Transcript Slide 1

INVESTMENT OPPORTUNITIES IN
NIGERIA’S MINERALS SECTOR
MINISTRY OF MINES AND STEEL DEVELOPMENT, ABUJA,
NIGERIA
BY
DIEZANI ALISON-MADUEKE (MRS.),
HONOURABLE MINISTER OF MINES AND STEEL
DEVELOPMENT.
Nigeria - Where We Are
2
Ministry of Mines and Steel Development, Abuja, Nigeria
So
Background Information on Nigeria
3
 Official Language: English
 Major Languages: Hausa,
Yoruba, Igbo, Fulani
 Population: 140 Million
 Currency: Naira N1.00 =
100kobo
 Per – Capita Income: Approx.
493 USD (2005)
 Main Religions: Islam,



 1 USD = 145 NGN
 GDP: Approx. 135 billion USD
Ministry of Mines and Steel Development, Abuja, Nigeria

Christianity and Indigenous
religions
Rail Network: 4660 km
(standard/narrow gauges)
Road Network: 195,000 km
Major Ports: Lagos, Port
Harcourt, Warri, Calabar,
Onne and Sapele
Major Airports: Abuja, Lagos,
Kano, Port Harcourt, Enugu,
Kaduna, Maiduguri, Yola,
Calabar, Sokoto, Owerri, Jos,
Ilorin.
Historical Mineral Production
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 Widespread Gold production.
 World’s 6th largest producer of Cassiterite (Tin
Ore)
 Exporter of Coal.
 Major exporter of Columbite and Tantalite
(Coltan).
 Substantial Wolfram and Lead/Zinc Sulphide
production.
Ministry of Mines and Steel Development, Abuja, Nigeria
Reasons for the Decline of the
Mining Industry
in Nigeria
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 “Oil Boom”
 Inefficient State Operations
 Depleted Alluvial Reserves( Especially Tin)
 Collapse of commodity prices in the mid-1980s
Ministry of Mines and Steel Development, Abuja, Nigeria
Pre Mining Sector-Reform Period (2005)
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 Inadequate Geological Information &
Data.
 The 1999 Minerals & Mining Act allowed for
substantial subjectivity.
 Opaque Licensing Procedures Leading to
speculative title holding.
 Prevalence of Illegal Mining Activities.
 Jurisdictional Conflicts between Federal and
State Governments.
Ministry of Mines and Steel Development, Abuja, Nigeria
Mineral Sector Reform Strategy
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
Liberal & Transparent Access to Mining Titles

Reorientation of Government from ‘OwnerOperator’ to ‘Administrator-Regulator’

Private Sector to be engine of Growth

Institutional and Human Capacity building

Strengthening Geological Data Generation
Ministry of Mines and Steel Development, Abuja, Nigeria
Nigerian Minerals and Mining Act, 2007
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 Enacted in March, 2007
 Based on international best practices
 Modeled after successful mining jurisdictions
Ministry of Mines and Steel Development, Abuja, Nigeria
Key Provisions of the New Mining Act
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 Security of tenure of titles/rights.
 Competition for mining titles/rights on ‘first
come, first served’ basis.
 Application of the principle of ‘use it or lose it’
in mining title/rights administration.
 Use of time limits for granting titles.
Ministry of Mines and Steel Development, Abuja, Nigeria
Key Provisions of the New Mining Act – Cont.
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 Creation of a Mining Cadastre System in
Mineral Title Administration.
 Introduction of Community Development
Agreement, Environmental Protection and
Mitigation Measures.
 Transferability of Mining Rights.
Ministry of Mines and Steel Development, Abuja, Nigeria
Improved Enabling Environment
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 Investment Friendly Policy and Legislation
Security of Tenure
 Attractive Fiscal Regime
 Divestment by Government from Mining Activities to Open
Additional Areas for Private Investors

