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Ministerial Platform 2013

Ministerial Platform 2013

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#MP2013 Presentation by the Minister of Mines and Steel Development #MP2013 Presentation by the Minister of Mines and Steel Development Presentation Transcript

  • 0Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentMINISTRY OF MINES AND STEEL DEVELOPMENT2013 MINISTERIAL PLATFORMMID-TERM REPORT FOR THE MINERALS AND METALS SECTORByArc. Musa Mohammed Sada, fnia, fnmgs, fnsmeMinister of Mines & Steel DevelopmentJune, 2013
  • 1Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentOUTLINE■ Introduction■ Performance of the Sector■ Challenges■ Moving Forward : Sustainability and Growth■ Conclusion
  • 2Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentINTRODUCTION■ The Minerals and Sector houses allactivities relating to the exploration, andexploitation / extraction of minerals andmetals.■ Solid Mineral Resources is on the exclusivelist of the Constitution and therebycontrolled by the Federal Government.■ Nigeria is endowed with a variety of solidmineral / metal resources.■ These minerals and metals have been foundto occur in more than 500 locations spreadacross the country.1Mineral Map of Nigeria showing moreThan 44 mineral types occurring inmore than 500 locations
  • 3Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development2Final Map of Ugep ona Scale 1:100,000Interpreted Airborne Geophysical MapPERFORMANCE OF THE SECTOR1. Despite certain serious challenges, the sector did fairlywell, largely due to highly improved general awareness ofthe industry, both local and internationally, on the potentialsfor good returns in the sector2. The awareness and subsequent private investment in thesector was largely due to certain critical activitiesundertaken by Government in the sector and these include:A. Geosciences Data Generation Critical to InvestmentDecision• Produced two data bases, 27 new geological maps on1:100,000 scale to bring the total from 70 to 97 and 37maps on 1:5,000 and 1:10,000scale for iron ore, coal andferro-alloy minerals”• Completed airborne magnetic survey of the entire countryand airborne radiometric survey of required areas• Carried out geochemical mapping of four Global ReferenceNetwork Cells bringing the total of areas mapped to eight
  • 4Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development• Produced 2,385 interpreted airborne geophysical maps• Mapped 37, 1:50,000 sheets made up of 31 sheets mappedin the NE-SE Axis Nigeria-Cameroon MappingProgramme and 6 sheets in the zonal mappingprogramme;• Upgraded and equipped to world class status, theGeosciences Research Laboratories in Kaduna■ Discovered high grade iron ore resources assaying over50% Fe in Gidan Jaja (Zamfara) Lamba (Bauchi), GidanBuzu (Yobe), Jaruwa (Kaduna), Tama (Katsina), Ebiyaand Agbado Okudu (Kogi State).■ Drilled 23 core holes aimed at generating reliablegeosciences data on iron ore (Jaruwa), gold (Bishini) andcoal (Lafia-Obi) as well as facilitated the drilling of over500 core holes by the private sector in the course of theirexploration activitiesPERFORMANCE OF THE SECTORGeosciences Data Generation Critical to Investment Decision Contd3Geological Map of Nigeria
  • 5Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORGeosciences Data Generation Critical to Investment DecisionContd■ Disseminated of 1073 geological maps and geophysical datasheets■ Produced 4 1: 250,000 Sheets namely: 21 (Zaria), 43(Abuja), 51(Lafiaji) and 62 (Akure)■ Signed MoU with FUGRO for the use of their portal todisseminate geosciences data online■ Published of: Bulletin 46 – Geology around Lafiagi, Kwara State NGSA Occasional Paper Nos. 15 & 16; and Four (4) volumes (Nos. 11, 12, 13 and 14) of Scientificpapers.4Plane capturing SGS DataTotal Magnetic Intensity MapRadiometric Ternary ImageSome Publications of the NGSA
  • 6Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORB. Mineral Finds and Development5
