[SPECIAL REPORT]
T
he commercial value of Nigeria’s solid minerals
has been estimated to run into hundreds of trillions
of dollars. It has also been estimated that Nigeria
loses about $40 billion annually in unexploited gold alone.
The domestic mining industry is underdeveloped, currently
accounting for only 0.5 percent of Nigeria’s GDP, and leading
to the importation of commodities that can be locally produced.
An audit report released by the Nigeria Extractive
Industries Transparency Initiative (NEITI) on the solid
minerals sector showed that a single company, Dangote Group,
generates more mineral resource revenue for the government
than the rest of the nation put together.
With the global decline in oil prices, Nigeria is seeking to
diversify its economy by building a stronger revenue base that
would require a stronger performance of the solid minerals
sector.
Solid Minerals in Nigeria
Solid mineral deposits are scattered all over Nigeria. They
include: lead-zinc ores, tin, niobium, lead, gypsum, limestone,
manganese, magnesite, coal, wolframite, silver, diatomite,
ilmenite, rutile, kyanite, clay, columbite, mica, barite, pyrite,
galena, sodium chloride, sphalerite, silica sand, granites,
tantalite, sphalerite, talc, quartz, marble, heliodor, gemstone
(tourmaline, aquamarine and sapphire), chalcopyrite, topaz,
tantalite, emerald, amethyst, coking coal, iron ore, kaolin,
calcite, copper ore, beryl, gold, garnet, and bismuth.
Nasarawa State in the North has been described as
Nigeria’s home of solid minerals as it is endowed with a large
number of solid mineral deposits.
INVESTMENT OPPORTUNITIES
Mineral Prospecting and Mining
Although Nigeria is blessed with an abundant amount of
diverse mineral resources, not all the minerals are available in
commercial quantities. As part of the strategies to reform the
sector, the Ministry of Solid Minerals Development (MSMD)
has identifi ed seven strategic minerals, namely: Coal, Bitumen,
Limestone, Iron Ore, Barites, Gold and Lead/Zinc for priority
development.
Coal: Nigerian coal has been found suitable for boiler fuel,
production of high caloric gas, domestic heating, briquettes,
formed coke and the manufacture of a wide range of chemicals
including waxes, resins, adhesives, and dyes. Coal can be
found in the central, middle-east, and south-east regions of
the country (Anambra, Kogi, Benue, and the Enugu States).
A reasonable estimate in these regions is put at a total of 396
million metric tons, while the unproven reserves are estimated
to be in the region of 1,134 million metric tons.
Limestone in the south-west region of Nigeria has been
estimated at 31 million tonnes. Most limestone mining activities
are mainly for cement production.
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