Nigeria Top 10 Solid Mineral Resources December 2016

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Relaunching Nigeria as a Great Mining Destination Australia is on the Spotlight of Nigeria’s Mining Success

November/December, 2016

= Richly Endowed with over 40 Different Kinds of Solid Minerals = 12th Largest Iron Ore Reserves in the World = The Most Bituminous Coal in the World with the Lowest Sulphur Content = A Three-Year Tax Holiday for Investors


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Editor’s Note Let’s explore Nigeria’s Mining! PUBLISHER & EDITORIAL DIRECTOR Micheal Obineme

Dear Industry Professionals, On behalf of Oil and Gas Republic, I am delighted to welcome you to this edition of our publication.

EDITOR Tobi Owoyimika

CONTENT & TECHNICAL WRITER Jackson Olagbaju

BRAND AMBASSADOR Chiamaka Nwokeukwu Nigerian Nollywood Actress

CORRESPONDENT Samuel Ohai (Marketing Strategist) Washington, USA

Faith Ohai (Business Development Executive) Washington, USA

I am amazed at my discovery about the Solid Mineral Sector of Nigeria. The solid mineral sector has also attracted massive investments. It is noted that things are beginning to get better, the Nigerian government has decided to diversify its economy by repositioning the solid mineral sector. The Nigeria's Ministry of Solid Minerals is working smart to revive the solid mineral sector to serve as a reliable revenue for the entire nation. Nigeria has made some progress in terms of becoming a business friendly environment for mining and with the current low oil price, some states are looking to mining as a source of additional income. As the sector is growing and continually evolving, there is a need of creating an enabling environment and to encourage investors to invest more efficiently within the sector. Also in this publication, we take a critical look at Australian Mining Sector. What lessons can Nigeria learn from them? Please find out as you read along. I hope you have an enjoyable and productive time reading through this publication. Your feedbacks will be highly appreciated, please send your feedback to the email address below: Wishing you all a safe and fulfilling 2017! Kind regards, Micheal Obineme Publisher & Editorial Director OIL AND GAS REPUBLIC PUBLICATION Email: info@oilandgasrepublic.com

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Major events we covered in 2016 Oil and Gas Republic has a consistent track record of covering local & international events worldwide. In 2016, Oil and Gas Republic was an official media partner at the events listed below:

OWA2016: Offshore West Africa Conference & Exhibition OWA2016 celebrated its 20th anniversary on 26 - 28 January, 2016 at Eko Hotel & Suites, Lagos - Nigeria

Solar Finance Solution Africa 2016: The event was organized by Solar Plaza, Netherland based company The event took place on 6 - 7 April 2016, Johannesburg - South Africa. The only event in Africa dedicated to the financing of Solar and Energy Storage in the C&I segment

LNG18: Liquified Natural Gas Conference & Exhibition, 2016, Perth, Australia LNG18 was held on 11 - 15 April 2016, Perth Australia. The next LNG18 will take place by 2019 at Shanghai, China

Cippe Shanghai 2016: China International Petrochemical Petroleum Conference & Exhibition The largest Petrochemical event in Asia. The event took place on 23 - 25 August, 2016 at Shanghai New International Expo Centre in China

Power Nigeria 2016: Power Nigeria Conference & Exhibition 2016 The event took place on 27 - 29 September, 2016 at Eko Hotel & Suites, Lagos Nigeria. Power Nigeria has grown to become the place where the Power Industry’s who’s who comes to learn, liaise, and do business


Major events we covered in 2016 Oil and Gas Republic has a consistent track record of covering local & international events worldwide. In 2016, Oil and Gas Republic was an official media partner at the events listed below:

iPad Nigeria 2016: iPAD Nigeria Mining & Quarrying Forum 2016 With over 300 people registered for the iPAD Nigeria Mining and Quarrying Forum. Hon. Kayode Fayemi, Minister of the Ministry of Mines & Steel Development was also in attendance.

Powering Africa Nigeria 2016: The event took place at TRANSCORP HILTON ABUJA in Abuja The 2016 meeting provided the opportunity for the private sector to realign strategy with the new vision for the future of power in Nigeria.

Power Week 2016: The world's best thinkers, practitioners and industry leaders sharing insights Designed for the global electric power & energy industry, POWER WEEK provides 5 days of networking opportunities, consisting of 2-day conference as the focal event

Energy Storage Australia 2016: Energy storage Australia 2016 took place on October 11-12, Melbourne The topics was about smart- grid, power grid storage, distributed etc and much more... The event recorded over 300 professionals.

FPSO & FLNG Asia 2016: This Conference is a 2 day event FPSO & FLNG Asia was held in Shanghai, China starting on 20th Oct, 2016. FPSO & FLNG Asia 2016 is a Oil and Petroleum & Gas Conference, organized in Shanghai, China


Some featured event we will be covering in 2017 Middle East Electricity 2017: Middle East Electricity, one of the world’s leading power exhibitions The event will focus on the future of Smart Cities, and the innovations which are set to lead the way both locally and internationally in the coming decade

Nigeria Oil & Gas 2017: Nigeria Oil & Gas Conference and Exhibition 2017, 27 Feb - 02 March 2017 ICC, Abuja, Nigeria Featuring exclusive speakers, sponsors and supporters, as well as an overview of Africa’s largest oil, gas and power exhibition.

Power & Electricity World Africa 2017 The event will take place 28 - 29 March Sandton Convention Centre, Johannesburg, South Africa Power and Electricity World Africa continues to provide the meeting place for buyers, sellers and their partners to do the deals that drive Africa’s energy sector. This is THE place where buyers find solutions to their challenges.

iPad Nigeria Mining & Quarrying Forum - International Mining Event for Nigeria Taking place 26 - 27 October 2016 at the Sheraton Hotel in Abuja, iPad Nigeria Mining Forum has a consistent track records since 2015, after a successful 2015 event which took place at the Transcorp Hilton Hotel Abuja and attracted a recordbreaking international audience of over 200 mining professionals worldwide. The iPAD Nigeria Mining & Quarrying Forum 2016, in partnership with PWC, incorporates both a high-level, interactive mining stakeholder conference as well as an exhibition to showcase cutting edge technologies and services for Nigeria’s burgeoning mining market.Expect over 125sqm showcase of leading local and international companies that form part of the mining & quarrying supply chain. Types of companies exhibiting at iPAD Nigeria Mining & Quarrying Forum: EPC’s, Equipment Providers, Safety Wear, Emergency Power Suppliers, Banks, Insurance Companies, Law Firms, Logistics Companies, Surveying Companies and more. iPad Nigeria provides a platform for interactions between most stakeholders in the mining industry, particularly the private sector players and government institutions. The forum creates a better understanding on the roles expected to be played by both the government and the private sector in the development of a productive mining industry.

The Future of the Nigeria’s Solid Minerals Sector With a new government in place with a desire to develop Nigeria’s vastly underexploited natural resources in the wake of the drop in oil prices, The Nigerian Government has initiated a new mineral sector reform roadmap that encourages and provides innovative business ventures and supports investment & partnership opportunities. 2016 key topics at the forum include: 3 What are the viable projects that Nigeria can do in order to attract investment opportunities. 3 Why Nigeria, why now? A brief overview of the mining sector’s potential 3 What are the licence to mine? interactive panel to understand Nigeria’s geology and how to access permits. The Nigeria Mining Week is organised by the Miners Association of Nigeria in partnership with Spintelligent and PwC Nigeria. Spintelligent is a well-known trade conference and expo organiser on the continent. The company has particular expertise and experience in mining and infrastructure development events; including the long running flagship shows such as the iPAD series, the DRC Mining Week, CBM-TEC in Zambia, the Kenya Mining Forum in Nairobi and African Utility Week in Cape Town.


OGR International Media Report

Coberon Chronos Group Unique Recruitment Process Solutions to Improve Business Efficiency

Chronos recruits for both permanent staff and contractors for clients globally with a unique, truly global network that works as one entity. Coberon Chronos Group is a privately owned, independent business services firm providing professional search and selection services on a global basis with a proven track record of working with blue chip Fortune 1000 corporations and SMEs for over 20 years in international growth markets. Chronos Unique borderless research process and delivery methodology with a strong team-ethos of sharing information, knowledge and experience, Multilingual and multicultural staff, Competency-based interviews, shortlist within 3-6 weeks. Chronos has ISO 9001:2000 certified Quality Management System to ensure quality standardization. RECENT SEARCH EXAMPLES IN CONSUMER GOODS: 3 Marketing Manager 3 Rep 3 Sales Manager 3 HR Manager 3 Technical Manager 3 Product Manager 3 General Manager 3 Regulatory Affairs Manager 3 Logistics Planning Manager 3 Brand Manager 3 New Product Development Manager 3 Regional Manager 3 IT Supervisor 3 Plant Manager 3 Product Communications Director 3 Medical Director 3 Hospital Product Specialist

SUGGESTED SEARCH PROJECT TIMELINE PLANNING & BRIEFING: Job specifications, key competencies and candidate profile description agreed on Agreed targeted company list for headhunting purposes – off limits, if any WEEK 1-2 / IDENTIFICATION AND PRE-SCREENING: Direct Search & Networking - Database / Internet Search begins Screening, selection and interviews of active candidates WEEK 3-5 / SHORTLISTING: Screening, selection and interviews of passive candidates Presentation of at least 3 shortlisted candidates per position Managing client’s and candidates’ feedback WEEK 5-8 / FINAL SELECTION, OFFER AND PLACEMENT: Decision on hiring Manage the offer process between candidate & client SEARCH PROJECT METHODOLOGY 3 CC INHOUSE DATABASE SEARCH using the latest database technology with immediate access to many top calibre candidates seeking new opportunities. 3 EXTERNAL DATABASE SEARCH on more than 60 external databases we have full access to around the world.