  • 7Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development■ Ten additional mineralsdiscovered bringing the totalto 44 Sallimanite for the productionof refactories and spark plugs Chromite, Cobaltite,Vanadinite and Stibnite aresources of elements essentialfor alloy steel production Chalcopyrite (Copper),Lanthanum, Pentlandite(Platinum) are specialtyminerals with high globaldemand Uraninite (Uranium) – EnergyMineral 6PERFORMANCE OF THE SECTORMineral Finds and Development Contd
  • 8Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development■ Nigerian minerals classified into: Industrial Minerals (Limestone, Gypsum, Kaolin, Feldspar, Clay, etc)targeted for development through One Local Government One MineralCommodity Programme to produce mineral raw materials needed by localmanufacturing companies (manufacturers of Cement, Paint, Soap/detergentetc) World Class Minerals (Gold, Lead-zinc ores, Chalcopyrite, Rare EarthMetals, etc) having very high global demand and targeted for developmentfor export to earn foreign exchange World Class Minerals but classified as strategic for Nigeria’s industrialdevelopment such as coal and iron ore respectively needed for coal topower programme and steel development■ Evaluation programmes have been developed for identified mineralresources aimed at generating geosciences data needed to make themattractive to investors 7PERFORMANCE OF THE SECTORMineral Finds and Development Contd
  • 9Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORC. Enforcing Compliance with Provisions ofNMMA, 2007 and its Regulations■ Established Mining Cadastre Office (MCO) as anautonomous agency to administer and managemineral titles in line with international best practices■ Computerized the processes and procedures ofgranting mineral titles■ Using the “Use it or lose it” principle of TitleAdministration, the previous over 10,000 dormantand inactive titles were cleaned up into active andproductive mineral rights■ Granted 3007 active mineral titles during the periodunder review■ Revoked all non-performing mineral titles resultingin:o Increased revenue generation as shown by therecent NEITI Audit thus creating more jobs; ando Increased activities by Mineral Title Owners . 805001000150020002500EL ML QL SSMLValid Mineral TitlesValid MineralTitlesHon. Minister on MonitoringVisit to a Quarry Site
  • 10Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTOREnforcing Compliance with Provisions of NMMA,2007 and its Regulations Contd Upgraded MCO’s SIGTIM Operational System Facilitated the maiden field Monitoring and Evaluation ofMining and Quarrying operations in the North Centralzone by COMEG Conducted and reviewed 70 Mines EnvironmentalImpact Assessment Studies Carried out 168 Mines Environment Audit Review andCompliance Monitoring in Mines and Quarries Established one Mines Environmental AnalyticalLaboratory for use in determining level of environmentalpollution in Mine Sites. Facilitated the signing of 18 Community DevelopmentAgreements (CDAs) thus creating Social Licences forStress Free Mining Operations Carried out one (1) Baseline Studies on Mercury, Leadand other metals contaminated sites in Zamfara State SIGNING OF CDA(ENYIGBA COMMMUNITY)Mines EnvironmentalCompliance Laboratory, Abuja9
  • 11Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTOREnforcing Compliance with Provisions of NMMA,2007 and its Regulations Contd■ Reclaimed two high risk abandoned mines in KubaB/Ladi areas of Plateau State■ Reactivated States Mineral Resources andEnvironmental Management Committees(MIREMCO) in Bauchi, Gombe, Cross Rivers, Ogun,Kano and Ebonyi States■ Registered 25 Private Mineral Buying Centres■ Formalized additional 595 ASM Cooperativesbringing the total to 845■ Carried out Baseline Study on Child Labour issues inASM operations and has been established as acontinuous ASM Programme■ Provided Extension Services to performing ASMCooperatives aimed at sanitising the activities ofartisanal minersAbaomege MPCS – Micro Grant BeneficiaryTraining on how to prepare platform forHorizontal Drilling of Dimension Stone Blocks10
