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.

The House of Representatives in Nigeria has called on the Ministry of Solid Minerals Development to enhance lithium production as a means to boost revenue. This decision follows a motion by Rep. Victor Obuzor, highlighting the sector’s underdevelopment despite the country’s rich mineral resources.

Obuzor noted that mining’s contribution to Nigeria’s GDP has plummeted from about five percent in the 1950s to less than 0.8 percent today, largely due to the rise of oil and gas. He advocated for increasing focus on lithium, critical for energy-dense batteries essential in renewable energy technologies.

Although Nigeria has undetermined lithium reserves, minerals have been found in states like Nasarawa and Kogi. Given rising global demand, with lithium prices soaring to over $46,000 by 2023, there are concerns about insufficient funding for mining initiatives. The Solid Minerals Development Fund has reportedly failed to invest significantly in lithium exploration.

To address this, the legislature proposed establishing the Nigerian Lithium Production Agency, responsible for creating a comprehensive lithium industry, developing infrastructure, and implementing a regulatory framework that would bolster investments in the entire lithium value chain. The House recommended increasing funding for the Nigerian Geological Survey Agency to facilitate proper mineral mapping and surveys.

Lithium is a vital mineral for rechargeable batteries, increasingly important in the shift towards clean energy. Despite Nigeria’s potential in lithium mining, the sector has been neglected over the years in favour of oil. The current move by the House of Representatives highlights a significant shift in policy to leverage natural resources for economic stability.

In summary, the Nigerian House of Representatives is pushing for enhanced lithium production to revive the mining sector, which has seen a sharp decline. With significant global demand for lithium, strategic investments and the establishment of a dedicated agency are seen as crucial steps for Nigeria to harness its mineral wealth effectively.

Original Source: dmarketforces.com

The post Nigerian Reps Advocate for Enhanced Lithium Production Amid Global Demand first appeared on Nigerian Mining News.

The House of Representatives in Nigeria has urged the Federal Government to boost funding for lithium exploration. This call arose from a motion adopted during a plenary session, sponsored by Victor Obuzor, highlighting the significant price rise of high-quality lithium carbonate, which shifted from $5,180 in 2010 to $46,000 in 2023. Obuzor noted that neglecting lithium’s potential could mirror past errors in the oil and gas sector, where only upstream value is pursued.

The motion emphasized the need for improved funding for the Nigerian Geological Survey Agency to enhance mineral mapping and surveys for lithium deposits. Obuzor indicated that significant lithium-bearing minerals have been found in various states, yet there remains no clear estimate of the nation’s reserves. The House expressed concerns about the lack of investment in lithium mining, despite the Solid Minerals Development Fund being established for this purpose.

Following the motion’s adoption, Speaker Tajudeen Abbas advised the creation of the Nigerian Lithium Production Agency to develop a comprehensive lithium industry and its regulatory framework. Moreover, there will be an audit of the Solid Minerals Development Fund to ensure proper utilisation of resources. Nigeria’s mining sector, once a significant contributor to the economy, now only accounts for less than 0.8% of GDP, mainly due to the dominance of oil and gas development.

Lithium is a critical mineral for renewable energy technologies, yet Nigeria’s potential remains largely untapped. The country’s mining sector is historically significant but has diminished over the years as oil and gas became predominant. Recently, global demand for lithium has surged, leading to increased prices, which may incentivise investment in local exploration initiatives. Effective mining and exploration strategies are essential for rejuvenating this sector and boosting economic growth.

The Nigerian House of Representatives has highlighted the urgent need for increased funding towards lithium exploration and development, recognising the substantial economic benefits that this could bring. By pushing for enhanced geological surveys and the establishment of dedicated agencies, the House aims to unlock Nigeria’s lithium potential, which is critical amidst a global shift towards renewable energy sources. Acknowledging past mistakes in the oil sector, the government is urged to strategically invest in the lithium industry for sustainable economic growth.

Original Source: punchng.com

The post Nigerian House Advocates for Enhanced Funding in Lithium Exploration first appeared on Nigerian Mining News.

Edo State has surpassed Ogun and Kogi in the mining sector, achieving a production total of 19.4 million tonnes, primarily aided by the Dangote Group’s dominance, which now controls 54.2% of the market. The latest Nigeria Extractive Industries Transparency Initiative (NEITI) audit revealed that a record 2,833 licences were issued in 2023, a significant increase from the previous year, indicating a burgeoning interest in solid mineral operations. Challenges such as inadequate infrastructure, funding, and regulatory issues persist, but the sector saw a 34.4% rise in total production, reaching approximately 95 million tonnes. Regulatory recommendations from NEITI aim to enhance operational transparency and compliance, fostering an investment-friendly mining landscape in Nigeria.

The mining sector in Nigeria has long been overshadowed by oil, with limited government support and policy implementation for minerals. Despite possessing vast reserves of various minerals, including iron ore and gold, the industry faces significant underexploitation. The NEITI audit is crucial as it provides insights into financial flows and identifies obstacles within the sector, shedding light on operational transparency and regulatory compliance necessary for attracting investment.

Edo State’s ascent in the mining sector illustrates a significant shift, driven by increased licensing and production, despite ongoing regulatory and infrastructural challenges. The NEITI audit highlights the necessity for stronger governance to encourage serious investment and address the high incidence of speculative operators. Moving forward, addressing these concerns will be vital for harnessing Nigeria’s solid mineral potential effectively.

Original Source: www.thisdaylive.com

The post Edo State Leads Mining Sector Growth as Dangote Dominates with 54.2% first appeared on Nigerian Mining News.