3 HEADHUNTING/DIRECT SEARCH/NETWORKING from target companies to reach out to passive candidates confidentially. 3 LONG LISTING TO SHORT LISTING We long list initially from application, resume details and market information. We then interview each candidate taking care to ensure we have explored all competencies relevant to your particular requirements. Our Main Differentiations 3 Emerging markets search is in our DNA – that is where we started the company in the 90s and we continue to thrive. 3 We are in a position to take on another client in the pharmaceutical industry in Libya, we have no current off-limits with your competitors and therefore can headhunt without limits. 3 Unique process automation & search methodology with a strong team-ethos of sharing information, knowledge and experience. 3 Over 90% repeat customer rate due to high offer to acceptance rate and low dropout rate during probation period. All our services are provided on a fixed price or T&M basis depending on client’s preference and we currently work with clients located in North and South America, Australia, Africa, Europe, Far East and EMEA


OGR International Media Report

By Micheal Obineme

Exploring Chronos’s Booming Recruitment Business ...Chronos Mining is a Division of Coberon Chronos Group, International Recruitment Company Chronos Mining focuses on providing recruitment services in the mining industry globally with office location in over 70 locations worldwide and over 8000 contractors. This market is growing and continually evolving, there is a shortage of skills making it difficult to meet the growth in the market. Chronos can assist in providing these hard to find candidates. British, American and Swedish entrepreneurs founded the Coberon Chronos Group in the 1990s. Chronos Mining, Chronos Consulting and Coberon Russia are part of the Coberon Chronos Group which is a leading provider of staffing, consulting and software outsourcing services and solutions for blue chip customers around the world for over 20 years. Coberon Chronos Group provides careers in several fields like oil and gas, IT/Telecom, mining, Renewable/Energy, RPO, process management, sales, human resource and many more...

Chronos continuing mission is to provide uniquely flexible and innovative staffing, training and outsourcing solutions in global markets and its candidate network has been built over many years from networking & recommendations. This means we have access to specialists in the market that are not actively looking. We understand the market very well meaning that we should be able to provide a swift, accurate service. Coberon Chronos Group are best placed to help with any role that falls within the oil and g a s , I T / Te l e c o m , m i n i n g , Renewable/Energy, RPO, process management, sales, human resource. Chronos has a unique, truly global network that works as one entity to service our clients’ needs without borders. Not only do we have a global presence we have true global reach to the largest pool of candidates in the industry.

HOW COBERON CHRONOS GROUP CAN ASSIST YOU 3 Partnering with you to provide offshore /nearshore services around the world 3 Flexible Methodology and Pricing Approach. Creative strategic and flexible pricing to ensure it is a win-win partnership in more complex international projects. 3 Short/long-term contractors in select locations worldwide 3 Search and selection of staff for perm placement 3 Dedicated Delivery Team covering several key time zones with fluent English, Spanish + other European languages 3 Fortune 500 client references globally

Chronos Consulting Extends its Recruitment Business into the Nigerian Market By Micheal Obineme Chronos Consulting has extended its recruitment, payrolling, contracting , RPO and software services into Nigeria with a fully staffed operation in Lagos. Working in partnership with Oil & Gas Republic the Group already has over 2,000 vacancies in the oil and gas sector and over 1,000 vacancies in other key sectors of the Nigerian economy. Here are a few areas in which Oil & Gas Republic and the Coberon Chronos Group are active: Oil and Gas Nigeria is the 13th largest producer of petroleum in the world according to recent report and was the world's fourth-largest exporter of LNG in 2015, and the leading oil producer in Africa. (The country joined OPEC in 1971). Petroleum plays a large role in the Nigerian economy, accounting for 40% of GDP and 80% of Government earnings. The Niger Delta Nembe Creek Oil Field was discovered in 1973 and produces from middle Miocene deltaicsandstone-shale in an anticline structural trap at a depth of 2–4 km. Chronos Consulting and Oil & Gas Republic are experienced in offering services to the oil and gas industry in Nigeria. Telecommunications Nigeria has one of the fastest growing

telecommunications markets in the world, major emerging market operators (like MTN, Etisalat, Airtel, Globacom etc..) basing their largest and most profitable centres in the country. The government has recently begun expanding this infrastructure to space based communications. Nigeria has several space satellites which are monitored at the Nigerian National Space Research and Development Agency Headquarters in Abuja. The Chronos Group and Oil & Gas Republic have over 20 years experience in the Telecom sector and work with some of the world's largest telecom providers. Financial Services Nigeria has a highly developed financial services sector, with a mix of local and international banks, asset management companies, brokerage houses, insurance companies and brokers, private equity funds and investment banks. Please feel free to contact either Oil & Gas Republic staff or Chronos Group staff for more information about our services in this sector. Mining/Mineral Resources Nigeria also has a wide array of underexploited mineral resources which include natural gas, coal, bauxite, tantalite, gold, tin, iron ore,

limestone,niobium, lead and zinc. Despite huge deposits of these natural resources, the mining industry in Nigeria is still in its infancy. Chronos and Oil & Gas Republic can help you find the correct expertise and staff in Nigeria in this critical sector. Agricultural business Agriculture used to be the principal foreign exchange earner of Nigeria. At one time, Nigeria was the world's largest exporter of groundnuts, cocoa, and palm oil and a significant producer of coconuts, citrus fruits, maize, pearl millet, cassava, yams and sugar cane. About 60% of Nigerians work in the agricultural sector, and Nigeria has vast areas of underutilized arable land. The Chronos Group and Oil & Gas Republic have over 10 year's experience in recruitment for agribusiness projects worldwide. Other sectors It also has a manufacturing industry which includes leather and textiles (centred Kano, Abeokuta, Onitsha, and Lagos), car manufacturing (for the French car manufacturer Peugeot as well as for the English truck manufacturer Bedford, now a subsidiary of General Motors), t-shirts, plastics and processed food.


Corporate Profile

Exclusive Interview with Simon Harding, Founder and Chairman of the Chronos Group of Companies Simon Harding is the Founder and Chairman of the Chronos Group, a company that provides recruitment, RPO, Software and Technology services with operations in over 70 countries. In this interview, the Chairman of Chronos Group speaks of their interest to invest in Africa. By Micheal Obineme

“We are interested to invest in Energy, Mining, IT/Telecom and Agribusiness recruiting services, RPO and BPO in Africa� - Simon Harding OGR: Please can you briefly introduce yourself and your company? I'm Simon Harding, Founder and Chairman of the Chronos Group. The Chronos Group is a US based organizations that has recruiting, RPO, software, technology and entertainment interests worldwide. Our candidate network has been built over many years from networking & recommendations. In building this network, we have naturally also built our market intelligence. We understand the market very well meaning that we should be able to provide a swift, accurate service. The Chronos Group are best placed to help with any role that falls within the oil, gas, renewable, IT, Telecom, retail and FMCG sectors worldwide. Our mission is to provide uniquely flexible and innovative staffing, training and outsourcing solutions in key global markets. OGR: How long have you been doing this business? I started the business by buying out distressed companies and turning them around into profit. The first Chronos

businesses were set up in 1999. We have also opened new businesses in the market and our clients demanded. OGR: What kind of recruitment services do you provide to companies? We provide the full range of recruitment services including retained and contingent search and selection, RPO and BPO services. We work with mainly Fortune 1000 companies but also increasingly medium sized companies and start ups. OGR: How many candidates do you have on your database and what is your client base presently like? We have well over 200,000 candidates in our database. Our client base consists mainly of large and medium sized companies in the oil, gas, renewable, IT, Telecom, retail and FMCG sectors worldwide. OGR: Do you have international recruiting and outsourcing locations? Yes, we are able to work in almost any location globally. We have actual bricks

and mortar offices in USA, Canada, Mexico, Costa Rica, Argentina, UK, Germany, Spain, Sweden, Poland, Hungary, Romania, Turkey, Russia, Latvia, Lithuania, Estonia, Nigeria, Israel and much more. OGR: What are the major achievements for Chronos Group of Companies? We have managed to grow almost every year since 1999 and in 2006 had a successful divestiture of 4 of our businesses to a NYSE listed company. We have also been able to take over part of an ASX listed recruiter in 2009 and in 2010 we were able to expand both organically and by acquisition. We are able to provide a timely and cost effective set of solutions for our clients and delivery is our major achievement. We have many clients that have worked with us every month for the last 15 years and to me that is a major achievement. OGR: Will you be interested to invest in Africa? Yes, we are interested to investing in Africa. We would be investing in Energy, Mining, IT/Telecom and Agribusiness recruiting services, RPO and BPO. And, we will be interested to invest in Nigeria, Kenya, Uganda but open to most countries with the right people and opportunity.

