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nigeria.indd 1 31/1/06 3:40:01 pm
2 Mining 1ournal special publication, London, Pebruary 2006
NICRIA
I
N THL natural resources sector, Nlgerla ls best
known for lts oll and gas but the country also
possesses a range of solld mlnerals that are of
value. |n the energy sector, excludlng oll and gas,
these lnclude coal, llgnlte, uranlum, thorlum and
tar sands.
Although lt ls true that oll and gas domlnate our
natlon's extractlve lndustry, lt should not be forgotten
that there are abundant opportunltles elsewhere ln the
mlnerals sector. |n fact, Nlgerla possesses more than 34
mlneral types dlstrlbuted at more than 450 locatlons
across the federatlon. |t should also be remembered
that Nlgerla has had a long hlstory of successful mlnlng
extendlng lnto modern tlmes.
8efore l960, solld mlnerals contrlbuted lmmensely
to the economlc development of Nlgerla. Coal was pro-
duced to generate electrlclty, as a source of fuel for the
rallways and for export. Tln, columblte, lead and zlnc
were also exported, along wlth gold, and prlor to the
dlscovery of oll, the export of solld mlnerals served as
a ma[or forelgn exchange earner, at one tlme, Nlgerla
was the world's largest exporter of columblte.
A varlety of factors, economlc and polltlcal, has
reawakened our natlon to the lmportance of develop-
lng our solld mlnerals. And thls revlval of lnterest ls
happenlng at a tlme of expandlng growth ln the global
economy and an accompanylng lncrease ln demand
for mlneral commodltles. Por Nlgerla, thls presents
slgnlcant opportunltles to explolt the known reserves
of gold, tantallte, lead, zlnc and bltumen, plus a range of
lndustrlal mlnerals.
we recognlse that the exploltatlon of such resources
must be supported by: requlslte technlcal expertlse and
nanclal strength on the part of lnvestors, leglslatlon
that guarantees securlty of tenure, competltlve scal
terms, and transparent procedures for grantlng access
to mlnlng tltles. The current reform of the solld mlneral
sector, along wlth other more wlde-ranglng reforms
that are belng lmplemented, wlll be to the mutual
benet of both lnvestors and government.
|mportantly, the reforms ln the mlnerals sector wlll
transform the nature of government partlclpatlon ln
the mlnerals sector from that of 'owner - operator' to
'admlnlstrator - regulator'. A clear demonstratlon of
the government's commltment ln thls regard ls the
contlnulng partltlonlng of coal propertles, hltherto
owned by Nlgerlan Coal Corp, ln preparatlon for thelr
sale to prlvate-sector lnvestors. Slmllarly, the bltumen
belt ls belng dellneated lnto blocks as the basls for a
blddlng round scheduled for the rst quarter of 2006.
Also, hundreds of mlneral tltles for a dlverse range of
mlneral commodltles, hltherto held by the government
monopoly Mlnlng Corp, wlll be put up for publlc auc-
tlon durlng the course of 2006.
|n a new Mlnerals and Mlnlng Act belng nallsed
by our lawmakers at the Natlonal Assembly, the ma[or
focus ls on ensurlng securlty of tenure, greater transpar-
ency ln grantlng access, competltlve scal terms and
the encouragement of an lndustry led by the prlvate
sector.
|n the past few months, we have establlshed a
Mlnlng Cadastre Om ce that wlll process mlneral tltle
appllcatlons on the 'rst come, rst served' prlnclple,
allowlng clear and transparent rules to govern the
llcenslng system, and ellmlnatlng the problem of
mlneral tltle overlaps. Lnectlve from Aprll 2006,
appllcatlons for mlneral tltle wlll be processed on-llne
by our Mlnlng Cadastre.
Nearlng completlon, ls an alrborne geophyslcal
survey coverlng 44% of the country and comprlslng
more than 750,000 llne-km. A survey of the remaln-
lng 56%, and follow-up ground surveys, have already
been commlssloned. These wlll present more rellable
data and lmportant lnformatlon necessary for guldlng
exploratlon lnvestment ln the country.
