Nigeria, abundant in over 44 minerals across 500 locations, is evolving into a major player in Africa’s mining sector. The government aims to elevate the mining sector’s GDP contribution to 10% by 2026 by fully exploiting its vast mineral resources. Upcoming events like Africa Mining Week in Cape Town will spotlight investment opportunities in Nigeria.

Bitumen: Nigeria possesses 42.47 billion tons of probable bitumen reserves, ranking sixth globally. Major deposits are located in Lagos, Ogun, Ondo, Rivers, Bayelsa, and Edo States. A $1 billion investment by Owena Bitumen Exploration Nigeria Limited aims to develop these reserves in Ondo State.

Limestone: With approximately 10.6 billion tons, Nigeria has one of Africa’s largest limestone reserves, spread across 14 states. This resource is key for job creation and economic diversification, particularly in cement production through companies like Dangote Cement.

Coal: Nigeria’s coal reserves are significant, estimated at 2.75 billion tons, mainly found in Gombe, Kogi, Nasarawa, and Enugu States. The Zuma Coal Mining Project, operated by Zuma Energy Nigeria Limited, has a production target of two million metric tons annually over 25 years.

Iron Ore: The Itakpe mine in Kogi State hosts around 3 billion tons of iron ore, a crucial resource for Nigeria’s industrialization. The iron ore is processed to 67% purity and supplies steel plants like Aladja and Ajaokuta.

Gold: Nigeria, with 21.37 metric tons of gold reserves, is the sixth-largest gold holder in Africa. Major deposits are spread across Zamfara, Kaduna, Bauchi, Niger, and Osun States, while initiatives, including a new gold refinery by Kian Smith, aim to enhance the gold value chain.

Nigeria’s mining sector offers significant opportunities for investment and economic growth, driven by its vast mineral reserves in bitumen, limestone, coal, iron ore, and gold. By attracting global investors and focusing on sustainable exploitation of these resources, Nigeria aims to diversify its economy and improve its mining contributions to GDP.

Original Source: energycapitalpower.com

The post Five Emerging Mineral Resources in Nigeria first appeared on Nigerian Mining News.

Nigeria’s Minister of Steel Development, Shuaib Abubakar Audu, announced plans to privatise Ajaokuta Steel Company Limited (ASCL) and its associated Iron Ore Mine in Itakpe during the Ninth Nigeria Mining Week in Abuja. The initiative aims to stimulate operational efficiencies in the sector, which currently incurs over $4 billion annually in steel imports. This move is part of a broader strategy to revitalise Nigeria’s mining sector as a cornerstone for economic diversification. The government is committed to transforming the mining sector, as emphasised by Uche Geoffrey Nnaji, who spoke on behalf of President Bola Tinubu. He praised the efforts of Dr. Dele Alake, the Minister of Solid Minerals, stating, “His dedication has reinvigorated our approach, addressing challenges… shaping a mining sector that can stand as a global model of innovation and sustainable development.” Minister Alake reaffirmed the government’s aim to achieve economic reform through mining, citing a seven-point agenda designed from extensive research. He noted significant progress, including the prosecution of over 300 illegal miners and ongoing reforms intended to enhance the sector’s economic contribution. Garza Jonathan Gbefwi, Chairman of the House Committee on Solid Minerals, called for increased funding in the upcoming 2025 budget, highlighting the sector’s potential economic benefits. Dr. Orji Ogbonnaya Orji, Executive Secretary of NEITI, reported that Nigeria produced 95.07 million tonnes of solid minerals in 2023, earning N9.01 billion in royalties, although only contributing 0.75% to GDP.

The Ajaokuta Steel Company Limited has long been viewed as a crucial asset for Nigeria’s industrial ambitions. However, it has struggled to operate effectively due to various challenges, prompting calls for privatisation as a solution. Investments in the steel industry are vital as Nigeria aims to reduce its heavy reliance on steel imports. The government’s focus on revitalising the mining sector is part of a larger economic diversification strategy to bolster growth and reduce import dependency.

The federal government of Nigeria is taking significant steps to privatise Ajaokuta Steel Company and its Iron Ore Mine in Itakpe to enhance operational efficiencies and reduce steel import costs. This initiative aligns with broader efforts to bolster the mining sector as a key component of Nigeria’s economic diversification. Not only is this expected to reshape the industry, but it also aims to increase the sector’s contribution to the nation’s GDP.

Original Source: nairametrics.com

The post Nigeria Plans to Privatise Ajaokuta Steel Company to Boost Mining Sector first appeared on Nigerian Mining News.