  • 12Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORD. Mineral Production , Revenue &Employment Generation Facilitated the establishment of 1154 newquarries bringing the total quarries to 1,710 and127 small scale mines bringing the total to 223small scale mines in several locations aroundthe country thus creating jobs and revenues toGovernment Recorded an increase in revenue generationresulting in increased contribution to theFederation Account Completed the development of the PilotProgramme of the One Local Government OneMineral Commodity programme in collaborationwith the Ministry of Trade and Investmenttargeted at creating at least 150,000 direct jobsand many other indirect jobs. Established the National Dimension StoneMaterial Testing Laboratory in Kaduna.05001000150020002008 2009 2010 2011 2012A. Revenue generation trendfrom royaltiesB. Active revenue block fromfees and taxes (N1m royaltiesgave rise to N15m taxes)Royalties are set low to encourage investmentresulting in higher productivity and taxesQuarrying andCrushing OperationsD/S MaterialTesting Lab, Kaduna11
  • 13Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORMineral Production , Revenue & Employment Generation Contd Inaugurated the Board of Solid Minerals Development Fund(SMDF) in line with the provisions of the Nigerian Mineralsand Mining Act, 2007 and already working with the support ofthe World Bank to get some Development Partners to supportits activities.o CIDA, AusAid, IM4D, DFID and China Ministry of Land andResources are offering various supports to the sector throughthe SMDF Facilitated the production of about 60.54million tonnes ofmineral products comprising:o Industrial Minerals - 58.41million tonneso Metallic Minerals - 0.84million tonneso Precious / semi- preciousstone /minerals (Tourmaline,Amethyst, D/Stone, etc) - 0.99million tonnes*o Carbonaceous Minerals – 0.3million tonnesHon. Minister of Mines onWorking visits to coal mines(Maiganga and Eta-Zuma)12
  • 14Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORMineral Production , Revenue & EmploymentGeneration Contd Facilitated the development of a new coalmine (Eta-Zuma Coal Mine), bringing to two,the number of large coal mines operating inthe country (Maiganga Coal Mineoperated byAshaka Cement) Facilitated the creation of 1,254,200 ruralbased jobs arising from operations in 1710quarries, 223 small scale mining operations,195 mining leases, 845 ASM Cooperativesand 2048 exploration licences13
  • 15Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORE. Capacity Building■ Carried out eight (8) Training programmes for NGSA staffin geosciences data generation, presentation, evaluationand interpretation.■ Trained 925 staff of the ministry and agencies in variousfields■ Trained 40 Ex-Niger Delta militants at MetallurgicalTraining Institute (MTI), Onitsha in various metallurgicalPlants’ Maintenance and Operations Skills Commenced full enforcement of the Technical Competentrequirement for mineral title application resulting intremendous increase in the number of professionalsapplying for registration with COMEG Developed a professional e-library for use by registeredmembers Produced an ASM Handbook and a Training Manual foruse by extension officers to train ASM operatorsGemstones Awareness Training Session14Training on Gemstone Faceting
  • 16Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORCapacity Building Contd■ Completed a Laboratory in NIMG’sPermanent Site■ Established a Mechatronic Sectionfollowing the installation of Mechatronicequipment at NMTI, Onitsha■ Trained the first batch of 34 NIMG studentsin practical oriented programmescomprising Post Graduate Diplomas inMineral Exploration, Mining Engineering,and Minerals Engineering. Second batch of22 students in session.■ Introduced two new short term courses(Special Welding and Mechatronics) atNMTI, Onisha bringing the total of shortterm courses run at the institute to ten (10)15New Mechatronic SectionNiton XRF AnalyserAmnesty Traineesin the Fitting Shop
  • 17Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORCapacity Building■ Fabricated small-scale multi-gravity separatorfor Artisanal and Small-Scale Miners atNIMG.■ Fabricated iGOLI equipment for mecury-freeextraction of gold by Artisanal and SmallScale Miners in NIMG, Jos. (An attempttowards controlling the lead poisoning inZamfara State.■ Facilitated the registration and induction of717 Professional Members by COMEGbringing the total of registered Professionalsto 1689.■ Facilitated the establishment of ProfessionalTraining Programmes by COMEG resulting inthe training of 140 Professional MembersHon. Minister of Mines Addressingparticipants during COMEG’sProfessional Training ProgrammeiGOLI EquipmentMultigravitySeparator16