www.chronosconsulting.com


COVER STORY

By Micheal Obineme

Comet Resources Limited, is an Australian Firm with a proven track record in delivering value to shareholders through a long running program of various exploration and mining activities. The board and management team are highly experienced with a wide knowledge base that is honed to finding and developing new prospects. Comet is listed on the Australian Stock Exchange in 1994. The Company is now exploring mineral properties in Western Australia and New South Wales. Two current projects are the Springdale Graphite Project, WA and the Gilmore Gold Project, NSW; both offer strong opportunities for the future. The abundance of native nickel balls recently discovered in Nigeria is “an extraordinary occurrence in a style not known to have been previously documented”, Comet, a private mining syndicate headed by veteran Australian miner, Hugh Morgan, has said. In a paper distributed at the Africa Down Under Conference which was held September 7 – 9 in Perth, Australia, the company said the discovery had “important implications” for nickel exploration worldwide. The paper was delivered by the Comet team comprising Mr. Morgan, Professor Louisa Lawrence, Stephen Davis, and Steven Pragnell.The metal named “Titan”, measuring 0.1-5.0 millimetres in diameter and weighing an estimated three weight percent, was found on the southern margin of the Jos Plateau, near the rural villages of Dangoma and Bakin Kogi, Kaduna State. “Although the bedrock has not been tested at depth, the wide distribution of abundant nickel metal balls and their secondary ferruginous alteration product within residual weathered bedrock at Titan, indicates a highly endowed

primary mineralised system,” Comet said. “To our knowledge, this style of high-grade native nickel metal deposit has not been previously documented.” Nigeria’s Minister for Solid Minerals, Kayode Fayemi, was among the speakers at the threeday event held at the Pan Pacific Hotel in Australia. Mohammed Abbas, the permanent secretary at the ministry, said the discovery was made “many months ago” and urged the public to allow the government produce a detailed report. The Comet team said the metal was identified and exploration commenced in early 2015. “Pits dug up to six metres deep, at roughly 200 metre centres, show the nickel occurs in a coarse-grained micaceous felsic unit, associated with localised zones of mafic and olivine-rich ultramafic bedrocks”, the team said. Traces of other metals such as zinc, copper, lead, and cobalt were also detected in the core and rims of the nickel. The team said ongoing activation of major bedrock structures in the area had resulted in recent tectonic shift and exposure of fresh nickel metal at the surface in an erosional drainage basin at Titan. “However, the nickel balls are not physically (concentrated) into a heavy mineral fraction within the soil cover sequence due to the low erosional gradient in the catchment and the freshness of the bedrock. “Furthermore, the exposed metal balls are prevented from significant oxidation due to good drainage and the formation of a protective stable secondary oxide layer on the metal surface.” The project area spans 20 square kilometres where high concentrations

of ferruginous brown balls extend over a half a kilometre to the north and west of the nickel metal occurrence. “Although the bedrock has not yet been tested at depth, the wide distribution of abundant nickel metal balls and their secondary ferruginous alteration product within residual weathered bedrock at Titan, indicates a large highly endowed primary mineralized system,” Comet said. “To our knowledge, this style of high-grade native nickel metal has not been previously documented.” According to report, Comet is currently focusing its exploration on developing a nickel project that targets the native nickel balls in the shallow weathered bedrock over an area of a half square kilometre. The company is seeking funding to continue exploration and has approached a few interested parties. Nickel is primarily sold for first use as a refined metal. About 65 percent of it, consumed in the West, is used to produce stainless steel. The world’s largest producers of the metal include The Philippines, Indonesia, Russia, Canada, and Australia, according to the US Geological Survey. Last month, Mr. Fayemi told Bloomberg that one of the Nigerian government’s priorities is to meet its annual steel demand of 6.8 metric tons, from a current output of less than 2.5 metric tons, produced mainly from scrap iron. “In two to five years, we want to have started production of iron ore, lead, zinc, bitumen, nickel, coal, and gold at a serious scale,” Mr. Fayemi had said.


McKinsey Report Shows Emerging Technologies Set to Transform Mining Operations Worldwide By Tobi Owoyimika Emerging technologies are set to change the way miners operate over the next decade. Delivering improved productivity, cost savings, and safety advancements is vital and could drive economic transformations in coming years.

A report from the McKinsey Global Institute has highlighted some technologies that could drive economic transformations in the mining industry over the next decade. The report explains that the combined application of all emerging technologies, including advanced robotics, energy storage, and mobile internet could have a potential impact of between $14 trillion and $33 trillion a year in 2025. Mobile Internet: Mobile internet is expected to improve worker productivity and service delivery. Enhanced communication technology has not only improved mine site safety but transformed the way safety is managed. Automation: Authomation in mining will improve saftety but also streamline operations, mostly through the remote operation centre. Mining companies such as Rio Tinto and BHP Billiton have both launched remote operation centres in Western Australia. The intelligent softwares systems that are already being developed can perform knowledge-work tasks. Internet: Establishing networks which collect, monitor and process data will improve process optimisation. It will also allow for the the efficiency use of resources, controlling optimal water and electricity usage. Cloud: Software-as-a-Service (SaaS) and cloud integration allows companies to integrate their various applications so data is entered once, saving time and creating consistency across business centres. Advanced Robotics: Today's market conditions means finding operational efficiencies is more important than ever.

Many mine sites around Australia are working on implementing automated machinery and processes on site. Machinery Automation and Robotics [MAR] have been working with Rio Tinto to develop the new MAR Robotic Idler Change-out which is able to replace idlers on loaded, operational conveyors. Energy Storage: This is going to be n excellent option to reduce the use of diesel generators, brining down electricity costs and minimising the carbon footprint of each mine. Energy mining companies are increasingly looking for off-grid power solutions, in an effort to reduce the use of diesel generators, bring down electricity costs and minimise carbon footprints. Advancements in capture and storage techniques will no doubt go a long way towards managing energy consumption, costs, supply, and risks. 3D Priniting: Miners will be among he industry professionals that will benefit a lot from the development of manufacturing tecnologies like 3D Printing. This technology will be able to solve a problem that often affects the mining sites. Simon Bartlett, from Melbourne-based manufacturing and prototyping bureauRapidPro, predicted that miners were among those who could benefit from the further development of additive manufacturing technologies. He said 3D printing machines could solve the problem of needing to have replacement parts sent in to mining sites Advance Materials: When it comes to mining technologies, advanced materials have superior strength or conductivity. This technology is not only set to enhance nanomedicines but also improve energy storage and solar cells. Improving the longevity of mining machinery is .

another benefit of advanced materials; the formulation of better engine oils can minimise downtime, whilst stronger parts reduces maintenance costs. Advanced Oil and Gas Exploration: With fuel costs rising and companies focusing on the challenges of reducing C02 emissions, many are heralding the LNG boom as a way to offset the energy issues facing the mining industry. But with big upfront capital costs, and technological advancements some years away, is LNG ever likely to replace diesel as the predominant fuel source on mine sites? It is estimated that the LNG boom in Australia is worth $180 billion in planned investments with many predicting the projects will lift Australia from the fourth largest LNG producer to the first, knocking Qatar off its perch. In Queensland alone three projects currently under construction are expected to generate $45 billion in capital expenditure and produce 28.8 Mtpa of LNG. With major companies like Shell, Woodside and BP spending billions on LNG projects, it is clear they expect the gas to become not only a major revenue raiser in exports, but to also be used more commonly on Australian soil. Renewable Electricity: Electricity costs are one of mining's most expensive inputs, minimising usage will improve environmental impacts and soften the blow to a miner's bottom line. Mining companies are always looking for ways to reduce their electricity bill and renewable energy can help in reducing cost of electricity and also helps the environment.


