Nigeria - JuniorIndaba...NEC Presentation_032116_v1. Nigeria has 44 known mineral types of which certain assets have important regional concentrations. ... Tourmaline, Sapphire, Emarald,

NEC Presentation_032116_v1

FEDERAL REPUBLIC OF NIGERIA

MINISTRY OF SOLID MINERALS DEVELOPMENT

Nigeria:the land of new mining opportunities

DR. KAYODE FAYEMI CONMINISTER

@ Junior Mining Indaba, S. AfricaJune, 2016

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Ministry of Mines and Steel DevelopmentMinistry of Solid Minerals Development


OUTLINE Country Profile & Mining antecedentsGeology & Mineral Resources of Nigeria Mining ReformsMining Projects & Success Storiesnew Road Map

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Total Area: 923,768 m2Coastline: 853 kmAbout 250 linguistic groupsPopulation: 160 MillionCurrency: Naira1 USD = 200 NGN GDP: Approx. 500 billion USD (2014)Oil revenue main stay of economy

Mining AntecedentsMajor player in tin mining6th largest producer of Columbite Coal production for power plant & locomotives 7-12% of GDP

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SCHIST BELTS

MIGMATITE-GNEISS COMPLEX

OLDER GRANITESTRANSCURRENT

FAULTS

Fig. 8 THE NIGERIAN BASEMENT COMLEX AND THE MESOZOIC TO RECENT SEDIMENTS

Yor text here

The Basement Complex: A polycyclic metamorphic

Migmatite-gneiss complex (withquartzites, amphibolites and calcareousrocks), with ages ranging from Liberianto Pan-African

The Metasedimentary / meta-volcanics (of mostly phyllites, schists,quartzites, amphibolites and banded ironformations)

The Granitic intrusions (OlderGranites rocks) which intruded both themigmatite-gneiss complex and the schistbelts.

Younger Granite ring complexes ofJurassic age containing cassiterite andcolumbite. Seven (7) sedimentary Bsains; NigerDelta, Benin (Dahomey),Bida, Benue,Anambra, Chad ,Sokoto.

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Sn, Nb, TaAu, Ta

Pb, Zn, Ba

• From North-West to South West

• Associated with Au, Nb-Ta wolframite and Gemstone mineralisation.

SchistsNorth-west, North-

Central, South-West, zones and South-Eastern to North –Eastern axis

• Sn, Ta, W• Gemstone

Granitic Rocks

• Benue Valley South Eastern, North Central and North-Eastern Flank

• Associated with Pb, Zn, Ag, Co, Ba, Cu

Old Sed. rocks

1. Coal – Estimated 2.7 billion tonnes2. Bitumen – About 27 billion barrels of oil

equivalent3. Iron Ore –10 billion tonnes4. Limestone – about 3 trillion tonnes5. Barytes – 15 million tonnes6. Gold – inferred reserves of 200million

ounces located along the schist belt7. Lead/Zinc

8. –

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Nigeria has 44 known mineral types of which certain assets have important regional concentrations

Legend

Iron ore

Coal ore

Gold ore

Barite

Lead/Zinc ore

Bitumen

Limestone

Abuja

Enugu

Akwa Ibom

Adamawa

Abia

Bauchi

Bayelsa

Benue

Borno

Cross River

Delta

Ebonyi Edo

Ekiti

Gombe

Imo

Jigawa

Kaduna

Kano

Katsina

Kebbi

Kogi

Kwara

Nasarawa

Niger

Ogun Ondo

Osun

Oyo

Plateau

Rivers

Sokoto

Taraba

Yobe Zamfara

AnambraApapa Port

LagosIbese

High value gold reserves

concentrated in the central and northern

belts

Mid-grade to high grade iron ore in

Kogi axis

Billions of barrels of bitumen in

Ondo/ Niger Delta belt

High quality coal reserves in

Enugu-Benue-Kogi axis

North EastReconstruction of Mining Initiative– Precious Metals

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GOLD■ – Lodes – primary intrusive rocks Associated with sulphides and non-ferrousand related minerals chalcopyrite,

arsenopyrite, pyrite, antimonite. ■ Placers – Aluvium sands gravelsconglomerates■ Location – Schist belts: Anka,Wonaka, Zuru, Birni Gwari, Ife-Ilesha

■ There is evidence to suggest that both the gold and pegmatite-hosted rare-metal mineralization in the Nigerian basement is constrained in time and space by late Pan African tectonics, associated essentially with the development of transcurrent fault conjugate system

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Lead/Zinc• Occurs mainly in the Benue Trough• Lead/Zinc mineralization is often associated with

minor/significant amount of copper/silver/gold/quartz/barites.

Barytes• Occurs in Nigeria as vein infilling materials associated with

lead/zinc lodes and veins in both Precambrian basementand Cretaceous sedimentary rocks.

• SG ranging from 3.5 – 4.4.

Iron Ore• Occurs in Nigeria as Banded Iron Formation(BIF) and the cretaceous sedimentary, Ooliticiron deposits BIF occurs in Itakpe, Ajabanoko,Ochokochoko, Birnin Gwari, Kaura Namuda,Isanlu and Ogbomoso areas.

