Economic Transformation Blueprint - PDF Room
Economic Transformation Blueprint - PDF Room
Economic Transformation Blueprint - PDF Room
July, 2009
TABLE OF CONTENT
LIST OF TABLES..................................................................................................................................................... 3
EXECUTIVE SUMMARY........................................................................................................................................ 4
LIST OF FIGURES
Figure 1-1: Sectoral Contribution to GDP – Solid Minerals (1958 – 2008) _______________________________14
Figure 2-1 - An overview of the solid mineral resources distribution map of Nigeria________________________19
Figure 2-2 – Current Structure of the Minerals & Metals Sector _______________________________________31
Figure 2-4 – Funding requirements and sources of funding in mineral exploration (Source: NGSA)____________39
Figure 2-5 – Estimated amount of iron & steel requirements currently met by the local market (Source: Working
Group Analysis) _____________________________________________________________________________41
Figure 2-6 - Estimated percentage of importation for products for which mineral raw materials are locally available
(Source: Working Group Analysis)_______________________________________________________________43
Figure 3-1 - Estimated Total Worldwide Exploration Budgets, 1990-2006 (US$ billions) Source: Metal Economics
Group _____________________________________________________________________________________49
Figure 3-2 – Worldwide Exploration Budgets by Company Type, 1997-2006 (as a percentage of worldwide
exploration) Source: Metals Economics Group _____________________________________________________50
Figure 3-3 - Distribution of global exploration expenditure by geographical region (2006) Source: Metals
Economics Group ____________________________________________________________________________51
Figure 3-5 - Strategic framework for Minerals and Metals Sector 2020 __________________________________58
This blueprint outlines the path towards the rapid transformation of the minerals and metals
sector, its emergence as a strategic catalyst of growth for the Nigerian economy, and its return
to global relevance in the production of minerals and metals in a stable and sustainable manner.
The overarching strategy for realizing this vision is anchored upon five strategic thrusts (“pillars
of growth”) and two growth enablers.
Pillar 5: Sustainability
The fifth pillar focuses on the critical issue of sustainability in the exploitation of mineral wealth.
A holistic view of sustainability from both the socio-economic and environmental perspectives
form the basis of our recommendations, in the knowledge that any growth can not be sustained
if the physical environment is destroyed in the process, the rights of hosts communities are
ignored, and if it does not translate to economic empowerment of the people. The strategy
seeks to entrench sustainability as a fundamental principle in the exploitation of our mineral
resources.
The Enablers:
Growth strategy development efforts typically end up futile in the absence of sufficient and
capable manpower, and effective institutions. Across all sectors of the minerals and metals
sector – administration, regulation, training, research & development, and commercial
operations (from production to consultancy services); the need for capacity development is
recognized as a fundamental platform without which the vision for the sector cannot be realized.
Strategies were therefore proposed to strengthen and deepen institutional and human capacity
across every aspect of the sector.
A stable and effective legal and regulatory framework is a non-negotiable requirement for
sustainable growth to be achieved in the minerals and metals sector. With the enactment of the
Nigerian Minerals & Mining Act of 2007, a significant milestone was achieved with regard to
having an appropriate legal framework in place for the sector. However, optimal value can only
be realized if the provisions and stipulations of the laws are fully enforced and consistently
applied. Sincerity of purpose with regards to achieving the vision will ultimately be measured by
Reviving the iron and steel sector is an aspect of the defined growth strategy for the minerals
and metals sector, worthy of special emphasis. The strategic position of the steel industry is
based on its unique potential to catalyze productivity across all aspects of the mining industry
value chain. A vibrant primary steel industry increases upstream activity by encouraging
increased exploration and mining of mineral raw materials like iron ore, coal, limestone and
manganese to mention a few; while simultaneously boosting downstream activity such as
processing of metals, and creating a linkage effect through the utilization of steel products in the
oil & gas, power, transport and manufacturing sectors of the economy. Indeed, steel is the
primary driver of industrialization, and a functional steel industry facilitates rapid development of
skill and technology, which in turn forms the basis for greater economic independence and
national self reliance. Therefore, Nigeria’s vision to join the league of industrialized nations
cannot be achieved in the absence of a functional steel industry.
Having floundered for over two decades in her quest to develop the steel industry, Vision
20:2020 provides Nigeria a viable platform to finally reverse the fortunes of this industry and
launch the country on a path towards industrialization. The goal for 2020 is to successfully
emulate countries like China, India and South Korea, whose transformation from third world
countries to developed nations was due in no small measure, to their success in developing
viable and functional steel and iron industries.
Achieving this strategy for the steel sector will require the resolution of intractable problems with
ASCL and NIOMCO. For the technical problems, our recommendation is that solutions are
obtained from the original builders of these plants. In addition, a revised approach to raw
material sourcing is also required given the stiff competition for limestone and coal provided by
the cement industry and the drive for coal fired power plants. Finally, an intensive manpower
development program is recommended to guarantee supply of quality personnel, while
providing a low labor cost advantage to the emerging sector.
Summary of Recommendations
3. Encourage the establishment of Junior Miners and Consultants in the mining industry
5. Facilitate improved access to funding for exploration through the Solid Mineral
Development Fund
6. Sustain a transparent, independent and modern licensing system through the Mining
Cadastre Office
7. Enhance the fiscal regime to become more attractive to both local and foreign investors
a. Sustain favorable tariff regime for the minerals and metals sector
c. Provide and sustain competitive taxation regime, incentives and tax holidays
8. Facilitate access to the following and other sources of funding for exploration and the
development of minerals, steel, and other metals industries:
f. Capital Markets
9. Initiate specific programs targeted at the development of the medium scale commercial
mining operators
b. Iron Ore: Revival of the steel sector through massive government investment in
the short term and privatization in the long term. The target is to achieve
12.2million tonnes per annum steel production capacity per annum, to create iron
ore demand of 30million tonnes.
d. Bitumen: Invite investors and guarantee local market/ price for next five years for
the production of tar and asphalt for road constructions.
g. Gold: Provide incentives to encourage exploration for gold and its production by
medium scale mining companies; Continue targeted exploration by NGSA;
Facilitate enabling environment for fair trade in gold through the establishment of
exchange markets.
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11. Implementation of a local content policy for the development of host communities.
12. Strengthen environmental management, land use law enforcement and compliance.
13. Control and strengthen the artisanal and small-scale mining operations.
14. Provision of specialized funding for key institutions in the minerals and metals sector
such as (NGSA, COMEG, NMDC, Departments of MMSD, School of Mines, NSRMEA)
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16. Establish a performance audit board charged with monitoring and evaluation of the
relevant sector Ministry, Departments and Agencies.
17. Provide adaptive technology for research agencies such as National Centre for Remote
Sensing (NCRS), Raw Material Research and Development Council (RMRDC) etc.
18. Technical assistance, training and capacity building for industry regulators.
19. Establish data-base management facilities within the Ministry and relevant Agencies.
An implementation plan with timelines, responsibilities, funding sources and key performance
indicators has been outlined in Chapter 4 of this blueprint. In terms of monitoring and evaluation,
mandate to oversee the implementation of the entire Vision 2020 project. This committee will
work collaboratively with the National Planning Commission in ensuring due implementation of
the blueprint, and must be provided with adequate authority and resources to execute their
assignment.
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1.0 Introduction
1.1. Background
This report summarizes the blueprint for improving the capacity of Nigeria’s minerals and metals
sector to stimulate additional economic growth towards the attainment of the nation’s vision of
becoming one of the world’s top twenty economies by 2020. The blueprint is a culmination of
the efforts of a collection of seasoned industry and academia experts brought together under
the auspices of the Nigeria Vision 2020 strategy development program.
Prior to the emergence of the petroleum industry 30 years ago, solid minerals and agriculture
were key sectors of the economy. Until the 1960s, coal and tin were mined and exported on a
large scale and the sector contributed significantly to the nation’s gross domestic product
(GDP), averaging 12%1 between 1965 and 1975. A combination of unfavourable government
policy, changing country circumstances and poor management of state owned enterprises has
led to a precipitous decline in the sector and a situation in which little new investment in mineral
exploration and development, neither foreign nor domestic, could be attracted. The scale of this
decline is clearly illustrated in the drastic reduction in sectoral contribution to GDP from 5.62% in
1980 to 0.16% in 20072. Currently, there are no medium or large scale mining operations in
Nigeria. Most active mining in the country is being undertaken by small entrepreneurs and
artisans, working deposits of precious, semi-precious, construction and industrial minerals that
are not licensed, or operating outside of the parameters of the licenses held. Consequently, the
mining sector remains in a state of stagnation and although appreciable progress has been
made in recent years with regard to legal and regulatory reforms, several limitations to growth
through sustainable exploitation of mineral resources still exist.
This blueprint also defines a pathway to the development of a viable metals sector to support
the rapid industrialisation of Nigeria in line with her 2020 ambition. Despite huge natural
resource potential for metallic products such as Iron, Steel, Copper, Aluminium, Tin and
Lead/Zinc; and noble metals like Gold, Silver and Cadmium in addition to massive government
1
Federal Office of Statistics (Now Nigerian Bureau of Statistics – NBS) 1996
2
Based on 1990 Constant Prices. Source: Federal Office of Statistics (now NBS) 2003
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1.2. Scope
For the purpose of developing a strategic plan that covers all aspects of the minerals and metals
sector, the Group examined the sector along the key elements of the mining industry value
chain. This value chain comprises five key stages, and the industry is characterized by a
different set of players in each stage Figure 1-2 below depicts this chain.
Market
Exploration Processing
Mine Planning & (Manufacturing
(Prospecting, Mining (Extraction/Smelting &
Development Industries and other
Discovery, Evaluation) Refining)
consumers)
This entailed the examination of the set of activities required to determine the presence of
economically viable mineral deposits in any given location in the country. Summarily, activities
considered include field geological mapping, appraisal, geophysical methods, drilling, surveying,
sampling, analysis, testing and the establishment of feasibility parameters. The issues of
funding for exploration and the performance of the Nigerian Geological Survey Agency were of
particular significance in this aspect of the work.
