0 Ministry of Mines and Steel Development FEDERAL REPUBLIC OF NIGERIA 2 nd NIGERIAN INTERNATIONAL...

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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentFEDERAL REPUBLIC OF NIGERIA

2nd NIGERIAN INTERNATIONAL INVESTMENT FORUM

A PRESENTATION

TO

Arc. Musa Mohammed Sada, fnia, fnmgsHon. Minister of Mines & Steel Development

October, 2012

ON

MINING AND MINERALS- NIGERIA’S ABUNDANCE OF UNTAPPED RESOURCES

BY

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Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development

NIGERIA ONCE A FLOURISHING MINING NATION

■ Globally known for Tin, Columbite and tantalite

production and export;

■ Worlds leading producer of Columbite at a time;

■ Coal exploited as local energy source and for export;

■ Recorded volumes of gold production;

■ Industrial minerals produced for local industries.

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YEAR PRODUCTION1916 24,511 1920 180,122 1924 220,161 1928 305,745 1932 256,860 1936 310,308 1940 318,640 1944 669,158 1948 610,283 1952 613,374 1956 790,030 1960 565,681 1964 698,502 1972 264,258 1976 249,446 1980 114,875 1984 139,744 1992 27,686 1996 17,797 2002 41,771

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THE DECLINE OF THE MINING SECTOR

Neglect caused by:

■ Second World war in 1945;

■ Discovery of oil in commercial quantities;

■Indigenisation policies of the 1970s

■Collapse in the international tin price in the mid 80s.

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OUTCOME OF SECTOR NEGLET

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Large numbers of Informal mines ravaging natural Mineral assets

Low income and lack of investment

Low productivity Inadequate & inappropriate technology

Environmental degradation, health and safety hazards

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GOVERNMENT STRONG NEED TO REVAMP THE SECTOR

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Government’s emphasis on developing non-oil sectors to diversify and balance the economy

Solid minerals sector has great potential (Minerals available in all parts of the country

Need to boost sector’s contribution to GDP and Earnings Need to create non-farm wealth and employment

opportunities through Artisanal and Small Scale Mining Production of industrial minerals as input factors for

industrial growth and wealth creation

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

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ADOPTED TRANSFORMATION PATHS FOR GROWTH

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Regulatory Framework

Institutional Capacity Building

Generation of Reliable Data

Sustainable Mining Environmental and Social Framework

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REFORM OUTPUT CURRENTLY IN USE

A minerals and metals policy that makes government a regulator / facilitator with the Private Sector as Owner/ Operator;

A modern Minerals and Mining Act and Regulations that are in line with international standard and guarantees security of tenure;

A transparent mineral title administration that grants titles on first come first served and use it or lose it basis; and

Readily available geosciences data for prospective investors (the entire country covered by airborne geophysical survey)

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AIRBORNE GEOPHYSICAL SURVEY COVERAGE MAP

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Availability of indigenous professionals and technical manpower

Available basic infrastructure to support mining operations

National Rail Network

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Attractive investment incentiveso Capital allowances up to 95% of qualifying capital

expenditureo Waiver of customs and import duties for plant,

machinery and equipment imported for mining operations

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

and use earned foreign exchangeo Deductibility of Environmental Costso Annual Capital Cost indexationo Ease of entry into the country 10

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NIGERIA’S ABUNDANT MINERAL RESOURCES

■ Nigeria is endowed with a variety of solid minerals made up of industrial minerals, metallic minerals, mineral fuel, gemstones, precious metals, and dimension stones.

■ They have been found in more than 500 locations across the country.

■ All 36 States of the Federation and the FCT have more than one mineral type.

■ Control of all Mineral Resources in Nigeria is vested on the Federal Government.

■ The Ministry of Mines & Steel Development is responsible for facilitating beneficial Development of the Minerals and metals potential of Nigeria.

MINERAL MAP OF NIGERIA

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World Class Minerals for Immediate DevelopmentMinerals UsesCoal (About 2.7 bt) Utilized in the generation of electricity and for making heating oils,

chemicals and medicines. Coal briquette for domestic uses to check deforestation, desertification and erosion.