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Iron Ore

• Oolitic iron deposits occurs in Agbaja, Koton-karfi, Nsuddeand Enugu State.

• BIF has estimated resource of 402 million MT, while Oolitichas 3,705,000 MT of estimated resources.

Limestone• Occurs in commercial quantities in Benue, Cross River, Edo,

Kogi, Gombe, Ebonyi, Ogun, Jigawa and Sokoto States.• Estimated resource of 2.3 trillion tons and proven reserve of

568 millon tons.Dangote has become a huge success story!

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GemstonesTourmaline, Sapphire, Emarald, Garnet, Topaz, Amethyst, etcUsed in jewelry making

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- Ondo Zaria Red African Multi Color

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2.5 m line km of airborne data @ 80m spacing and 500m spacing

Mag., rad.,EM., Grav

Ternary Radiometric Map of Nigeria Magnetic Intensity Map of Nigeria

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Ilesha

ISANLU

PATEGI

LAFIAGI

Ado-Ekiti

Share

Ikole

Osi

Ilorin

N

Built-Up AreaRoad

NGSA GEOCHEMICAL MAPPING PRON06E04, SW Nigeria (2009)

Projection: GeographicDatum: Minna

Au (ppb)Soil Geochemistry

20 0 20 40 Kilometers

7°30

' 7°30'

8°00

' 8°00'

8°30

' 8°30'

9°00

' 9°00'

5°00'

5°00'

5°30'

5°30'

Gold (ppb)0 - 0.6660.666 - 1.3321.332 - 1.9971.997 - 2.6632.663 - 3.3293.329 - 3.9953.995 - 4.6614.661 - 5.3275.327 - 5.992

S/No

Mineral commodity

Location

State

1 Iron Ore Kabba Kogi

2 Limestone, gypsum and phosphate

Gandi Sokoto

3 Iron Ore, tantalite

Mayo Daga

Taraba

4 Manganese Kaoje Kebbi

5 Tantalite Katakwa Kogi

6 Cassiterite TafawaBalewa

Bauchi

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Exploration data

Areas with concentration greater than 20 ppm. Gravity data

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Mining sector ReformsGovernment reforms as an administrator-regulator,Private sector as owner-operator.Key elements of the reformist platform include but not limited to;•Development of the Nigerian Minerals and Mining Act, 2007•Development of the National Minerals and Metals Policy, 2008•Development of the Nigerian Minerals and Mining Regulations, 2011•Establishment of the Mining Cadastre Office (MCO) for mineral rights management•Establishment of the Nigerian Institute of Mining and Geosciences (NIMG)•Establishment of control departments for Mines Environmental Compliance (MEC) and Artisanal and Small Scale Mining (ASM)

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MINING INCENTIVESWaiver of customs and import duties for plant,

machinery and equipment imported for mining operations

Three to five years’ tax holiday as applicable;Free transferability of funds and Permission to

retain and use earned foreign exchangeCompetitive Tax RateCapital allowances of up to 95% of qualifying capital

expenditureDeductibility of Environmental Costs 100% ownership

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Mineral Tiles are administered by the Nigerian Mining Cadastre office based on the principles of:

“First Come – First Served” “Use it” or “Lose it” 6 Types of Mineral Titles on Offer:

MINERAL TITLE ADMINISTRATION

Type Lifespan Renewals in line with the law

Reconnaissance Permit Non-Exclusive with 1 Yr Lifespan Every Yr

Exploration Licence Exclusive with 3Yr Lifespan Twice for 2Yr lifespan eachMining Lease Exclusive with 25Yr lifespan Unlimited after every 24YrsSmall Scale Mining Lease Exclusive with 5Yr lifespan Unlimited renewals

Quarry Lease Exclusive with 5Yr lifespan UnlimitedWater Use Permit Samelifespan as the Mineral Title

for which use it was applied forSame as the Mineral Title for which use it was applied for

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HOW TO ACQUIRE MINERAL TITLES■ Mineral Titles can be acquired through: Application to Nigeria Mining Cadastre Office by

completing suitable application forms downloadable from MCO website - www.miningcadastre.gov.ng

or collected from MCO,s office; Through competitive bidding for an area

earmarked for competitive bidding in line with Section 9 of the Nigerian Minerals and Mining Act, 2007; and

Partnership with existing mineral title holders or outright acquisition.

■ Guidelines for completing the Mineral Title Applications are also downloadable from the MCO website.