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These three mid-stream aspects of the value chain required the Group to consider and
deliberate upon issues relating to the determination of the profitability of a mining project based
on the identified mineral resource, processes involved in actual removal of the mineral resource
and transport to destination, and the range of activities undertaken in the extraction of the
saleable products. Specifically, the current state of production of both industrial and strategic
minerals was extensively reviewed as part of this effort, and the performance of Nigeria’s metals
sub-sector was treated in sufficient detail.
The final aspect of the value chain covered issues pertaining to marketing and distribution to
enable profitable development of the minerals and metals sector, through effective utilization of
solid mineral resources for both internal consumption and exportation.
Functional Analysis
For each stage of the value chain, the group analyzed issues and proffered strategies across
the following areas:
Policy Framework (Legal, Institutional & Regulatory)
Infrastructure
Investment & Financing
Human Capacity/Manpower Development
In the development of this blueprint, a systematic approach was adopted to ensure that the
strategy was built on proven knowledge of the evolution and current state of the industry,
comprehensive understanding of the internal and external factors relevant to its growth, and an
understanding of the strengths and shortcomings of previous strategies employed to develop
the sector. The development of the strategy for the sector was undertaken sequentially across
five distinct set of activities:
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3. A detailed review of the current position of the industry with respect to each aspect of the
industry value chain (exploration, production and consumption) for the purpose of
identifying and analyzing the key issues inhibiting growth in the sector, and potential
opportunities for growth. This review required the team to validate current developments
in the sector with heads and senior officers of key institutions in the sector through
discussions on their current programs, plans, and constraints. Institutions engaged
include:
4. A review of global trends in the minerals and metals industry, and an analysis of possible
future developments with regards to demand/supply of minerals and metals that are
relevant to growth in Nigeria’s minerals and metals sector including steel, aluminium,
coal, limestone, bitumen, uranium etc
5. Definition of the strategy for developing the sector in line with the national aspirations for
the sector in 2020, comprising key strategic thrusts, goals, strategies and initiatives. A
roadmap for implementation, and a monitoring and evaluation strategy was also defined.
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The geology of Nigeria is made up of the Basement Complex, the Younger Granites, and the
Sedimentary Basins, and abundant mineral deposits occur in all components of Nigerian
geology. Solid mineral deposits of economic significance that include gold, iron ore, cassiterite,
collumbite, wolframite, pyrochlore, monazite, marble, coal, limestone, clays, barytes, lead-zinc,
etc, occur in the different geologic segments of Nigeria and indeed, each of the 36 federating
states and the FCT has a fair share of the solid mineral inventory of the nation. Exploration in
Nigeria for several solid minerals, e.g. tin, niobium, lead, zinc and gold, goes back more than 90
years but only tin and Columbite production have ranked (6th in Tin, 1st in Columbite) on a world-
wide scale till date. While the major international exploration groups have seldom paid more
than a passing interest, there has been general exploration carried out by the tin mining groups
and several parastatal organizations, the most notable being the Nigerian Mining Corporation
(NMC). Throughout its long history, the Geological Survey of Nigeria (now the Nigerian
Geological Survey Agency – NGSA) played an active role in exploration for mineral deposits
many of which were first reported by its officers. The NGSA is currently responsible for regional
geophysical mapping, as well as airborne magnetic and radiometric surveys which provide an
invaluable base for more detailed exploration. Figure 2-1 and Table 2-1 provide details on the
distribution of solid mineral deposits across Nigeria. More specific information on the mineral
potentials indicating location, mine status, geology and resource estimates are available in
Appendix A for the following mineral categories: metallic minerals, specialty metals, precious
metals, gemstones, and industrial minerals.
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Obtaining reliable data on Nigeria’s minerals and metals sector remains a fundamental problem.
Estimates of current levels of production received from the National Bureau of Statistics(NBS) were
not properly disaggregated (e.g. base metals lumped together as a single group), thereby limiting
their usefulness for analytical purposes. Data on volume of production and exports received from
the Central Bank of Nigeria (CBN) were found to be logically inconsistent. Data on minerals and
metals production for the years 2000, 2004, 2005, 2006 and 2007 seemed to have been repeated
erroneously therefore rendering the entire data set inaccurate. The data obtained was also
incomplete as the CBN had data for only five out of 29 commodities. Estimates of local demand
were unavailable in the reports obtained from both the CBN and the NBS.
The group decided therefore to rely on data obtained from the Mines Inspectorate Department and
the Steel and Non Ferrous Metals Development Department of the Ministry of Mines & Steel
Development which is the ideal primary data source for both the CBN and the NBS. Data obtained
from these sources were incomplete, and the group noted that the data gathering capabilities of
both entities was very limited. The Steel and Non Ferrous Metals Development Department for
instance, is yet to set up a statistics unit; hence there is no data available on local steel demand.
The data obtained, limitations notwithstanding are presented in tables 2-2, and 2-3 below.
Present
Medium
Annual Annual
Proven Range Shortfall Import
S/N Minerals National National Import Value
Reserves Demand(4yrs) Imports price
Demand(tons) Production
(tons)
(tons)
1 Barytes 1000000 140000 20000 10000 130000 $230/ton $29.9 million
2 Phosphate 800000 180000 250000 5000 175000 $60/ton $11.7 million
3 Gypsum 1700000 220000 300000 20000 200000 $45/ton $9 million
4 Kaolin 30000000 250000 350000 25000 225000 $60/ton $13.5 million
5 Marble 200000000 800000 1000000 50000 750000 $100/ton $75 million
6 Coal 639000000 1000000 1500000 30000 970000 $25/ton $30 million
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Table 2-3 – Estimate of minerals and metals production - metric tonnes unless otherwise stated (1997 – 2003)
The performance of Nigeria’s minerals and metals sector has largely depended on the evolution of
government policies over the years. Organised mining activities began in Nigeria between 1902
and 1923 following the commissioning in 1903 and 1904 of mineral surveys of the Southern and
Northern Protectorates by the then British Secretary of State for the colonies. Modern mining of tin
ore (cassiterite and associated minerals) was initiated by the Royal Niger Company in 1905. The
mining of gold began in 1914 in areas located within present day Niger and Kogi States. Coal
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From the foregoing it is clear that the original cardinal principle of government’s policy on
prospecting and extracting mineral resources of the country on commercial basis was non-
investment of public funds in the risk of mining investment. It was believed that investment in
mining activities required high levels of financial commitments on prospecting without any certainty
of remunerative returns. This policy engendered a situation whereby large-scale foreign companies
and small-scale indigenous miners concentrated their efforts on the production of minerals with
export potential, neglecting minerals meant for local industries. Apart from coal which was mined
by a government department, the mining of minerals and metals was entirely in the hands of
private expatriate and indigenous companies and entrepreneurs.
Prior to 1971, British mining companies dominated the scene with up to 120 companies at the peak
of tin mining. These companies were well equipped. They employed qualified staff and paid
detailed attention to efficiency considerations. This led to high levels of output and significant
contribution to employment. The Minerals Ordinance of 1946 and Allied Regulations which were
re-enacted as the Minerals Act of 1959 applied globally to the exploration and exploitation of
minerals without any particular distinction to special sets of minerals singly or in groups. However,
as years passed, the development of mining particular minerals necessitated special regulations
and led to the enactment of special Acts to govern the exploitation of special minerals. Such Acts
included the Nigerian Coal Mining Act of 1950, the Gold and Diamond Trading Act, the Explosives
Act of 1964, the Tin Act No. 25 of 1967, and the Quarries Act and Allied Regulations of 1969.
In 1971 the government policy on minerals and metals was drastically reviewed. The Nigerian
Government decided to act as catalyst in the mining sector through the establishment of mining
corporations which would use public funds for mining. The main policy thrust was the rejection of
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To achieve the objectives of the new policy, government which had hitherto refrained from direct
participation decided to participate directly in the mining industry. It established the Nigerian Mining
Corporation (NMC) in 1972 to engage in direct investment in the exploitation of known
economically viable minerals other than coal and marble. Through subsidiaries, the NMC engaged
in the exploitation of kaolin, barytes, cassiterite, collumbite, limestone and clays. The Nigerian Coal
Corporation (NCC) was responsible for mining coal. Later the Nigerian Uranium Mining Company
(NUMCO) was incorporated to mine and develop uranium. The Government also exercised control
and direct involvement in the sector through a number of institutions including the Nigerian Iron
Ore Mining Company (NIOMCO) for iron ore mining at Itakpe, the National Steel Raw Materials
Exploration Agency (NSRMEA) which concentrates on exploration of iron ore and coking coals,
and the National Metallurgical Development Centre (NMDC) whose focus is on research in mineral
processing and downstream utilization studies on minerals.
