Pelletisation of Coal for Domestic Use
Incentives and Strategies for Investment
How to Obtain a Mining Lease in Nigeria
List of Pioneer Industries/Products

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 tonnes 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 are located in Niger State. The colour of the Nigerian talc varies from white through milky-white to grey 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 market as well.

Iron Ore
There are over 3 billion tonnes 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 oolific iron ores of 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 complexes. Besides there are three inland rolling mifls at Oshogbo, Jos and Katsina in addition to some privately owned rofling mills in Lagos and Kano.

Gold
There are proven reserves of both alluvial and primary deposits of gold with proven reserves in the schist 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 for large scale mechanised 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 high grade and at shallow depth. 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 tonnes. A colossal amount of money is expended 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), AbAahki (Enugu State) and Uburu (Imo State), while rock salt is available in Benue State. A total reserve of 1.5 billion tonnes has been indicated, and further investigations are now being carried out by government to ascertain the quantum of reserves.

Gypsum
Gypsum is an important imput for the production of cement. It is also used for the production of Plaster of Paris (P0P) and classroom chalk, etc. A strategy for large_scale mining 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 tonnes per annum while the national rquirement is 9.6 million tonnes. About one billion tones of gypsum deposits are spread over many sites in Nigeria.

Lead/Zinc
An estimated 10 million tonnes of lead/zinc veins are spread over eight States of 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 Nigerian 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 Federafion ready for massive development and exploitation,

Coal
Nigerian 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.

Gemstone
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 billion tonnes of good kaolinific 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% Ta₂O₅ are found. Private investors are 'invited to stake concessions for the development and loitafion 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:

• 3-5 years Tax Holiday
• Deferred royalty payments
• Possible capitalisation 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.

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 on 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/License	Certificae of entry into mining  Prospecting License	1 year renewals: Alluvial – maximum of 2 Bassalt - Maximum of 4 Lode –Maximum of 5
Exclusive prospecting Right/License ( for area up to, but not exceeding 20.27 km2)	Same as above	Duration of 1-5 years Renewals depending on remaining reserves.
Mining Lease (gives right to mine specified land area 80 hectares)	Possession of a Prospecting Right, Exclusive Prospecting License or Special Exclusive License Submission of a plan of the prospecting done, a schedule of the mineral value found and a statemente or ore reserves. Submision of an environmental impact assessment and protection plan	Not exceeding 21 years renewals depending on remaining reserves.
Special mining Lease for an area larger than 80 hectares.	Same as above	Metallic minerals not more than 21 years. Non-metallic minerals not exceeding 70 years. Renewals at minister’s descretion, 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 (PR)	Certificate of entry into the Mining Industry  Payment of prescribed fee
Exclusive Prospecting License (EPL) for area up to, but not exceeding 20.72 27 km2	Certificate of entry into the Mining Industry  Extant of Prospecting Right  Payment of prescribe fee	1 year renewable for: Alluvial Deposits – Maximum of 2 rnetals Basalt : Maximum of 4 renewals Lode: Maximum of 5 renewals
Special Exclusive Prospecting License (SEPL) for areas greater than 20.72 27 km2 and dificult terrain)	Certificate of entry into the Mining industry  Extant Prospecting Right  Payment of prescribed fee	1-5 years
Mining Lease (ML)	Certificate of entry into the Mining Industry Extant prospecting Right EPL or SEPL Prospecting plan of he area showing Ore reserve estimate Payment of the prescribe fee	Up to 21 years, renewable depending on remaining Ore reserve
Special Mining Lease (SML) for areas greater than that of ML. With difficult terrain an large capital out-lay.	Certiifcate of entry into the Mining Industry Extant prospecting Right EPL and SEPL Prospecting plan of the area showing Ore reserve estimates Payment of the prescribed fee	Up to 21 years renewbale depending on the remaining Ore reserve.