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Mining ProjectsBitumenExtensive seepages define narrow band about 5.8km wide and 120km long. Estimated resource is 27 billion barrels More than 100 boreholes drilled

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PhysicalBitumen Content Average 12w%API Gravity 14.6 to 5.3 ,Avg. 9.4Specific Gravity 0/204 to 1.837; Avg.0.968Breaking point ( after fraas) 100CDrip point ( after Ubbelohde) 580CFlash point 860FPour point 200FSoftening point 470FPenetration point 80 to 100Chemical

ChemicalSaturate 22 - 24%Aromatic 12 – 19%Resins 1 & ii 39 – 44%Asphaltene 9 – 18 %Naphta (a) Olefins and Aromatic 90%

(b) Parafins and NaphtheneTotal acid number 6.3, 9.6Trace Metals – 33 – 3ppmVanadium 25 – 28ppmSulphur 1.3%Mol Wt 558667Calorific value 43,00Kj/Kg•Higher sand porosity•Low content of clays and fines•Less lean tar sands•Higher bitumen content•Absence of interstitial pressure•Less basal gas

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Mining ProjectsCoalThe Fed. Govt. Plans to add coal to her energy mixCoal production peaked at 905,397 t/yrwith estimated resource of more than2.7 billion tons.

Coal blocks with varying degrees of geodata available

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Rail lines

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Mining ProjectsGold

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Success Stories

KCM Mining Limited 758 holes of Reverse Circulation and Diamond

1.8-3.0 billion tonnes of iron ore inferred reserve is estimated. Out of this, 586 million tonnes confirmed by Australian JORC standard.

Royal Salt Limited Confirmed 4,114,150mt of Lead & Zinc

Western Metal Products Company Limited

88.17million tonnes of Coal reserve has been confirmed.

Savannah Gold Limited About 1m oz

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The new Roadmap will build on investing in 8 key enablers;

Integrated strategic plan, pro-actively communicated

Investor-friendly regulatory environment

Partnership approach to stakeholders & communities (including artisanal miners)

Broadly available geosciences data

Coordinated infrastructure investments

Collaborative Investment funding

Institutional reforms to enhance regulatory capacity

Leveraging mining growth as a development catalyst

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8Source: Ministry of Solid Minerals Development

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Priorities to our emerging National Mining and Minerals Processing strategy:

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DEVELOP INDUSTRIAL MINERALS TO SUPPORT IMPORT SUBSTITUTION AND MANUFACTURING E.G. BARYTES, KAOLIN, TALC, MARBLE AND BENTONITE

BRIDGE THE POWER SUPPLY GAP THROUGH INVESTMENTS IN COAL-FIRED, BASE LOAD, LOW

COST POWER PLANTS

INVEST IN BENEFICIATION INITIATIVES ALONGSIDE PRIVATE SECTOR E.G. GEMSTONES AND GOLD

INVEST IN TRANSFORMING MINING AND MINERAL PROCESSING INTO A KEY GROWTH SECTOR E.G.

BUILD ON LIMESTONE/CEMENT / DANGOTE STORY

1 2

3 4

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1,134M

396M

0.04M

1M

2,750M

Note: For total and proven reserves the lower and the upper estimates have been shown, Production data latest available for 2012 from USGSSource: Lit search, Ministry of Solid Minerals Development

Significant growth potential can be unlocked by accessing and smartly leveraging Nigeria’s vast mineral reserves

Limestone

In metric tonnes

639M

10.0M

5.0M

0.6M

In metric tonnes

10,000M

3,000M

0.07M

In metric tonnes

200M

0.6M

0.14M

In ounces

Total Reserve Proven Reserves Production

In barrels

27,000M

1,100M

15M

0.1M0.02M

In metric tonnes In metric tonnes

2,300,000M

568M

11M

BaritesBitumen

Coal Lead/Zinc Iron Ore Gold

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We can contribute to bridging the power supply gap through investments in coal-powered

turbines

• The capital intensive nature of developing a gas supply network across the country makes coal-powered plants a viable alternative

Solid minerals will boost internal revenue and generate

foreign exchange

• At a projected Bitumen production target of 14 million tons per annum by 2020, potential revenues are approximately $6.5 billion1

By substituting imports, we can save billions in foreign

exchange

• Bitumen: About N5 billion was spent on asphalt imports in 20142.Huge domestic market with just about 60,000km of paved roads of its over 194,000 km road network3

• Iron ore / Steel: Realisation of our Housing development plan will boost internal consumption of iron ore and steel

We can create jobs and reduce unemployment

• Increased employment of Nigerians, particularly in the rural areas where the minerals are found

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OPPORTUNITIES EXAMPLES

Source: 1) Argus Africa Bitumen 2014 Report; 2) UN Comtrade; 3) Adam Smith International, Destination Nigeria Report Note: N 1 = US$ 240

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ConclusionTowards a New Paradigm in Natural Resource ManagementEnvironment itself is a resource and has to be safeguarded even as we unearth its more obvious treasures. Our goal is to provide a better deal for the local communities where these minerals are located, ensuring communal buy-in and benefit. Transparency is also a key consideration in how the mining industry will be run. We intend to foster a culture of openness which will, in turn, engender trust between all stakeholders We are committed to Open Governance and Transparency in the extractives industr.

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Thanks for Listening

Documents

Nigeria - JuniorIndaba...NEC Presentation_032116_v1. Nigeria has 44 known mineral types of which certain assets have important regional concentrations. ... Tourmaline, Sapphire, Emarald,