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MINISTRY OF MINES AND STEEL DEVELOPMENT, ABUJA, NIGERIA BY DIEZANI ALISON-MADUEKE (MRS.), HONOURABLE MINISTER OF MINES AND STEEL DEVELOPMENT. INVESTMENT.

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Presentation on theme: "MINISTRY OF MINES AND STEEL DEVELOPMENT, ABUJA, NIGERIA BY DIEZANI ALISON-MADUEKE (MRS.), HONOURABLE MINISTER OF MINES AND STEEL DEVELOPMENT. INVESTMENT."— Presentation transcript:

1 MINISTRY OF MINES AND STEEL DEVELOPMENT, ABUJA, NIGERIA BY DIEZANI ALISON-MADUEKE (MRS.), HONOURABLE MINISTER OF MINES AND STEEL DEVELOPMENT. INVESTMENT OPPORTUNITIES IN NIGERIAS MINERALS SECTOR

2 Nigeria - Where We Are Ministry of Mines and Steel Development, Abuja, Nigeria 2

3 So Background Information on Nigeria Ministry of Mines and Steel Development, Abuja, Nigeria 3 Official Language: English Major Languages: Hausa, Yoruba, Igbo, Fulani Population: 140 Million Currency: Naira N1.00 = 100kobo 1 USD = 145 NGN GDP: Approx. 135 billion USD Per – Capita Income: Approx. 493 USD (2005) Main Religions: Islam, Christianity and Indigenous religions Rail Network: 4660 km (standard/narrow gauges) Road Network: 195,000 km Major Ports: Lagos, Port Harcourt, Warri, Calabar, Onne and Sapele Major Airports: Abuja, Lagos, Kano, Port Harcourt, Enugu, Kaduna, Maiduguri, Yola, Calabar, Sokoto, Owerri, Jos, Ilorin.

4 Historical Mineral Production Ministry of Mines and Steel Development, Abuja, Nigeria Widespread Gold production. Worlds 6 th largest producer of Cassiterite (Tin Ore) Exporter of Coal. Major exporter of Columbite and Tantalite (Coltan). Substantial Wolfram and Lead/Zinc Sulphide production. 4

5 Reasons for the Decline of the Mining Industry in Nigeria Ministry of Mines and Steel Development, Abuja, Nigeria Oil Boom Inefficient State Operations Depleted Alluvial Reserves( Especially Tin) Collapse of commodity prices in the mid-1980s 5

6 Pre Mining Sector-Reform Period (2005) Ministry of Mines and Steel Development, Abuja, Nigeria Inadequate Geological Information & Data. The 1999 Minerals & Mining Act allowed for substantial subjectivity. Opaque Licensing Procedures Leading to speculative title holding. Prevalence of Illegal Mining Activities. Jurisdictional Conflicts between Federal and State Governments. 6

7 Mineral Sector Reform Strategy Ministry of Mines and Steel Development, Abuja, Nigeria Liberal & Transparent Access to Mining Titles Reorientation of Government from Owner- Operator to Administrator-Regulator Private Sector to be engine of Growth Institutional and Human Capacity building Strengthening Geological Data Generation 7

8 Nigerian Minerals and Mining Act, 2007 Ministry of Mines and Steel Development, Abuja, Nigeria Enacted in March, 2007 Based on international best practices Modeled after successful mining jurisdictions 8

9 Key Provisions of the New Mining Act Ministry of Mines and Steel Development, Abuja, Nigeria Security of tenure of titles/rights. Competition for mining titles/rights on first come, first served basis. Application of the principle of use it or lose it in mining title/rights administration. Use of time limits for granting titles. 9

10 Key Provisions of the New Mining Act – Cont. Ministry of Mines and Steel Development, Abuja, Nigeria Creation of a Mining Cadastre System in Mineral Title Administration. Introduction of Community Development Agreement, Environmental Protection and Mitigation Measures. Transferability of Mining Rights. 10

11 Improved Enabling Environment Ministry of Mines and Steel Development, Abuja, Nigeria Investment Friendly Policy and Legislation Security of Tenure Attractive Fiscal Regime Divestment by Government from Mining Activities to Open Additional Areas for Private Investors Internationally Competitive Mining Incentives (Enshrined in the Law) Availability of Quality Geo-science Data 11

12 Improved Enabling Environment – Cont. Ministry of Mines and Steel Development, Abuja, Nigeria Increased Support Mechanisms and Facilities (e.g. infrastructure and improved service delivery, etc,) Enhanced Institutional Capacity for Monitoring and Supervision, etc 12

13 Improved Enabling Environment – Cont. Ministry of Mines and Steel Development, Abuja, Nigeria A Robust and Liberalised Economy Minimal Public Debt Developing New and Rehabilitating Existing Railway Infrastructure Nationwide 13