This new policy of government (Indigenisation Decree of 1972) also resulted in the acquisition of
60% shares in the major expatriate tin mining companies on the Plateau, causing large scale
withdrawal of foreign investment in the industry and a downturn in production. With the exit of
multinational companies and their expatriate professionals, the bulk of mining operations by the
private sector rested on the shoulders of small-scale indigenous miners. The surface, near surface
and shallow depth deposits of the minerals had by then been variably depleted. These factors were
largely responsible for production decline particularly in the metallic minerals. As a consequence,
there was a shift of the tempo of mining activities to industrial non-metallic minerals needed for
construction, building and industrial application for domestic industries. The downturn of the
country’s economy also adversely affected the exploration as well as exploitation of even the non-
metallic minerals. The Inspectorate Department of the Ministry of Mines and Power (as it was then
known) was ill-equipped and lacked adequate and suitable manpower to carry out surveillance of
the minefields with a view to ensuring compliance to safety standards and to man the exit points to
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The Nigerian Government commenced the development of the iron and steel industry in 1971 after
over a decade of planning during which detailed market studies and investigations on local
availability of raw materials were carried out, in addition to the examination of several proposals
from foreign contractors from the UK, US, Germany, Canada & the former Soviet Union. The
establishment of the now defunct Nigerian Steel Development Authority (NSDA) in 1971 through
Decree No. 19 marked the institutional take-of point for the development of the Nigerian Steel
Industry. According to the decree, the NSDA was charged with the responsibility for:
The construction, operation and maintenance of national iron and steel plants in such a
place or places in Nigeria as the Federal Military Government may require;
The procurement of materials for the construction, operation and maintenance of the plant
or plants in question; and
The development of the application and use of iron and steel generally
The functions of the NSDA were extensive, covering technical and economic feasibility studies for
iron and steel production, coordination of mining operations and other activities needed to obtain
raw materials, construction of steel plants, training of managerial and technical staff for operating
the plants and conducting research and development in the technology and other aspects of iron
and steel production, and in the application of iron and steel products, among other functions. The
NSDA commissioned and mandated the TiajpromExport (TPE) of the Soviet Union in 1973 to
prepare the preliminary project report (PPR) for the proposed first integrated iron and steel plant in
the country. This report was submitted in November 1974 recommending the Blast Furnace
process route based on Itakpe iron ore concentrate with a blend of local or imported coal. The site
location of Ajaokuta was selected due to proximity to the iron ore deposits and the River Niger.
This report was finally accepted in 1975 after several modifications and consequently the Detailed
Project Reports (DPR) was submitted in 1977 and accepted in 1978. The Global Contract for the
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The NSDA was dissolved in 1979 through decree No. 60 on the 18th of September 1979. This
decree also created the Ajaokuta Steel Company Limited (ASCL), Delta Steel Company (DSC) as
well as the 3 inland rolling mills. By this new decree, the execution of the Ajaokuta Steel Plant
became the principal responsibility of the ASCL. Although the DSC and the Inland Rolling mills
have been completed, the Ajaokuta Steel Project remains incomplete and has become a symbol of
Nigeria’s failures in the development of the metals sub-sector. Although the construction and
erection works have been completed since 1994, the raw materials and infrastructure for their
transportation to the steel plant are not yet available. Inconsistent government policies, poorly
though-out government interventions, undue political interference, corruption, and management
incompetence has bedevilled the project and indeed the entire sub-sector as all the public steel
projects have grossly underperformed despite massive injection of public funds.
The issues in this sub-sector have since become intractable leading to the decision by the Federal
Government to privatize the publicly owned steel companies in 2003. The privatization efforts have
however yielded little or no benefits and have recently hit a brickwall with the termination of
concessioning agreements entered into for ASCL and NIOMCO. Growth in this sector is currently
stagnated as DSC and the three inland rolling mills are currently not functional even as privately
held companies.
Recent developments in the industry have been shaped by the Federal Government’s desire to
refocus on the minerals and metals sector as part of its strategy to diversify the Nigerian economy
away from dependency on oil resources. In view of the above, the government has initiated
reforms aimed primarily at allowing the private sector to take a pivotal role in the growth of the
sector, reorientation of government from ‘Owner-Operator’ to ‘Administrator-Regulator’, ensuring
liberal & transparent access to mining titles, strengthening institutional and human capacity and
strengthening geological data generation.
Accordingly, the reforms initiated in the mining sector included institutional and legislative reforms,
at the core of which, is the repeal of the Minerals and Mining Act 1999, and the enactment of the
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The enactment of transparent laws, regulations and guidelines for the regulation of the
industry;
The creation of a favourable fiscal regime that will be beneficial to the holders of the mineral
titles, the government and the communities living on the land where minerals are exploited;
The setting up of institutional frameworks for the generation, storage and dissemination of
geological and mining information;
The provision of transparency and access by the public to mining sector information;
The provision of clear safeguards for health, safety and intergenerational equity with
respect to the environment; and
The new Act has also been used to develop the National Minerals & Metals Policy of 2008 as a
tool for entrenching the new direction of government with regards to the development of the sector.
The new policy has led to the restructuring of the responsible Ministry to enhance performance and
regulate the sector adequately establishing four new technical units namely the Mining Cadastre
office, Mines Inspectorate Department, Artisanal and Small-scale Mining department & the Mines
Environmental Compliance Department.
Some of the more specific provisions of the new Act in relation to mineral title administration and
fiscal incentives are outlined below:
Fiscal incentives
Exemption from customs and import duties in respect of plant, machinery, equipment, and
accessories imported exclusively for mining operations;
Permission granted exporters of mineral products to retain part of their foreign exchange
earning in a domiciliary account for the purpose of acquiring spare parts and other mining
inputs; and
A summary of the fiscal regime for mining is provided in table 2-4 below:
Industry
Tax method and level of tax levies Royalty/tax system
Standard
Compared with industry standard of
1 Level of royalty 1-3% 0 – 5% the royalty is relatively low
and attractive
2 Availability of tax holidays No Loss Carried Forward
100% on capital investment in year
3 Accelerated depreciation Yes
incurred
100% cost recovery allowed in year
4 Deduction of exploration/other costs Yes
incurred
5 Remittance of profits and dividends Yes 100% allowed
Low at 20 – 30% Industry standard is 15 – 35% of
6 Corporate tax
of net profit taxable income
7 Currency Conversion Yes On total profit
8 Exemption from custom duties Yes On agreed list of mining equipment
9 Capital gains tax Yes, at 10% Industry standard is 5 – 15%
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Create a conducive business climate in which the federal Government will act as a
motivator/moderator by providing the enabling environment that will stimulate private sector
investment;
Ensure that the private sector led metals industries operate optimally, producing
competitive high quality products for both local and international markets
Have a robust and functional integrated steel industry that will guarantee the creation of
employment, poverty reduction and wealth creation; and;
Ensure that private sector led metals industries function effectively thereby achieving
increased industrial capacity utilization and generating revenue for the country.
To implement this policy, two additional technical departments now exist in the Ministry of
Mines & Steel Development namely: Steel & Non-Ferrous Metals Department; and
Metallurgical Inspectorate and Raw Materials Development Department.
1. National Geological Survey Agency updated and reviewed geological map of the country
including an aerial geophysical survey.
3. Establishment of processing centres by private sector and provision of buying outlets for
mining products by MMSD.
4. Privatization of government owned mining companies in the minerals and metals sector
such as Nigerian Mining Corporation, Nigerian Coal Corporation, Aluminium Smelter
Company of Nigeria (ALSCON), Delta Steel Company and 3 inland rolling mills at Oshogbo,
Katsina and Jos.
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Institutional entities in Nigeria’s minerals and metals sector can be segmented into three different
categories based on their functional roles viz: (1) policy administration & regulation, (2) research,
development & capacity building, and (3) commercial operations. The Ministry of Mines & Steel
Development (MMSD) has responsibility for policy making, administration and regulation of
Nigeria’s minerals and metals sector.
The Ministry administers the Nigerian Minerals & Mining Act of 2007, which is now the principal
legislation regulating mining activity in Nigeria. The Ministry was restructured in 2005 to have four
technical departments and one service department thus: Mining Cadastre Office, Mines
Inspectorate, Artisanal & Small Scale Mining, Environmental Compliance and
Finance/Administration. In January 2007, following Government’s rationalization of Ministries, the
Steel component of the defunct Power and Steel ministry was added to the former Ministry of Solid
Minerals to form the present Ministry of Mines and Steel Development. This change has brought
two additional technical departments to the new Ministry namely: Metallurgical Inspectorate and
Raw Materials Development Department and the Steel and Non-Ferrous Metals Department.
The MMSD is also responsible for the supervision of a number of parastatals with legal mandates
to execute specific functions in the industry on behalf of the Federal Government such as research
and development, training, and industry capacity building. The commercial segment of the industry
comprises both government owned and privately held institutions operating across the value chain
of the industry. The preceding sections describe these institutions in greater detail. The structure of
the industry is graphically illustrated in Figure 2-2.
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Mines Inspectorate Department – This department has overall responsibility for the
supervision of industry operations including detailed exploration, evaluation, mine
development and production. The department is also responsible for enforcement of mining
laws and collection of revenues.
Artisanal & Small Scale Mining Department – Responsible for the formalization of the
operation of ASM operators and provision of extension services
Mining Cadastre Office – The MCO is responsible for the administration of mineral titles.
The institution is defined by the Minerals and Mining Act to be an autonomous institution
and the sole agency regarding all matters relating to mineral titles. The institution is also
responsible for interfacing with investors in respect of granting and processing of mineral
titles and is responsible for the maintenance of a cadastral atlas and title registers.
Steel & Non-Ferrous Metals Department – This department is charged with implementing
the objectives of the National Metals Policy as defined in the National Minerals & Metals
Policy (2008). Specific responsibilities include: regulating tariffs on metal commodities and
products, monitoring developments in other sectors of the economy that may have adverse
effects on the metals sub-sector and recommending appropriate actions, monitoring and
ensuring compliance by the metals industry operators with environmentally friendly and
technically safe operation; and ensuring enforcement of the utilization of local metal
industry products in all government contracts.
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This segment of the sector is dominated by government owned and funded institutions under the
supervision of the Ministry. The key institutions are described below.
Nigerian Geological Survey Agency (NGSA) – This agency of the MMSD is responsible
for the generation of basic geosciences data for investors and the general public. Like other
geological surveys in the world, the NGSA is expected to focus on the acquisition,
management, storage, interpretation and communication of geoscience information to
promote the country’s resource potential and thus encourage investment in detailed mineral
exploration by the private sector.
The Nigerian Institute of Mining & Geosciences (NIMG) – This institute is being
established by the Ministry from the Jos School of Mines to train the requisite manpower for
the emerging mining industry. Its mandate includes: the provision of postgraduate training
in mining and geosciences, short courses in mining, geosciences and extension services,
research and development, and consultancy services.
