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MINISTRY OFofMINES STEEL DEVELOPMENT,NIGERIA NIGERIA Ministry Mines and SteelDEVELOPMENT, Development MINISTRY OF MINES ANDAND STEEL NIGERIA: A PREFERRED DESTINATION FOR MINING INVESTMENT A PRESENTATION AT MINE AFRICA, PDAC 2011 BY ARC. MUSA MOHAMMED SADA, fnia HON. MINISTER OF MINES AND STEEL DEVELOPMENT, NIGERIA 1 8 MARCH, 2011 MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development Nigeria currently known as an oil rich country Before oil discovery, Nigeria had a glorious mining history Produced and exported Tin, Columbite, Coal, Tantalite, Gold etc Mining neglected with the discovery of oil Now Nigeria is determined to diversify the economy away from oil Minerals sector holds the key to the success of the diversification strategy NIGERIA IS COMMITTED TO DEVELOP MINING 2 MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development THE REFORM AGENDA Robust Reform Programme commenced in 2005 Strongly supported by the World Bank A National Policy on Mining with clear direction for future growth is concluded Thrust of the policy ensures private sector as main engine of growth for the sector Government now a regulator-administrator, creating conducive environment for growth 3 Government mining enterprises privatised. MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development ADOPTED TRANSFORMATION PATHS FOR GROWTH Regulatory Framework Institutional Capacity Building Generation of Reliable Data Sustainable Mining (Environmental and Social Framework) 4 MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development REGULATORY FRAMEWORK MINERALS AND MINING ACT 2007 The Nigerian Minerals and Mining Act 2007 enacted. The key elements of the Act are: 5 Access to mineral title open to all investors, big or small, foreign or local on a level and equitable playing field, and on first come, first served basis Guaranteed security of tenure and transferability of mineral rights. The application of “Use it or lose it” principle in Mineral title administration. Provision for sound environmental control and Community Development agreements. Involvement of other stakeholders through the creation of States. Mineral resources and Environmental management committees to facilitate access to land. MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development INSTITUTIONAL CREATION AND STRENGTHENING MINING CADASTRE OFFICE 6 A well organised, uniform, interactive cadastre system has been created The Agency is autonomous with sole responsibility for the grant and administration of titles Non-discretionary and respect for “first come first served” Has exclusive authority and jurisdiction over the whole of Nigeria MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development INSTITUTIONAL CREATION AND STRENGHTENING NIGERIAN GEOLOGICAL SURVEY AGENCY (NGSA) ■ Created to generate and disseminate credible geoscientific data of Nigeria including; ■ ■ ■ ■ ■ ■ 7 Geological/mineral maps on various scales Airborne geophysical data 59 elements Geochemical data. Published geological bulletins, Reports, Occasional Papers and minerals occurrences database Hydro/Engineering geological maps of cities. MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development INSTITUTIONAL CREATION AND STRENGTHENING THE NIGERIAN INSTITUTE OF MINING AND GEOSCIENCE (NIMG) 8 The Institute is set up to provide manpower training and institutional capacity building for the mining sector Conducts focused, need-driven research in mining and geosciences and provides practical laboratory and field exposures to university professors and postgraduate students Offers postgraduate diploma courses in Mining Engineering, Mineral Engineering and Mineral Exploration MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development AVAILABILITY OF RELIABLE DATA AIRBORNE GEOPHYSICAL SURVEY 9 100% coverage of high resolution airborne magnetic and Radiometric data. Made up of 2,001,705 line kilometers of magnetic and radiometric data, limited Electromagnetic. Gravity measurements in Niger Delta Region MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development AVAILABILITY OF RELIABLE DATA FLIGHT PARAMETERS 10 Flight parameters targeted at mineral exploration. Flight height of 80 meters (mean Terrain Clearance) Traverse line spacing of 500 meters In Niger Delta flight direction was across the major structural trends MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development AVAILABILITY OF RELIABLE DATA INTERPRETATION PRODUCTS Mineral prospectivity Digital interpretation maps of entire country on 1;250,000 scale (geology & geophysics) Major structures hosting minerals Depth to magnetic basement with discussions. Mega structures in the Niger Delta with depths/thickness of basins in aid of Oil/Gas explorations. 