko, Sokoto, Shagamu, etcAlangafe (Yobe)
Electronics and Optical Materials
QuartzMica
Isanlu-Esa, Lokoja (Kogi), Maye (FCT),Gumel Garki (Jigawa)Gungur, Mambyam (Plateau), Pandogari (Niger), B/Gwari (Kaduna) 28
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
INDUSTRIAL MINERALS & ROCKS
Market Sector Mineral Resources for Development
Locations (Not Exhaustive)
Filler and Extender Uses
Kaolin,
Limestone/ Dolomite/MarbleDiatomiteMica
Bentonite
Alkaleri (Bauchi), Kuba (Plateau), Kankara (Katsina)Ashaka, Gboko, Sokoto, Shagamu, Jakura (Kogi)
Alangafe (Yobe)Gungur, Mambyam (Plateau), Pandogari (Niger), B/Gwari (Kaduna)Damboa, Ngala (Borno)
Fine Ceramics Products
SandKaolin
FeldsparMarble/DolomiteTalc,
Karaye, Kazaure (Jigawa), Nsude (Anambra, etcAlkaleri (Bauchi), Kuba (Plateau), Kankara (Katsina)Gwoza (Borno), Lokoja (Kogi), Jibia (Katsina)Jakura (Kogi), Kwakuti (Niger), Ugya(Nasarawa)Isanlu (Kogi), Kagara (Niger) 29
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
INDUSTRIAL MINERALS & ROCKS
Market Sector Mineral Resources for Development
Locations (Not Exhaustive)
Metallurgical Uses
Iron Ore
Coal
Limestone
Bentonite
Galena /Sphalerite
Zircon
Itakpe, Kotonkarfe (Kogi), Jaruwa (Kaduna, Tama (Katsina), Lamba (Bauchi)
Enugu (Enugu), Maiganga (Gombe)
Ashaka, Gboko, Sokoto, Shagamu
Damboa, Ngala (Borno)
Gwana (Bauchi), Abakaliki (Ebonyi)
Mazat, Nsho, (Plateau), Jangoji (Bauchi), Gundu (Borno) 30
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
■ NIGERIA MINERAL PROSPECTIVITY• Availability of credible Geosciencetific data
geological/mineral maps on various scale• 100% coverage of high resolution airborne magnetic and
radiometric data gravity measurement in Niger Delta • Completed 6 Nos. GRN master cells-59 elements analysed.
Anomalous sites for Gold, Platinum , Uranium, rare earths indicated
• Local skilled Geoscientist and Engineers available
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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development
HONOURABLE MINISTER
MINISTRY OF MINES AND STEEL DEVELOPMENT
2 LUANDA CRESCENT
OFF ADETOKUNMO ADEMOLA CRESCENT
WUSE II, ABUJA
TEL: 09-5235830
FAX: 09-5236518
www.mmsd.gov.ng
www.miningcadastre.gov.ng
www.ngsa.ng.org
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