Although the local market has yet to become a
vlable source of venture capltal for exploratlon and
start-up companles, fundlng for exploratlon has been
boosted by the approval, by both the New ork and
London stock exchanges, of the llstlng procedures for
exploratlon companles seeklng to ralse funds for the
Nlgerlan mlnlng sector. |n addltlon, the establlshment
of a Mlnlng Pund to cater for the needs of [unlor mlnlng
companles ls at an advanced stage. These enorts are all
geared to support forelgn lnvestment capltal.
More fundamentally, Nlgerla's comprehenslve
economlc reforms contlnue to recelve global acknowl-
edgement and have resulted recently ln a masslve debt
reductlon granted by our Parls Club of credltors. Thls
has reposltloned Nlgerla as an attractlve lnvestment
destlnatlon. The Nlgerlan Government's rm com-
mltment to push through deeper economlc reforms
ls further bolstered by lndependent assessments of
lmprovements ln our transparency and antl- corruptlon
enorts. Transparency |nternatlonal and the world
Lconomlc Porum/world 8ank Global Competltlveness
Peport have recently lauded Nlgerla's progress ln these
areas of lmportance to the lnvestment communlty.
| urge you to read thls supplement, ln whlch we
provlde a revlew of exploratlon and mlnlng opportunl-
tles (especlally for gold, tantallte, coal, bltumen, lead
and zlnc), and a summary of the legal and scal reglmes
for mlnlng, plus other general lnformatlon, lncludlng
contact detalls, whlch we hope wlll persuade you to
shlft your search for mlnerals to Nlgerla - an excltlng
new mlnlng destlnatlon.
Our webslte - www.msmd.gov.ng - provldes you
wlth lnformatlon on the mlnerals and mlnlng law,
procedures for enterlng the sector, lnformatlon on how
to become actlve ln the exploratlon for mlnerals ln
Nlgerla, and why Nlgerla ls an lrreslstlble destlnatlon for
global capltal.
we are waltlng to recelve you ln Abu[a!
Message from DbiageIi zekwesiIi
Mlnlster of
Solld Mlnerals
Development
Message from the Minister 2
Country proIe 3
Rich in history and cuIture 3
Nigeria today 4
Infrastructure 4
An improving economy 5
Mining's past prominence 5
MineraIs administration 5
Mining IegisIation 5
7he Mining Cadastre Dm ce 6
MineraI titIe 6
7he scaI regime for mining 6
CeoIogicaI background 7
MineraI deposits 9
Gold 9
Tantalum-nloblum 12
Lead and zlnc 18
Coal 18
8ltumen 18
CeoIogicaI data acquisition
and dissemination 18
SustainabIe Management
of MineraI Resources Project 20
key government contacts 20
Contents
nigeria.indd 2 31/1/06 3:40:11 pm
Mining 1ournal special publication, London, Pebruary 2006 3
NICRIA
7
HL west Afrlcan state of Nlgerla lles
approxlmately between latltudes 4N
and l4N, and between longltudes
3L and l5L. The country ls bordered
by Cameroon to the east, Nlger to the
north and 8enln to the west. The Atlantlc Ocean
lles to the south, lncludlng the eastern sector of
the Gulf of Gulnea, and Nlgerla's coastllne extends
for about 850 km. The dlstance from the coast to
the far north of the country ls some l,l00 km.
Nlgerla, dlsplays a varlety of landforms, cllmate
and vegetatlon. The rellef varles from 600-300 m
on the 1os Plateau and ln the north central and
eastern hlghlands, to less than 20 m ln the coastal
lowlands, whlch extend lnland for up to 60 km.
The Nlger and 8enue rlvers separate Nlgerla lnto
north, east and west geographlcal reglons.
The country en[oys a humld troplcal cllmate
and experlences a relatlvely narrow varlatlon ln
seasonal and dlurnal temperature (22-36C). The
wet season lasts from from Aprll untll October,
and the dry season from November untll March.
The two broad belts of vegetatlon - forest to the
south and savannah to the north - broadly cor-
respondlng to the progresslve northward decllne
ln total ralnfall and the length of wet season.
