0. 2nd NIGERIAN INTERNATIONAL INVESTMENT FORUM
FEDERAL REPUBLIC OF NIGERIA
A PRESENTATION TO
2nd NIGERIAN INTERNATIONAL INVESTMENT FORUM ON
MINING AND MINERALS- NIGERIA’S ABUNDANCE OF UNTAPPED RESOURCES BY
Arc. Musa Mohammed Sada, fnia, fnmgs
Hon. Minister of Mines & Steel Development
October, 2012

1. 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. 1

2. YEAR
PRODUCTION
1916
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 2

3. 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. 3

4. OUTCOME OF SECTOR NEGLET
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 4

5. GOVERNMENT STRONG NEED TO REVAMP THE SECTOR
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 5

6. 6 Moving towards Investor-Led Mining Sector Growth:
What investors want 6

7. ADOPTED TRANSFORMATION PATHS FOR GROWTH
Regulatory Framework
Institutional Capacity Building
Generation of Reliable Data
Sustainable Mining Environmental and Social Framework 7

8. 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)
AIRBORNE GEOPHYSICAL SURVEY COVERAGE MAP 8

9. Availability of indigenous professionals and technical manpower
Available basic infrastructure to support mining operations
National Rail Network 9

10. Attractive investment incentives
Capital allowances up to 95% of qualifying capital expenditure
Waiver of customs and import duties for plant, machinery and equipment imported for mining operations
Three to five years’ tax holiday as applicable; and
Free transferability of funds and Permission to retain and use earned foreign exchange
Deductibility of Environmental Costs
Annual Capital Cost indexation
Ease of entry into the country 10

11. 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 11

12. World Class Minerals for Immediate Development
Uses
Coal (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 steel
Limestone (About 3tt)
A major component in cement manufacture and steel making
Barytes (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 12

13. 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

14. 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.
Tiger Yellow- Ondo
Zebra - Ondo
Zaria Red
African Multi Color 14

15. PROJECTS 15

16. 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 16

17. Iron Ore Projects 17 Deposit Location Reserves (Mil. t) Itakpe
Itakpe, Kogi State
310
Ajabanoko
Ajabanoko, Kogi State 62
Agbado-Okudu
Agbado-Okudu, Kogi State 60
Chokochoko
Chokochoko, Kogi State
Agbaja
Agbaja, Kogi State
1,150
Kotonkarfe
Kotonkarfe, Kogi State
850
Tajimi
Tajimi, Kogi State 20
Ebiya
Ebiya, Kogi state 10
Gidan Jaja
Gidan Jaja, Zamfara State
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

18. COAL RESOURCES OF NIGERIA
Coal & Lignite bearing States
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 T a r b B u c h i K o g w e n E d A m D l t P N s O I 18

19. SOME COAL PROJECTS 19 Deposit Location Reserves Obi -Lafia Coal
Obi, Obi LGA, Nasarawa State
128.3 million tonnes
Lamza-Chikila Coal
Lamza, Guyuk LGA, Adamawa
State
Not determined
Maiganga Coal
Maiganga, Akko LGA, Gombe
760 million tonnes (inferred) 19

20. GOLD 20 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 20

21. GOLD PROJECTS
State
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 Malele
Au = 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 mineralization
reaching 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 indicating
between 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

22. 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

23. 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

24. 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
Map of Nigeria showing Gemstone Mineralization 24

25. 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
Bauchi Green
Juparana Nigeria
Ikara Yellow
Elegance
Nassarawa Rose Marble
Miero Black Marble 25

26. INDUSTRIAL MINERALS & ROCKS
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
Various
Shagamu, Egbese, Ashaka, Gboko, etc
Obudu, Bauchi, Jibia, Ilorin, etc 26

27. 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, etc
Kwakuti (Niger), Jakura (Kogi), Ugya (Nasarawa)
Nafada (Gombe), Fika (Yobe)
Chemicals
Rock Salt
Limestone
Magnesite
Anhydrite
Kaseyo (Benue),
Nafada (Gombe), Fika, (Yobe) 27

28. INDUSTRIAL MINERALS & ROCKS
Market Sector
Mineral Resources for Development
Locations (Not Exhaustive)
Well Drilling Materials
Barite
Bentonite
Mica,
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, etc
Alangafe (Yobe)
Electronics and Optical Materials
Quartz
Mica
Gungur, Mambyam (Plateau), Pandogari (Niger), B/Gwari (Kaduna) 28

29. INDUSTRIAL MINERALS & ROCKS
Market Sector
Mineral Resources for Development
Locations (Not Exhaustive)
Filler and Extender Uses
Kaolin,
Limestone/ Dolomite/Marble
Diatomite
Mica
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
Sand
Kaolin
Feldspar
Marble/Dolomite
Talc,
Karaye, Kazaure (Jigawa), Nsude (Anambra, etc
Gwoza (Borno), Lokoja (Kogi), Jibia (Katsina)
Jakura (Kogi), Kwakuti (Niger), Ugya(Nasarawa)
Isanlu (Kogi), Kagara (Niger) 29

30. 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

31. 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 31

32. HONOURABLE MINISTER MINISTRY OF MINES AND STEEL DEVELOPMENT 2 LUANDA CRESCENT OFF ADETOKUNMO ADEMOLA CRESCENT WUSE II, ABUJA TEL: FAX: 32