Bitumen (About 27billion bbl of oil equivalent

Used as energy source and for roads surfacing. Its other uses are for bituminous waterproofing products and petro-chemicals.

Iron Ore (About 10bt) Principally used as a source for iron to manufacture steelLimestone (About 3tt) A major component in cement manufacture and steel makingBarytes (About 15mt) The largest application for barytes is as a weighting agent in

natural gas and oil drilling mud, etc.Lead/Zinc ore (Proven reserves of 5mt)

Used as source of lead & zinc metals respectively used in producing batteries /radiation shielding and as rust inhibitor for steel in the construction of cars, building, bridges, ships and trains.

Gold (1mil Oz in Osun State and inferred reserves of 200mil Oz)

Ornaments, Currency exchange medium

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JOB CREATION MINERALS AND ROCKS FOR DEVELOPMENT

Minerals / Rocks Uses

Talc Used in the manufacture of medical and cosmetic products, ceramics / refractory products, paper and rubber products, etc.

Kaolin Used for the manufacture of soap/detergents, plastics, ceramics, paints, paper, Pharmaceutical products, fertilizer etc.

Calcium Carbonate (Dolomite, Marble, Limestone, etc)

Many uses according to purity and character. Clayey type used for cement manufacture with brighter resources used for the manufacture of paint, paper, soap /detergent, glass, chemical, etc

Granite (Stone Aggregates)

Used as construction material in the form of stone aggregates, tiles and slabs, etc

Sand Used as construction material and for glass production

Clay Used to produce ceramics and bricks 13

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GEMSTONES AND DIMENSION STONES FOR THE DEVELOPMENT OF SMEs

Mineral Type Examples Uses

Gemstones Tourmaline, Sapphire, Emarald, Garnet, Topaz, Amethyst, etc

Used in jewelry making and as decorative stones

Dimension Stones(Granite, Marble, Limestone, etc)

Zebra, Tiger Yellow, Zaria Red, African Multi Colour,

Used in buildings as tiles, slabs and skirting; monuments; furniture; etc for their aesthetic appeal, durability and ease of maintenance.

Zebra - Ondo Tiger Yellow- OndoZaria Red African Multi Color14

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PROJECTS

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IRON ORE

Two broad types of iron ore resources occur in Nigeria: Banded iron formations in folded bands in the

Precambrian rocks e.g. Itakpe, Tajimi Sedimentry (oolitic) iron ore deposits Fe contents range between 35 – 50% Itakpe iron ore deposit is ready for exploitation with a

mine and processing plant in place Several other iron ore occurrences are located in the

north western and north eastern zones of the country

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Iron Ore ProjectsDeposit Location Reserves (Mil. t)Itakpe Itakpe, Kogi State 310

Ajabanoko Ajabanoko, Kogi State 62Agbado-Okudu Agbado-Okudu, Kogi State 60

Chokochoko Chokochoko, Kogi State 60

Agbaja Agbaja, Kogi State 1,150Kotonkarfe Kotonkarfe, Kogi State 850

Tajimi Tajimi, Kogi State 20Ebiya Ebiya, Kogi state 10Gidan Jaja Gidan Jaja, Zamfara State 20

Jaruwa Jaruwa village, Kaduna State

>60 (Preliminary Estimates)

Lamba Lamba village,Bauchi State

>60 (resource)

Gidan Buzu Gidan Buzu, Yobe State >65(resource)

Gyaza Gyaza, Katsina State >40(resource)) 17

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COAL RESOURCES OF NIGERIA

Coal exists in 13 States of the country

Current exploration results indicate over one trillion tonnes

Development of Coal for power generation – a priority of government

Clean coal exploitation techniques desired in view of our experiences in oil and gas exploitation

Coal & Lignite bearing States

Taraba

Bauchi

Kogi

Kwara

Benue

Edo

Adamawa

Delta

PlateauNasarawa

Ondo

Imo

EnuguAnambra

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SOME COAL PROJECTS

Deposit Location Reserves

Obi -Lafia Coal

Obi, Obi LGA, Nasarawa State

128.3 million tonnes

Lamza-Chikila Coal

Lamza, Guyuk LGA, AdamawaState

Not determined

Maiganga Coal

Maiganga, Akko LGA, GombeState

760 million tonnes (inferred)

