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

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

Hosted by Hon Musa Mohammed Sada, Minister of Mines and Steel Development

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

  1. 1. # 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, fnsme Minister of Mines & Steel Development June, 2014 MINING ON TOP: AFRICA-LONDON SUMMIT 2014
  2. 2. # 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
  3. 3. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development 2` NIGERIA’S KEY MINERAL RESOURCE ENDOWMENT Lagos Bayelsa Rivers Imo Abia Akwa Ibom Adamawa Bauchi Gombe Kaduna Fct Nassarawa Plateau Taraba Benue Cross River Enugu Ebonyi Anambra Delta Edo Kogi Oyo Ogun Osun Ekiti Ondo Kwara Niger Sokoto Kebbi Zamfara Katsina Kano Yobe Jigawa Borno Legend: Gold ore Iron ore Coal 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
  4. 4. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development  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
  5. 5. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development  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 Agency oNigeria Mining Cadastre Office oMineral Exploration Agency oSolid Minerals Development Fund INVESTMENT CLIMATE 4
  6. 6. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development  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
  7. 7. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development  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
  8. 8. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development 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.ng or 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
  9. 9. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development 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
  10. 10. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development 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%Zn o Indicated – 2,247,683t; 0.61%Sn, 2.05% Zn o Demonstrated – 2,830,351t, 0.63%Sn, 2.15%Zn  Infrastructure o Accessible by road o Nearest Rail terminal is 150Km away (Jos) o Access to Airport – Jos (150Km), Kano (200Km) and Kaduna (240Km) o Telephone – GSM Service o Electricity – National Electricity Power Supply 9
  11. 11. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development Ririwai Mine Project Title Area Graphics 10
  12. 12. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development AVAILABLE PROJECTS - COAL ■ Lamza – Chikila Coal Project, Guyuk LGA, Adamawa State (253.2 Km2)  Sub-Bituminous coal  Exploration Activities carried out: o Extensive Exploratory pitting o 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  Infrastructure o Accessible by road o Access to Rail line (Gombe – 150Km) o Access to Airport – Yola (100Km) o Telephone – GSM Service 11
  13. 13. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development LAMZA – CHIKILA COAL PROJECT TITLE AREA GRAPHICS 12
  14. 14. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development MINE LOCATION TYPE OF COAL ESTIMATE D 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
  15. 15. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development 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  Infrastructure o Accessible by road o Access to Rail line – Bauchi (200Km) o Access to Airport – Maiduguri (260Km) o Telephone – GSM Service 14
  16. 16. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development Lamba Iron Ore Project Title Area Graphics 15
  17. 17. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development S/No Mineral commodity Location State 1 Manganese Kaoje Kebbi 2 Tantalite Katakwa Kogi 3 Cassiterite TafawaBalewa Bauchi 4 Cassiterite Pankshin Plateau 5 Cassiterite, Tungsten, Bauxite Tissa 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
  18. 18. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development 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
  19. 19. # Ministry of Mines and Steel DevelopmentMinistry of Mines and Steel Development HONOURABLE MINISTER MINISTRY OF MINES AND STEEL DEVELOPMENT 2 LUANDA CRESCENT OFF ADETOKUNMO ADEMOLA CRESCENT, WUSE II, P.M.B. 107, ABUJA TEL: +234 (0)9-7816794 www.mmsd.gov.ng 18 FOR ENQUIRIES, PLEASE CONTACT Director General Mining Cadastre Office 37 Lobito Crescent, Wuse II, Abuja www.miningcadastre.gov.ng Director General Nigeria Geological Survey Agency Plot 31, Shetima Ali Munguno Crescent, Behind Julius Berger Office Utako District, Abuja www.ngsa-ng.org

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