PROJECTSNETWORK.NET
 
WELCOME TO PROJECTSNETWORK.NET, YOUR DEPENDABLE E-BUSINESS PARTNERS. TAKE YOUR BUSINESS TO THE NEXT LEVEL, REGISTER WITH US AND NETWORK YOUR BUSINESS TODAY.HOME COMPANY MANAGEMENT SERVICES MANUFACTURERS PROJECTS CONTACT

PARTNERS

MEMBERS

REGISTER

ONLINE STORE

INTERNATIONAL  TENDER SERVICES

REQUEST A QUOTE

 PRESENTATIONS 

EXHIBITIONS

TRAINING SOLUTIONS

REQUEST FOR TECHNICAL PARTNERS

PROPERTY BUSINESS

NEW PRODUCTS AND EQUIPMENT

CONTRACTORS AND SUPPLIERS

CONFERENCE CENTER

AUCTION CENTER

BUSINESS SUPPORT

E-BOOKS AND SOFTWARE

ONLINE EDUCATION

IMPORT AND EXPORT

AUTOMOBILES

TRAVELS AND TOURS

EMPLOYMENT BUREAU

MARKETING SOLUTIONS

 

 

 

 

 

OPPORTUNITIES FOR INVESTMENT IN THE SOLID MINERALS SECTOR
 

Nigeria is endowed with numerous mineral resources. Recent policy reforms have brought the solid minerals sector to the fore. The emphasis is on encouraging massive foreign investors’ participation in this sector.

 

PROFILE OF SOLID MINERALS DEPOSITS IN NIGERIA

TALC

An estimated reserve of over 100 million tones of talc has been obtained in Niger, Osun, Kogi, Kwara, Ogun, Taraba and Kaduna States. There are only two medium size talc processing plants currently operating in Nigeria and both in Niger State. The color of the Nigeria talc varies from white through milky-white to gray. The talc industry represents one of the most versatile sectors of the industrial minerals of the world. The exploitation of the vast talc deposits in Nigeria would therefore satisfy not only local demands but also that of the international markets as well.  

IRON ORE

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 pf Kogi and Enugu States are yet to be fully explored. Itakpe iron ore is being beneficiated to 67% Fe. To feed Aladja and Ajaokuta Steel companies. Besides there are three in-land rolling mills at Oshogbo, Jos and Katsina in addition to some privately rolling mills in Lagos and Kano.

GOLD

There are proven reserves of both alluvial and primary deposits of gold with proven reserves in the shiest belt covering the western half of Nigeria. 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 of large scale mechanized mining, have been identified in the northwest and southwest parts of the country. Private investors are invited to stake concessions on these primary deposits. It is interesting to note that the primary deposits are of relatively Production costs will easily be as low as about $50 per ounce.

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.

ROCK SALT

The national demand for table salt, caustic soda, chlorine, sodium bicarbonate, sodium hypochloric acid and hydrogen peroxide exceeds one million tones. A colossal amount of money is experienced annually to import these chemicals by various companies including tanneries, food beverages, paper and pulp, bottling and other industries including the oil companies. There are salt springs at Awe (Plateau State), Abakaliki (Enugu State) and Uburu (Imo State), while rock salt is available in Benue State. A total reserve of 1.5 billion tones has been indicated and further investigations are now being carried out by government to ascertain the quantum of reserves.

GYPSUM

Gypsum is an important input for the production of cement. It is used for the production of Plaster of Paris (P.O.P) and classroom chalk etc. a strategy for large-scale mining of gypsum used in the cement industries is urgently required to sustain existing plants and meet future expansion. Current cement production is put at 8 million tones per annum while the national requirement is 9.6 million tones. About one billion tones of gypsum deposits are spread over many states in Nigeria.

LEAD/ZINC

An estimated 10 million tones 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.

BENTONITE AND BARYTE

These are the main constituents of the mud used in the drilling of all types of oil wells. The Nigeria baryte had specific gravity of about 4.3. Over 7.5 million tonnes 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 ready for massive development and exploitation.

COAL

Nigeria Coal is one of the most bituminous in the world owing to its low sulphur and ash content and therefore the most environment friendly. There are nearly 3.00 billion tonnes of indicated reserves in 17 identified coalfields and over 600 million tonnes of proven reserves.

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.

KAOLIN

An estimated reserve of 3 million tones of good kaolinitic clays has been identified.