The hlstory and culture of socletles ln Nlgerla
can be traced back for more than 2,500 years. The
earllest evldence of communal actlvltles dates
back to 340 8C and the Nok culture of central
Nlgerla, renowned for lts lron-worklng. Around
705 AD, the |gbo Ukwu bronze clvlllsatlon was
pre-emlnent.
Prom the llth century untll the perlod of
Luropean colonlal conquest ln the l9th century,
Nlgerla wltnessed the emergence of clty states
and emplres, wlth dened polltlcal structures.
These pre-colonlal polltlcal unlts lnclude the
Kanem 8orno Lmplre, the Hausa Clty States of
Kano and Kastlna, and the oruba Clty States of |fe
and Oyo. Also establlshed durlng thls perlod was
the Klngdom of 8enln and the |bo communltles.
|n the late l5th century, Portuguese navlgators
became the rst Luropeans to vlslt Nlgerla. They
establlshed trade tles wlth local communltles,
especlally ln slaves. The Portuguese were followed
by 8rltlsh, Prench and Dutch traders. Durlng the
l9th century, the slave trade was abollshed and
replaced by trade ln agrlcul tural produce. As a
ma[or coastal trade centre, Lagos was annexed as
a 8rltlsh colony ln l86l.
|n l885, the 8rltlsh created the Plvers Protector-
ate, whlch later transformed lnto the Nlger Coast
Protectorate, subsequently known as Lastern
Nlgerla. |n l888, the Poyal Nlger Co acqulred po-
lltlcal and admlnlstratlve power over a narrow belt
of terrltory on both sldes of the Plver Nlger as far
lnland as Loko[a, as well as over a vast area north
of the Nlger and 8enue rlvers. Thus, by l897, three
blocks of terrltory had emerged as 8rltlsh colo-
nles. The emergence of Nlgerla ls slmply the story
of how these three nelghbourlng and lnterlocked
unlts were bought together by the 8rltlsh through
the amalgamatlon of the Northern and Southern
Protectorates ln l9l4.
Nlgerla became an lndependent natlon on
October l, l960, and a republlc ln l963. The lst
Pepubllc was short-llved: the mllltary ousted
the elected clvlllan government ln l966 and
remalned ln power untll l979 when democracy
was restored. |n l983, the democratlc govern-
ment of the 2nd Pepubllc was overthrown ln
another mllltary coup and lt took almost l5
Rich in
history
and
cuIture
Country proIe
Dm ciaI name: Pederal Pepubllc of Nlgerla
7otaI area: 923,768 km
2
CoastIine: 853 km
CapitaI: Abu[a
Form of government: presldentlal democracy
Head of state and government:
Presldent Olusegun Obasan[o
Dm ciaI Ianguage: Lngllsh
Major Ianguages: Hausa, oruba, |gbo, Pulanl
PopuIation: l50 mllllon (estlmated)
Currency: nalra (l l00 kobo),
Nl29 US$l (December 2005)
CDP: approx US$l26 bllllon (2004),
Per capita income: about US$493 (2005)
Main reIigions: |slam, Chrlstlanlty
and lndlgenous bellefs
Major ports: Lagos, Port Harcourt, warrl, Calabar,
Onne and Sapele
Major airports: Abu[a, Lagos, Kano, Port Harcourt,
Lnugu, Kaduna, Maldugurl, ola, Calabar, Sokoto,
Owerrl, 1os, |lorln.
CIimate: temperature range: 22-36C,
ralny and dry seasons
Vegetation: Paln forest ln the south
and savannah ln the north
FederaI capitaI
7own of over 1,000,000 peopIe
7own of over 500,000 peopIe
7own of over 250,000 peopIe
7own of over 150,000 peopIe
7own of over 100,000 peopIe
Dther towns and pIaces
Airport, aireId
DiI, naturaI gas
Reserve
Main road
Permanent road
Dther road
7rack
RaiIway
thnic group
State boundary
State capitaI
Dam, ferry
nigeria.indd 3 31/1/06 3:40:13 pm
4 Mining 1ournal special publication, London, Pebruary 2006
NICRIA
years for democracy to be restored when Chlef
Olusegun Obasan[o was elected and sworn ln on
May 29, l999, as Presldent of the Pederal Pepubllc
of Nlgerla.