11 MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development OUTPUT; INTERPRETED GEOLOGICAL MAP OF NIGERIA 12 MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development GEOCHEMICAL MAPPING ■ Completed 6nos. GRN master cells with the British Geological Survey supervision. ■ Coverage at 1 sample/20sq km sampling density ■ 59 elements analysis including precious and base metals. ■ Rare earth metals like lanthanum, Cerium, Neodymin and Yttrium. ■ Anomalous sites for gold, platinum, Thoruim, and ore earch metals indicated. ■ Anomalous sites for gold, Platinum, Uranuim thoruim and Rare Earth metals indicated. 13 MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development Environmental and Social Framework Sectoral Environmental & Social Assessment (SESA)has been concluded Environmental Guidelines adequately covered in draft mining regulations Extensive capacity building amongst other Government agencies responsible for environmental & social regulations in Nigeria. Mineral resources & environmental management committee (MIREMCO) established in 36 states to assist operators in environmental management & community relations. Development Credit Agreement being adopted for community development agreement in mining. The Department of Artisanal & Small Scale Mining (ASM) was created in the Ministry to organize the artisanal & small scale miners & promote conducive environment for operators. 14 MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development EXPLORATION OPPORTUNITIES IN NIGERIA Nigeria has favourable conditions for exploration Reliable geological data in digital format Developed infrastructure – good road network; very good communication system etc Local skilled geoscientist and engineers available Friendly people 15 MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development GOLD 16 Nigeria known for informal gold mining and trade in the 18th century Gold now 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 CGA has a proven gold reserve of over 600,000 ounces in their Eperindo property in Osun state MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development LEAD/ZINC Lead-Zinc mineralization is located along Northeast – Southwest belt Three belts are outstanding 17 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 MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development IRON ORE Two broad types of Iron Ore in Nigeria 18 Banded Iron formations in folded bands in the precambrian rocks e.g. Itakpe, Tajimi Sedimentary (oolitic) Iron deposits General Fe concentration is 35 – 50% Itakpe Iron ore deposit currently mined and processed for the Ajaokuta Steel Mill Several Iron finds in northwest and northeast MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development OIL SANDS 19 Huge reserves of oil sands in Nigeria 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 MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development COAL RESOURCES OF NIGERIA Coal exists in 13 States of the country Current exploration results indicate over one trillion tonnes Development of Coal for power generation – a priority of government Bauchi Adamawa Plateau Kwara Nasarawa Taraba Kogi Ondo Edo Enugu Anambra Delta Imo Benue Locations of Coal and Lignite in Nigeria Coal/Lignite bearing States 20 MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development GEMSTONE ■ ■ Nigeria is endowed with many varieties of coloured gemstones. Six types identified for commercial development: ■ ■ ■ ■ ■ ■ Aquamarine Tourmaline Emerald Sapphire Garnet Ruby Other gems of less value occur in abundance; 21 Topaz Amethyst Floride Zircon Morganite Iolite Kunzite MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development DEVELOPMENT OF SPECIFIC MINERALS DIMENSION STONES ■ Nigeria has vast deposits of colorful granites and marbles ■ Baseline study concluded ■ Development plan approved by Mr. President ■ Sensitisation of available Dimension Stones to professionals, operators etc. ■ Training of operators on quarrying and processing of Dimension Stones ■ Establishment of a Standard Testing Laboratory for Dimension Stones 22 MINISTRY OFofMINES DEVELOPMENT, NIGERIA Ministry MinesAND and STEEL Steel Development WELCOME TO NIGERIA THE PREFERRED DESTINATION FOR MINING INVESTMENT THANK YOU 23