  • 18Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORF. Increased Steel and Metals Production■ Commenced and achieved: 30% rehabilitation works on NIOMCO beneficiation line 2;and 91% installation works of NIOMCO super-concentrateplant■ Supported the construction / expansion of steel productionby privately – owned steel production companies like: 700,000tpa WEMPCO Steel Plant cold rolling mill ; 500,000tpa billet mill African Foundry Ltd Lagos; 150,000tpa cold rolling mill under construction at KAMIndustries, Ilorin; and Construction of 150,000 tpa Rolling Mill at Abuja byAfrican Foundries17Spiral Concentrators inGravity Separation Sectionof NIOMCO BeneficiationPlantMr. Presidentcommissioning700,00tpa WEMPCO’sCold Steel Rolling Mill
  • 19Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORIncreased Steel and Metals ProductionContd■ Expansion of Total Steel Rolling Mill atKaduna to 100,000tpa■ Facilitated the production of 2.45milliontonnes of steel products by private steeloperators■ Established a data base on Steel productionand operating companies■ Developed and reviewed a draftMetallurgical Bill and submitted to theOffice of the Attorney General of theFederation for further review18Hon. Minister of Mines inspecting SteelBillets produced for export at African Foundries
  • 20Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORIncreased Steel and Metals ProductionContd■ Ajaokuta Steel Company (ASCL) andNIOMCO Itakpe being re-oriented towardsoperationalization with zero Governmentfunding Signed MOU with REPROM Nig. Ltd for theoperation of the Light Section Mill andThermal Power Plant of ASCL Completed repairs of NIOMCO’s BergeaudPlant to be used in producing Piecoat for theoil and gas sector MOU being developed with ZSM/MZV forthe operation of Wire Rod Mill andEngineering Workshops of ASCLRehabilitated Bergeaud PlantASCL Machine and Tools Shop19
  • 21Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORIncreased Steel and Metals Production Contd Attained 90% completion of Process FlowsheetDevelopments for the extraction of lead-zinc, tantalum-niobium and production of high alloy steel componentsand cast components at NMDC, Jos Facilitated the use of the local sand for foundrycastings through the research efforts of the NMDC, Josthereby saving the nation huge sums of foreignexchange Facilitated the characterization of newly identifiedmineral resources by NMDC, Jos Facilitated the design and construction of the followingProcess equipment by NMDC, Jos: A small scale reverberatory furnace for tin smelting;and A calcination and hydration lime pilot plant forhydrated lime production amongst others.Characterization of Mineral Resources usingDifferential Thermal Analyzer at NMDC, JosCalcination and Hydrated Lime PilotPlant at NMDC, Jos20
  • 22Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentG. Promotion of Nigeria’s Minerals and Metals Potentials Established Minerals and Metals Promotion Unit in the Ministry tointer-phase with relevant deptartments & agencies aimed atproviding necessary information to investors Established working relationship with Governments andOrganizations of the following countries - Canada, Australia, Chinaleading to, amongst others: Ministry staff enjoying study tours and training sponsored byAustralian Government; Signing of MOU with China on collaboration in Geosciences datageneration and technology transfer; and Nigeria-Canada Mining Summit aimed at Technology Transfer inClean Coal Technology / bitumen exploitation. Participated in top rated Mining Conferences and Workshopsincluding Mining Indaba, South Africa, PDAC, Canada, AfricaDown Under, Perth-Australia, China Mining Conference resulting in: Serious mining Investors coming into the country to acquire mineraltitles as contained in the next few slides;PERFORMANCE OF THE SECTOR21Minerals and MetalsPromotion BuyingCentreHon. Minister atthe Nigerian Bootin PDAC 2012,Canada