NICRIA 7DDAY
Nlgerla has a populatlon of about l50 mllllon and
ls the most populous black natlon ln the world.
There are about 250 ethnlc groups, the prlnclpal
groups belng Hausa and Pulanl ln the north, o-
ruba ln the southwest and |gbo ln the southeast.
Other slgnlcant ethnlc groups lnclude Kanurl,
Nupe, Tlv, |gala, |doma, Lk and |[aw. Lach ethnlc
group speaks lts own language, and has lts sys-
tem of marrlage, famlly organlsatlon, dance, dress
forms, food, handlcraft, muslc, and other tralts.
However, there ls a long hlstory of llnkages and
lntegratlon between the varlous ethnlc groups
brought about by trade, conquest, dlplomacy,
travel, lntermarrlage and learnlng. Nlgerla ls
characterlsed by a dynamlc ethnlc plurallsm,
lnvolvlng cultural fuslon and the evolutlon of new
ldentltles.
INFRAS7RUC7UR
Nlgerla has a modest lnfrastructure, and natlonal
pollcy ls for government to enter lnto publlc-prl-
vate partnershlps and to encourage prlvate-sec-
tor partlclpatlon ln the provlslon of lnfrastructure.
A framework for such co-operatlon exlsts ln the
Power Sector Peforms Act. Thls allows lndepen-
dent power producers to be establlshed, and the
extent of government partlclpatlon ln the power
sector ls llmlted to regulatlon.
Slmllarly, the |nfrastructure Concesslon
Pegulatory Commlsslon, otherwlse known as the
Publlc-Prlvate Partnershlp Act, was approved ln
November 2005, and allows government depart-
ments, agencles and corporatlons or bodles to
glve prlorlty to thelr lnfrastructure pro[ects for
concesslon. The act allows for full recovery of the
lnvestment.
The slgnlcance of these developments for the
solld-mlnerals sector ls that mlnlng companles
wlll no longer be llmlted by exlstlng lnfrastructure
and can enter lnto lnfrastructure partnershlps
wlth government for the purpose of mlne devel-
opment and operatlon.
Roads: Nlgerla has a dense and well-developed
road network, lncludlng dual carrlageways and
class A and 8 trunk roads. New roads are belng
constructed and many exlstlng roads are belng
rehabllltated and/or upgraded. The government
ls also maklng dellberate enorts to provlde access
roads to mlnlng sltes.
RaiIways and seaports: The rall network ls
extenslve and some rallway llnes have recently
been refurblshed. There are rall llnks to the sea-
ports of Lagos and Port Harcourt. Other seaports
are Calabar, warrl, Sapele, Koko and Onne. A
bulk- handllng faclllty ls under constructlon at
A8UNDANT resources and skllled low-cost labour:
Nlgerla has enormous resources, most of whlch are
yet to be fully explolted. They lnclude mlneral, agrlcul-
tural and human resources. There ls an abundance of
low-cost Lngllsh-speaklng skllled labour.
Large domestlc market: Nlgerla oners the largest
market ln sub-Saharan Afrlca. The Nlgerlan market
potentlal also stretches lnto the growlng west Afrlcan
sub-reglon.
Free market economy: The government has created
a favourable cllmate for buslness and lndustrlal
ventures. Admlnlstratlve and bureaucratlc procedures
are belng streamllned.
Free ow of investment: Lxchange control regula-
tlons have been llberallsed to ensure a free now of
lnternatlonal nance. There ls now unrestrlcted move-
ment of lnvestment capltal.
Attractive incentives: A comprehenslve package of
lncentlves - general and sectoral - has been put ln
place to create a favourable envlronment for lnvest-
ment. General tax lncentlves lnclude:
Q ve to seven years' tax hollday to ploneer
companles consldered beneclal to the country's
economy but located ln economlcally dls-
advantaged areas,
Q deductlblllty of up to l20% of P&D expense
carrled out ln Nlgerla,
Q tax concesslons for the tralnlng of plant personnel
and the provlslon of baslc lnfrastructures, and
Q tax concesslon to lndustrles that attaln mlnlmum
local raw materlals utlllsatlon and to lndustrles
wlth a favourable labour:capltal ratlo.