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Metallurgical Training Institute (MTI) – This institute was established to provide adequate
and sustainable manpower for the metallurgical industry. Functions include training of
personnel for the iron & steel and allied industries, as well as conducting research and
development in the field of metallurgy.
Commercial operations in the minerals and metals sector is characterized by a mix of public and
private companies, with the Federal Government gradually relinquishing control of state owned
operators in line with her privatization policy and ongoing industry reform process. Operators can
be categorized into downstream or upstream operators based on the segment of the value chain in
which they operate. In the upstream sector, the majority of private participation is through small
scale mining companies and artisanal mining. The downstream sector is characterized by
predominantly government owned companies and newly privatized companies. The key players
are described in greater detail below.
Downstream Players
Nigerian Mining Corporation (NMC) & Nigerian Coal Corporation (NCC): The NMC was
established to develop the metallic and industrial mineral resources other than coal and iron
ore, while the NCC had the sole responsibility of developing the nation’s coal resources.
The two corporations were wound down in 2005 and are being privatized.
Nigerian Iron Ore Mining Company (Itakpe): Established by the Federal Government,
NIOMCO is charged with the responsibility of exploring, exploiting and beneficiation of
Itakpe iron ore, to produce concentrate and superconcentrate for Ajaokuta and Delta Steel
companies respectively. The company was concessioned in March 2005 to Global
Infrastructure Nigeria Limited for a period of ten years. However, in 2008, this concession
agreement was terminated by the Federal Government citing asset striping and breach of
contract agreements.
34
Ajaokuta Steel Company Ltd.: The Ajaokuta Steel Plant is an integrated steel plant which
is based on the Blast Furnace/Basic Oxygen Furnace route of steel production, was
designed to produce 1.3 million tonnes of cast blooms per annum in the first phase, with
inbuilt facility to expand to 2.6 million tonnes and 5.2 million tonnes in the second and third
phases respectively. All the steel to be produced in the first phase was to e processed into
long products, while the additional production from the second and third phases were to be
dedicated for flat steel production and capacity enhancements respectively. The Rolling
Mills comprise a Billet Mill, Medium Section and Structural Mill, the Light Section Mill and
the Wire Rod Mill. Till date, commercial activities have only taken place in the light section
mill, the wire rod mill, the power plant, the engineering workshop complex and the
manufacturing end erection base. The development of this plant has stalled at 98%
completion for over two decades. In June 2003, the company was first concessioned for a
ten year period to SOLGAS Energy Ltd who withdrew from the agreement in August 2004,
following which the company was then concessioned for another ten year period to Global
Infrastructures Nigeria Ltd. This agreement was terminated by the Federal Government in
2008.
The Delta Steel Company Ltd.: The Delta Steel Plant, a Midrex Direct Reduction
integrated steel plant, was built as a turnkey project and commissioned in 1982 to produce
1million metric tonnes of liquid steel per annum. The plant however, only attained a
maximum production capacity of 25% in 1985. Production declined progressively thereafter
until 1996 when the plant was finally shut down. The plant was privatized to GINL in June
2005.
The Inland Rolling Mills: The three inland steel rolling companies located respectively at
Katsina, Oshogbo and Jos were commissioned between 1982 and 1983 with installed
capacity of 210,000 tonnes of assorted rolled products each. The Rolling Mills have had
their share of low capacity utilization as a result of inconsistent government polices, inability
of Delta Steel Company to supply them billets, dumping and market saturation amongst
others. The companies were privatized in 2004.
Aluminium Smelting Company of Nigeria (ALSCON): The Aluminum Smelting plant has
an installed capacity of 193,000 metric tonnes of primary aluminium products per annum. It
35
o Aluminum: There are two privately operated rolling mills in the country using
imported ingots as feedstock, which supply a range of flat rolled products used by a
myriad of industries across the country. Circles manufactured by them are used to
make aluminum kitchen utensils; the coils are used for roofing sheets and the flats
for the manufacture of deep freezer bodies, van bodies, portacabins and
aeronautical and marine applications. There are also aluminum extrusion plants
privately operated in the country. These plants make extruded profiles of various
sizes used for the fabrication of door and window frames, balustrades, office
partitions, etc.
o Steel Mills: Several privately owned mini and rolling mills with combined installed
capacities of about 1 million tonnes as well as a number of foundry and forge
industries exist in Nigeria. Some of these facilities have been closed down or are
operating far below their installed capacities.
36
Despite recent efforts at reforms, several impediments to the actualization of the enormous
potentials of the sector still exist. The most salient of these issues, their causes and implications
are discussed in this section.
Reliable geoscience data is an essential driver of the minerals and metals sector of any
economy, as it provides the foundation for mineral exploration and development. The
acquisition, management, storage, interpretation and communication of geo-science information
is absolutely vital to promoting a country’s resource potential and encouraging investment in
detailed mineral exploration by the private investor. In Nigeria, like other economies, the role of
providing geoscience information rests primarily with the Government and the Nigerian
Government’s commitment to this role is clearly expressed in the Minerals & Metals Policy of
2008. Indeed, in recognition of this role, the Geological Survey Department was upgraded to a
full fledged Agency of Government, with the mandate to “continue to provide geosciences
information for the economic, social, and environmental development of the country”, and to
“utilize public funds to carry out regional mapping and mineral exploration” to encourage further
private participation by investors for detailed exploration and mine development”.
I. Nigeria has been unable to attract investments in the highly risky “grassroots
exploration” segment of the mineral exploration triangle (Figure 2-3). As a result, detailed
exploration has not been undertaken for most of the country’s mineral deposits; hence,
the investments in mine development are not forthcoming.
II. Nigeria’s geophysical mapping coverage remains very low. For detailed mapping, the
land area of Nigeria has been divided into 1324 sheets (squares) on a scale of 1:
100,000. Total number of sheets now completed is 102 (7.7%)3. The ongoing airborne
geophysical surveys being undertaken by the NGSA is between 40% – 50% complete as
at June 2009. In its geochemical mapping programme, the agency has only completed
3
Source NGSA
The above has brought about a gap between exploration and investment which must be bridged
to drive growth in the sector. These gaps are further illustrated in Figures 2-3 and 2-4.
In the past, this gap was not very apparent because the Government, through the Economic
Geology division of the former Geological Survey and defunct Nigerian Mining Corporation was
able to build upon basic geoscience information from the geological surveys to commence
detailed resource valuation through exploratory drilling programs, and commence mine
development on economically viable deposits.
4
Source: NGSA
With the liberalization of the sector and the subsequent scrapping of the NMC, the combination
of limited geophysical data and an investment climate that is yet to become internationally
competitive has meant that private sector interest in the sector has not been sufficient enough
for high risk and costly detailed exploratory programs to materialize. This issue undermines the
Government’s plans to implement competitive bidding for mineral titles because the level of
information on mineral resource valuation is low for a large number of deposits.
The decision of Government to become a regulator rather than a player is apt and in line with
global trends in minerals and mining. However the private sector cannot operate effectively
without the fundamental support of government in providing the enabling environment required
for private sector initiatives to thrive. Although significant progress has been made in this
regard, and a potentially effective institutional and legislative framework for the sector (Minerals
and Mining Act of 2007) now supposedly in place, weak implementation of the stipulations of the
Act and poor compliance with its provisions has significantly undermined the reform program. A
number of specific issues contributing to investor apathy are explained further below:
II. Lack of access to credit for potential investors: Due to the high risk nature of
exploratory activity and its associated costs, raising finance for mineral resource
development remains a fundamental problem limiting growth in the industry. The
low level of maturity of the industry also means that technical knowledge on the
financing of mineral development programs is limited in the traditional financing
institutions such as banks. Specialized financial institutions are not yet inclined to
fund solid mineral development in Nigeria as the agricultural sector provides an
easier alternative with shorter payback periods. To this end, potential investors are
unable to access capital required for development projects. Although the new
mining law attempts to solve this problem through the establishment of a Solid
Minerals Development Fund, the delay in the commencement of this fund is
affecting investor sentiments. The fund is expected to be utilized for the
development of both human and physical capacity in the sector; equipping mining
institutions; supporting extension services to small scale and artisanal mining
operations; funding geo-scientific data gathering, storage and retrieval; and
providing infrastructure in mines land.
Other issues affecting investor interest in the minerals and metals sector include:
Delay in the release of mining regulations to complement the new law and policy
Along with agriculture and water, minerals provide the natural resource platform for any country.
Optimizing natural resource potentials however, can be complicated, requiring political,
economic, and technological savvy to deliver sustainable results. Despite her enormous natural
resource endowments, the country is yet unable to derive the right approach to harnessing
these resources for the benefit of her citizens. In three decades of oil exploitation in Nigeria, the
benefits to the economy has been limited, and the sector’s contribution to domestic growth
remains constrained by low value addition and weak linkages between other sectors of the
economy. This situation reflects the prevalence of poor policy coordination and an approach to
growth and development that is highly fragmented.
Figure 2-5 – Estimated amount of iron & steel requirements currently met by the local market (Source: Working Group Analysis)
Steel Iron ore, Limestone, Coal, Dolomite, Clay, Bauxite, Bentonite, Manganese, Molybdenum, Magnetite, Kyanite,
Selenium, Tungsten, Nickel.
Manufacturing Kaolin, Talc, Limestone, Feldspar, Quartz, Dolomite, Soda Ash, Barytes, Diatomite, Tin, Titanium Dioxide,
Lead, Zinc
This absence of a model for the integrated planning and development of the following critical
sectors of the economy - minerals & metals agriculture, energy, transport and manufacturing
pose the biggest threat to the development of the minerals and metals sector in Nigeria. Inability
to utilize demand from one sector to boost production of the other, and vice versa, is a major
constrictive factor in Nigeria. Despite high levels of local demand for steel and a burgeoning
infrastructure deficit, the country remains unable to develop its primary and secondary iron and
steel industries. Nigeria has failed to take full advantage of the importance of industrial minerals
in the economic development of the country (See Fig. 2-5 & Table 2-6). Industries like cement
works, modern ceramics, brickworks, glass, granite aggregates and polished granite,
pharmaceuticals and related industries, steel, aluminum, paper industry, have not benefited
from the Nation’s mineral base (See Fig. 2-6). These minerals occur in almost every state of the
country, and their downstream use in the manufacturing and industrial sectors have high
employment potential.