  • 23Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentMining Investors in Nigeria(KCM Mining) (Energio Limited) Kogi Iron■ Operating in Agbaja, Kogi State,■ Owns Exploration Licences covering Ironore■ Declared at the Australian StockExchange the establishment of about500million tonnes of Iron Ore JORCCompliance Inferred Reserves arisingfrom a drilling exercise on10% of theirTenement■ Currently carrying out process tests &planning for more drilling exerciseAustralian Mines Ltd■ Owns exploration licences in Zamfaraand Niger States covering gold■ Carried out : Geochemical survey to determine goldmineralized areas, High resolution Airborne GeophysicalSurvey to map out gold bearing rocksand their orientation■ currently drilling to confirm goldoccurrence in mapped geologicalstructures‘A’: Drilling Ops atAgbaja‘B’ :ExplorationCore HoleGrids22Diamond Core DrillingOperations at YargarmaTenement‘A’ ‘B’
  • 24Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentMining Investors in NigeriaDangote Cement PLC■ Dangote Cement PLC engages incement production using locally sourcedmineral raw materials■ The company holds several mining titlescovering limestone, coal, gypsum,located in Ibese in Ogun State, Obajanain Kogi State, Gboko in Benue State andin Akko LGA in Gombe State■ Limestone quarrying usingenvironmentally friendly methods is itsmajor mining activity at the momentLimestone Quarrying atIbese Quarry 31Dangote CementFactory at IbeseTropical Mines Limited■ Holder mining title covering gold in theIperindo area of the Ilesha Schist beltof Osun State.■ The Tenement is operated as SegilolaGold Project in partnership withSegilola Gold Ltd and Ratel asTechnical Parners and operator■ A JORC compliant gold reserve of800,000oz of gold has so far beendeclared for the tenement■ The operations of the company arecurrently facing JV issues■ MMSD is facilitating the resolution ofdisagreement with gold productionlikely to start by early next yearGold in Quartz Vein23
  • 25Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentSavannah Mining Limited■ Holds mining licences covering gold inYauri, B/Gwari, Minna and K/Namoda■ Carried out Regional Geochemicalsurvey on all titles■ Completed 3000m diamond core drillingin Yauri■ Yauri tenement estimated to containabout 1.42million ounces of gold■ Other areas are billed to be drilled in2013■ Already in the process of registering withNigerian Stock Exchange (NSE)Multiverse PLc (Quoted in NSE)■ Multiverse PLC is an indegenouscompany engaged in the production ofstone aggregates, lead-zinc ores andbaryte products■ The company is listed on the NigerianStock Exchange with over 4000shareholders■ The company has mining / Quarry leasesin Oloparun and Alagunta in Ogun State,Shape Village, Apo, in the FCT andAbuni and Azara in Nasarawa State.Savannah Drilling in YauriCore SampleContaining gold 24MultiverseOperationsMining Investors in Nigeria
  • 26Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentMining Investors in NigeriaRoyal Salt Limited■ Royal Salt Limited is an Indian basedcompany that holds mineral titles coveringlead, zinc and salt in Ebonyi State■ It has Completed 22,000m diamond coredrilling at Enyigba, Ameri, Ameka andAmana mineralization zones using CS-14Atlas Copco Rigs for the purpose ofproducing samples for test work.■ The firm has also completed mine andprocess plant design in preparation for thecommencement of mine development andexploitation.CGC Nigeria Limited■ CGC Nig. Ltd is a Chinese company thatengages in Construction, Civil Engineering,Agriculture, Real Estate and Mining;■ The company holds several explorationlicences in Kebbi, Adamawa, Kano,Taraba, Bauchi and Gombe States.■ Licences in Kebbi State have beenmapped by a team of Chinese andNigerian Professionals using Geophysicalmethods to locate ore bodies■ Phase I of the exploration activity hasidentified target drilling sites scheduled tocommence 2nd Qtr of 2013■ Phase II is on-going in Adamawa, Kano,Taraba, Bauchi and Gombe States.25Diamond coredrilling in progressLaying ofBaselineSurvey PointsCore SamplesExplorationActivities inProgress