 

List of Pioneer Industries/Products
Industries	Products
Cultivation, processing and preservation of food crops and fruits. Integrated dairy production                         Deep sea trawling and processing             Coastal fishing and schrimping  Mining lead, zinc and iron ore by underground mining methods. The manufacture of iron and steel from iron ore. The smelting and refining of nonferrous base mtal and the manufacture of their alloys. Mining and processing of barytes, bentonites and ssociated minerals Manufacture of oil well drilling materials containing a predominant propotion of Nigerian raw materials The manufacture of cement The manufacture of glass and glassware                           The manufacute of lime from limestone Quarrying and processing of marbles Manufacture of ceramic products               Manufacture of basic and Intermediate industrial chemical from predominantly Nigerian raw materials                           Formulation of manufacture of phamaceutical products Manufacture of yeast, alcohol and related products. Manufacture of paper pulp. Manufacture of yarn and man-made fibres. Manufacure of machinery involving the local manufacture of substantial proportion of components thereof. Manufacture of products made wholly of mainly of metal Manufacture f nets from local raw materials. Manufacture of gas cylinders. The processing of local wheat Flour materials Rubber plantation and Processing Gum/Acid Plantation and Processing Manufacture of Fertilizer                     Vehicle manufacture                         Oil Palm plantation and processing Manufacture of automotive and other components Book Printing Large Scale Mechanised Farming Cattle raching and piggery of not less than 500 herds. Manufacture of Gypsum Re-refining or recycling of waste oil Manufacture of electrical appliance/equipment/components and parts.     Ship building, repair and maintenace of ocean going vessels. Manufacture of computer and computer chips Manufacture of of cameras, photographic equipment and other materials. Diving and underwater engineers. Local fabrication of machinery, equipment Manufacute of tools Installing of facilities for air craft manufcure and maintenance and the maintenan ce and manufacture of aircraft Installation of scientific instruments and communication equipment.   Manufacture of gas and gas distribution Manufacture of solar energy powered equipment and gadgets Large scale inland fishing farms Bitument mining and processing Salt production Manufacture of fire fighting equipment and detection systems. Manufacture of cables. Manufacure of medical equipment Mineral oil prospecting and production Manufacute of lubricants Manufactue of flat sheets   Manufctue of ovens, cookers, cold rooms, refrigators, fridges, freezers, airconditions. Manufcture of agricultural machinery and equipment Manufactue of materials handling and equipment Establishment of foundries Manufacture of aluminium Manufacture of enzymes. Manufacture of concentrates Manufacture of welding electrodes Manufacture of nails. Manufacture of iron rods Manufacure of hops.	Preserved canned food stuff and fruits, tea, coffee, refined sugar tomato puree ,etc Butter, cheese, fluid milk and powder, ice cream ( by-products, livestock, minor edible products) Preserved sea foods, fish and schrimps, fish meal. Lead, zinc and iron ore     Iron and steel products     Refined non-ferrous base metals and their alloys. Barytes, bentonite and associated minerals   Cement, clinker. Sheet glass, pharmaceuticals and laboratory galsswares. Lime Marbles and processed marbles Refractory and heat insualting constructional products, laboratory ware. Basic and intermediate organic chemicals Basic andintermediate inorganic chemicals Fertlizers; Petrochemicals Caustic soda and chlorine; Pesticide and inseticide Phamaceutical, health viatmins     Yeast, industrial alcohol and related products   Paper pulp Yam and sythentic fibres Office and industrial machinery, equipment and aparatus (whether or not electrical)     Pipes and tubes structures metal products     Fishing nets, mosquito nets and related products Gas cylinder Flour and offal Rubber Gum Arabic Superphosphate and nitogenous fertilizers, Ammonia, Urea. Motor vehicle and Motorcycles, Tricycles and automoive components. Palm oil, Palm kerenl and offals. Automotive and other components. Books. Wheat, mize, Rice and Sorghum. Cattle and pigs of not less than 500 herds. Gypsum. Low power oil. Genrators, transformers, meters, controls,pressing irons, switch gears, test equipment, ballst/starters/lighters, discreet components, resistors/capacitors/coil/ semi conductors /conductors. Ship boat barges. Computer hand and software and chips Cameras, photographic equipment or any components thereof. Underwater engineering services. *Machinery. *Machines and hand tools. *Aircraft maintenance and manufacure. *Scientific instru,ments, radio,audio playback recorders, louder units, amplifiying systems, micropones, video playbacks/recorder,PBX telephone handset teleprinters, transreceivers, autophones.aerials. * Gas and gas distribution. *Solar panels refrigerator, water pumps, calculators etc. * Fish and shrimps * Bitumen * Salt * Fire fighting equipment and detection systems. * Electrical, telephone andothe cables * X-ray oxygen equipment etc * Petroleum * Grease, hydraulic/engine oil,gear oil etc. * Flat sheets *Ovens cookers, cold rooms, refigators, fridges, freezers,airconditioners etc * Ploguh, havester, threshes, planters, etc * Cranes, forklift, etc * Mould, casting,etc Aluminium Enzymes Food/Fruit concentrates Welding electrodes Nails, related items Rods from billets Brewing hops.