1 Ministry of Mines and Steel Development MINISTRY OF MINES AND STEEL DEVELOPMENT, NIGERIA A PRESENTATION AT MINE AFRICA, PDAC 2011 BY ARC. MUSA MOHAMMED

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Ministry of Mines and Steel DevelopmentMINISTRY OF MINES AND STEEL DEVELOPMENT, NIGERIAMINISTRY OF MINES AND STEEL DEVELOPMENT, NIGERIA

A PRESENTATION AT MINE AFRICA, PDAC 2011

BYARC. MUSA MOHAMMED SADA, fnia

HON. MINISTER OF MINES AND STEEL DEVELOPMENT, NIGERIA

NIGERIA: A PREFERRED DESTINATION FOR MINING INVESTMENT

8 MARCH, 2011

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Ministry of Mines and Steel DevelopmentMINISTRY OF MINES AND STEEL DEVELOPMENT, NIGERIA

Nigeria currently known as an oil rich country Before oil discovery, Nigeria had a glorious mining

history Produced and exported Tin, Columbite, Coal,

Tantalite, Gold etc Mining neglected with the discovery of oil Now Nigeria is determined to diversify the economy

away from oil Minerals sector holds the key to the success of the

diversification strategy NIGERIA IS COMMITTED TO DEVELOP MINING

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Robust Reform Programme commenced in 2005 Strongly supported by the World Bank A National Policy on Mining with clear direction

for future growth is concluded Thrust of the policy ensures private sector as

main engine of growth for the sector Government now a regulator-administrator,

creating conducive environment for growth Government mining enterprises privatised.

THE REFORM AGENDA

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Regulatory Framework

Institutional Capacity Building

Generation of Reliable Data

Sustainable Mining (Environmental and Social Framework)

ADOPTED TRANSFORMATION PATHS FOR GROWTH

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MINERALS AND MINING ACT 2007 The Nigerian Minerals and Mining Act 2007 enacted. The

key elements of the Act are: Access to mineral title open to all investors, big or small, foreign or local

on a level and equitable playing field, and on first come, first served basis

Guaranteed security of tenure and transferability of mineral rights. The application of “Use it or lose it” principle in Mineral title

administration. Provision for sound environmental control and Community Development

agreements. Involvement of other stakeholders through the creation of States.

Mineral resources and Environmental management committees to facilitate access to land.

REGULATORY FRAMEWORK

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MINING CADASTRE OFFICE A well organised, uniform, interactive cadastre system

has been created The Agency is autonomous with sole responsibility for

the grant and administration of titles Non-discretionary and respect for “first come first

served” Has exclusive authority and jurisdiction over the whole of

Nigeria

INSTITUTIONAL CREATION AND STRENGTHENING

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INSTITUTIONAL CREATION AND STRENGHTENING

NIGERIAN GEOLOGICAL SURVEY AGENCY (NGSA)

■ Created to generate and disseminate credible geoscientific data of Nigeria including;■ Geological/mineral maps on various scales■ Airborne geophysical data■ 59 elements Geochemical data.■ Published geological bulletins, Reports,■ Occasional Papers and minerals occurrences database■ Hydro/Engineering geological maps of cities.

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THE NIGERIAN INSTITUTE OF MINING AND GEOSCIENCE (NIMG) The Institute is set up to provide manpower training and

institutional capacity building for the mining sector Conducts focused, need-driven research in mining and

geosciences and provides practical laboratory and field exposures to university professors and postgraduate students

Offers postgraduate diploma courses in Mining Engineering, Mineral Engineering and Mineral Exploration

INSTITUTIONAL CREATION AND STRENGTHENING

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AIRBORNE GEOPHYSICAL SURVEY

100% coverage of high resolution airborne magnetic and Radiometric data.

Made up of 2,001,705 line kilometers of magnetic and radiometric data, limited Electromagnetic.