Nigeria - an important destination
for foreign investment in Africa
Oluseun
Ooosonjo:
tes|Jent
s|nce 1999
l
h
o
t
o
:

8
l
o
o
m
o
e
t

N
e
w
s
nigeria.indd 4 31/1/06 3:40:15 pm
Mining 1ournal special publication, London, Pebruary 2006 5
NICRIA
Onne, and an Lxport Processlng Zone has been
constructed near Calabar. A dredglng programme
ls scheduled soon that wlll make the Plver Nlger
navlgable all year round up to Loko[a ln central
Nlgerla.
Iectricity suppIy: Power generatlon and dls-
trlbutlon ln Nlgerla have been thrown open to prl-
vate operators. Lxlstlng generatlng capaclty of the
Natlonal Llectrlc Power Authorlty ls about 6,000
Mw. There are lndependent power suppllers,
lncludlng Nesco, a prlvate operatlon ln Plateau
State establlshed to supply electrlclty to mlnlng
dlstrlcts, to homes and to lndustry.
Incentives: Pecognlslng that much mlneral ex-
ploratlon and development ls llkely to be ln areas
that are not easlly accesslble, the government has
pledged to extend roads and electrlclty lnfrastruc-
ture to the mlnlng localltles ln order to encourage
prlvate lnvestment.
Por those mlnlng lnvestors wllllng to become
development partners wlth the government,
some lncentlves are already avallable ln the form
of rebates on lnfrastructure spendlng ln rural
areas. The followlng are the current deductable
allowances ln the scal framework:
Q No electrlclty, water and tarred roads etc l00%
Q No electrlclty l0%
Q No water 30%
Q No tarred roads l5%
Q No telephone 5%
AN IMPRDVINC CDNDMY
After several decades of weak economlc per-
formance, Nlgerla's GDP grew by 6.l% ln 2004
after growlng by almost ll% ln 2003. Thls recent
lmprovement ls more than [ust an 'oll story'. The
non-oll sector has accounted for more than 6% of
annual growth slnce 2000 and currently contrlb-
utes more than 50% of GDP.
|n 2004, agrlculture contrlbuted about 36%
to the economy, lndustry 3l% and servlces 33%,
and lmproved performances ln these sectors
contrlbuted to a 7.4% growth ln the non-oll sector
of the economy. |t ls expected that thls growth
wlll be further enhanced by the enorts to reform
the mlnlng sector.
The government ls convlnced that further,
substantlal economlc growth wlll follow lf greater
enorts are made to explolt the country's non-oll
mlneral resources, but lt recognlses that mlnlng ls
a global lndustry and that there ls slgnlcant com-
petltlon for exploratlon and mlnlng dollars. The
government also recognlses that the only way
to make the mlnlng sector attractlve to forelgn
lnvestors ls to create an envlronment ln whlch
lnternatlonal buslness can nourlsh.
Lllmlnatlng corruptlon ls at the top of the eco-
nomlc reform agenda, and ls belng addressed on
several fronts: enforcement agencles have been
establlshed, reforms are belng made to publlc
procurement, there ls greater budgetary transpar-
ency and the opaqueness prevalent ln oll and gas
operatlons ls belng ellmlnated. The enorts of such
agencles as the Lconomlc and Plnanclal Crlmes
Commlsslon, the Nlgerlan Lxtractlve |ndustrles
Transparency |nltlatlve and the 8udget Monltor-
lng and Pro[ect |mplementatlon Unlt (8MP|U)
have been the catalysts for the slgnlcant strldes
ln changlng the perceptlon of the country ln the
eyes of the lnvestment communlty.