Edo State has surpassed Ogun and Kogi in the mining sector as the Dangote Group has increased its market control to 54.2%, according to the 2023 Solid Minerals Industry Audit by NEITI. The audit highlights a surge in licences issued, increasing by 114% compared to the previous year. Nigeria possesses substantial mineral reserves, yet remains largely underdeveloped due to challenges such as lack of infrastructure, funding issues, and a weak regulatory framework.

During the audit period, mineral production rose to 95 million tonnes, an increase of 34.4%. Key contributors to this production were major companies like Dangote, BUA, and Lafarge, which collectively produced over 51 million tonnes and paid significant royalties. NEITI emphasises the need for improved monitoring and enforcement within the sector to counteract non-active operators and illegal mining, recommending penalties for non-usage of licences and enhanced governmental support for the mining industry.

The mineral sector in Nigeria, notably overshadowed by oil, is beginning to garner attention as new reports reveal significant activity from companies like the Dangote Group. NEITI’s audit report highlights both the increase in licences and the production of minerals, indicating a shift towards more robust mining operations. However, numerous issues still hamper growth, including inadequate infrastructure and lack of government support, which need addressing to realise Nigeria’s full mineral potential.

The latest NEITI report underscores a pivotal moment for Nigeria’s mining sector, showcasing rising production figures and increased licence issuance. With Dangote’s dominant share and significant contributions from other major companies, there is potential for substantial growth. However, resolving infrastructural deficits and regulatory challenges will be critical in fostering a sustainable mining environment and attracting foreign investment.

Original Source: www.thisdaylive.com

The post Dangote Dominates Nigeria’s Mining Sector with 54.2% Market Share first appeared on Nigerian Mining News.

Nigeria possesses vast mineral resources essential for the global energy transition, including lithium, nickel, and significant quantities of gold and gemstones. However, due to a historical reliance on oil, the mining sector has been neglected, suffering from outdated legislation and ineffective governance. To stimulate growth, Nigeria must update mining laws, improve data reliability, attract investment, and ensure illegal mining is curbed. Significant reforms, including the establishment of a regulatory commission and community-based initiatives, are critical for transforming the sector and optimising its economic benefits.

Nigeria’s mining sector, despite being rich in essential minerals for batteries and other technologies, has been overshadowed by its oil wealth since the 1960s. The discovery of oil diverted attention from mining, leading to a decline in the industry. Current legislation is outdated and conflicts with state-level land governance, hindering investment. With the support of international financial institutions, there is progress in data collection and accessibility, yet substantial reform is required to realise the full potential of the sector and combat illegal mining operations that cost the country billions annually.

To unlock Nigeria’s mineral wealth, comprehensive reforms are urgently needed. This includes revising outdated laws to align with modern practices, enhancing the governance structure, and curtailing illegal mining. Implementing these measures will stimulate investment in the sector, boost economic growth, and ensure sustainable development while safeguarding community interests. The government’s proactive steps are essential to avoid repeating past mistakes and harnessing the full potential of Nigeria’s rich mineral resources.

Original Source: blogs.lse.ac.uk

The post Unlocking Nigeria’s Mineral Potential Through Effective Governance first appeared on Nigerian Mining News.

Mining in Nigeria has sparked significant economic growth, yet it has also led to notable displacement of communities, impacting their livelihoods and cultural identity. Regions rich in minerals such as Zamfara and Niger face environmental degradation, causing health crises and economic instability. Policy enforcement is often weak, leaving displaced residents without adequate compensation or support. The disconnect between the federal government and local communities exacerbates feelings of resentment, as traditional ways of life are disrupted and social ties are severed.

Nigeria’s shift from an oil-dependent economy highlights the growing importance of mining, particularly in regions like Zamfara and Niger. These states host rich mineral deposits, attracting both formal and informal mining operations. While the mining industry promises job creation and economic benefits, it often leads to significant community displacement, loss of agricultural productivity, and deterioration of cultural ties. This report by Joy Baba Yesufu delves into these effects and the inadequacies in governmental responses.

Mining-induced displacement in Nigeria illustrates the urgent need for sustainable practices that respect community rights and environmental health. Adequate compensation and effective resettlement plans should be implemented, alongside improved communication between the government and host communities. By prioritising community welfare and strengthening regulations, Nigeria can foster a more inclusive economic growth model that benefits all stakeholders.

Original Source: www.peoplesdailyng.com

The post The Impact of Mining-Induced Displacement on Nigerian Communities first appeared on Nigerian Mining News.

In an ongoing crackdown on illegal mining, the Nigerian federal government has prosecuted several individuals arrested in Kogi and Ondo states. This operation, known as “Operation Hayakin Kogo,” led to the apprehension of two Chinese nationals and a Nigerian in Kogi for breaching mining regulations. Additionally, four suspects were caught in Ondo during a raid on an illegal gold mining site in a protected area. All suspects have been charged in the Federal High Court, Abuja, as the government intensifies efforts to sanitise the mining sector.

Illegal mining has become a significant issue in Nigeria, affecting the environment and economic growth. The federal government, under the guidance of the Minister of Solid Minerals Development, Dr. Dele Alake, aims to reform the sector through the establishment of the Mining Marshals, a trained group from the NSCDC dedicated to enforcing mining laws. This initiative is part of a multi-faceted strategy focusing on sustainability, legality, and the enhancement of monitoring capabilities in the mining sector.

The federal government’s commitment to combatting illegal mining is exemplified by ongoing legal actions against offenders in Kogi and Ondo states. With the increased enforcement capabilities of the Mining Marshals and a clear message for compliance with mining laws, the government aims to protect its mineral resources and ensure that mining contributes positively to the economy.

Original Source: nta.ng

The post Nigerian Government Prosecutes Illegal Miners in Kogi and Ondo States first appeared on Nigerian Mining News.