4. Low institutional & human capacity across all segments of the minerals and metals
sector
Adequate human and institutional capacity is indispensable to the growth of any industry. For
Nigeria’s minerals and metals sector, while effective institutions are required to create the
enabling environment for a private sector led mining industry to emerge, deep functional skills,
knowledge and experience is required for such an industry to thrive. In Nigeria, years of
underinvestment in capacity building has led to a dearth of quality personnel across all
segments of the industry from regulation administration, research, training, to commercial
operations. This problem has tended to undermine the effectiveness of reforms in the sector as
the capabilities required to implement and manage change is limited in the key implementing
institutions. A number of dimensions of this issue are discussed below:
Training Institutions – In their current state, teaching materials, syllabus and teaching
methods in the training institutions that supply the mining sector (NIMG and MTI) have
significant scope for improvement. In order to meet new performance expectation, higher
quality trained manpower and service demands of an improved mining sector,
Growth in the minerals and metals sector is significantly constrained by the prevalence of
several practices that threaten the long term viability of exploiting solid mineral resources in
Nigeria. These practices can be analysed with respect to their contribution to the degradation of
a. Widespread and uncontrolled artisanal activity: Artisanal and small scale mining
operations now dominate mining in Nigeria, and it is estimated that the ASM sector
provides rural livelihood to over 500,000 informal artisanal miners in Nigeria. Although
the current institutional and legislative framework for the industry recognizes ASM and
sets out deliberate strategies to formalize and integrate it with the economy, progress
has been slow and uncontrolled and unregulated artisanal activities still persist. The
environmental impact of uncontrolled ASM activities have been very negative, including:
a. the destruction of natural habitats at both ASM sites and waste disposal sites,
b. Limited revenue flows to mining communities and States from the industry: The
constitution of the Federal Republic of Nigeria (1999) places total ownership and control
of all minerals in the Federal Government. In addition, the legislative powers are vested
in the National Assembly which is solely responsible for making, amending, and
repealing legislation relating to the Exclusive Legislative list contained in Part 1 of the
Second Schedule. This includes mines and minerals. In view of the above, the principal
Achieving Nigeria’s ambitious national aspirations will require exponential increases in output
from the primary drivers of growth in the economy. Unlocking the latent potential in her
productive sectors is absolutely critical. Nigeria’s ability to unlock and exploit the growth
potential of the minerals and metals sector will depend on success in building positive
momentum in the direction of:
1. Import substitution – Reducing Nigeria’s importation of goods, for which natural raw
materials abound locally, is absolutely critical to growth. For many of Nigeria’s industrial
minerals, local production does not satisfy local demand. The level of importation of
products like building and construction materials, pharmaceutical, paints, ceramics,
cement, cosmetics, drilling mud, batteries etc which are derived from minerals like
gypsum, feldspar, marble, lead/zinc, granite, salt, tin ore, phosphate and talc remain
very high. Today, the local production of industrial minerals is in the region of 5 – 7% of
local demand. This presents a large scope for import substitution and a massive
opportunity for growth.
The group identified seven strategic imperatives for the minerals and metals sector. For the
sector to contribute to the quantum of economic growth and development required to attain the
nation’s medium to long term aspirations, there is need to:
1. Resuscitate and transform the minerals and metals sector from its current state of
stagnation;
3. Put in place necessary physical and geological infrastructure for the development of the
minerals and metals industry;
4. Emphasize and encourage domestic use and consumption of local minerals and metals
resources, for industrial growth;
6. Carry out all minerals and metals business in an environmentally friendly manner; and
3.1.1. Introduction
An in-depth understanding of the future is vital to long term planning and provides a platform for
developing sectoral strategies that are aligned with the direction of global change. This section
of the blueprint is a review of key global trends in the minerals and metals industry for the
purpose of understanding the possible direction of change in the years leading up to 2020. A
number of relevant global trends in the exploration, production and consumption of minerals and
metals are reviewed in sections 3.1.2 & 3.1.3.
3.1.2. Exploration
Four key trends were identified as likely to shape the direction of global exploration for minerals
and metals in the next 3 – 5 years. These trends are critical to the visioning process because
exploration is a critical lever for turning around the state of mineral resource development in
Nigeria, and strategies for 2020 should be driven by an understanding of the direction of
investment flows in exploration. The four key trends are listed and discussed below.
An analysis of worldwide nonferrous exploration budgets by the Metals Economic Group (MEG)
suggests a steady increase through the early 1990s to a crest of $5.2 billion in 1997 before
falling for five straight years to a 12-year low of $1.9 billion in 2002 –an overall decline of more
than 63% (See Fig. 3-1). Since 2002 however, estimates have risen for four straight years to set
a new high-water mark for worldwide nonferrous exploration. The initial increase in worldwide
If sustained, the implication of higher exploration costs for Nigeria is that investment capital is
likely to flow only in the direction of proven mineral deposits with high quality geoscience data.
Satisfying these critical investor requirements is therefore imperative to realize the potential of
the sector.
Figure 3-1 - Estimated Total Worldwide Exploration Budgets, 1990-2006 (US$ billions) Source: Metal Economics Group
According to MEG analysis, the year 2002 also witnessed the revival of junior exploration
spending as a recovering gold price began to reawaken many dormant junior companies. As
prices for most commodities have strengthened to long-term highs in recent years, the
improvement in mining industry investment has provided most juniors with the funds necessary
Figure 3-2 – Worldwide Exploration Budgets by Company Type, 1997-2006 (as a percentage of worldwide exploration)
Source: Metals Economics Group
5
Initial Public Offer
Figure 3-3 - Distribution of global exploration expenditure by geographical region (2006) Source: Metals Economics Group
Late stage exploration has become increasingly important in the current exploration cycle (See
Fig 3-3). The above average increases in late-stage budget have over the past few years far
outstripped the increase in grassroots budget. MEG Analysis indicates that total late-stage
budgets exceeded total grassroots budgets by a substantial margin in 2006 after narrowly
surpassing grassroots allocations (by only $3 million) for the first time in 2005. By comparison,
in the decade prior to 2004, total grassroots budgets were on average more than 50% higher
than total late-stage budgets. If sustained, this trend implies for Nigeria, potential difficulties in
attracting foreign capital into grassroots exploration, which remains a fundamental problem in
Nigeria. It therefore becomes imperative that alternative scenarios for providing funds to bridge
the gap in grassroots exploration in Nigeria must be thoroughly and objectively considered.
Based on a review of industry reports and analysts perspectives on the future demand and
supply scenarios for the mining and metals industry, a summary outlook is presented on a few
mineral commodities critical to the growth of Nigeria’s minerals and metals sector.
3 Coal Coal has many uses but most significantly in electricity generation, Electricity demand is expected to continue on an
steel, cement manufacture and industrial process heating. Currently upward path in the foreseeable future. Also, it is
67% of global steel is produced in Basic Oxygen Furnaces (BOF); in this predicted that coal for power and heat generation is
process about 0.63 tonnes (630 kg) of coal are used to produce 1 ton expected to rise to 1500 million metric tonnes by
(1,000 kg) of steel. The remaining 33% of steel is produced in Electric 2020. However, the shift to solar and other
Arc Furnaces (EAF); much of the electricity used in this process is renewable energy sources, as well as concern for
generated from coal-fired power stations. the climate might lower the forecasted figure.
4 Lead-Zinc Lead is used for sheets used for piping and construction processes Demand is expected to continue on an upward path
such as roofing materials and flashings. Also used in making in the next decade.
ammunition, toys, ornaments, coffins, paints and protective coatings.
While Zinc is used as protective coating for iron and steel, making
brass, paint pigment, wood preservatives, soldering fluid, screens for
television tubes and fluorescent coatings
5 Bitumen Is primarily used to pave roads. Other uses are for bituminous Demand and supply outlook 2008-2017 reveals that
waterproofing products crude bitumen production would outstrip
conventional oil production by 250%.
6 Limestone Steel, Building Industry, production of quicklime, slake lime, cement, Demand is expected to continue on an upward path
mortar, collectives(solid base for road construction), glass making in the next decade.
7 Uranium Used as coloring agent in glass making and a nuclear fuel used to According to the World Nuclear Association,
generate electrical power. Presently, it generates 17% of the world’s installed nuclear generating capacity could increase
electricity from current 367,000 MW up to as much as
518,000. In general there would be increase
exploration of uranium most especially in
Kazakhstan, Uzbekistan, Mongolia, Russia and
Australia
The solid minerals sector is identified in NEEDS (Nigeria’s Economic Empowerment &
Development Strategy) 1 & 2 as one of the priority sectors crucial to the diversification of the
economy away from oil dependence. Indeed, the NEEDS document implies that, according to
some sources, income, employment and foreign exchange earned from the solid minerals
sector could potentially exceed those from the oil and gas sector. For Vision 2020, the
Government expects no less from this sector, in terms of contribution to economic growth and
development. The Government of Nigeria plans to adopt a nationally coordinated strategy for
the minerals and metals sector along with other productive sectors of the economy, to achieve
poverty reduction and exponential growth between 2009 and 2020. The expectations from this
sector are summarized below:
1. Target contribution to GDP is between 3% & 10% for 2015 and 2020 respectively6
a. Integrated development and local value addition are key thrusts of Vision 2020.
While foreign exchange earnings from exports are considered important,
domestic consumption, knowledge acquisition and technology transfer are of
greater significance.
3.3.1. Vision
The envisioned end state for the minerals and metals sector articulates the sector’s
expectations towards contributing significantly to Nigeria’s development and supporting the
attainment of the nation’s aspirations by the year 2020.