Slnce the mlddle of 2005, the government has
lntroduced wlde-ranglng reforms ln: mlneral ad-
mlnlstratlon and pollcy, enabllng leglslatlon, lnstl-
tutlonal responslbllltles, lnstltutlonal strengthen-
lng and data acqulsltlon. These root-and-branch
reforms are beglnnlng to produce green shoots,
and [unlor mlnlng companles, especlally from
Canada and Australla, have been vlsltlng Nlgerla
to look at the opportunltles avallable.
MININC'S PAS7 PRDMINNC
Mlnlng ls one of the oldest economlc actlvltles ln
Nlgerla, wlth evldence of a nourlshlng lron-work-
lng clvlllsa-
tlon of the
Nok culture
around
340 8C.
At about
705 AD, the
|gbo Ukwu
bronze
clvlllsa-
tlon also
reached lts
pre-eml-
nence. Also
about l,000
years ago,
the Hausa Klngdoms, wlth the famous 'Golden
Lands of wangara' were noted for thelr gold
mlnlng. |fe and 8enln bronze works nourlshed
between ll63-l200 and between l630-48,
respectlvely. These artlstlc clvlllsatlons, uslng
metalllc and non-metalllc substances, renect the
anclent orlgln of mlnlng ln Nlgerla.
Organlsed mlnlng began wlth the establlsh-
ment of the Mlneral Surveys of the Southern and
Northern Protectorates ln l903 and l904 respec-
tlvely. Mlnlng became lmportant before and after
the Second world war, Nlgerla becomlng a ma[or
producer of tln, columblte and coal for export.
The downturn ln mlnlng followed the dlscovery
of oll ln Ololblrl ln l956, and the exodus of mlnlng
expatrlates durlng the Nlgerlan Clvll war (l966-
70). The sltuatlon was compounded by depressed
commodlty prlces durlng the l970s, and the col-
lapse of the |nternatlonal Tln Councll ln l985.
MINRALS ADMINIS7RA7IDN
Today, the responslblllty for mlnlng admlnlstra-
tlon rests wlth the Mlnlstry of Solld Mlnerals
Development. Pour departments - the Mlnes
|nspectorate, Lnvlronment and Compllance, the
Mlnlng Cadastre Om ce and the Artlsanal and
Small-scale Mlnlng Department - have the overall
functlon of asslstlng the Mlnlster of Solld Mlnerals
Development ln the management of the country's
mlneral resources.
MINRALS PDLICY
AND MININC LCISLA7IDN
The government conslders the exploltatlon
of Nlgerla's mlneral resources to be among lts
hlghest prlorltles, and ls commltted to the orderly
development of these resources ln a manner that
guarantees the wealth and peace of all Nlgerlans.
The new mlneral pollcy seeks to ensure that mln-
eral resources are explolted ln a manner that mlnl-
mlses the soclal, envlronmental and economlc
consequences of mlnlng.
The government also recognlses that the suc-
cessful exploratlon and exploltatlon of Nlgerla's
mlneral resources requlres both technlcal exper-
tlse and nanclal strength that to a large extent
can be provlded by forelgn lnvestment capltal.
A central platform for the new pollcy ls the
transformatlon of the role of government
from that of 'owner-operator' to 'admlnlstrator-
regulator'. Thls ls to allow the prlvate sector to
take a plvotal role ln the growth of the mlnlng
sector. To attract overseas lnvestors, the govern-
ment ls commltted to fosterlng a stable regula-
tory, economlc and polltlcal envlronment that
encourages lnvestors to make long-term commlt-
ments to exploratlon and development.
The prlnclpal elements of mlnerals pollcy
are leglslated. Pegulatlons and mlneral agree-
ments complement the Mlnerals and Mlnlng
Act, and mlneral agreements are only appllcable
to those mlnlng operatlons deemed to be of
large-scale and havlng a slgnlcant lmpact on the
development of lndustry.
Anti-corruption
measures beginning
to take hoId
THL 2005 Governance Peport on Nlgerla by the
world 8ank nds that:
Q the percentage of rms reportlng brlbery has
decllned slgnlcantly, the largest lmprovement
belng ln the area of publlc procurement (down
to 60% ln 2005 from 98% ln 2002)
Q the percentageof rms reportlng brlbery ln the
[udlclary has dropped from above 75% ln 2002
to less than 40% ln 2005
Q the ma[or constralnt to dolng buslness ln
Nlgerla has changed from Corruptlon to |nfra-
structure
Q the percentage of rms reportlng the dlverslon
of publlc funds to companles and/or lndlvlduals
has dropped from l00% ln 2003 to 70% ln 2005.
