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

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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

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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

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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
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Barite
Clays (Kaolin, Common
Clay, Bentonite, etc)
found in several states
Clays
Bitumen
`
Limestone

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 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
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 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
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 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

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 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

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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.
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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:
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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
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Ririwai Mine Project Title Area Graphics
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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 Access to Rail line (Gombe – 150Km)
o Access to Airport – Yola (100Km)
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LAMZA – CHIKILA COAL PROJECT TITLE AREA GRAPHICS
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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)
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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 Access to Rail line – Bauchi (200Km)
o Access to Airport – Maiduguri (260Km)
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Lamba Iron Ore Project Title Area Graphics
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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
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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

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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
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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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