Photo Gallery

Snapshot at iPad Nigeria Mining Forum 2015, Transcorp Hilton Hotel Abuja

Oil & Gas Republic Team with Australian High Commissioner to Nigeria

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Photo Gallery

Snapshot at iPad Nigeria Mining Forum 2016, Sheraton Hotel Abuja

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OGREPUBLIC International Media Report

...Nigeria is richly Endowed with over 40 Different Kinds of Solid Minerals According to The Economist report, Nigeria’s economy was valued at $510billion in 2014, and is considered the largest economy in Africa and one of the fastest growing economies in the world with a long-term average growth of 7.7%. Nigeria’s vastly underexploited natural resources include about 44 varieties of minerals in over 500 locations. In March 2016, the Roadmap for the Development of the Solid Minerals Sector was launched and following the inaugural iPAD Nigeria Mining Forum in partnership with PwC in 2015, recommendations were given to Government and the private sector. The Nigerian Government has been working smart to diversifying the economy and the new roadmap for solid minerals development in Nigeria will help in achieving it. As part of Mr. President’s campaign promises to Nigerians and in particular his consistent statement to diversification particularly in agriculture and mining sector, The Federal Executive Council (FEC) has approved N30 billion intervention fund for mining exploration in the country. The fund will be highly focused on exploration as exploration is the heart of mining, if you don’t search you won’t find. The government is already in negotiation with sovereign investment on mining in order to access private capital to mining and the Nigerian Stock Exchange. Nigeria has

made some progress in terms of becoming a business friendly environment for mining and with the current low oil price, some states are looking to mining as a source of additional income.

By Micheal Obineme

Nigeria's Proposed Strategic Framework for Full Mining Potential: 3 Ambition: A bold inspiring state of the full potential goal/end-state we are trying to reach 3 Where to play: Clear and exclusive choices on areas of focus for the most significant impact 3 How to win: Critical capabilities and tradeoffs required to win in target markets 3 Prioritised initiatives: Specific actions and enablers required to excute strategy Roadmap to deliver results: Plan, timeline and mechanisms to execute, monitor and course correct the strategy


OGR International Media Report

By Micheal Obineme

Exploring Nigeria’s Solid Minerals Sector & its Opportunities ...Nigeria’s Solid Minerals Sector: Alternative Investment Opportunities Nigeria’s Solid Mineral Sector will have several multiplier effects on job creation, development of states, and social infrastructure. According to report, the raw gold deposit in Birnin Gwari Local Government Area, Kaduna State, has more gold than South Africa as this is proven and verifiable based on the data collected. Nigeria's solid minerals alone has enormous investments opportunities for investors to explore in every Nigerian state. From Abia to Zamfara states, solid minerals deposits abound, huge enough to make Nigeria one of the most prosperous nations in the world. Among the key mineral deposits in the country are topaz, tin, iron ore, columbite, limestone, gold, gypsum, kaolin, lead, zinc and bitumen. Right to ownership of mineral resources is held by the Nigerian government, which grants titles to organisations to explore, mine, and sell mineral resources. Organised mining began in 1903 when the Mineral Survey of the Northern Protectorates was created by the British colonial government. A year later, the Mineral Survey of the Southern Protectorates was founded. In the 1940s, Nigeria was a major producer

of tin, columbite, and coal. The discovery of oil hurt the mineral extraction industries, as government and industry both began to focus on this new resource. The Nigerian Civil War in the late 1960s led many expatriate mining experts to leave the country. Mining regulation is handled by the Ministry of Solid Minerals Development, which oversees the management of all mineral resources. Mining law is codified in the Federal Minerals and Mining Act of 1999. The solid mineral sector has also attracted massive investments. It is noted that things are beginning to get better and with the reality that the revenue from crude oil is no longer reliable, the Nigerian has decided to diversify its economy by repositioning the solid mineral sector. The Nigeria's Ministry of Solid Minerals is working smart to revive the solid mineral sector to serve as a reliable revenue for the entire nation. Countries like Canada, Australia and South Africa and other countries, had explored such endowment to meet their economic needs. In a recent development, Federal Government of Nigeria

approved the demand for states to be allowed to exploit mineral resources in their areas. The states could link up with private investors to form partnerships to realise the objectives of the federal government in that regard as this will open avenues for royalties, add more companies to the sector and create massive jobs. Meanwhile, some industry expert have expressed the optimism that Nigeria can generate trillions of Naira annually from mining and exporting of its vast solid mineral deposits, with several multiplier effects on job creations, state development and social infrastructure that could make the solid minerals sector as the main catalyst for the national development. The solid minerals sector can serve as a solution to unemployment as the development of the value chain from mining to export will create millions of job opportunities within the sector. The new roadmap launched by the Nigerian government is as a new dawn for the sector and will stimulate the rapid growth of the sector. In conclusion, the Federal Governemt of Nigeria is fully ready to embark on this journey of sustainable development for the Nigerian mining and metals sector.

Africa’s Richest Man to Begin Coal Mining in Nigeria By Tobi Owoyimika cement plants namely Obajana (10.25MMTPA), Ibese (6.0MMTPA) and Gboko (4.0MMTPA) is 20.25MMTPA. The Obajana Cement Plant (OCP) located in Kogi State is reputed to be one of the single largest cement plants in the world with a combined capacity of 10.25MMTPA. Dangote Cement is also the biggest quoted company in West Africa and the only Nigerian company on the Forbes Global 2000 Companies. Dangote Cement Plc, a subsidiary of the Dangote Group, is a Nigerian multinational publicly traded cement manufacturer headquartered in Lagos. The company is engaged in the manufacture, preparation, import, packaging, and distribution of cement and related products across the African continent. Dangote Cement is a fully integrated cement company and has projects and operations in Nigeria and 14 other African countries; Dangote Cement's current total production capacity in Nigeria from its three existing

On a recent development, Dangote Cement Plc, has announced its plan to start mining coal at Ankpa, Kogi State during November period. Chief Executive Officer of Dangote Cement, Onne, van der Weijde, said that this was due to disruption to gas supply. He said: “These are challenging times for Nigeria and Dangote Cement but we are taking strong actions that will position the company for continuing success.

“Our coal mining initiative will benefit both the company and the Nigerian economy by reducing the need for foreign exchange and helping us to both protect existing jobs and create new ones. “Although we have indicated a more measured approach to our expansion across Africa, we have new operations opening soon in Congo and Sierra Leone and these will strengthen the company’s profitability and generate additional foreign currency earnings. “Despite the challenges we are facing, we continue to focus on becoming a global force in cement production.” The company said that many of its production lines were now capable of running entirely on coal to eliminate the company’s dependence on gas supplies, imported coal and LPFO.


Top Seven Minerals in Nigeria Ready for Investment

Gold

Iron Ore

Limestone

Bitumen

Barytes

www.oilandgasrepublic.com

Lead Zinc

Coal


OGR International Media Report

Nigerian Government: Relaunching Nigeria as a Great Mining Destination By Tobi Owoyimika

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igeria is richly endowed with a variety of solid minerals of various categories ranging from precious metals to various precious stones and industrial minerals. The Nigerian Extractive Industries and Transparency Initiative (NEITI) reported that there are about 40 different kinds of solid minerals and precious metals buried in Nigerian soil waiting to be exploited.

The Nigeria’s Minister of Mines and Steel Development, Dr. Kayode Fayemi, has shown a great commitment to improve the sector by providing a regulatory framework for the day-to-day activities of the solid mineral sector of Nigeria. The ministry has also provided logistics and technical assistance to state governments, in their interest to invest in the mining sector.

The 2017 budget has captured exploration, reclamation of mining sites and organisation of artisanal miners, among other things that would reposition the sector for a sustainable future. There are enormous opportunities in the sector also, the Nigerian Government has invested heavily in the generation of vital information on minerals, Outstanding among these are coal, gypsum, barytes, kaolin and talc. Nigeria has one of the best quality coal deposits in the world with the lowest sulphur content. The sector offers a viable alternative to petroleum for foreign exchange earnings. Globally, the mining industry has been a close rival to the petroleum industry.

The commercial value of Nigeria’s solid minerals has been estimated to run into hundreds of trillions of dollars, with 70 per cent of these buried in the bowels of Northern Nigeria. At least forty four (44) solid minerals are found in commercial quantity and are spread across the 36 States and FCT Abuja of the Federation. Out of these, seven (7) strategic solid minerals are being prioritized and promoted for private sector participation and investment by the Federal Government of Nigeria. The selected solid minerals are gold, coal, bitumen, limestone, iron ore, lead/zinc and barytes.

Top Seven Solid Mineral Resources of Nigeria Ready for Investment By Micheal Obineme

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here are seven 7 strategic solid minerals that are being prioritized and promoted for private sector participation and investment by the Federal Government of Nigeria. The selected solid minerals are gold, coal, bitumen, limestone, iron ore, lead/zinc and barytes.

1. GOLD: There are proven reserves of both alluvial and primary deposits of gold in commercial quantities spread across several parts of suprascrustal (schist) belts -in Maru, Anka, Malele, Tsohon Birnin, Gwari-kwaga, Gurmana, Bin Yauri, Okolom-Dogondaji and Iperindo areas - in the northwest and southwest of Nigeria. There are also a number of smaller occurrences beyond these major areas. 2. COAL: Nigerian Coal is one of the most bituminous in the world owing to its low sulfur and ash content, as well as, environmental friendly.