Z|nc-otoss otuoo heoJ, 12th centuty
nigeria.indd 5 31/1/06 3:40:16 pm
6 Mining 1ournal special publication, London, Pebruary 2006
NICRIA
The prlnclpal leglslatlon regulatlng mlnlng
actlvltles ln Nlgerla ls the Mlnerals and Mlnlng
Act l999, and thls ls now admlnlstered by the
Mlnlstry of Solld Mlnerals Development. The l999
Act ls under revlew and wlll be amended so as
to ensure securlty of tenure of a mlnlng tltle and
greater transparency ln llcenslng procedures.
Ownershlp of mlnerals ls vested ln the Pederal
Government of Nlgerla as custodlan on behalf
of the cltlzens of the country. The government
grants tltles to allow sultable entltles to explore
for, mlne and market mlneral resources. Plxed-
term mlneral tltles over a specled
area may be granted to entltles
commltted to approved programmes
of exploratlon or mlnlng. Appllca-
tlons for mlneral tltles and llcences
are consldered on a rst-come,
rst-served basls and may be made
by any person, at any tlme, over any
area not covered by an exlstlng tltle,
or not otherwlse reserved by the
government.
7H MININC CADAS7R DFFIC
The Mlnlng Cadastre Om ce (MCO)
has been establlshed as an autono-
mous body to admlnlster mlnlng tltles "wlth
lntegrlty and ln a transparent manner on a 'rst
come, rst served' basls. The MCO ls currently
carrylng out a revalldatlon exerclse to determlne
bona de mlnlng tltles and remove lnvalld tltles
held by speculators. On completlon of thls exer-
clse, the MCO wlll commence lts full functlons on
Aprll l, 2006.
The MCO has excluslve responslblllty for the
admlnlstratlon of mlneral tltles and the malnte-
nance of the cadastral reglsters. |t:
Q conslders appllcatlons for mlneral tltles and
permlts, lssues, suspends and, lf necessary
(upon the wrltten advlce of the mlnlster), re-
vokes any mlneral tltle, for example, where the
holder has falled to pay the prescrlbed fees,
Q recelves and dlsposes of appllcatlons for the
transfer, renewal, modlcatlon, rellnqulsh-
ment of mlneral tltles or extenslon of areas.
A central Mlnlng Cadastre Om ce havlng exclu-
slve authorlty and [urlsdlctlon over the whole of
the country has been establlshed ln Abu[a, and
an approprlate number of reglonal om ces wlll be
malntalned.
MINRAL 7I7L
Under the provlslons of the new law, the rlght to
search for, or explolt mlneral resources ln Nlgerla,
ls obtalned through one of the followlng mlneral
tltles:
Q Peconnalssance permlt,
Q Lxploratlon llcence,
Q Small-scale mlnlng lease,
Q Mlnlng lease,
Q Quarry lease, and
Q water use permlt.
Summary of the scaI regime for mining
7ax method and IeveI of tax Ievies Industry standard RoyaIty/tax system - promotes revenue stabiIity
Level of royalty l-3% Compared wlth lndustry standard
of 0- 5%, the royalty ls relatlvely low
and attractlve
Avallablllty of tax holldays No Loss carrled forward
Accelerated depreclatlon es l00% on capltal lnvestment ln year lncurred
Deductlon of exploratlon/other costs es l00% cost recovery allowed ln year lncurred
Pemlttance of prots and dlvldends es l00% allowed
Corporate tax Low at 20-30% of net prot |ndustry standard ls l5-35%
of taxable lncome
Currency converslon es On total prot
Lxemptlon from custom dutles es On agreed llst of mlnlng equlpment
Capltal galns tax es, at l0% |ndustry standard ls 5-l5%
Dbjectives of the
new IegisIation
Q To be seen as a commltment by govern-
ment to a set of prlnclples by whlch the
sector wlll be regulated, and a fundamen-
tal plllar of the reform process.