  • 27Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentGreenfield Metals Limited■ Greenfield Metals Ltd is a Nigerian firmthat plans to mine lead –zinc ore fromtheir tenement area in Ebonyi State■ The firm is in joint partnership with aChinese firm –Fujian Sannong CalciumCarbonate Ltd■ The company has so far established amineral reserve of one million tonnes oflead-zinc ore■ Mine development activities towardsdeveloping an underground mine hascommenced■ The firm has also signed a CommunityDevelopment Agreement with its hostcommunity for the purpose of securing thesocial license to operate sustainablyMining Investors in Nigeria26Lead-Zinc OreRail line into the tunnelunder constructionTunnel under constructionTechnical Partners withCommunity RepsMD with Chinese Govt andCompany RepsIn a handshake aftersigning AgreementPhoto Speaks
  • 28Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentMining Investors in Nigeria27Tongyi Allied Mining Ltd■ Tongyi Allied Mining Ltd is aChinese company that hasinterest in mining of gold,lead-zinc ores andcassiterite.■ The company was recentlygranted mining leases tomine cassiterite , lead andzinc ore in Bauchi andPlateau State.■ Development works onthese sites have reachedadvanced stage withcommencement ofproduction scheduled for 2ndQtr 2013.Pictures SpeakProcess Plant Process EquipmentMine Equipment Haulage Trucks
  • 29Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentMining Investors in NigeriaZuma 828 Coal Ltd■ Zuma 828 Coal Ltd engages in theexploration and mining of coal■ The company holds mining leasescovering coal in okobo area of KogiState■ Zuma 828 has started Mining,crushing and sale of coal to Cementcompanies in Nigeria for heating kilnsin cement production plants■ Zuma is one of the two mines inNigeria producing coal33Julius Berger■ A German company that engages inconstruction activities■ The company holds several quarryleases spread across the nationpredominantly for the production ofstone aggregates for use in roads,bridges and other construction works■ The company also carries out sanddredging in Nigerian inland waterways as well as produces dimensionstonesMining andCrushingOperationsat OkoboMine Julius Berger Crushing Operations28
  • 30Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentSOME MAJOR MINING COMPANIES OPERATING IN NIGERIAS/No Name of Firm Country of Origin Mineral Nature ofOperations1. Dangote Cement Plc NIG Limestone, Clay Quarying2. Tropical Mines Ltd / Ratel AUST Gold Exploration3. Savannah Gold NIG/AUST Gold Exploration4. CGC Nig Ltd CHINA Gold Exploration5. Erin Mineral Resources AUST Gold Exploration6. Kenlyn Global Resources JAP Manganese Exploration7. Energio Ltd AUST Iron Ore Exploration8 Australian Mines Ltd AUST Gold Exploration9 Zuma 828 Coal Ltd NIG/UKR Coal, Gold Exploration &Mining10 Ashaka / Lafarge FR/ NIG Limestone, Coal Quarrying /Mining29
  • 31Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentSOME MAJOR MINING COMPANIES OPERATING IN NIGERIAS/No Name of Firm Country Mineral Nature ofOperations11. Royal Salt INDIA Lead / Zinc ore Mine andProcess PlantDevelopment12. Multiverse Plc NG Lead / Zinc Ore Quarrying/Mining13. Tongyi Allied Mining Co Ltd CH Cassiterite, Columbite Exploration andMining14. Earthstone Resources INDIA Iron Ore Exploration /Mining15. West African Ceramics Ltd INDIA Clay, Quartz Quarrying16. Julius Berger Nig Ltd NIG/GER Granite Quarrying17. Crushed Rock Industries GER Granite Quarrying18. WAPCO/Lafarge NIG/FR Limestone, Clay Quarrying19. ISS-HASS NIG/CH Gold Exploration 30
  • 32Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentPERFORMANCE OF THE SECTORH. Development of Roadmap for the Development of theMinerals and Metals Sector■ Developed a roadmap for the development of the sectorbased on the following policy thrust- Value addition,Import Substitution, Substantial job creation, Promotionof Modern Mining Practices, Natural ResourcesConservation, Visibility of Private Sector, etc.■ The roadmap is phased into: The Short Term Programmes - Activities that willstrengthen sector reforms aimed at making Nigeria apreferred destination for mining investment capital suchas generating credible geosciences data andformalization of ASM operators The Medium Term programmes - Activities that willfurther increase mineral production in the countrythrough effective exploitation of mineral resources foundin almost all the LGAs of the federation The Long Term Programmes - Activities that willenthrone large scale mining operations in the countrysuch as delineating world class mineralized blocks forconcessioning to investors amongst others 31DEVELOPMENTEXPLORATION MINING PROCESSING MARKETING2012 2013 2015 2020SHORTTERMMEDIUMTERMLONGTERM
