Post by Trade facilitator on Sept 16, 2017 23:40:23 GMT 1
The solid minerals subsector of the Nigerian economy is priming to stage a forward movement and indigenous professionals in mining and geosciences as well as local and foreign investors should position themselves for immediate prominence in these unfolding times.
Bankers, businessmen and foreign business interests are listening avidly to the government of the day as they seem to be saying the right words to their hearings. Instructively, as the federal and state governments no longer strive over ownership of solid minerals but are rather working together for the development of the resources.
In other words, in keeping with this government’s campaign promise to diversify the economy through agriculture and solid minerals, the federal government has commenced revamping the operating environment and made it workable for investors to succeed: this is what the sector required to deliver returns.
The potential of the subsector is not alien. Outlining the history of mining in Nigeria In 2016 during a public lecture organized by the Nigerian Mining and Geosciences Society, Professor Emeritus, Wumi Iledare, said, ‘’Nigeria’s economy was impressively sustained by agricultural production, solid minerals trade and utilization including coal, tin, columbite and gold before the discovery of crude oil. Coal met fully the needs of the railway system and electricity supply, while tin yielded substantial foreign exchange earnings for the nation and there were many employment opportunities in the country.’’
Also participating in a documentary program on the subsector published in the Punch newspaper, NMGS president, Professor Olugbenga Okunola said, ‘’It is unfortunate that we have neglected this (solid minerals) for so long. On the basis of the sector’s contribution to the Gross Domestic Product, in comparism with some equally endowed countries, such as Botswana at 40 per cent, Democratic Republic of Congo at 25 percent and South Africa at 18 percent. None of these countries have as many mineral resources, size and geological endowments as we have in Nigeria. So the potential is high.
Another expert from the executive office of Mining Cadastre lends credence to the performance of the solid minerals subsector and its contributions to the economy before it became stymied from the early nineteen sevenrtes said, ‘’Nigeria has a glorious history of mining from the early 1900 up to mid-1970s during which it witnessed remarkable mineral production for both local consumption contributing significantly to national income and employment. In those years Nigeria was a leading exporter of columbite (accounting for about 95 percent of total world production), the sixth largest producer of tin (cassiterite) and with significant production of gold, coal and other minerals. The revenues derived from mining and agriculture was used for the exploration and development of the discovered petroleum which the country now relies on.’’
All these prove that knowledge about the visibility of investments in the subsector abounds; all that ever was needed is the government’s support and today, the Federal government says it is now ready to give the industry the push it deserves. So, this is one area that financiers and entrepreneurs should be watching in the coming times and there are two industrial minerals that stand out in this calculation:
Galena and Copper –
Galena (Lead-Zinc) is one of the minerals that the Nigerian Geological Survey Agency (NGSA) gave priority in its 2004-2008 commodity exploration and assessment project. The mineral occurs in association with copper and silver across eight states in the country including Bauchi, Ebonyi and Zamfara.
Copper is present in the Earth’s crust at a concentration of about 50 parts per million (ppm). The mineral is so rare and expensive to extract that much of modern industry relies on recycling to meet its needs. Do you still wonder how much the ‘’mallams’’ who come to your doorsteps with their wheel-barrows makes from buying old ‘useless’ wires from you?
To participate profitably today, a prospective investor must seek accurate geological information which is now available at GSNA; at least there now exists’ usable preliminary information. Gone are the days when people went into mining using mere observable and anecdotal evidence as guides. Mining is an S&T showcase. It is important to acquire some training or basic exposure to the area of interest at the NIMG, go to the FMM&SD for a mining concession – we are told that the policy regime is now much more investor friendly – and get associated with regulatory bodies like Council of Nigerian Mining Engineers and Geoscientists, COMEG where you will also get acquainted with mining professionals and those who are already in the industry for mentoring.
Bankers, businessmen and foreign business interests are listening avidly to the government of the day as they seem to be saying the right words to their hearings. Instructively, as the federal and state governments no longer strive over ownership of solid minerals but are rather working together for the development of the resources.
In other words, in keeping with this government’s campaign promise to diversify the economy through agriculture and solid minerals, the federal government has commenced revamping the operating environment and made it workable for investors to succeed: this is what the sector required to deliver returns.
The potential of the subsector is not alien. Outlining the history of mining in Nigeria In 2016 during a public lecture organized by the Nigerian Mining and Geosciences Society, Professor Emeritus, Wumi Iledare, said, ‘’Nigeria’s economy was impressively sustained by agricultural production, solid minerals trade and utilization including coal, tin, columbite and gold before the discovery of crude oil. Coal met fully the needs of the railway system and electricity supply, while tin yielded substantial foreign exchange earnings for the nation and there were many employment opportunities in the country.’’
Also participating in a documentary program on the subsector published in the Punch newspaper, NMGS president, Professor Olugbenga Okunola said, ‘’It is unfortunate that we have neglected this (solid minerals) for so long. On the basis of the sector’s contribution to the Gross Domestic Product, in comparism with some equally endowed countries, such as Botswana at 40 per cent, Democratic Republic of Congo at 25 percent and South Africa at 18 percent. None of these countries have as many mineral resources, size and geological endowments as we have in Nigeria. So the potential is high.
Another expert from the executive office of Mining Cadastre lends credence to the performance of the solid minerals subsector and its contributions to the economy before it became stymied from the early nineteen sevenrtes said, ‘’Nigeria has a glorious history of mining from the early 1900 up to mid-1970s during which it witnessed remarkable mineral production for both local consumption contributing significantly to national income and employment. In those years Nigeria was a leading exporter of columbite (accounting for about 95 percent of total world production), the sixth largest producer of tin (cassiterite) and with significant production of gold, coal and other minerals. The revenues derived from mining and agriculture was used for the exploration and development of the discovered petroleum which the country now relies on.’’
All these prove that knowledge about the visibility of investments in the subsector abounds; all that ever was needed is the government’s support and today, the Federal government says it is now ready to give the industry the push it deserves. So, this is one area that financiers and entrepreneurs should be watching in the coming times and there are two industrial minerals that stand out in this calculation:
Galena and Copper –
Galena (Lead-Zinc) is one of the minerals that the Nigerian Geological Survey Agency (NGSA) gave priority in its 2004-2008 commodity exploration and assessment project. The mineral occurs in association with copper and silver across eight states in the country including Bauchi, Ebonyi and Zamfara.
Copper is present in the Earth’s crust at a concentration of about 50 parts per million (ppm). The mineral is so rare and expensive to extract that much of modern industry relies on recycling to meet its needs. Do you still wonder how much the ‘’mallams’’ who come to your doorsteps with their wheel-barrows makes from buying old ‘useless’ wires from you?
To participate profitably today, a prospective investor must seek accurate geological information which is now available at GSNA; at least there now exists’ usable preliminary information. Gone are the days when people went into mining using mere observable and anecdotal evidence as guides. Mining is an S&T showcase. It is important to acquire some training or basic exposure to the area of interest at the NIMG, go to the FMM&SD for a mining concession – we are told that the policy regime is now much more investor friendly – and get associated with regulatory bodies like Council of Nigerian Mining Engineers and Geoscientists, COMEG where you will also get acquainted with mining professionals and those who are already in the industry for mentoring.
