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0 Ministry of Mines and Steel Development FEDERAL REPUBLIC OF NIGERIA 2 nd NIGERIAN INTERNATIONAL INVESTMENT FORUM A PRESENTATION TO Arc. Musa Mohammed.

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Presentation on theme: "0 Ministry of Mines and Steel Development FEDERAL REPUBLIC OF NIGERIA 2 nd NIGERIAN INTERNATIONAL INVESTMENT FORUM A PRESENTATION TO Arc. Musa Mohammed."— Presentation transcript:

1 0 Ministry of Mines and Steel Development FEDERAL REPUBLIC OF NIGERIA 2 nd NIGERIAN INTERNATIONAL INVESTMENT FORUM A PRESENTATION TO Arc. Musa Mohammed Sada, fnia, fnmgs Hon. Minister of Mines & Steel Development October, 2012 ON MINING AND MINERALS- NIGERIAS ABUNDANCE OF UNTAPPED RESOURCES BY

2 1 Ministry 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. 1

3 2 Ministry of Mines and Steel Development YEARPRODUCTION , , , , , , , , , , , , , , , , , , , ,771 2

4 3 Ministry 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. 3

5 4 Ministry of Mines and Steel Development OUTCOME OF SECTOR NEGLET 4 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

6 5 Ministry of Mines and Steel Development GOVERNMENT STRONG NEED TO REVAMP THE SECTOR 5 Governments 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 sectors 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

7 6 Ministry of Mines and Steel Development Moving towards Investor-Led Mining Sector Growth: What investors want 6

8 7 Ministry of Mines and Steel Development ADOPTED TRANSFORMATION PATHS FOR GROWTH 7 Regulatory Framework Institutional Capacity Building Generation of Reliable Data Sustainable Mining Environmental and Social Framework

9 8 Ministry 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) 8 AIRBORNE GEOPHYSICAL SURVEY COVERAGE MAP

10 9 Ministry of Mines and Steel Development Availability of indigenous professionals and technical manpower Available basic infrastructure to support mining operations National Rail Network 9

11 10 Ministry of Mines and Steel Development Attractive investment incentives o Capital allowances up to 95% of qualifying capital expenditure o 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 exchange o Deductibility of Environmental Costs o Annual Capital Cost indexation o Ease of entry into the country 10

12 11 Ministry of Mines and Steel Development NIGERIAS 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

13 12 Ministry of Mines and Steel Development World Class Minerals for Immediate Development MineralsUses 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

14 13 Ministry of Mines and Steel Development JOB CREATION MINERALS AND ROCKS FOR DEVELOPMENT Minerals / RocksUses TalcUsed in the manufacture of medical and cosmetic products, ceramics / refractory products, paper and rubber products, etc. KaolinUsed 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 SandUsed as construction material and for glass production ClayUsed to produce ceramics and bricks 13

15 14 Ministry of Mines and Steel Development GEMSTONES AND DIMENSION STONES FOR THE DEVELOPMENT OF SMEs Mineral TypeExamplesUses GemstonesTourmaline, 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- Ondo Zaria Red African Multi Color 14

16 15 Ministry of Mines and Steel Development PROJECTS 15

17 16 Ministry 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 16

18 17 Ministry of Mines and Steel Development Iron Ore Projects DepositLocationReserves (Mil. t) ItakpeItakpe, Kogi State310 AjabanokoAjabanoko, Kogi State62 Agbado-OkuduAgbado-Okudu, Kogi State60 ChokochokoChokochoko, Kogi State60 AgbajaAgbaja, Kogi State1,150 KotonkarfeKotonkarfe, Kogi State850 TajimiTajimi, Kogi State20 EbiyaEbiya, Kogi state10 Gidan JajaGidan Jaja, Zamfara State20 Jaruwa Jaruwa village, Kaduna State >60 (Preliminary Estimates) Lamba Lamba village,Bauchi State >60 (resource) Gidan BuzuGidan Buzu, Yobe State>65(resource) GyazaGyaza, Katsina State>40(resource)) 17

19 18 Ministry 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 18

20 19 Ministry of Mines and Steel Development SOME COAL PROJECTS DepositLocationReserves Obi -Lafia Coal Obi, Obi LGA, Nasarawa State million tonnes Lamza- Chikila Coal Lamza, Guyuk LGA, Adamawa State Not determined Maiganga Coal Maiganga, Akko LGA, Gombe State 760 million tonnes (inferred) 19

21 20 Ministry 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 20

22 21 Ministry of Mines and Steel Development GOLD PROJECTS StateLocationMineralizationGrade ZamfaraMaru 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 KadunaTsohon 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 KebbiBin-YauriIn 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

23 22 Ministry 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

24 23 Ministry 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

25 24 Ministry 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 24 Map of Nigeria showing Gemstone Mineralization

26 25 Ministry 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 25 Bauchi Green Juparana Nigeria Ikara Yellow Elegance Miero Black Marble Nassarawa Rose Marble

27 26 Ministry 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 SectorMineral Resources for Development Locations (Not Exhaustive) Filters, Adsorbents and Dessiccants Diatomite, Sand & Gravel Alangafe (Yobe State) Jigawa, Bauchi, Gombe, Onitsha, etc AbrasivesQuartz,Quartz- Lokoja, Kogi State Construction UsesStone Aggregate, Limestone Sand, Dimension Stone Various Shagamu, Egbese, Ashaka, Gboko, etc Jigawa, Bauchi, Gombe, Onitsha, etc Obudu, Bauchi, Jibia, Ilorin, etc 26 INDUSTRIAL MINERALS & ROCKS

28 27 Ministry of Mines and Steel Development INDUSTRIAL MINERALS & ROCKS Market SectorMineral Resources for Development Locations (Not Exhaustive) Agricultural UsesPhosphate 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) ChemicalsRock Salt Limestone Magnesite Anhydrite Kaseyo (Benue), Shagamu, Egbese, Ashaka, Gboko, etc Tsakasimta (Adamawa) Nafada (Gombe), Fika, (Yobe) 27

29 28 Ministry of Mines and Steel Development INDUSTRIAL MINERALS & ROCKS Market SectorMineral Resources for Development Locations (Not Exhaustive) Well Drilling MaterialsBarite 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 Isanlu-Esa, Lokoja (Kogi), Maye (FCT),Gumel Garki (Jigawa) Gungur, Mambyam (Plateau), Pandogari (Niger), B/Gwari (Kaduna) 28

30 29 Ministry of Mines and Steel Development INDUSTRIAL MINERALS & ROCKS Market SectorMineral 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 Alkaleri (Bauchi), Kuba (Plateau), Kankara (Katsina) Gwoza (Borno), Lokoja (Kogi), Jibia (Katsina) Jakura (Kogi), Kwakuti (Niger), Ugya(Nasarawa) Isanlu (Kogi), Kagara (Niger) 29

31 30 Ministry of Mines and Steel Development INDUSTRIAL MINERALS & ROCKS Market SectorMineral 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

32 31 Ministry 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 31

33 32 Ministry of Mines and Steel Development HONOURABLE MINISTER MINISTRY OF MINES AND STEEL DEVELOPMENT 2 LUANDA CRESCENT OFF ADETOKUNMO ADEMOLA CRESCENT WUSE II, ABUJA TEL: FAX:


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