  • 33Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentMAJOR RECORDED SUCCESSESMilestone RemarksLimestone to Cement Approaching self sufficiency in cement productionusing 100% mineral raw materials produced locallyClay to Ceramic Products Several Ceramic manufacturing companiesestablished using local mineral raw materialsRaw Gemstones to cut andpolished productsGreater volume of gemstone being exported in cutand polished formDimension StoneProductionDimension Stone Testing Laboratory establishedEnhanced Steel Productionby Private InvestorsLarge number of Steel plants established withexport of steel products already commencedExploitation of copper ore Exploitation of copper ore commenced. It was notan identified mineral32
  • 34Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentMilestone RemarksMassive production ofconstruction materialQuarrying activities for construction materialestablished in all the states of the federationContribution of revenue to theFederation AccountThe Sector has once again commencedcontribution into the federation accountImplementation of the NigerianMinerals and Mining Act, 2007Development of the Nigerian Minerals andMining Regulations, 2011 facilitated the use ofthe internationally acclaimed NMMA, 2007 ActLocal Coal Production Two coal mines producing coalMAJOR RECORDED SUCCESSES Contd33
  • 35Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentCHALLENGES■ Inadequate Funding of the sector■ Low level of geosciences information for investment■ Inadequate mine site infrastructure■ Inadequate skilled manpower■ Lack of adequate mines special purpose surveillance equipment for field workand revenue collection / monitoring.■ Illegal Mining activities and smuggling of minerals.■ Lack of legal and regulatory framework for the steel sector■ Insecurity in the minesfield and infiltration by illegal aliens■ Conclusion of phase I of the World Bank assisted Sustainable Managementof Mineral Resources Project which anticipated a phase II that did not takeplace34
  • 36Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentSTRENGTH*Excellent Geology*World standard regulatory framework*Good sector specific incentives*Availability of mineral resources forindustrial development;*Large pool of unemployed graduates thatcan be given skills to be employed in thesector;*Available labourWEAKNESS*Low level of geosciences information forinvestment*High level of informal mining activities*Lack of adequate capacity to effectivelymonitor mining operators*High insecurity in mining areas*High cost of funds.*Inadequate Infrastructure.*Difficulties of accessing investment fundsOPPORTUNITIES*Ever growing domestic market.*Access to neigbouring West Africa markets.*Import Substitution*World demand for available minerals*Endless value chainTHREATS*Dumping by foreign manufacturingcompanies;*Cheap imports from other countries*Smuggling of high value-low volume minerals*The disposition of developed world on theindustrialization of developing countriesGOING FORWARD FOR THE MINERALS AND METALS SECTORThe strength, weakness, opportunities and threats for the solid minerals sub-sector areas shown below.35
  • 37Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentGOING FORWARD: Sustainability and GrowthStrategies for Developing the Minerals and Metals Sector■ Seek to have improved funding for the solid minerals and Steel Sector via theNatural Resources Development Fund, Solid Minerals Development Fund,Steel Development Fund and improved budget allocation to facilitate theimplementation of the sector’s roadmap as endorsed by Mr. President.■ Continue with the generation of basic geosciences data being carried out bythe Nigeria Geological Survey Agency such as the production of 1:100,000Scale Geological Maps, Geochemical survey, etc to make the sectorcompetitive enough to attract large scale mining operators■ Ground follow up of anomalous areas identified by airborne geophysicalsurvey to confirm mineral occurrence and produce credible geosciences data■ Mineral Reserve Estimation of strategic mineral resources aimed atdelineating mineral resource areas for concessioning to investors■ Strengthening the Inspectorate arm of the ministry to enable it improve onrevenue collection as well as mines field inspection aimed at ensuringcompliance with the laws and regulations governing mining operations. 36
