Republic of Nigeria: Investment Opportunities in Nigeria’s Minerals And Metals Sector

#

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

PRESENTATION

AT

INVESTMENT OPPORTUNITIES IN NIGERIA’S MINERALS AND METALS SECTOR

BY

Arc. Musa Mohammed Sada, fnia, fnmgs, fnsmeMinister of Mines & Steel Development

June, 2014

MINING ON TOP: AFRICA-LONDON SUMMIT 2014

#

Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development

■ Nigeria is endowed with a variety of solid mineral resources arising from its favourable geological formations:

Basement Complex[Gold, Iron Ore, Tantalum-

Niobium, Gemstones, Industrial Minerals]

Younger Granites[Tin, Tungsten, Uranium]Sedimentary Basins[Lead-Zinc, Coal, Tar Sands]

INTRODUCTION

1Geological Map of Nigeria

#


2`

NIGERIA’S KEY MINERAL RESOURCE ENDOWMENT

Lagos

Bayelsa Rivers

Imo Abia

AkwaIbom

Adamawa

Bauchi

Gombe

Kaduna

FctNassarawa

Plateau

Taraba

Benue

CrossRiver

Enugu

EbonyiAnambra

Delta

Edo

Kogi

Oyo

Ogun

Osun Ekiti

Ondo

Kwara

Niger

Sokoto

Kebbi

Zamfara

Katsina

Kano

YobeJigawa

Borno

Legend:

Gold ore

Iron oreCoal ore

Aluminum smelter

Lead/Zinc ore

Iron ore found across Nigeria with large mid-grade deposits found the Central Part~ 360 Mt of reserves. Inferred reserves of >3 Bt

Gold found along North Western – South Western part. One publically quoted resource has 620 koz

Barite found in the central part

Bitumen / Tar Sand Resource found in the South Western Part

Limestone found across Nigeria

Coal found in the North Eastern, Central and South Eastern Part

Lead-Zinc ores found in the North East and Eastern Part

2

Barite

Clays (Kaolin, Common Clay, Bentonite, etc) found in several states

Clays

Bitumen

`Limestone

#


The entire country has been covered by airborne geophysical survey ( Magnetic)

Ground follow up of identified mineralized areas in progress

Geochemical mapping exercise on a scale of 150X150 is currently in progress

Geological maps to various scales produced

Total Magnetic Intensity Map

Radiometric Ternary Image

LEVEL OF AVAILABLE GEOSCIENCES DATA

3

#


A policy that makes the private sector the owner and operator of projects with the Government as regulator

An International Standard Minerals and Mining Act and Regulations that guarantees security of tenure

A transparent Minerals Title Administration administered by an autonomous agency, the Nigeria Mining Cadastre Office

Available basic infrastructure to support mining operations with Government currently implementing Integrated Infrastructure Master Plan as a further support to the sector

Institutions that facilitate orderly development of minerals endowment:oNigeria Geological Survey AgencyoNigeria Mining Cadastre OfficeoMineral Exploration AgencyoSolid Minerals Development Fund

INVESTMENT CLIMATE

4

#


Waiver of customs and import duties for plant, machinery and equipment imported for mining operations

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

and use earned foreign exchange Competitive Tax Rate 100% foreign ownership A recently approved fiscal regime for the Mining

Sector devoid of double taxation

INVESTMENT INCENTIVES

5

#


Mineral Tiles are administered by the Nigerian Mining Cadastre office based on the principles of:

“First Come – First Served” “Use it” or “Lose it” Types of Mineral Titles on Offer:

MINERAL TITLE ADMINISTRATION

Type Lifespan Renewals in line with the law

Reconnaissance Permit Non-Exclusive with 1 Yr Lifespan

Every Yr

Exploration Licence Exclusive with 3Yr Lifespan Renewable Twice for 2Yrs each

Mining Lease Exclusive with 25Yr lifespan Renewable

Small Scale Mining Lease

Exclusive with 5Yr lifespan Renewable

Quarry Lease Exclusive with 5Yr lifespan Renewable

Water Use Permit for Mining Operations

Samelifespan as the Mineral Title for which use it was applied for

Same as the Mineral Title for which use it was applied for

6

#


HOW TO ACQUIRE MINERAL TITLES■ Mineral Titles can be acquired through: Application to Nigeria Mining Cadastre Office by

completing suitable application forms available online at MCO website - www.miningcadastre.gov.ngor from MCO,s office;

Through competitive bidding for an area earmarked for competitive bidding in line with Section 9 of the Nigerian Minerals and Mining Act, 2007; and

Partnership with existing mineral title holders or outright acquisition.

■ Guidelines for completing the Mineral Title Applications are also downloadable from the MCO website.