Gravity measurements in Niger Delta Region

AVAILABILITY OF RELIABLE DATA

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FLIGHT PARAMETERS

Flight parameters targeted at mineral exploration. Flight height of 80 meters (mean Terrain Clearance) Traverse line spacing of 500 meters In Niger Delta flight direction was across the major

structural trends


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INTERPRETATION PRODUCTS

Mineral prospectivity Digital interpretation maps of entire country on 1;250,000

scale (geology & geophysics) Major structures hosting minerals Depth to magnetic basement with discussions. Mega structures in the Niger Delta with depths/thickness

of basins in aid of Oil/Gas explorations.


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OUTPUT; INTERPRETED GEOLOGICAL MAP OF NIGERIA

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■ Completed 6nos. GRN master cells with the British Geological Survey supervision.

■ Coverage at 1 sample/20sq km sampling density■ 59 elements analysis including precious and base metals.■ Rare earth metals like lanthanum, Cerium, Neodymin and

Yttrium.■ Anomalous sites for gold, platinum, Thoruim, and ore earch

metals indicated.■ Anomalous sites for gold, Platinum, Uranuim thoruim and

Rare Earth metals indicated.

GEOCHEMICAL MAPPING

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Sectoral Environmental & Social Assessment (SESA)has been concluded

Environmental Guidelines adequately covered in draft mining regulations

Extensive capacity building amongst other Government agencies responsible for environmental & social regulations in Nigeria.

Mineral resources & environmental management committee (MIREMCO) established in 36 states to assist operators in environmental management & community relations.

Development Credit Agreement being adopted for community development agreement in mining.

The Department of Artisanal & Small Scale Mining (ASM) was created in the Ministry to organize the artisanal & small scale miners & promote conducive environment for operators.

Environmental and Social Framework

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Nigeria has favourable conditions for exploration Reliable geological data in digital format Developed infrastructure – good road network;

very good communication system etc Local skilled geoscientist and engineers

available Friendly people

EXPLORATION OPPORTUNITIES IN NIGERIA

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Nigeria known for informal gold mining and trade in the 18th century

Gold now 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 CGA has a proven gold reserve of over 600,000 ounces in their Eperindo property in Osun state

GOLD

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Lead-Zinc mineralization is located along Northeast – Southwest belt

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

LEAD/ZINC

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Two broad types of Iron Ore in Nigeria

Banded Iron formations in folded bands in the precambrian rocks e.g. Itakpe, Tajimi

Sedimentary (oolitic) Iron deposits

General Fe concentration is 35 – 50%

Itakpe Iron ore deposit currently mined and processed for the Ajaokuta Steel Mill

Several Iron finds in northwest and northeast

IRON ORE

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Huge reserves of oil sands in Nigeria

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

OIL SANDS

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Taraba

Bauchi

Kogi

Kwara

Benue

Edo

Adamawa

Delta

PlateauNasarawa

Ondo

Imo

EnuguAnambra

Locations of Coal and Lignite in Nigeria

Coal/Lignite bearing States

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

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GEMSTONE

■ Nigeria is endowed with many varieties of coloured gemstones.

■ Six types identified for commercial development:

■ Aquamarine■ Tourmaline■ Emerald■ Sapphire■ Garnet■ Ruby

Other gems of less value occur in abundance;

Topaz Amethyst Floride Zircon Morganite Iolite Kunzite

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DIMENSION STONES■ Nigeria has vast deposits of colorful granites and marbles

■ Baseline study concluded

■ Development plan approved by Mr. President

■ Sensitisation of available Dimension Stones to professionals, operators etc.

■ Training of operators on quarrying and processing of Dimension Stones

■ Establishment of a Standard Testing Laboratory for Dimension Stones

DEVELOPMENT OF SPECIFIC MINERALS

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WELCOME TO NIGERIA

THE PREFERRED DESTINATION FOR MINING INVESTMENT

THANK YOU

Documents

1 Ministry of Mines and Steel Development MINISTRY OF MINES AND STEEL DEVELOPMENT, NIGERIA A PRESENTATION AT MINE AFRICA, PDAC 2011 BY ARC. MUSA MOHAMMED