6
Projected sectoral contribution figures are indicative subject to the completion of the V2020 Macroeconomic Framework
7
Target contribution to employment is also indicative subject to final estimates
“To transform Nigeria’s minerals and metal sector into a strategic catalyst for domestic
growth, and attain global relevance in a sustainable manner”
Metals: - Highlights the focus of the vision on reviving the underperforming metals
sector, which has been largely neglected in the past decade.
Strategic Catalyst: Places emphasis on the central role of the minerals and metals
sector in driving growth towards 2020, especially through linkages with other strategic
sectors of the economy.
The vision for the minerals and metals sector for 2020 will be anchored on four key sub-sectors
that are expected to drive the overall growth of the sector. These key growth drivers are the
areas of the sector with the largest scope for growth and value addition. They are:
1. Iron Ore & Steel Production – The revitalization of the steel sector lies at the centre of
our strategy to significantly increase the contribution of the sector to overall growth.
Production of primary steel and development of secondary steel industries to drive
linkages with other strategic sectors of the economy is a critical outcome for the sector.
3. Metals – Precious, specialty and base metals are also considered a future growth area
of the minerals and metals sector. The occurrences of these and other mineral
commodities in each state are summarized in Table 2-1. However, there is little
information on the potential value of these deposits, and significant investment in
geoscience data gathering is still required for value to be unlocked from this sub-sector.
4. Energy Minerals – The exploration and exploitation of Coal, Lignite, Bitumen and
Uranium in Nigeria is expected to significantly contribute to the future growth of the
sector.
Strategic Objectives
The strategy for achieving the vision for the minerals and metals sector in 2020 would be
anchored on five (5) pillars of growth, and two key enablers. Figure 3-5 illustrates this model.
8
Seven Year Plan for Solid Minerals Development 2002
Pillar 1:
Strategic Objective
Develop an effective mechanism for the consistent and systematic generation of quality and reliable
geoscience data to support exploration of mineral resources.
Goals
Achieve 50% 1:100,000 coverage by 2015; 100% by 2020
Pillar 2:
Strategic Objective
Put in place effective mechanisms and structures to support sustained mineral exploration
Goals
Achieve resource valuation on 50% of all prospective mineral deposits in Nigeria by 2015,
100% by 2020
Strategic Objective
Become an internationally competitive and attractive destination for capital (local and foreign) for
the profitable exploitation of the nation’s mineral resources
Goals
Develop or attract at least 200 reputable junior mining companies by 2015, 500 by
2020
Pillar 4:
Strategic Objective
Encourage rapid growth in steel (and other metals) and industrial minerals production &
consumption; by developing deep and functional linkages between the minerals and metals sector,
and other strategic sectors of the economy (Oil, Gas, Power, Transport, Agriculture &
Manufacturing)
Goals
Increase total GDP contribution from 0.3% to 3% in 2015 & 10% – 15% by 2020
Increase contribution of the steel sector to the raw material input of the strategic
sectors :
Improve production capacity and volume across select priority minerals and metals*
accordingly by 2015
Strategic Objective
Entrench sustainability as a fundamental principle in the exploitation of mineral resources and in
developing the metals sector
Goals
Achieve 50% compliance to global environmental best practices by 2015, 85% by
2020
Key Enabler:
Strategic Objective
Strengthen institutional and human capacity across every aspect of the minerals and metals sector
Goals
Double the level of institutional effectiveness and efficiency across all industry
segments (administrative, regulatory, capacity building & research and commercial
operations) relative to 2009 status by 2015; triple by 2020
Achieve enhanced capacity to supply 80% of skilled manpower requirements for all
segments of the minerals and metals sector by 2015, 100% 2020.
Strategic Objective
Sustain a stable and effective legal and regulatory framework for the minerals and metals sector
Goals
Achieve total compliance with and application of, all stipulations and provisions of the
Nigerian Minerals and Metals Act 2007 or any subsequent legislative framework for
the minerals and metals sector by 2020.
Pillar - 1
Develop an effective mechanism for the consistent and systematic generation of quality and reliable
geoscience data to support exploration of mineral resources
Pillar - 2
Put in place effective mechanisms and structures to support sustained mineral exploration
2. Encourage the establishment of Junior Miners and Consultants in the mining industry
4. Facilitate improved access to funding for exploration through the Solid Mineral
Development Fund
1. Sustain a transparent, independent and modern licensing system through the Mining
Cadastre Office
2. Enhance the fiscal regime to become more attractive to both local and foreign investors
a. Sustain favorable tariff regime for the minerals and metals sector
c. Provide and sustain competitive taxation regime, incentives and tax holidays
3. Facilitate access to the following and other sources of funding for exploration and the
development of minerals, steel, and other metals industries:
f. Capital Markets
4. Initiate specific programs targeted at the development of the medium scale commercial
mining operators
Pillar - 4
Encourage rapid growth in steel (and other metals) and industrial minerals production &
consumption; by developing deep and functional linkages between the minerals and metals sector,
and other strategic sectors of the economy (Oil, Gas, Power, Transport, Agriculture &
Manufacturing)
Coal
Profile:
Estimated Reserves: 3.0 billion metric tonnes
Current Production (Annual): Minimal
Current Estimated Demand (Annual): Minimal
Estimated Future Demand:
Coal for Steel:
To meet designed capacity in ASCL, DSC and other minor operators (for a total 16 million
metric tonnes of steel), 10 million metric tonnes of coal will be required by 2020. Steel
production should hit 16 million metric tonnes to enable Nigeria achieve the target of 100kg/per
capita of steel consumption.
Coal for Power:
Nigeria is expected to generate 60,000 megawatts of electricity by 2020. Coal fired plants
should contribute 30% of this amount, which requires increasing power generation from coal
fired plants from 0 to 18,000megawatts. By 2015 at which time power generation should be
about 40,000 megawatts, coal requirements is estimated at 12 million tonnes, rising to 18 million
tonnes by 2020.
Target Sectors for Functional Linkages: Power generation (Power sector), Steel industry,
Energy (Coal briquettes and Carbon Trading), Service linkages from Power and Transport.
Strategies:
- Government shall create attractive environment and clearly defined incentives to coal
mining companies as motivation for coal producers to meet various domestic production.
Fiscal incentives should include market guarantees, tax holidays and security of tenure.
- The rail link between Ajaokuta and Otukpo with spur lines to the coal mines at Okaba
and Ogboyaga should be built to bring coal to Ajaokuta
- Government should guarantee market for coal product by providing the enabling policy
framework
Specific Initiatives
Coal mining companies to produce the target 30 million metric tonnes of coal per annum
for the steel and power sectors.
Expand operations to produce the local requirement for steel, power generation, and
other areas.
Provide the needed infrastructure (rail-link to mining operations and power supply from
national grid to operating properties / coal mines).
Iron Ore
Profile:
Estimated Reserves: About 3.0 billion tonnes
Current Production (Annual): Zero
Current Estimated Demand (Annual): Zero
Estimated Future Demand:
30 million tonnes per annum
Projected Demand from Associated Minerals:
Coal – 18 million tonnes per annum ; Manganese – 4 million tonnes per annum ;
Limestone/Marble/Dolomite – 19 million tonnes/annum ; Fireclays – 10 million tonnes per
annum
The recommended strategy for the revival of the steel sector is through massive government
investment in the short term and privatization in the long term. The target is to achieve 100kg
per capita of steel by year 2020 (from our current 9kg per capita). To achieve this, Nigeria will
need about 16 million tons of steel consumption (assuming our population will be at least 160
million by 2020). The Ajaokuta steel plant will have to expand to her 3rd Phase capacity of 5.2
million tons per year and the Delta Steel Company to her 2nd Phase capacity of 2 million tons.
Another steel plant of some 5 million tons will need to be built to bring the in-house capacity to
some 12.2 million tons per year. The shortfalls will have to be imported. For the production
capacity of 12.2 million tonnes of steel, 30 million tons of iron ore will be required, of some 64-
68% Fe content. The Agbaja and Nsude iron ore deposits can be upgraded using the roasting
technology to achieve this target. Government also recommends the development and
utilization of the Mfergui Nimba (Euro Nimba) iron ore deposit in Guinea in which Nigeria has a
5% equity with provision to acquire more.
Scrap Metals: -
Specific Initiatives
Estimated Reserves – 1.1 billion (NGSA - Ogun, Sokoto , Edo & others)
Bentonite
Estimated Production: Not Known
Estimated Annual Demand: 100,000 – oil drilling; 50,000 water drilling
Associated Minerals: Barite and tar oils
- Encourage local and multinational companies that use industrial minerals to aid the
research, development and enhancement of the quality of these minerals to make them
more suitable for industrial use
- Provisions should be included in the local content bill to drive local utilization of industrial
minerals.
- Government should put in place policies that will promote capacity building for
sustainable industrial minerals production in the country in view of its potential to grow
the economy.
- Unbundle local markets for critical industrial minerals i.e. Bentonite and Barite in oil and
gas sector for local miners and processors
Bauxite
Profile
Estimated Reserves: Not Known
Current Production (Annual): Nil
Estimated Demand: Not known
Estimated Future Demand: NA
Rationale for Focus: Government interest underscored by its investment in Guinea Bauxite
deposit (16% equity) to compliment local supply. The goal here is to achieve long term
production of 1 million tonnes per annum leading to smelting for export and local consumption
- Explore within 2 years reported deposit at Mambila Plateau, Gembu (Taraba), Orin
(Ekiti) to attract private investment.
- Production of Alumina for Aluminium smelting and linkage with Mambila Hydro-electricity
Project, Aluminium smelter in Ikot Abasi in Akwa Ibom State.
- Joint Venture (JV) establishment of viable Aluminium processing and smelting plants
- ALSCON should be encouraged to prioritise meeting local demand for Aluminium ingots
over exports, through the provision of cheap energy.