There are nearly 3billion tonnes of indicated reserves in 17 identified coalfields and over 600 million tonnes of proven reserves. In short, there is an abundant coal deposit in the country to power the coal-power plants that can contribute up to 30 per cent to the nation’s power generation by year 2020. 3. BITUMEN: The occurrence of Bitumen deposits in Nigeria is indicated at about 42 billion tonnes almost as twice the amount of existing reserves of crude petroleum. When fully developed, the industry will no doubt meet local requirements for road construction and also become a foreign exchange earner for the country. 4. LIMESTONE: Limestone occurrences are reported in almost all the 36 States of the Federation with extensive deposits in Sokoto, Gombe, Benue, Kogi, Edo, Oyo, Ogun and Cross River States These deposits are supporting active lime and cement plants in the country. The resource base of the known limestone deposits is about 2.3 trillion metric tonnes with 568 million tonnes of proven reserves.

5. IRON ORE: Nigeria currently has the 12th largest iron orereserves in the world. There are over three (3) billion tonnes of iron ore found in Kogi, Enugu, Niger, Zamfara and Kaduna States for possible manufacturing of iron and steel. 6. LEAD/ZINC: An estimated 10 million tonnes of lead/zinc veins are spread over eight States in Nigeria. Joint venture partners are encouraged to develop and exploit the various lead/zinc deposits all over the country. 7. BARYTE AND BENTONITE: The Nigerian baryte had specific gravity of about 4.3. There is an estimated reserve of over two million {2,000,000} metric tonnes of barite ore scattered in different parts of the country; especially in Benue, Nassarrawa, Plateau and Cross River States. Similarly, over 7.5 million tons of baryte have been identified in Taraba and Bauchi States. Large bentonite reserves of 700 million tonnes are available in many States of the Federation and are available for massive development and exploitation.


OGR International Media Report Need for Increased Technological Innovations and Investment Opportunities By Tobi Owoyimika Emerging technologies are set to change the way miners operate over the next decade. Delivering improved productivity, cost savings, and safety advancements could drive economic transformations in coming years. While not all will directly impact mining, they will play a role in mining’s supporting sectors including manufacturing and health. Apart from the hydrocarbon {crude oil} deposit which Nigeria is well blessed with, the country also have comparative advantage in the solid minerals sector owning to the large deposit of mineral deposit in the different parts of the country and if the Nation is to develop and attain her vision of 2020 target, more efforts should be geared towards the development of the solid mineral sector of the Nigeria economy.

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igeria has so many opportunities in its solid mineral sector, and the government is working smart to creating an enabling environment to attract investors that will be do business within the sector. Nigeria has one of the best quality coal deposits in the world with the lowest sulphur content. Aside from coal, there are other outstanding mineral resources which are gypsum, barytes, kaolin and talc. The names, location, quantity and possible industrial exploitation of some solid minerals in Nigeria is listed below: Barytes : 41,000 and 70,000 tonnes of which are found in Benue and Plateau State respectively, are used as inert volume and weight filler in drilling mud, rubber, glass, paper, etc. or as extender in the plant industry, and as chemicals in the manufacture of glass, heavy printing paper and plastics; Coal : 82.2 million tonnes, 189 million tonnes and 32 million tonnes of which are found in Enugu, Benue and Plateau States, respectively. It is used as fuel and in industrial production of tar, gas and non edible oils; Diatomite: 200,000 tonnes of which are found in Borno State; is used in making insect control powder, bond for furnace brick walls and mineral fillers and filters;

Good investment (funding) for explorations will be key to incentivising mineral investment and will return many fold in the form of improved economic growth. However, the ultimate goal is for Nigeria to grow and sustain the economy by CONSUMING MINERAL RESOURCES AND it must look inwards to identify areas where it has comparative advantage over other nation and efforts should be geared towards the development of the identified areas. The new national solid mineral policy of the federal government of Nigeria, which replaced the old mining laws and regulations, has offered a competitive environment for solid minerals development.

Minerals are examples of non renewable resources. The wealth created by minerals is expected to be used to build as an engine of growth and development, and to sustain it long after the minerals have been depleted. The sector creates a viable and diversified investment opportunities throughout the value chain, and sustain mineral wealth without compromising other forms of land use and environmental, social and cultural considerations, and ensuring an enabling environment that encourages mineral wealth. The opportunities in the sector has to do with how to invest mineral revenues to ensure sustainable wealth and deciding how much ought to be saved and how much should be invested as well as how to determine the area of investment. There is no doubt that Nigeria is blessed with so many mineral deposits. Apart from these minerals, Nigeria is also blessed with different types of gemstones. Gemstone mining has boomed in various parts of Plateau, Kaduna and Bauchi States for years. Some of these gemstones include Sapphire, Ruby, Aquamarine, Emerald, Tourmaline, Topaz, Garnet, Amethyst; Zircon, and Flourspar which are among the world's best. Good prospects exist in this area for viable investments.

Nigeria Mining and Mineral Extraction (Non-Oil) Opportunities By Tobi Owoyimika Lignite: 71million tonnes of which are found in Delta State; is used in industrial production of tar, gas, oils and (nitrate) fertilizer; Columbite: 14,223 tonnes of which are found in Plateau State; is used in forming alloys that are useful in nuclear, aerospace and gas turbine engineering; Iron Ore: 30.48 million tonnes, 182.5 million tonnes and 45.72 million tonnes of which are found in Agbaja in Plateau State, Okene in Kogi State and Enugu State, respectively, is used for making steel, transformer and motor cars, ferrous sulphate from waster liqueur of the steel picking process or by the direct reaction, metals for electrical shielding, electro-magnetic devices, electric bells, electric fan cage, equipment rack, instrument body, engineering works, hydrated salt, iron oxide pigments,various salts of iron and ferrites and chemicals; Tin: 10,546 tonnes of which are found in Plateau State; is employed in plating, production of tin oxide used in paint, paper and ink industries, production of tin oxide resistors, electric lead wires.

In recent studies by the Federal Ministry of Industry, activities identified in respect of export market potential include: 3 Agricultural produce processing, food and beverages; 3 Textiles: yarn /textiles, apparel, leather and products of leather (including footwear of rubber and plastics); 3 Wood: furniture; 3 Paper, paper products; 3 Iron and steel, non-ferrous metals; 3 Fabricated metal products, and Consumer durables. It is recommended that industries in Nigeria should specialize in these sectors in which it is found that Nigeria has comparative advantage relative to the operation of such industries in other countries.


Nigeria to reinforce Trade Relations with Iran in Mining Exploration By Micheal Obineme ranian Ambassador, His Excellency Morteza Rahimi Zarchi paid a courtesy visit to the Ministry of Mines and Steel Development in Abuja, Nigeria. in their discussion, Hon. Abubakar Bawa Bwari, Nigeria's Minister of State for Mines and Steel Development expressed Nigeria's interest in reinforcing trade relations with Iran particularly in the mining sector.

He however revealed that in furtherance to the trade cooperation, he had visited Niger State which he confessed is blessed with mineral resources, saying that there is need to involve the private sector in the expansion of the economic cooperation of the two countries.

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The Minister emphasized that both countries has a lot in common as members of the Organisation of Petroleum Exporting Countries (OPEC), in diversification of their economies due to the global fall in oil prices as well as in mining. In terms of mining technology, Iran will definitely add value to Nigerian mining industry.

It was also recalled that President Buhari had recently visited Iran to reinforce the trade relations between both countries.

Hon. Bwari, noted that, Iran is advanced in coal to power and mining exploration which Nigeria can also benefit from. Ambassador Zarchi stressed that Nigeria and Iran are both exploring other sources of revenue by diversifying the economy in mining and agriculture and the Iranian investors are interested in partnering with Nigeria in the mining sector.

With the new drive by the President Muhammadu Buhari’s administration to diversify the economy, the Bank of Industry (BOI) and other stakeholders appear set to fast-track investment in the sector through concrete steps that will bring about robust foreign investment.

Federal Government to Provide Logistics and Technical Assistance to State Governments in Mining By Micheal Obineme The Federal Government of Nigeria has included the mining industry as part of its diversification the country's economy. In support of this, Minister of Mines and Steel Development, Dr. Kayode Fayemi, says that the ministry is set to provide logistics and technical assistance to state governments, in their prospective interest to invest in the mining sector. The Minister made the announcement when he received Ebonyi State Governor, David Umahi, in his office, he said the diversification plan of the government would be better realised with states’ involvement in mining ventures. “We want successful projects at state level. It will help us to showcase our seriousness in becoming a mining nation”, says Fayemi, who commended Governor Umahi’s commitment to tapping the mineral deposits in his state. Dr. Fayemi, who together with the Minister of State, Hon. Abubakar Bawa Bwari, received Governor Umahi, said the ministry’s budget for 2017 has captured exploration, reclamation of mining sites and organisation of artisanal miners, among other things that would reposition the sector.