 Internationally Competitive Mining Incentives
(Enshrined in the Law)
 Availability of Quality Geo-science Data
Ministry of Mines and Steel Development, Abuja, Nigeria
Improved Enabling Environment – Cont.
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 Increased Support Mechanisms and Facilities
(e.g. infrastructure and improved service
delivery, etc,)
 Enhanced Institutional Capacity for Monitoring
and Supervision, etc
Ministry of Mines and Steel Development, Abuja, Nigeria
Improved Enabling Environment – Cont.
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 A Robust and Liberalised Economy
 Minimal Public Debt
 Developing New and Rehabilitating Existing
Railway Infrastructure Nationwide
Ministry of Mines and Steel Development, Abuja, Nigeria
EXPLORATION
OPPORTUNITIES
Ministry of Mines and Steel Development, Abuja, Nigeria
Main Primary Minerals
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 Gold
 Tar sand (Bitumen)
 Coal
 Iron ores
 Columbite-tantalite
 Tin Ore, Wolframite
 Lead –Zinc Sulphides
 Industrial Minerals
Ministry of Mines and Steel Development, Abuja, Nigeria
Nigeria’s Seven Strategic Solid
Minerals
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1.
2.
3.
4.
5.
6.
7.
Gold – Estimated minimum of 50,000 ounces each
in at least 10 locations.
Tarsand/Bitumen – Estimated Resource: 27 billion
barrels of oil equivalent.
Coal – Estimated Resource 2.7 billion tonnes.
Iron Ore – Estimated Resource at 3 billion tonnes.
Limestone – Estimated at 2.23 trillion tonnes.
Barytes – Estimated at 14 million tonnes.
Lead/Zinc Sulphides – Estimated at over 1million
tonnes.
Ministry of Mines and Steel Development, Abuja, Nigeria
Minerals of Special Focus
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 Gold
 Bitumen
 Iron Ore
 Coal
Ministry of Mines and Steel Development, Abuja, Nigeria
Mineral Map of Nigeria
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At least 50
minerals
occur in
more than
500
locations in
Nigeria
Ministry of Mines and Steel Development, Abuja, Nigeria
Mineral Deposits of Nigeria
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Ministry of Mines and Steel Development, Abuja, Nigeria
Gold in Nigeria
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Associated
with the
schist belts
of the
western half
of Nigeria.
Schist Belt in blue is similar to gold bearing rocks
in Ghana
Ministry of Mines and Steel Development, Abuja, Nigeria
Gold in Nigeria – Contd.
 Gold in Nigeria is
found in alluvial and
eluvial placers and
primary veins from
several parts of
supracrustal (schist)
belts in the
northwest and
southwest of
Nigeria.
Ministry of Mines and Steel Development
21
INVESTMENT OPPORTUNITIES FOR GOLD
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• Occurs in primary, alluvial or eluvial forms and can be found at:
•
Okolom/Kogi State, with grades from 1.0-36g/ton
•
Dogondaji/Kogi State with grade values from 1.0-75g/ ton
•
Waya/Kebbi State, with grade values 0.4 g/ton to 11g/ton
•
Iperindo/Osun State, as primary gold
•
Recent drilling by CGA Mining former Central Asia Gold (CEO Michael Carrick)
3000 metres of coring has proved more than 300,000 ounces. 2 million ounces
estimated.
•
Other major occurrences in Ogun, Adamawa, Edo, Kwara, Niger,
Kaduna and Zamfara states
•
Ecopheoaix, Savanah Gold and others currently engaged in
exploration
Ministry of Mines and Steel Development, Abuja, Nigeria
COLUMBITE-TANTALITE (COLTAN)
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 In recent past, Nigeria has been the largest
producer of Coltan in Africa.
 Artisanal mining activity.
Ministry of Mines and Steel Development, Abuja, Nigeria
COAL
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 Discovery: 1909
 Exploration/mining started in 1913.
 Mainly sub-bituminous and has been found in more
than 22 locations, in central and eastern Nigeria.
 Some Coking Coal has also been found.
 Proven reserves of over 639 million tonnes with a
further 2,750 million tonnes inferred.
Ministry of Mines and Steel Development, Abuja, Nigeria
COAL – Cont.
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 Nigerian Coal Corporation properties being
privatised.
 Several properties sold.
 Greenfield and brownfield areas available.
Ministry of Mines and Steel Development, Abuja, Nigeria
TAR SANDS (BITUMEN)
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 First reported in 1900 and exploration began in
1905.
 Over 120 exploration wells were sunk to
determine the quantity and quality.
 Estimated resource of about 27 billion barrels
of oil equivalent.
 Blocks being sold through an open and
competitive bidding process.
Ministry of Mines and Steel Development, Abuja, Nigeria
TAR SANDS (BITUMEN) – Cont.
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 The Ministry to commence the bidding process
for the allocation of Bitumen and Tarsand
blocks.
Ministry of Mines and Steel Development, Abuja, Nigeria
PRIVATIZATION
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 Divest government from mining operating interests
 Attract strong, credible players into the mining sector
 Several properties sold: Gold, Kaolin, Barytes, Coal
Ministry of Mines and Steel Development, Abuja, Nigeria
Airborne Geophysical Survey
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Ministry of Mines and Steel Development, Abuja, Nigeria
Airborne Geophysical Survey – Cont.
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 Phase (1) covering 44% of the country
completed and processed.
 Magnetic and Radiometric Data available.
 Coverage of the rest of the country is ongoing.
Ministry of Mines and Steel Development, Abuja, Nigeria
Specific Exploration of Mineral
Targets
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 Airborne geophysical surveys and other
surveys have indicated the occurrence of
mineralized zones in several parts of the
country.
 Nigerian Geological Survey Agency (NGSA) is
carrying out further exploration of mineral
targets.
Ministry of Mines and Steel Development, Abuja, Nigeria
Thank you for your attention.