Bitumen
Profile
Estimated Reserves: 42 billion barrels
Current Production (Annual): Nil
Estimated Demand (Annual): 10,000 barrels/day
Long term demand: 100,000 barrels/day
Associated Mineral: Heavy oils, Sulphur
Specific Initiatives
The target for Bitumen should be to achieve maximum exploitation to meet local demand and
exploitation.
- Invite investors and guarantee local market/ price for next five years, for the production
of tar and asphalt for road constructions
Metallic Minerals
Profile:
Tin, Collumbite,Tantalite, Wolframite :
Resource estimates: Substantial resource exist to support small-medium scale exploitation
Production: Currently small quantity produced and exported as concentrates (about 100 metric
tonnes/ month) from about 4 states
Lead/Zinc
Resource estimates: - Widespread occurrences but few proven deposits
Production:- Few small scale mines (approximately 100 tonnes/ month)
Target – 1 million tonnes per annum concentrate
- Funding support to local private sector mining companies in the form of venture capital
intervention ( e.g. from the solid minerals development fund)
- Securing the pricing and marketing mechanism to insulate from international market
fluctuations of the commodity prices
Gemstones
Profile
Mineral productions of gemstone particularly at artisanal and small scales are known to have
been going on for years within the country, these are in varied types, quantities and qualities. In
the short term, the focus will be on the establishment of institutional frameworks and capacity
building for the key players in the industry. Production of value added materials of loose stones
and jewelry of about 100Mt annually is the medium term aspiration, to grow to production of
200mt of value added products annually by 2020.
Provision of funding windows like the solid minerals development fund to enhance
explorations, production and marketing of gemstones.
This sub sector requires capacity building for both institutional and the local gemstones
miners, brokers and manufacturers in order to legitimize the operations within this sub
sector.
Gold
Profile:
Resource estimates: - Not known but widespread occurrences in northwest and southwest of
Nigeria. Most important occurrences are found in the Maru, Anka, Malele, Tsohon Buirnin,
Gwari-Kwaga, Gurmana, Bin Yauri, Okolom-Dogondaji and Iperindo areas9. Two major
explorations by two junior mining companies are currently ongoing
Current Production: - 5kg per month (estimated)
Target – 5mt per annum by 2020
Strategies
Provide incentives to encourage exploration for gold and its production by medium scale
mining companies;
Continue targeted exploration by NGSA;
Facilitate enabling environment for fair trade in gold through the establishment of
exchange markets.
9
Source: Ministry of Mines & Steel Development Booklet on Gold (2008)
Key Enabler
Strengthen institutional and human capacity across every aspect of the minerals and metals sector
1. Provision of specialized funding for key institutions in the minerals and metals sector
such as (NGSA, COMEG, NMDC, Departments of MMSD, School of Mines, NSRMEA)
3. Establish a performance audit board charged with monitoring and evaluation of the
relevant sector ministry, departments and agencies.
4. Provide adaptive technology for research agencies such as National Centre for Remote
Sensing (NCRS), Raw Material Research and Development Council (RMRDC) etc.
6. Establish data-base management facilities within the ministry and relevant agencies
Key Enabler
Sustain a stable and effective legal and regulatory framework for the minerals and metals sector
Recommendation:
1. Full enforcement and application of all laws, policies and regulations of the Nigerian
Minerals and Mining Act 2007, and any subsequent legislation enacted for the
development of the industry.
Pillar 1: Develop an effective mechanism for the consistent and systematic generation of quality and reliable geoscience data to
support detailed exploration of mineral resources
Timeline
Implementing Collaborating Funding
Strategy Initiatives KPI
Short Medium Long Institutions Institutions Sources
Term Term Term
Timeline
Implementing Collaborating Funding
Strategy Initiatives KPI
Short Medium Long Institutions Institutions Sources
Term Term Term
Timeline
Implementing Collaborating Funding
Strategy Initiatives KPI
Short- Medium Long Institutions Institutions Sources
term term term
2010 – Budgetary
1. Sustain a transparent, independent, and modern
Independent Provisions, Solid
2010 MCO MMSD
licensing system through the Mining Cadastre Office & Functional Mineral Development
MCO Fund
Timeline
Implementing Collaborating Funding
Strategy Initiatives KPI
Short- Medium Long Institutions Institutions Sources
term term term
Viable
4. Initiate specific programs targeted at the development medium
Miners
2012 scale mining MMSD FG. Private Sources
of the medium scale commercial mining operators Association
segment by
2013
Timeline
Implementing Collaborating Funding
Strategy Initiatives KPI
Medium Long Institutions Institutions Sources
Short-term
term Term
Initiate specific strategic interventions (government or private sector driven) to achieve growth in mineral and metal production, as well as deep
and functional linkages with other strategic sectors of the economy
Coal Rail/power
link to raw Federal
1. Provide needed infrastructure ( rail and waterway links ) to material Government Public Private Public/
2017 sources for Sector Private
mining operations and power supply from national grid to
Ajaokuta and Private Sector Partnerships Sources
operating properties and coal mines Delta Steel Ministry of Transport
by 2011
Iron Ore/Steel
Completed FG
2. Revitalize the Ajaokuta Steel Company after technical 2010 Technical MMSD FG Budgetary
audit by original builders of the plant (TPE) Audit by 2009 Provision
Nigerian Federal
Industrial Minerals Enforcement Federal Government Custom Governme
2010 of MMSD Service nt
appropriate Nigeria Police Mining
1. Government should control importation of these minerals policies Force Unions
to encourage local exploitation, production and utilization. Mining
Unions
Improved
6. Government should put in place policies that will promote 2010 performance
capacity building for sustainable mineral production in the of COMEG MMSD COMEG Budgetary
Provisions
country in view of its potential to grow the economy
Bitumen
1. Invite investors and guarantee local market/ price for next Use of locally BPE,
Public and
Continuous produced MMSD Infrastructure
five years, for the production of tar and asphalt for road Private
bitumen Commission
constructions
Establish FG,
2. Secure the pricing and marketing mechanism of metallic
hedge fund MMSD/ Mining NASS Multilatera
minerals to insulate from international market fluctuations Continuous by 2011 Finance l/ bilateral
Gemstones
Increased Gemstone MMSD Solid
2012 systematic Association/ Other Mineral
1. Conduct deliberate marketing drives to encourage the exploration stakeholders Developm
creation of creating value-added products and stimulate and ent
exploitation Fund
fair trade in gemstones in Nigeria of gemstone
potentials
2. Open a gemstone exchange as a way of restructuring the Operating MMSD / Gemstone Commodities Public and
2012 gemstone Association Exchange, Private
sector so that it can monitor and reduce illegal trading of exchange by NASS
the commodity, which has seen the country lose significant 2014
foreign exchange.
3. Provide incentives to encourage exploration for gold and 2012 2mt per MMSD MMSD, Public and
facilitate enabling environment for fair trade in gold through annum gold Stakeholders Private
production by
the establishment of exchange markets. 2015
Timeline
Implementing Collaborating Funding
Strategy Initiatives KPI
Short- Medium Long Institutions Institutions Sources
term term term
1. Implementation of local content policy for the Increased MMSD Solid Solid Minerals
2012 participation Minerals Development
development of host communities of host Development Fund
communities Fund NNPC and other
stakeholders
Timeline
Implementing Collaborating Funding
Strategy Initiatives KPI
Medium Long Institutions Institutions Sources
Short-term
term term
1. Provision of special funding support for key institutions Availability of MMSD Solid Mineral Solid Mineral
2011 accessible Devt. Fund, Devt. Fund,
(NGSA, COMEG, NMDC, Departments of MMSD, funds Bilateral & Bilateral &
School of Mines, NSRMEA) Multilateral Multilateral
Agencies Agencies
2. Develop industry wide capacity building program for 2011 Program fully MMSD Miners Federal
mining companies functional Association Government
5. Technical assistance, training and capacity building for Number of UNIDO, Bilateral, MMSD, FG, Bilateral &
industry regulators Continuous trained Multilateral National Multilateral
personnel agencies Planning Agencies
Commission
6. Establish data-base management facilities within
2010 Establishment National Federal
ministry and relevant agencies.
of database MMSD Planning Government,
facilities by Commission NEITI
2010
To ensure the successful implementation of the strategic plan for the sector as outlined in
Section 4.1, this working group recommends that a Special Implementation Committee, with
responsibility for monitoring the implementation of the entire Vision 2020 program, be
constituted. This committee will be expected to work collaboratively with the National Planning
Commission, and must be provided with adequate resources and authority to execute its
mandate. It is suggested that the mandate of the committee be derived from the overall
monitoring and evaluation framework to be developed for Vision 2020. It is also suggested that
this committee be made up of selected individuals from the various national technical working
groups, set up for the development of the Vision 2020 blueprint.
METALLIC MINERALS
1. Cassiterite Kogo Toro Bauchi Unexplored N/A Granite & Rhyolite of Cooperative need for
the younger Granite exploration Artisanal
Complex mining
Rishi Toro Bauchi Unexplored N/A Granite gneiss and Regarded as the
diorite of the younger richest tin deposit
granite outside Jos in Plateau
State
Dutse Wai Ikara Kaduna Prospect N/A Biotite granite, Some artisanal mining
intruded by is going on
porphyritic quartz-
feldspar vein
Federe Jos East Plateau Unexplored N/A Biotite granite of the Artisanal mining
younger granite ring cooperative
complex
2. Iron-Ore Agbaja Lokoja Kogi High Prospect 30.5million Oolitic ironstones The deposit has high
within Cretaceous phosphorus content
sandstone, musstone
and clay sequence of
Bida formation
Itakpe Okehi Kogi Active mine 200 million Banded iron 36-38% Fe. Already
formation (BIF) being mind and
ferrubinous quartzite beneficiated to supply
interblended with the steel plants in
Toto Toto Nassarawa Small deposit 10.6million Banded iron Deposit occurs with
formation in marble
basement gneisses
Maru Maru Zamfara Small deposit N/A Banded Iron Deposit occurs with
Formation (BIF) gold more exploration
ferruginous quartzite require
inter banded with
schist
3. Lead Baban-Sauni Gwagwa- Abuja Dormant N/A Basement complex Reserve estimate to be
Lada mine/small rocks of gneiss- verified.
