Nigeria has over 500 known minerals and over 500,000 artisanal and small-scale miners. 90% of mineral production is through artisanal mining. The artisanal and small-scale mining sector provides important livelihoods but faces issues like lack of mechanization, safety, and legal mining titles. The government is working to support this sector through training, financing access, and incentives for larger mining companies to stimulate sustainable growth in the mining industry.
Artisanal and Small-Scale Mining in Nigeria: Presentation on Opportunities and Support
1. Artisanal and Medium Scale Mining in
Nigeria
Presentation
by
A.M TUKURA
Ministry of Mines and Steel Development
2. Country profile
• Country: Nigeria
• Capital: Abuja
• Population:160, 000, 000 million
• Land Area:923,768 sq. km (356,700 sq. miles)
• Currency: Naira
• 500 Minerals spread all over 36 states and FCT
3. Mineral Profile
• coal,
• bauxite,
• tantalite,
• gold,
• tin,
• iron ore,
• limestone,
• niobium,
• lead and
• zinc
But to mention but a few.
• Nigeria also has a wide
array of underexploited
mineral resources which
includes:
5. Mineral Facts
• 90% mineral production in Nigeria is in artisanal
• Over 500,000 ASM Miners in Nigeria
• About 800 registered ASM miners with the Ministry of Mines and Steel
Development
• Artisanal and Small Scale Mining sector is a significant generator of rural
livelihoods that has the potential to alleviate poverty and be a tool for
sustainable development.
• Nigeria has bitumen of estimated reserves of 27 billion barrels of oil
equivalent,
• Coal has a reserve of 2.7 billion tones,
• Iron ore of estimated resources of 3 billion tones.
• Limestone estimated resources of 2.23trillion tones,
• Barites of estimated resource of 14million tones.
• Gold 50, 000 onces at 10 locations
8. ASM ACCORDING TO THE NIGERIAN MINERAL
AND MINING LAW, 2007
Artisanal Mining according to Minerals and Mining Act, 2007 means:
• Mining operations limited to the utilization of non mechanized methods of
reconnaissance, exploration, extraction and processing of mineral resources
within a Small-scale Mining Lease Area.
Small-Scale Mining means:
• Artisanal, Alluvial and other forms of mining operations involving the use of low
level technology or application of methods not requiring substantial
expenditure for the Conduct of Mining Operations Within Small-Scale Lease
Areas.
9. ISSUES THAT CHARACTERIZE THE SECTOR
• lack or very reduced degree of mechanization, great amount of physically
demanding work
• low level of occupational safety and health care deficient qualification of the
personnel on all level of the operation
• inefficiency in the exploitation and processing of the mineral production (low
recovery of values)
• exploitation of marginal and/or very small deposits, which are not
economically exploitable by mechanized mining
• low level of productivity
• low level of salaries and income
• periodical operation by local peasants or according to the market price
development
• insufficient consideration of environmental issues
• chronically lack of working and investment capital
• mostly working without legal mining titles
10. Investing in Solid
Minerals
Government have put attractive incentives for investors who are willing
to capitalize on the plethora opportunities in Nigeria
• Government has created enabling environment required to stimulate
sustainable growth
• Grant of a three-year tax holiday to new mining companies.
• tax incentives such as the reduction of Companies Profit Tax from
35% to 30%
• Capital Gains Tax has been reduced from 20% to 10% for prospective
investors.
11. AREAS TO ASSIST THE ASM
• Mineral reserve evaluation techniques.
• Design and planning.
• Application of modern mining technology.
• Waste and tailing disposal methods.
• Health and Safety procedure.
• Entrepreneurship, legal, mineral marketing and mineral
economics.
• Provide teaching equipment and plants hire on arrangement
with manufacturers.
• Mineral processing technology skills.
12. continued
• Generate income-through bank loans
• Create adequate information on the available market for the
product
• Enlighten and generation of ideas for the small scale miners for
the mining credits from financial institutions
• Provide capacity building workshops for the small scale miners
• Provide courses for the artisanal and small–scale miners both
local and internationally.