7

#


AVAILABLE PROJECTS

■ Nigeria used to be one of the leading producers of tin and columbite in the world

■ Previous locations spread across the Country being harnessed and parckaged for exploitation by the private sector

■ Other minerals resources that exist in economic quantities include coal, iron ore, lead / zinc ores, gold, gemstones amongst others

■ Government is ready to broker partnership discussions in the case of mineral areas already acquired to facilitate project acquisition or partnership

■ Specific projects that are currently available for investment include:

8

#


AVAILABLE PROJECTS – TIN AND ZINC ORES (POLYMETALLIC)■ Ririwai Mine located in Ririwai, Doguwa LGA, Kano State (96Cus – 19.2Km2) A polymetallic lode ore deposit containing cassiterite and sphalerite as the major

minerals with galena, chalcopyrite, columbite and wolframite as minor minerals Feasibilty Study carried out by Mackay &Schnellmann Limited Declared Mineral Reserves:o Measured (Cut off grade 0.2%Sn)– 582,668t; 0.7%Sn, 2.56%Zno Indicated – 2,247,683t; 0.61%Sn, 2.05% Zno Demonstrated – 2,830,351t, 0.63%Sn, 2.15%Zn Infrastructureo Accessible by roado Nearest Rail terminal is 150Km away (Jos)o Access to Airport – Jos (150Km), Kano (200Km) and Kaduna (240Km)o Telephone – GSM Serviceo Electricity – National Electricity Power Supply

9

#


Ririwai Mine Project Title Area Graphics

10

#


AVAILABLE PROJECTS - COAL

■ Lamza – Chikila Coal Project, Guyuk LGA, Adamawa State (253.2 Km2) Sub-Bituminous coal Exploration Activities carried out:o Extensive Exploratory pittingo 3 exploratory core holes drilled, two of which intercepted coal at

shallow depths (5 – 10m)o Geological and geophysical maps on a scale of 1:10,000 produced Infrastructureo Accessible by roado Access to Rail line (Gombe – 150Km) o Access to Airport – Yola (100Km)o Telephone – GSM Service

11

#


LAMZA – CHIKILA COAL PROJECT TITLE AREA GRAPHICS

12

#


MINE

LOCATION

TYPE

OF COAL

ESTIMATED

RESERVE

(MillionTonn

es)

PROVEN

RESERVES

(MillionTonn

es)

No of

BOREHOLES

DRILLED

COAL

SEAM

THICKNESS

(M)

DEPTH

COAL (M)

OkparaMine,

Enugu State

Sub-

Bituminous

100 24 20 1.5 180

OnyeamaMine,

Enugu State

Sub-

Bituminous

160 40 Many 1.5 180

OgwashiAsaba

/Obomkpa, Delta

State

Lignite 250 63 7 3.5 15-100

Inyi, Enugu State Sub-

Bitumious

50 20 4 0.9-2.0m 25-78

Amasiodo, Enugu

State

Bituminous

(Cokable)

1000 NA 3 NA 563

OTHER COAL PROJECTS (NCC TITLES FOR COAL TO POWER)

13

#


AVAILABLE PROJECTS – IRON ORE

■ Lamba Iron Ore Project, Bauchi State A hematite Deposit (70% Fe) Exploration activities on going Geological and Geophysical maps of 1:5000 produced Over 60million tonnes inferred reserves of iron ore estimated Infrastructureo Accessible by roado Access to Rail line – Bauchi (200Km) o Access to Airport – Maiduguri (260Km)o Telephone – GSM Service

14

#


Lamba Iron Ore Project Title Area Graphics

15

#


S/No Mineral commodity Location State1 Manganese Kaoje Kebbi2 Tantalite Katakwa Kogi3 Cassiterite TafawaBalewa Bauchi4 Cassiterite Pankshin Plateau5 Cassiterite, Tungsten,

BauxiteTissa Taraba

6 Beryl, Bauxite, Tungsten Dongo Taraba

OTHER TARGET EXPLORATION PROJECTS IDENTIFIED FROM THE INTERPRETATION OF AIRBORNE GEOPHYSICAL SURVEY DATA BY PETERSON, GRANT & WATSON (PGW) OF CANADA

16

#


OTHER INVESTMENT OPPORTUNITIES■ Management of an established Mineral Testing Laboratory with modern chemical

and mineralogical testing equipment in Kaduna by an ISO certified Laboratory■ Establishment of Precious Metals (Gold) Buying Centre and Refinery■ Establishment of Mineral Testing Laboratories: Chemical Analysis (AAS, XRF, etc) Mineralogical Analysis (XRD, SEM, QEMSCAN, etc) Fire Assay■ Equipment Hire Services: Equipment Hire Services Contract mining and Processing■ Consultancy and Professional Services: Exploration & Mining Geology Mine Planning, Mine Design and Optimization Minerals Process Tests / Design and Plant Design Project Financing Environmental Studies

17

#


HONOURABLE MINISTERMINISTRY OF MINES AND STEEL DEVELOPMENT

2 LUANDA CRESCENT OFF ADETOKUNMO ADEMOLA CRESCENT, WUSE II, P.M.B. 107,

ABUJATEL: +234 (0)9-7816794

www.mmsd.gov.ng

18

FOR ENQUIRIES, PLEASE CONTACT

Director General Mining Cadastre Office

37 Lobito Crescent, Wuse II, Abujawww.miningcadastre.gov.ng

Director GeneralNigeria Geological Survey Agency

Plot 31, Shetima Ali Munguno Crescent,Behind Julius Berger Office

Utako District, Abujawww.ngsa-ng.org

Republic of Nigeria: Investment Opportunities in Nigeria’s Minerals And Metals Sector

Business

Transcript of Republic of Nigeria: Investment Opportunities in Nigeria’s Minerals And Metals Sector