The Minister commended Governor Umahi for making Ebonyi State a mining destination, saying that the state is a model for others to emulate. He assured the governor that the Ministry has put together an environmental team to work on reclamations of mining sites for the welfare of the host communities. Governor Umahi had earlier stated that beyond agriculture, Nigeria would generate more revenue from mining, adding that more countries are looking towards Nigeria because of the mineral resources. Governor Umahi commented that the state is willing to partner with UNIDO and the Federal Government to mine its huge deposit of salt and limestone. The Nigerian Federal Government is implementing a series of measure aimed at developing an integrated mining sector, that will be able to effectively support the economy and benefit the people. The mining industry is a major force in the global economy, occupying a primary position at the beginning of the resource supply chain. The sector is contributing a lot to the national

economies of different countries varies. In 2011, the solid mineral sector contributed less than three per cent to the Nigerian economy. This is abysmally low when compared to other developing countries. The recent rebasing of the Nigerian economy indicated that the non-oil sector contributed immensely to the national growth in the last decade. And with the new mantra of economic diversification, stakeholders believed it is now incumbent on Nigeria to walk the talk in rejuvenating its solid minerals sector. In 2007, Nigeria passed a new Minerals and Mining Act which is largely considered to be investor-friendly. Mining regulations were also issued in 2010. The federal government of Nigeria has identified 44 solid minerals that are available in commercial quantities in the country. These minerals, when effectively harnessed, can uplift the nation’s economy through value addition, employment generation, improved tax revenue and general economic growth. Africa’s mining sector is dominated by large multinational mining companies such as Glencore, BHP Billiton, Rio Tinto, Anglo American, etc.


Mining to Contribute $27 billion to Nigeria’s GDP by 2025, says Minister By Micheal Obineme

Nigeria is immensely mineral rich and the transition between being a mineral rich to a mining country will produce that projection Dr. Kayode Fayemi, Minister of Mines and Steel Development

Nigeria's Minister of Mines and Steel Development (Solid Minerals), Dr. Kayode Fayemi, says on an interview that mining will contribute $27 billion to Nigeria's GDP by 2025. The Minister also emphasiszed that the new roadmap which the government has set for mining will generate enormous wealth and investment opportunities. Mining is part of the diversification of President Muhammed Buhari's agenda and Mr. President gave me a mandate to making sure that the Solid Minerals sector in Nigeria will create job opportunities and generate revenue for the economy. Though, there are challenges within the sector and the ministry have proposed a number of ways to tacke these challenges which has been included in the roadmap for the growth and stability of the mining sector. The roadmap for the growth and stability of the mining sector was approved on August 31st by the Federal Executive Council, it focuses on four things which are: Geological Prospectivity Mining is about searching, if you don’t search, you won’t find, and it is when you search that an independently verifiable evidence of what you find becomes attractive to the average investors out there. The Ministry have captured that and then looked at where the gaps are in terms of the geological information available in the sector and we have a geological survey agency that is statutorily empowered to gather the data but we cannot really say it has the level of what we want and one of the ways we have decided to go about this is to promote collaboration with other geological

survey agencies and we have been talking to the Australians, Chinese and British in this regard.We are also partnering with private exploration companies with a view to deriving from whatever results of such exploration activities, a mutually beneficial arrangement. Legal and Regulatory Environment We are now talking about an agency that encapsulates all of our regulatory institutions: the Mining Cadastral Office, Mines Inspectorate Directorate, and Mines Environmental Compliance Unit under one roof but at an arm’s length relationship with the ministry, similar to what you have in NERC or NCC, but also with the capacity to generate its own resources and undertake compliance and enforcement in a much more dedicated and committed manner. This will necessarily lead to a tweaking of the law and also the structure, operations and funding arrangement of the agencies being collapsed and reworked. That is what the roadmap implementation strategic team is working on with a view to producing a bill that can go to the Federal Executive Council and the National Assembly. The third area is the relationship between states and the federal government. What we have done was to decide how best States can become critical players and the first is that the 13 per cent derivative in oil and gas does not really specifically say oil and gas but also for all mineral resources and that is being implemented now. Another is the principle of consent that is required by law. Right now consent is given by the host community and we

have run into series of conflicts especially when minerals straddle through two communities and each gives consents to two different investors and creating unnecessary legal wrangling. So, we have introduced a new step which is revalidation of consents by the States because in any case land belongs to the State governments in trust for the communities and there is nothing that says the State should not determine the rightful consent giver and by that it frees us from the troubles around license award. We have looked at our approach to license. There is nothing in the law that prohibits States from owning licenses. Mineral rights are exclusive to the federal government but if a State establishes a special purpose vehicle that applies for license, it has as much right to do so like any other private company and we will treat it that way. In principle, we cannot give a State license as a legal entity but we can give to a company in which a State has an interest. The issue for us is how best to advance the relationship between the States and the federal government. The final principle enshrined in the roadmap is the management of artisanal miners and the role of the federal and State government in that. We feel we should devolve a lot of responsibilities concerning artisanal miners to the States because they are operating largely at the State level and so the registration and enumeration of who is an informal miner should be handled at that level whilst support can come from us by way of organising them into cooperatives, capacity building and supporting with technology and tools, as well as access to finance.


Mining, Capital Intensive Mining is a big capital intensive and we have gone about this in a multipronged manner. Mr. president is granting us access to benefit from the Natural Resource Fund which is 1.6 per cent of the Federation Account, similar to Ecological Fund, UBEC Fund and it is there primarily for the use of agriculture, mining and water resources. The Federal Executive Council will release funds to us based on our work, we have decided that it should go for exploration because that is the most capital intensive part of mining. We are in talks with the Nigerian Sovereign Investment Authority to put together a mining investment fund. About $500 million. They are getting a lot of interest from private capital, equity funds venture capital and I believe this will complement whatever will come from the Natural Resource Fund. Furthermore, we are also talking with the World Bank to support actual transaction activities – those who are already in exploration and just about to move into production but don’t have enough funds, and this will be like a support fund for such activity across the sector. As soon as all these are put in place, the major miners will come in once they see that things are beginning to be discovered, they will begin to refocus their interest on Nigeria. Top Priority The top priority is that we play locally in developing our processing and beneficiation opportunity so that we limit raw exportation of our minerals. Right now, a lot of minerals are not just taken out illegally but they are taken out raw, and so we lose the revenue potentials that naturally accompanies these minerals when you process. We have all seen how Nigeria has turned around from being a net importer of cement to a net exporter. That is our vision, we want that more of our minerals should be processed locally and we want to encourage those who are processing by limiting importation exclusively to them. It is not an exclusively import substitution but we want to make it difficult for people import. Our coal to energy relationship with the ministry of power follows that same local beneficiation approach, same as Ajaokuta which we want to work. And once we are able to make significant progress in this local space, we believe we would have developed the capacity to produce export grades and return to the market when the market is up from its downtime. We want to get Nigeria ready for business and when we have tackled the demands that exist locally and improve the quality of our minerals. Future of the Roadmap We have an 18-month period for the short

term goals in which we are supposed to do the geological prospectivity, get the laboratory functional so that we can test the minerals locally because we cannot test minerals in Nigeria now. We are working with SGS to take over our laboratory in Kaduna so that it will be ISO standard complaint. We also want to have our partnerships done within this period, and the implementation of the regulatory agency reform and reorganisation of the artisanal miners. The industrial side of this is what we expect will happen in three to five years of the medium term and then the long term which is 10 years is when there are interests from the majors once things pick up. By that time we would have moved from being mineral rich to a mining nation. Recessed Economy The Solid Minerals Sector in terms of its revenue generation capacity is still growing, according to the information from NEITI where I also chair. The audit we have done for the solid minerals sector shows that mining even in its low ebb can earn more than it does now and one of the things that we have done now is to find a mechanism for revenue generation beyond the ministry and we may have to farm out once we get the support of the States. We will farm out to people the bulk of the dredging activities that go untaxed in Lagos and Bayelsa for instance, as well as quarry operations that are undervalued. These are immediate wins we believe will contribute significantly to revenue generation in the short run. We also see another quick win in illegal mining which is why we entered into partnership with the ministry of defence and other security agencies because there are activities we don’t want to turn a blind eye to, there are conscious criminal miners that are mining and exporting out of the country – the full weight of the law has to be brought on them, that necessitated the joint relationship on mines surveillance with the security agencies to curtail these practices. Mining Cadastral Office responsibilities All the cases that have been brought to the Ministry against the Mining Cadastral Office either as allegations or petitions have been swiftly dealt with. The teams there are dedicated and can do better when we provide them with the right tools. We will increase our level of monitoring so that standards are set. Coal Mining License Mr. President signed our agreement to the COP during our last trip to the United States. There are all sorts of position on coal and one of such is that it is not pro-climate change and so countries should not be involved with it. I consider myself to be environment friendly and sensitive to these issues, but I have always said that when you are faced