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GOLD Gold is known to occur in

several locations Primary belt stretches

from Osun-Ondo States in the southwest to Niger, Kaduna, Zamfara, Kebbi States in the northwest

Already Ratel has a proven gold reserve of over 620,000 ounces in their Iperindo property in Osun state

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GOLD PROJECTSState Location Mineralization Grade

Zamfara Maru In Maru – Zuru Schist belts, the mineralization is made up of gold-quartz-sulphide veins and occurs as structurally controlled primary veins,

Au = 30ppm in MaleleAu = 123-6320 ppb in Anka

Anka

Malele

Kaduna Tsohon Birnin Gwari In Kushaka schist belt, the gold mineralization occurs in reefs between 3-7km long, an associated with pyrite, sphalerite, galena and magnetite.

Variable gold mineralizationreaching 5-100gm/t

Kwaga

Kebbi Bin-Yauri In Zuru schist belt with gold sulphide -carbonate veins in a fault zone at the contact of granodiorite batholith.

Gold grades indicatingbetween 5-15ppm have been recorded in vein materials.

Niger Gurmana Located in the southern part of Kushaka schist belt. Gold – quartz sulphide veins are found in amphibolite and gneisses with pyrite chalcopyrite and galena

Kogi Okolom-Dogondaji In Egbe-Isanlu schist belt SW Nigeria with gold-quartz veins hosted in N-S, NNE –SSW trending shear zones as gold sulphide reef system with a total length of 3km 21

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LEAD/ZINC Lead-Zinc mineralization is

located along Northeast – Southeast belt (Taraba, Bauchi, Plateau, Ebonyi, Zamfara, Benue, Nasararwa, etc)

Three belts are outstanding: Lower Benue Through

mineralization (Abakaliki, etc) Middle Benue Through

mineralization (Anifu, Awana) Upper Benue Through

mineralization (Isimiya, Digi etc)

New exploration findings in several parts of Nigeria 22

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TAR SAND Huge reserves of oil sands in

Nigeria (Ondo, Ogun, Lagos, Edo, etc)

Occur as surface/near surface impregnated sediments and as subsurface bitumenous sands

Extensive exploration work carried out in the belt

Documentation of study results available including correlation panels of wells drilled and cored and unprocessed 2D seismic data

Blocks delineated for concessioning soon 23

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GEMSTONE Nigeria is endowed with many varieties

of coloured gemstones. Six types identified for commercial

development: Aquamarine Tourmaline Emerald Sapphire Garnet

Other gems of less value occur in abundance; Topaz Amethyst Flouride Zircon

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Map of Nigeria showing Gemstone Mineralization

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DIMENSION STONES

Nigeria has vast deposits of colorful granites and marbles

Granite, Marble and Limestone of Dimension Stone Quality are found in Nasarawa, Cross River, Bauchi, Kaduna, FCT, Jigawa, Edo, Kwara, Ogun, Osun, Oyo and Ebonyi States

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Bauchi GreenJuparana Nigeria

Ikara Yellow Elegance

Miero Black MarbleNassarawa Rose Marble

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■ Nigeria is endowed with world class resources of industrial minerals suitable for development to produce raw material required by local manufacturing industries as well as for export.

Market Sector Mineral Resources for Development

Locations (Not Exhaustive)

Filters, Adsorbents and Dessiccants

Diatomite, Sand & Gravel

Alangafe (Yobe State)Jigawa, Bauchi, Gombe, Onitsha, etc

Abrasives Quartz, Quartz- Lokoja, Kogi State

Construction Uses Stone Aggregate, Limestone Sand , Dimension Stone

VariousShagamu, Egbese, Ashaka, Gboko, etcJigawa, Bauchi, Gombe, Onitsha, etcObudu, Bauchi, Jibia, Ilorin, etc

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INDUSTRIAL MINERALS & ROCKS

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Agricultural Uses Phosphate rock,