  • 38Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentGOING FORWARD: Sustainability and GrowthStrategies for Developing the Minerals and Metals Sector■ Strengthening of the Technical Departments of the ministry through capacitybuilding and provision of necessary equipment / funding required to effectivelymonitor and enforce compliance with all provisions of NMMA, 2007 in line withvision 20:2020 mandates.■ Improve infrastructural support facilities for the sector through collaborationwith other MDAs.■ Support Nigerian Institute of Mining and Geosciences in areas of Researchand Development■ Facilitating Joint Venture Partnership for developing delineated mineralresource areas amongst others■ Promote the development of industrial minerals for downstream industriesthrough the proposed One Local Government Area One Mineral Commodityprogramme (OLGAOMIC)■ Continue to explore for iron ore deposits and other steel making minerals rawmaterial for local steel production. 37
  • 39Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development■ Explore for Bauxite in Taraba and Ekiti States to facilitate the sourcing ofaluminum production raw material locally.■ Sustain investment promotion of the Minerals and metals potentials of thecountry■ Mobilize and encourage States and Local Government areas to take specialinterest and participate actively in OLGAOMIC Programme.■ Facilitate the operationalization of completed units of ASCL and NIOMCOthrough PPP■ Continue to support private steel producing companies in their quest forincreased local production of steel as well as catalyze, in collaboration withBPE, the operationalization of privatized steel companies■ Develop a framework for the exploration and exploitation of local UraniumresourcesGOING FORWARD: Sustainability and GrowthStrategies for Developing the Minerals and Metals Sector38
  • 40Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel DevelopmentSTRONG POINT OF NOTE■ One very important point to note on the Minerals and MineralsSector is that results take a while and it requires large scalefunding for longer periods.■ However, Government can accelerate growth by: Ensuring availability of quality and reliable geosciences data Providing basic mine site infrastructure Ensuring right investment atmosphere and fiscal policy39
  • 41Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development■ Foundation for the development of thesector has been laidLegal and Regulatory frameworkMineral title administrationGeneration of Basic geosciences dataMinerals and Metals Institutions for Human CapitalDevelopmentGood Bilateral Partnership with other ForeignGovernments and Development PartnersCONCLUSION40
  • 42Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development■ ResponsesImproved awareness of Nigeria’s solid mineralsopportunitiesExploration by foreign companies on-going for Gold,Iron-ore, lead-zinc ore, manganese amongst others.Artisanal miners substantially responding to theExtension Services provided by the ministry.Mining Cadastre Office operating successfully as anagency in line with NMMA, 2007 and Global BestPractice.Geological data available in digital formatsCONCLUSION (cont’d)41
  • 43Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development■ Capacity of the SectorHigh capacity for job creationOver 2m artisanal miners operating through cooperativesocieties.Catalyst to industrial growth by providing raw materialinputsImproved capacity of privately owned steel operatorsthrough contact and ministry’s professional supportHigh capacity for import substitutionImproved revenue generationImproved contribution to GDPCONCLUSION (cont’d)42
  • 44Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development43THANK YOU FOR YOUR ATTENTION