with an existential threat, your immediate approach is to deal with that threat. Lack of energy is an existential threat to Nigeria. If you have a country of 180 million struggling to generate 5000 megawatts, it is abysmally low and it is evident that coal is a cheaper form of power generation, and even more is that Nigeria has one of the sweetest low sulphur coal that is akin to clean coal. There is clean coal technology too. We have had talks and African Development Bank has made it clear they are ready to support us. We have gas in abundance but you know our challenges with it, and this is forcing people in my sector to convert to coal – Dangote has converted Obajana from gas to coal, same as Ashaka which has built a coal plant because it is cheaper for them to run. We are reviewing the transactions on coal mines in the country because the people who bought them almost a decade ago have done nothing. The BPE has given me a list of coal mines that are still vacant and up for sale but we don’t just want to sell. We are primarily interested in those who are ready to set up power plants nearer to the coal deposits and a joint team is being established to review this. When we have people who are ready to put up plants in any of these places we have coal, we will work with them. Issues Surrounding Ajaokuta We have just managed to resolve the legal issues around Ajaokuta when we signed the modified concession agreement in August, which was presided by the Vice President. Where we are at in that is an audit process which is to reconcile the positions of both parties precisely in relations to the NIOMCO Itape iron ore mines, and we have advisers from our side and consultants from Global Infrastructure working to resolve all these issues to come up with an agreed arbitral position which apportions responsibilities to both sides. Once we resolve that, it becomes a condition precedent that will trigger the release of Ajaokuta to be put to the best use, and when you asked what I am going to do with it, I will tell you that government has decided that we have spent enough on Ajaokuta but we still want the benefits of Ajaokuta. How best to get these benefits, either from commercialisation, outright privatisation, PPP concession or any other aspect to asset sales, and at that stage we then involve critical players like the ICRC, BPE and hire a transaction adviser and then the NCP’s approval of whatever we decide on. I can however say that we have had unsolicited interests from both private investors and state owned enterprises from countries like China, Ukraine, Russia and Belarus but when we get to that point it will be open and whoever is able to give us indubitable track record of steel production and money in the bank will be considered.



Gold Deposits And Processing In Nigeria, The Investment Opportunities

By Tobi Owoyimika

Nigeria is immensely mineral rich and the transition between being a mineral rich to a mining country will produce that projection Dr. Kayode Fayemi, Minister of Mines and Steel Development

Gold is the most valuable resource in Nigeria apart from oil and gas. With a large deposit of both alluvial and primary deposits and proven reserves spread across several parts of the schist belts in North-west and South-west of Nigeria and a number of smaller occurrences beyond the highlighted areas.

Gold is a chemical element with symbol Au {from Latin: aurum} and atomic number 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow colour and luster traditionally considered attractive, which it maintains without oxidizing in air or water.

It should be noted that Gold production in Africa alone accounts for approximately 21% of the World total, and Nigeria seeks to join this market. As the most familiar metal to most people, Gold is commonly used for jewellery, dentistry; it is used for scientific and electronic instruments, computers circuitry, as an electrolyte in the electroplating industry, and also in many applications in the aerospace/ defence industry and as well as a host of other applications.

There are proven reserves of both alluvial and primary deposits of gold with proven reserves in the western part of Nigeria. The most important occurrences are found in the Maru, Anka, Malele, Tsohon Birnin GwariKwaga, Gurmana, Bin Yauri, OkolomDogondaji and Iperindo areas, all associated with the schist belts of northwest and southwest Nigeria. There are also a number of smaller occurrences beyond these major areas.

At present exploitation of alluvial deposits is being carried out mostly by artisan miners in a few places in the country. A number of primary deposits, which are sufficiently big for large scale mechanized mining, have been identified in the northwest and southwest parts of the county. Private investors are invited to stake concessions on these primary deposits. It is interesting to note that the primary deposits are of relatively high grade and at shallow depth. The Many Uses of Gold. Gold's qualities make it one of the most coveted metals in the world. Not only can it be beautifully shaped and sculpted, the yellow metal conducts electricity and does not tarnish. These qualities make it the metal of choice for a wide variety of industries.

Gold Usefulness in Various Industries: Top 7 Common Uses For Gold

Jewelry

Electrical Cables

Medals and Awards

Gold Tooth & Silver

Mobile Phones

Gold Mechanical Parts

Computer Motherboard


Bitumen in Nigeria By Tobi Owoyimika

Nigeria is immensely mineral rich and the transition between being a mineral rich to a mining country will produce that projection Dr. Kayode Fayemi, Minister of Mines and Steel Development

Bitumen also referred to as Asphalt is a sticky, black and highly viscous liquid or semi-solid form of petroleum. It may be found in natural deposits or may be a refined product; it is a substance classed as a pitch. In Nigeria, bitumen typically occurs both on the surface and subsurface. The estimated probable reserves of bitumen in Ondo State (Southwest region of Nigeria) is 16 billion barrels, while that of tar sands and heavy oil is estimated at 42 billion barrels, almost as twice the amount of existing reserves of crude petroleum. Nigeria has the second largest deposit of bitumen in the world, spanning approximately 120km. The primary use (70%) of asphalt/bitumen is in road construction, where it is used as the glue or binder mixed with aggregate particles to create asphalt concrete. Its other main uses are for bituminous waterproofing products, including production of roofing felt and for sealing flat roofs.

When fully developed, the industry will no doubt meet not only local requirements of the substance for road construction, but also become a foreign exchange earner for the country (Nigeria). Currently, the bitumen used in Nigeria is processed from imported heavy crudes, in addition to bitumen imported to supplement local consumption. Heavy and extra heavy crude can be extracted from Nigerian tar sands, and sulphur and phenol can be derived from these crude grades.

Bitumen is also used for waterproofing and sealing roofs and boats and to coat buildings. In technology, bitumen plates are used to muffle sounds in machines such as computers and dishwashers. In early photography, bitumen was spread on pewter plates which were then exposed to light, resulting in black and white images being formed. Bitumen is derived naturally from petroleum or through distillation. Naturally occurring bitumen is sticky and tar-like and must be heated or diluted before it can flow. The refined form is the leftover product from the distillation of crude oil.

The occurrence of Bitumen deposits in Nigeria is indicated at over 40 billion tones almost as twice the amount of existing reserves of crude petroleum. When fully developed, the industry will no doubt meet local requirements for road construction and also become a foreign exchange earner for the country.

The primary use (70%) of asphalt/bitumen is in road construction, where it is used as the glue or binder mixed with aggregate particles to create asphalt concrete. Its other main uses are for bituminous waterproofing products, including production of roofing felt and for sealing flat roofs.

General Uses of Bitumen Constructions of roads

Water proofing

Mastic floorings

Tank foundation

Canal lining to prevent erosion


Lead-Zinc in Nigeria

By Micheal Obineme

Lead-Zinc ores usually occur together; they are often associated with copper and silver. They occur in commercial quantities in the northeast and central region of Nigeria. The estimated reserve is well over 10 million tons of lead and 80,000 tons of zinc spread over eight states in Nigeria. Lead-Zinc is used in construction, ammunition, television tubes, nuclear shielding, ceramics, weights, and tubes or containers, as protective coating on steel, as die casting, as an alloying metal with copper to make brass, and as chemical compounds in rubber and paint. Additional uses include galvanizing iron, electroplating, metal spraying, automotive parts, electrical fuses, anodes, dry-cell batteries, nutrition, chemicals, roof gutters, cable wrapping, and pennies. Zinc oxide is used in medicine, paints, vulcanizing rubber, and sun-block lotions. Individuals, private firms and Joint venture partners are encouraged to develop and exploit the various lead/zinc deposits all over the country.

Limestone in Nigeria Classified as one of the strategic mineral in Nigeria, Limestone is a rock with an enormous diversity of uses. The largest and purest deposits of limestone are found in the Southwest and Middle belt regions of the country.

state; Nkalagu, Enugu state; Okpella, Edo state); Ashaka, Gombe state; Gboko, Benue state; Ewekoro and Shagamu Ogun state; and Obajana in Kogi state. The resource base of the known limestone deposits is about 2.3 trillion metric tons with 568 million tons of proven reserves.

Limestone in the Southwest region of Nigeria has been estimated at 31 million tonnes. Most limestone mining activities are mainly for cement production. It could be the one rock that is used in more ways than any other. Most limestone is made into crushed stone and used as a construction material. It is used as a crushed stone for road base and railroad ballast. It is used as an aggregate in concrete. It is fired in a kiln with crushed shale to make cement. It is one of the basic building blocks of the construction industry. Limestone has many other uses. Powdered limestone is used as filler in paper, paint, rubber, and plastics. Crushed limestone is used as a filter stone in on-site sewage disposal systems.