TANTALITE

Large deposits of Tantalite are known to occur in Nasarawa, Gombe and Kogi States as well as the Federal Capital Territory. The deposits are both alluvial and primary in the numerous pegmatite bodies that infest these areas. Grades of well over 50% Ta205 are found. Private investors are invited to stake concessions for the development and exploitation of tantalite in these areas.

Pelletisation of Coal for Domestic Use:

Given the large deposits of brown coal in the tertiary sediments east and west of River Niger; Nigeria can cash in on foreign investors’ technology to produce coal pellets for industrial use, coal briquettes for domestic use; that is, to replace firewood.

 

Incentives and Strategies for Investment

 

Investment Incentives:

-3 to 5 years Tax Holiday.

-Deferred royalty payments.

-Possible capitalization of expenditure on exploration and surveys

-Extension of infrastructure such as roads and electricity to mining sites, and provision of 100% foreign ownership of mining concerns.

 

HOW TO OBTAIN A MINING LEASE IN NIGERIA

There are two options available to a company or an individual to enter into mining industry in Nigeria.

 

Through the acquisition of an existing mining property from the original owner. Approval must be obtained from the Ministry of Solid Minerals Development for such a purchase.

 

By obtaining an application, either a Prospecting Right (PR), an Exclusive Prospecting Licence (EPL), or a Special Exclusive Prospecting Licence (SEPL), the application should state financial and technical capability qualifying the applicant for entry into the mining sector.

 

PERMIT REQUIREMENTS DURATION

Entry permit into the mining sector:

-Statement of financial capability

-Statement of technical capability

-Proof of statutory existence of company Life

Prospecting Right/Licence –Certificate of entry into mining

-Prospecting Licence 1 year renewals

Alluvial-Max. of 2

Bassalt-Max. of 4

Lode-Max. of 5

Exclusive prospecting Renewals exceeding 20.72) –Same as above Duration                                                                               of 1-5

Right/Licence (For areas up)

Years Depending on Reserves

Mining Lease (Gives right to mine specified and area of 80 hectares) –Possession of a Prospecting Right, Exclusive Prospecting Licence or Special Exclusive Prospecting Licence

-Submission of a plan of the prospecting done, a schedule of the mineral value found and a statement of ore reserves.

-Submission of an environmental impact assessment and production plan. Not exceeding 21 years Renewal depending on remaining reserves.

-Special mining lease for an area larger than 80 hectares - Same as above. Metallic minerals not

More than 21 years.

More than 21 years.

Not exceeding 70 years. Renewals at minister’s discretion, for not more than 21 years.

Entry into the mining industry - Statement of financial capability

- Statement of technical competence

- Proof of statutory existence of company.

-Evidence of tax clearance

- Payment of prescribed fee Life

Prospecting Right (P.R.) – Certificate of entry into the mining industry.

- Payment of prescribed fee 1 year (Renewable annually)

- Exclusive Prospecting (E.P.L.) (For areas up to, but not exceeding 20.72km2) – Certificate of entry into the mining industry

-Extant Prospecting Right (P.R.)

- Payment of prescribed fee 1 year renewable for:

Alluvial Deposits – maximum of 2 renewals: Bassalt:-

Max. of 4 renewals Max. of 5 renewals

Special Exclusive Prospecting Licence (S.E.P.L.)

(For areas greater than 20. 72km2 & of difficult terrain Mining Lease (M.L)

- Certificate of entry into Mining industry

- Extant Prospecting Right (P.R.)

- Payment of prescribed fee

- Certificate of entry into mining industry

-Extant Prospecting Right (P.R.)

- EPL or SEPL

-Prospecting plant of the area showing Ore reserve estimates.

- Payment of prescribed fee. 1-5 Years

Up to 21 years, renewable depending on remaining on reserve

Special Mining Lease (SML)

(For areas greater than that of ML. With difficult terrain and large capital out-lay).

Certificate of entry into mining industry.

- Extant Prospecting Right (PR)

- EPL or SEPL

- Prospecting plan of the area showing on reserve estimates

- Payment of prescribed fee. Up to 21 years renewable depending on the remaining on reserve.  



 

E-mail us at info@projectsnetwork.net with your questions or comments.
Copyright © 2004 PROJECTSNETWORK.NET
(A John Edward Resources & Investment Limited Company)

Last modified: 06/22/07