14 EXPLORATION OPPORTUNITIES Ministry of Mines and Steel Development, Abuja, Nigeria

15 Main Primary Minerals Gold Tar sand (Bitumen) Coal Iron ores Columbite-tantalite Tin Ore, Wolframite Lead –Zinc Sulphides Industrial Minerals 15 Ministry of Mines and Steel Development, Abuja, Nigeria

16 Nigerias Seven Strategic Solid Minerals 1. Gold – Estimated minimum of 50,000 ounces each in at least 10 locations. 2. Tarsand/Bitumen – Estimated Resource: 27 billion barrels of oil equivalent. 3. Coal – Estimated Resource 2.7 billion tonnes. 4. Iron Ore – Estimated Resource at 3 billion tonnes. 5. Limestone – Estimated at 2.23 trillion tonnes. 6. Barytes – Estimated at 14 million tonnes. 7. Lead/Zinc Sulphides – Estimated at over 1million tonnes. 16 Ministry of Mines and Steel Development, Abuja, Nigeria

17 Minerals of Special Focus Gold Bitumen Iron Ore Coal 17 Ministry of Mines and Steel Development, Abuja, Nigeria

18 Mineral Map of Nigeria 18 Ministry of Mines and Steel Development, Abuja, Nigeria At least 50 minerals occur in more than 500 locations in Nigeria

19 Mineral Deposits of Nigeria 19 Ministry of Mines and Steel Development, Abuja, Nigeria

20 Gold in Nigeria Associated with the schist belts of the western half of Nigeria. Schist Belt in blue is similar to gold bearing rocks in Ghana 20 Ministry of Mines and Steel Development, Abuja, Nigeria

21 Gold in Nigeria – Contd. Gold in Nigeria is found in alluvial and eluvial placers and primary veins from several parts of supracrustal (schist) belts in the northwest and southwest of Nigeria. Ministry of Mines and Steel Development 21

22 INVESTMENT OPPORTUNITIES FOR GOLD Occurs in primary, alluvial or eluvial forms and can be found at: Okolom/Kogi State, with grades from g/ton Dogondaji/Kogi State with grade values from g/ ton Waya/Kebbi State, with grade values 0.4 g/ton to 11g/ton Iperindo/Osun State, as primary gold Recent drilling by CGA Mining former Central Asia Gold (CEO Michael Carrick) 3000 metres of coring has proved more than 300,000 ounces. 2 million ounces estimated. Other major occurrences in Ogun, Adamawa, Edo, Kwara, Niger, Kaduna and Zamfara states Ecopheoaix, Savanah Gold and others currently engaged in exploration 22 Ministry of Mines and Steel Development, Abuja, Nigeria

23 COLUMBITE-TANTALITE (COLTAN) In recent past, Nigeria has been the largest producer of Coltan in Africa. Artisanal mining activity. 23 Ministry of Mines and Steel Development, Abuja, Nigeria

24 COAL Discovery: 1909 Exploration/mining started in Mainly sub-bituminous and has been found in more than 22 locations, in central and eastern Nigeria. Some Coking Coal has also been found. Proven reserves of over 639 million tonnes with a further 2,750 million tonnes inferred. 24 Ministry of Mines and Steel Development, Abuja, Nigeria

25 COAL – Cont. Nigerian Coal Corporation properties being privatised. Several properties sold. Greenfield and brownfield areas available. 25 Ministry of Mines and Steel Development, Abuja, Nigeria

26 TAR SANDS (BITUMEN) First reported in 1900 and exploration began in Over 120 exploration wells were sunk to determine the quantity and quality. Estimated resource of about 27 billion barrels of oil equivalent. Blocks being sold through an open and competitive bidding process. 26 Ministry of Mines and Steel Development, Abuja, Nigeria

27 TAR SANDS (BITUMEN) – Cont. The Ministry to commence the bidding process for the allocation of Bitumen and Tarsand blocks. 27 Ministry of Mines and Steel Development, Abuja, Nigeria

28 PRIVATIZATION Divest government from mining operating interests Attract strong, credible players into the mining sector Several properties sold: Gold, Kaolin, Barytes, Coal 28 Ministry of Mines and Steel Development, Abuja, Nigeria

29 Airborne Geophysical Survey 29 Ministry of Mines and Steel Development, Abuja, Nigeria

30 Airborne Geophysical Survey – Cont. Phase (1) covering 44% of the country completed and processed. Magnetic and Radiometric Data available. Coverage of the rest of the country is ongoing. 30 Ministry of Mines and Steel Development, Abuja, Nigeria

31 Specific Exploration of Mineral Targets Airborne geophysical surveys and other surveys have indicated the occurrence of mineralized zones in several parts of the country. Nigerian Geological Survey Agency (NGSA) is carrying out further exploration of mineral targets. 31 Ministry of Mines and Steel Development, Abuja, Nigeria

32 Thank you for your attention.


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