Opportunities for

Growth in the
WORKSHOP 2
Nigeria’s Mineral
Exploration and
DAY 2
Mining Industry
13-04-2023
for AMs and SMs

Dr. Irmiya S. Amoka

BSc Mining, MTech Geology
PhD Mineral Exploration
 MINISTRY OF MINES AND STEEL DEVELOPMENT
Mineral Sector Support for Economic Diversification (MinDiver) THE WORLD BANK

(World Bank Assisted Project)

Workshop 2: Train the Trainer (ToT)

for artisanal and small-scale mining financing

DATE 12th – 13th April, 2023 | TIME 10:00 am

VENUE
Rockview Hotel Royale, Abuja
 HIGHLIGHTS

Minerals in our daily lives

Landmark events in Nigeria’s mining sector

Recent mineral exploration and mining

Active mining and beneficiation

Investment potential in exploration and mining

 Goal
Opportunities for Growth in the Nigeria’s
Mineral Exploration and Mining Industry
for AMs and SMs

This session is designed to stimulate the interest

of participants to understand the impact of
investing more in capacity building that ensures
AMs and SMs growth in the mining industry
Figure 1. Minerals in our Daily Lives
 Minerals in our Daily Lives
Just imagine a world
without minerals? Civilization stages
 Stone age
 Bronze age
Basic Needs of Man  Iron age
 Food & health, agric,
food process, Modern life/industry
medicine, pharmacy  Power/energy,
 Shelter, house, electricity
construction  Info & Communication
 Clothing, textile,  Social media
jewelry, ornament  Automation
 Transport & Space,
road, rail, air, sea,
trade, industry, tourism
Landmark events in Nigeria’s mining sector

Figure 2. Historical timeline of Nigeria’s mining sector

(MMSD, Roadmap 2012)
 Landmark events in Nigeria’s mining sector

 Tell the story again, for financial institutions and

prospective investors that may not be familiar with the
mining industry
 Exciting history and contribution of mining in Nigeria,
before petroleum exploitation started.
 Evidence of ancient mining and smelting of iron on Itakpe
hill
 Exploration for several solid minerals dates back to more
than 100 years, eg, Lead, Zinc, Tin, Gold
 Local mining and uses of salt, lead for decoration, clay for
construction, clay for medication (nzu)
 Landmark events in Nigeria’s mining sector

 Before independence, up to civil war era, Coal was

produced in Nigeria
 Coal for export and local use for electricity. Enugu,
Opara, Onyeama, Okaba, were active
 Nkalagu limestone was mined for cement making
 By early 1960s, Nigeria ranked globally as 6th producer
of Tin, and 1st in Columbite.
 Cassiterite (tin ore) was mined and processed in Jos,
and was smelted at Makeri for export
 Niobium from columbite is used in aircraft manufacture
 Mining contributed significantly to GDP, employment,
railways, social amenities
 Landmark events in Nigeria’s mining sector

 Apart from coal, mining of minerals and metals was

entirely operated by private enterprises (mainly
British).
 Then came the indigenization of mining in 1972.
 And since then, the solid minerals sector has been on
continuous decline.
 Nigerian Coal Corporation, Nigerian Mining
Corporation with several subsidiaries collapsed:
quarries, baryte, gold, talc, kaolin, bricks
 Recent mineral exploration and mining

 All is not so gloomy!