(Galena) working by… migmatite suite.
Galena occurs in Require exploration
veins cutting the
suite
4. Lead-Zinc Ameri-Ameka Abakaliki Ebonyi Dormant mine 1,040,000 Sulphide vein cutting Proven by NMC
cretaceous
sandstones and
shales grade
Enyingba Abakaliki Ebonyi Dormant mine N/A Hydrothermal vein Deposit contains high
High prospect cutting the sequence Pb and low Zn. Mine
of shales, limestone was close during the
as the Asu River civil war. Required
Group Grade exploration
Zurak Wase Plateau Dormant mine. N/A Sequence of shales Deposit reported to
High prospect and sandstone contain high silver
Ishiagu Ivo Ebonyi Active Mine 2.55m Veins intruded along Estimated reserve
Identified NE, E and N trending based on interpretation
Resource fractures on shales of geophysical data
of Asu River Group
and uncomfortably
overlain by
sandstones and
shales of Eze-Aku
formation
Mkpome Izzi Ebonyi Active Mine N/A Galena veins cutting Operated intermittedly
the sequence of on a small scale.
shales and limestone Prospect shaft was
of ASU River Group floated with brine
5. Lead-Floride Akwana Wukari Taraba Dormant mine N/A Vein deposit in Low-grade deposit with
basinal sequence of fluorite as the main
sandstone. gangue minerals
Mudstone, shales
and limestone of Eze
Asu shale and Asu
River Group
6. Manganese Kaoje Shanga Kebbi Occurrence N/A Manganese occurs Under current
as layers within the investigation by the
clays and grits of illo GSD
formation
7. Ilmenite- Rutile Tilden- Fulani Toro Bauchi prospect 88,157 Younger granite Alluvial deposit
8. Wolfromite Ririwai Kano prospect N/A Pegmatite’s within Dormant mine require
basement gneisses, exploration
schist and granites
SPECIALTY METALS
1. Tantalite Wamba, Keffi Nassarawa Active mine N/A Occurs in Detailed systematic
and pegmatites within exploration
Nassarawa basement gneiss recommended
and granites.
-do-
Recent detailed
investigations going
on to prove
Egbe Kogi Active mine N/A reserves. Result -do-
have been very
encouraging
2. Columbite Jos-Bukuru Jos South Plateau Prospect N/A Primary deposit in Deposit ready for
the biotite of the exploitation after
younger granite feasibility study
complex
Ririwai Doguwa Kano Prospect N/A
PRECIOUS METALS
1. Gold Maru Maru Zamfara Preliminary N/A Gold mineralization Under invesgication by
investigation within pre-cambian the NMC
encouraging phyllite-schists-gray-
wacke sequence
Galadima Shiroro Niger Active Artisanal N/A Gold inquartz veins Gold also occur in
Kogo mining intruding alluvial deposits along
metasediments rivers and low level
terraces cooperatives
Bin Yauri Ngaski Kebbi High N/A Gold occurs in series Under investigation by
of quartz vein up to NMC
300m wide and 2 km
long in contact with
granodiorite
Bindin Dan Maru Zamfara High N/A Gold in quartz veins Detailed exploration to
Gulbi with metasediments prove reserves
recommended
Iperindo Ilesha East Osun Proven Reserve at 350,000Ozs Gold in quartz veins NMC joint venture with
50m within pre-cambrian Tropical mines working
gneisses to revalue deposit
andquartzites. More
work
Itagunmodi Ilesha West Osun Active mine Gold mineralization Extensive alluvial
in alluvial tons within mining activities in
mafics and 1930. NMC feasibility
ultramafics of Ife- study (1984 – 1985);
Ilesha schist belt Trial mining started in
1988. Cooperatives
Okolom East Yagba Kogi Very High Gold in quartz veins Under investigation by
within NMC. Require
metasediments exploration
GEMSTONES
1. Amethyst --- Zaria Zaria Require N/A Occurs in vein within Exploration largely for
Investigation the basement artisanal informal
granite gneisses miners
Saya saya Tundun Kano Require -do- Occurs in vein within -do-
Wada Investigation the older granites
Gale Hill Nassarawa Nassarawa Active mine -do- Occurs in pegmatite -do-
Eggon in association with
biotite granite
3. Sapphire Jema’a Jema’a Kaduna Occurrence -do- Occurs in alkaline First discovered in
basalts 1968, artisanal
production started in
1980
5. Aqua-marine Lafin Gabas Nassarawa Nassarawa Artisanal mine -do- Occurs in narrow Mining is largely by
Hils stock-work veins in informal small scale
the copula zone of miners
younger granite
intrusion
Ijebu Igbo Ijebu north Ogun Artisanal mine -do- Occurs in -do-
pegmatite’s
1. Baryte Azara Awe Nassarawa Active mine 730, 000 Fissure vein deposit Further exploration
(Adudu) within sequence of around this deposit
sandstone, and others should be
limestone, mudstone conducted to improve
and shale of Eze- on information about
Aku Group and ASU known reserves
River Group. Vertical
dip structuring NE,
width between 2m
and 5m
2. Gypsum Fika Fika Yobe Producing 1.3million Sedimendary The other four known
Prospect sequence of clays occurrences around
and shales with the Fika deposit should
gypsum be explored
intercalations in Fika
formation
Wurno Wurno Sokoto Artisanal Mine 28,190 Marine siltstones, Through investigation
shale, limestone of of this sole source of
Maastrichian and gypsum for sokoto
Paleocene age cement plat needs to
be conducted
3. Kaolin Abeokuta Abeokuta Ogun Prospect 2,800,000 Basement rocks Information on this
North intruded by some prospect needs
granitoid with Kaolin upgrading
occurring as in-situ
weathered products
of basement
Awomamma Ihite/ Imo Active mine 6.86 Sedimentary clay Determine quality and
Uboma deposits within the upgrade information to
Ogwashi-Asaba reflect past and current
formation. Kaolin mining activities
body is 30-90m thick
3-10m of over
burden
Darazo Darazo Bauchi Proven Deposit 12.8million Coarse Biotite – horn Explorationto be
blende granite undertaken through
overlaying joint venture between
sandstone of Kerri- NMC, Bauchi state
Kerri formation. Area Govt and Darazo LGA
is underlain by Pre-
cambrian coarse
biotite-horn-blende
granite. The kaolin
occurs as layers
within the overlaying
sandstones of the
Kerri formation.
Kaolin layers range
between 4-7mwith
an overburden of
between 1-5m
thickness
Giru Argungu Kebbi Proven Deposit 6.8million Flat-lying deposit Reconfirm previous
averaging 4m in findings upgrade
thickness with an information
average of 1.6m
overburden.
Ifon Owo Ondo Proven Deposi 40million Basement gneisses Sample for analysis to
and schist intruded determine quality then
by granitoids. Kaolin upgrade information
occurs as weathered
in-situ product of
basement rocks
Ijero Ijero Ekiti Artisanal Mine 6.4million Basement gneisses Upgrade information to
intruded by reflect past and current
pegmatites and mining activities
quartz veins. Kaolin
occurs as residual
deposits from the
weathered gneisses
Ikot Ekwere Itu Akwa Ibom Active Mine 7.5million Area underlain by Determine quality then
sand and clay of upgrade information to
coastal plain sands. reflect past and current
Kaolin occurs as mining activities
alternating
sedimentary layers
within the sands
Major Porter Barkin Ladi Plateau Active Mine 1.1 million Riebeckite biotite Source for outright
granite of the buyers or joint venture
younger granite partners
series
Nahuta Barkin Ladi Plateau Active Mine 1 million -do- Upgrade information
and authenticate
source
4. Talc Okolom East Yagba Kogi Active Mine 161,000 Pods and lenses of Confirm reserve
talc bodies estimate then upgrade
associated with
5. Diatomite Abakire Geidam Yobe Artisanal Mine 3.697million Elementary Confirm reserve
sequence of clays estimation through
and sandy clays investigation sample
for quality analysis
6. Limestone Mfamosing Akampa Cross River Active Mine 30million Medium to coarse- Upgrade information
grained reflects past and
discontinuous current mining
limestone body activities
occasionally
interbedded with
siltstones shales and
sandstone
7. Refractory Clay Giro Kebbi Prospect High 6.24million Set for exploitation
9. Talc Okolom East Yagba Kogi Active Mine 161,000 Pods and lenses of Confirm reserve
talc bodies estimate the update
associated with
amphibolites
15 Marble Burum Taka Kuje FCT Active mine 5.5 million Migmatite-gneiss Upgrade information to
Lafia complex. The marble reflect mining activity
occurs as lenses
within the complex
Osara Forest Ajaokuta Kogi Proven 1.7million Marble bands in Source should be
strongly folded determined and the
metamorphic reserve estimate
basement conrim to upgrade the
associated with deposit
kyanite-bearing
gneiss. Tabular body
dips 100-150 SE.
Marble is dolomitic
Muro Hills Toto Nassarawa Proven 10.6million Basement schist, Confirm reserve
quartzite, carbonate estimate to upgrade
metasediments deposit
(younger
metasediments). The
marble occurs as
contorted lenses
within the basement
metasediments
S/N MINE LOCATION STATE TYPE OF COAL ESTIMATE PROVEN BOREHOLE COAL DEPT OF MINING
RESERVES RESERVES RECORDS OUTCROP COAL METHODS
(Million AND SEAM
Tonnes) THICKNESS
(0.3-4.5)
11 Okaba Kogi Sub-bituminous 250 73 Many 0.8-2.3 20-100 Open cast &
underground
BITUMEN
Ondo 180million
Ogun 20million
Edo 57million