Powdered limestone is also used as a sorbent (a substance that absorbs pollutants) at many coal-burning facilities. Limestone is not found everywhere, but Nigeria has an exponential amount widespread in its sedimentary basins which provide the raw materials for the cement factories at Calabar, Cross River state; Sokoto, Sokoto

Barytes in Nigeria Barytes deposits in Nigeria as a fracture in rock materials associated with lead-zinc lodes and veins in both Pre-Cambrian basement and Cretaceous sedimentary rocks of the lower and middle Benue valley. The mineral commonly occurs as white, reddish-brown and clear varieties with specific gravity varying between 3.5 and 4.4.The width of the veins ranges from a few centimetres to 5.3 metres. Lengths of veins also vary from a few metres to 4,500 metres. Barytes occurences can be found in Benue State, Cross River State, Nasarawa State, Taraba State, Plateau State, In 2006 and 2008 the Nigerian Geological Survey Agency has carried out evaluation and assessment of key commodities nationwide. Barytes is one of the strategic commodities given priority. Beyond the known areas of barytes mineralisation, barytes can be found in Benue State, Cross River State, Nasarawa State, Taraba State, Plateau State, Adamawa, Gombe and Zamfara, with favourable geological settings for barytes mineralisation.

By Micheal Obineme

The barytes resource of Benue State is hosted in the igneous-metamorphic rocks of the PreCambrian as well as in sandstones and shale of the Benue trough sedimentary formations. Barytes veins in Cross River State are hosted in both hard and soft rocks. The resource is hosted by assorted sedimentary rocks (shale, mudstone, siltstone, limestone).

As at year 2015, cement production capacity of the country was between an estimated 26 million tons and 28 million tons per annum, given that all the cement plants are operating at their full capacities. The domestic demand totals between an estimated 18.3 million metric tons and 20 million metric tons per year. The increasing demand of cement for infrastructural development presents an opportunity for investors to set up factories in different parts of the country to meet the domestic demands of the yearning customers and also export to the sub-regions for economic growth

By Tobi Owoyimika Barytes resources in Taraba State are located in five LGAs: Sardauna, Karim Lamido, Yoro, Lau and Ibi. The resources are hosted in porphyritic granites and fine grained sandstones. Most of the locations in the state previously reported to have barites mineralisation were found to be veins of calcite and celestite with lower specific gravity values. Barytes occurrence in Adamawa State is notable around Gban and Mayo-Kpoki areas. The mineral is being hosted in gneissmigmatite complex and coarse sandstone of the Benue trough. The mineralised areas in the state are Gombe and Liji hills located 10 kilometres north-east of Gombe town. Barytes mineralisation in the state is linked to epigenetic hydrothermal fluids, which leached barium from adjacent rocks and precipitated in the vein. Barytes occur in the following locations: Dareta near Anka, Anka LGA Rekebu near Chafe, Chafe (Tsafe) LGA Yarkatsina (Gidan Saro), Bungudu LGA Tofa forest reserve, Gusau LGA


Coal in Nigeria

By Micheal Obineme

Coal is classified as one of the strategic minerals in Nigeria. It is a flammable black rock used as a solid fossil fuel. It is mainly made up of 65-95% carbon and also contains hydrogen, sulphur, oxygen and nitrogen. In Nigeria, coal can be found in the Middle belt and South-eastern regions of the country ( Kogi, Benue, Gombe and Enugu). Synonymous with coal in Nigeria is Enugu – Enugu State. ‘Coal city’ as it is popularly referred reflects the abundance of the mineral resource in the area. A reasonable estimate in these regions is put at nearly 3billion tons of indicated reserves in 17 identified coal fields and over 600 million tonnes of proven reserves. Coal has many important uses worldwide. The most significant use of coal is in electricity generation, steel production, cement manufacturing and as a liquid fuel. Other important users of coal include alumina refineries, paper manufacturing, chemical and pharmaceutical industries. Several chemical products can be produced from the by-products of coal. Refined coal tar is used in the manufacture of chemicals, such as creosote oil, naphthalene, phenol, and benzene. Ammonia gas recovered from coke ovens is used to manufacture ammonia salts, nitric acid and agricultural fertilizers. Thousands of different products have coal or coal by-products as components: soap, aspirins, solvents, dyes, plastics and fibres, such as rayon and nylon.

Iron ore in Nigeria

3billion tones of iron ore found in Kogi, Enugu, Niger, Zamfara, and Kaduna States.

Iron (Fe) is one of the most abundant rockforming elements, constituting about 5% of the Earth’s crust. It is the fourth most abundant element after oxygen, silicon and aluminium and, after aluminium, the most abundant and widely distributed metal. Iron ores are rocks from which metallic iron can be economically extracted. These rocks are usually found in the form of hematite (Fe2O3) or magnetite (Fe3O4). About 98% of world iron ore production is used to make iron in the form of steel. Although iron in cast form has many specific uses (e.g. pipes, fittings, engine blocks), its main use is to make steel. Steel is the most useful metal known being used 20 times more than all other metals put together. Steel is strong, durable and extremely versatile. The many different kinds of steel consist almost entirely of iron with the addition of small amounts of carbon (usually less than 1%) and of other metals to form different alloys (e.g. stainless steel).

By Tobi Owoyimika

There are over 3 billion tones of iron ore found in kogi, Enugu, Niger, Zamfara and Kaduna States. Iron is currently being mined at Itakpe (Kogi State), which is more or less at the center of the region of crystalline iron deposits. The large deposit of oolitic iron ores of Kogi and Enugu States are yet to be fully explored. To feed Aladja and Ajaokuta Steel complexes. Besides there are three in-land rolling mills at Oshogbo, Jos and Katsina in addition to some privately owned rolling mills in Lagos and Kano. Pure iron is quite soft, but adding a small amount of carbon makes it significantly harder and stronger. Most of the additional elements in steel are added deliberately in the steelmaking process (e.g. chromium, manganese, nickel, molybdenum). By changing the proportions of these additional elements, it is possible to make steel suitable for a great variety of uses. There are over

Multi-Billion Dollar Iron Ore Deposit Discovered In Nigeria. Australian explorer, Energio Limited has announced the discovery of huge Iron Ore deposits in Kogi State, Nigeria.


By Micheal Obineme

Climate Change Becomes Top Priority at Intergovernmental Forum on Mining (IGF) 2016 The 12th Annual General Meeting (AGM) of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) and four associated workshops took place in Geneva, Switzerland, from 24-28 October 2016. Approximately 270 participants registered to attend the meetings, representing IGF member and observer governments, the private sector and civil society. The event focused on the theme, “The Sustainable Development Goals (SDGs) and Mining.” Participants convened in plenary and panel sessions throughout the three-day meeting, with topics ranging from Mining Policy Framework (MPF) assessments to linkages between mining and climate change, gender, human rights, water and employment issues. Issues related to transparency and open data were also discussed. In addition, the IGF Guidance for Governments on managing Artisanal and Small-Scale Mining (ASM) was presented.

Government representatives also gathered on M o n d a y, 2 4 O c t o b e r 2 0 1 6 , f o r intergovernmental workshops on regional priorities and best practices, followed by a discussion about IGF services and the IGF Task Force on Strategy. On Friday, 28 October, AGM participants gathered for workshops on SDG implementation challenges and opportunities related to the mining sector, and the relationship between the SDGs and the MPF. AGM participants gathered for workshops on SDG implementation challenges and opportunities related to the mining sector, and the relationship between the SDGs and the MPF. The IGF serves as a global venue for dialogue among 56 member country governments, mining companies and industry associations. The IGF was created following the 2002 World Summit on Sustainable Development

(WSSD), a global intergovernmental meeting that met in Johannesburg, South Africa, to assess progress since the 1992 UN Conference on Environment and Development (UNCED, or Earth Summit), including the role of the UN Commission on Sustainable Development (CSD). Delegates at the WSSD adopted the Johannesburg Plan of Implementation, which called for, inter alia, support for “efforts to address the environmental, economic, health and social impacts and benefits of mining, minerals and metals throughout their life cycle, including workers’ health and safety, and use a range of partnerships, furthering existing activities at the national and international levels, among interested Governments, intergovernmental organizations, mining companies and workers, and other stakeholders, to promote transparency and accountability for sustainable mining and minerals development.” The Governments of Canada and South Africa were instrumental in the establishment of the IGF, which

was announced in February 2005 as a voluntary initiative for national governments interested in promoting good governance in the management of mineral resources. The IGF is focused on improving resource governance and decision making by governments working in the sector, and its work is largely framed by its flagship policy guidance and assessment tool, the Mining Policy Framework (MPF). The MPF identifies best practices in six pillars of mining policy and law: the legal and policy environment; financial benefit optimization; socio-economic benefit optimization; environmental management; mine closure and post-mining transitions; and artisanal and small-scale mining. The Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development serves as a unique global venue for dialogue between member country governments, mining companies,industry associations and civil society.



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