 Numerous mineable minerals have been identified at
various times
 Iron ore as base for Steel, Ajaokuta and Delta steel
projects, rolling mills in Katsina, Osogbo, Jos;
 Iron ore mining Itakpe for Ajaokuta
 Steel raw materials: marble, coal, etc
 Aluminium smelting in Cross River State
 MSMD 34 minerals 2005-2006 (see Figure 3)
 Seven minerals for priority promotion: gold, coal, bitumen,
limestone, iron ore, lead/zinc and barytes (2016)
Figure 3. The 34 solid minerals in Nigeria, MSMD, 2006
 Active mining and beneficiation in Nigeria
Mineral Location Value chain Uses Company
Talc Kagara Mine, Process Fertilizer, Ceramics Crystallizer

Limestone Ashaka, Ewekoro Mine, Process Cement Lafarge

Limestone Okpella, Sokoto Mine, Process Cement BUA
Marble Obajana Mine, Process Cement Dangote
Coal Ashaka Mine, Process Kiln, Electricity Lafarge
Coal Ankpa Mine Fuel Zuma, ASM
Coal Enugu Mine Fuel, Power Foreign
Gold Anka, Minna, Ilesa Mine, Process Jewelry, Currency Forein, ASM
Granite Various Quarry, Process Aggregates, Gravel Various
Cassiterite Jos Mine, Process Tin metal ASM
Columbite Jos Mine, Process Niobium ASM
Gems Various Mine Jewelry Foreign, ASM
Sand Various Mine Construction Various, ASM
 Mining and Beneficiation in Nigeria

Mining Methods Beneficiation Methods

Open Pit Dry Process Wet Process

Excavate Sort Wash
Haul Crush Jig
Grind Sort
Sieve Dry
Quarry Package Package
Drill
Blast
 Investment potential in exploration and mining
Present status
 Every State, every zone, endowed
 Current mining all over the country, legal and illegal:
indicates some potential.
 Foreigners in Nigeria’s mining field – legal and illegal
 Gems minerals; etc
 Coal (underground and surface), underground Tin
(Ririwai), Gold (Zamfara, Osun, Kogi, Niger, Kaduna),
Gemstones, etc
 Nigeria’s minerals amenable to AM/SM

Industrial/construct Metallic Fuel minerals

ion minerals minerals
Coal
Talc Tin Bitumen
Baryte Columbite
Kaolin Lead/zinc Priority
Feldspar/Quartz minerals
Limestone/Marble
Phosphate Precious Lithium
Granite minerals Nickel
Coal
Gold Talc
Gemstones Baryte
 Investment potential in exploration and mining
 Import substitution by Value addition Processing or
Beneficiation, and Utilization of minerals:
 Uses: Metals, Industrial minerals, Fuel/Energy minerals,
Precious minerals (gems and gold)
 Alternative uses/industries: agriculture fertilizers, food,
pharmaceutical, ornamentation, construction, paper,
abrasives, rubber
 Priority minerals: lithium, nickel, coal, talc, baryte
 Formal, organised mining should be promoted,
supervised, monitored, encouraged: small, artisanal,
junior, senior
 Revive abandoned mines, coal, iron, tin
 Innovative, selective and safe mining methods
Investment and Financing
 Privatization inevitable, no sentiments
 Roles of governments, federal, state, and local:
monitoring, security, incentives, joint participation
 New Global investment strategies for exploration and
mining projects
 Cooperation, joint ventures, equity, cooperatives,
multinationals - enhanced capital, shared risks and
benefits
 Diversification, eg, oil companies venture into solid
minerals, transportation, mining, etc. exxonmobil,
total energies
 Funds from businesses with quicker profits are used
to kick start or stimulate mineral exploration, in
anticipation of its eventual huge benefits
 Conclusion

 Although there are peculiar challenges and high risks

in mining business, the situation is not totally gloomy
 Many minerals have been explored and evaluated to
good extent, which could be developed by enhanced
mining and processing methods
 Priority Minerals: Lithium, Nickel, Coal, Talc, Baryte
 Current global trends involve diversification models
for investment in mineral exploration and mining
projects
 Recommendations

 Government should engender political will, policy

implementation and transparency, secure business
environment, for mineral exploration and mining.
 Government should expedite formalization and
facilitation of artisanal and small scale mining.
 Accurate review of available geologic and
commodity data.
 Frequent sensitization programmes should be
organized for prospective financiers, investors,
operators, and other stakeholders.
Thank You

for

Listening