Potash,

Magnesite, Calcite/Limestone,

Dolomite /Marble

Gypsum, etc

Dange, Gwadabawa (Sokoto), Ososun, Papalanto, Ifo (Ogun) Maimalari (Yobe State), Kargidi (Jigawa), Maiduguri (Borno) Tsakasimta (Adamawa)Shagamu, Egbese, Ashaka, Gboko, etcKwakuti (Niger), Jakura (Kogi), Ugya (Nasarawa)Nafada (Gombe), Fika (Yobe)

Chemicals Rock SaltLimestone

MagnesiteAnhydrite

Kaseyo (Benue),Shagamu, Egbese, Ashaka, Gboko, etcTsakasimta (Adamawa)Nafada (Gombe), Fika, (Yobe) 27

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INDUSTRIAL MINERALS & ROCKSMarket Sector Mineral

Resources for Development


Well Drilling Materials Barite

BentoniteMica, Quartz Sand,

Graphite,

Limestone, Diatomite

Azara, Wuse, (Nasarawa), Gboko (Benue), Ibbi , Didango (Taraba)Damboa, Ngala (Borno)Gungur, Mambyam (Plateau)Isanlu-Esa, Lokoja (Kogi), Maye (FCT),Gumel Garki (Jigawa)Tsohon B/Gwai Kuyelo (Kaduna), Haya (Jigawa)Ashaka, Gboko, Sokoto, Shagamu, etcAlangafe (Yobe)

Electronics and Optical Materials

QuartzMica

Isanlu-Esa, Lokoja (Kogi), Maye (FCT),Gumel Garki (Jigawa)Gungur, Mambyam (Plateau), Pandogari (Niger), B/Gwari (Kaduna) 28

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Filler and Extender Uses

Kaolin,

Limestone/ Dolomite/MarbleDiatomiteMica

Bentonite

Alkaleri (Bauchi), Kuba (Plateau), Kankara (Katsina)Ashaka, Gboko, Sokoto, Shagamu, Jakura (Kogi)

Alangafe (Yobe)Gungur, Mambyam (Plateau), Pandogari (Niger), B/Gwari (Kaduna)Damboa, Ngala (Borno)

Fine Ceramics Products

SandKaolin

FeldsparMarble/DolomiteTalc,

Karaye, Kazaure (Jigawa), Nsude (Anambra, etcAlkaleri (Bauchi), Kuba (Plateau), Kankara (Katsina)Gwoza (Borno), Lokoja (Kogi), Jibia (Katsina)Jakura (Kogi), Kwakuti (Niger), Ugya(Nasarawa)Isanlu (Kogi), Kagara (Niger) 29

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Metallurgical Uses

Iron Ore

Coal

Limestone

Bentonite

Galena /Sphalerite

Zircon

Itakpe, Kotonkarfe (Kogi), Jaruwa (Kaduna, Tama (Katsina), Lamba (Bauchi)

Enugu (Enugu), Maiganga (Gombe)

Ashaka, Gboko, Sokoto, Shagamu

Damboa, Ngala (Borno)

Gwana (Bauchi), Abakaliki (Ebonyi)

Mazat, Nsho, (Plateau), Jangoji (Bauchi), Gundu (Borno) 30

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■ NIGERIA MINERAL PROSPECTIVITY• Availability of credible Geosciencetific data

geological/mineral maps on various scale• 100% coverage of high resolution airborne magnetic and

radiometric data gravity measurement in Niger Delta • Completed 6 Nos. GRN master cells-59 elements analysed.

Anomalous sites for Gold, Platinum , Uranium, rare earths indicated

• Local skilled Geoscientist and Engineers available

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HONOURABLE MINISTER

MINISTRY OF MINES AND STEEL DEVELOPMENT

2 LUANDA CRESCENT

OFF ADETOKUNMO ADEMOLA CRESCENT

WUSE II, ABUJA

TEL: 09-5235830

FAX: 09-5236518

www.mmsd.gov.ng

www.miningcadastre.gov.ng

www.ngsa.ng.org

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