Q To serve as a rlsk management tool for the
lnvestor and a crltlcal component of the
lnvestment declslon.
Q To create a competltlve buslness envlron-
ment, and a unlque role for the prlvate
sector as operator and owner of Nlgerla's
mlneral resources.
Q To llmlt the role of the government to be-
lng regulator of the mlnlng sector.
key concepts of the
new IegisIation
Q Quallcatlon crlterla - 'come one, come all'
Q Competlng appllcatlons for tltle over same
area- "rst come, rst served prlnclple
Q Securlty of tenure
Q Mlnlmum work obllgatlons for exploratlon
and mlnlng phases
Q The 'use lt or lose lt' prlnclple
Q Tlme llmlts - removal of dlscretlonary
power
Q Lstabllshment of a State Mlneral Pesources
and Lnvlronmental Management Commlt-
tee
Q Communlty development agreements
Q L|As, envlronmental protectlon and reha-
bllltatlon programmes and the Lnvlron-
mental Protectlon Pund
7he Mining Cadastre Dm ce
Q An autonomous lnstltutlon and the sole agency regardlng all matters relatlng to mlneral tltles
Q Key lnterface wlth lnvestors ln respect of grant and processlng of mlneral tltle
Q Pesponslble for malntenance of a cadastral atlas and tltle reglsters
Q Lxcluslve powers to suspend and revoke tltle
7he Mines Inspectorate Department
Department of the Mlnlstry of Solld Mlnerals Development, responslble for:
Q |nspectlon and supervlslon of mlnlng operatlons
Q Health and safety admlnlstratlon and enforcement
Q Advlce to the mlnlster on promotlon and protectlon of mlne health and safety
nvironmentaI CompIiance Department
Q Monltorlng operators' performance and envlronmental compllance
Q Lstabllshment of envlronmental rules and procedures
Q Lnsurlng adequate mlne rehabllltatlon
Q Undertaklng envlronmental audlts appllcable to the mlnlng sector
ArtisanaI and SmaII-scaIe Mining Department
Q Organlsatlon, support and asslstance wlth regard to artlsanal and small-scale mlnlng (ASSM)
operatlons
Q Pegulatlon, control and general supervlslon of ASSM operatlons
Q Provlslon of extenslon servlces to mlnlng co-operatlves wlth regard to exploratlon, mlneral
processlng, entrepreneurlal tralnlng, health and safety lssues etc
Q Admlnlstratlon of mlnlng co-operatlves and mlneral buylng centres.
nigeria.indd 6 31/1/06 3:40:17 pm
Mining 1ournal special publication, London, Pebruary 2006 7
NICRIA
Reconnaissance permit: The
Mlnlng Cadastre Om ce, wlthln
30 days of the recelpt of the
appllcatlon of any qualled ap-
pllcant and on payment of the
prescrlbed fees, ls mandated
to grant and lssue a recon-
nalssance permlt to search
for mlneral resources except
'securlty mlnerals'.
The permlt enables the
holder to carry out reconnals-
sance on a non-excluslve basls.
The holder of a reconnalssance
permlt ls not expected to en-
gage ln drllllng, excavatlon or
other sub-surface technlques,
and must conduct actlvltles
ln an envlronmentally and so-
clally responslble manner and
compensate for damage to
land and property. The holder
ls also expected to submlt
lnformatlon and perlodlcal
reports to authorlsed om cers.
The permlt ls not transferable,
ls lssued for one year and ls
renewable annually.
xpIoration Iicence: The
MCO, on recelpt of a valld
appllcatlon, ls obllged by law
to grant and lssue an explora-
tlon llcence wlthln 30 days. A llcence wlll not be
granted over any land that ls sub[ect to an exlst-
lng exploratlon llcence, mlnlng lease, small-scale
mlnlng lease or quarry lease.
The duratlon of an exploratlon llcence ls for
three years, renewable for two further perlods
of two years each, provlded that the tltleholder
has complled wlth mlnlmum work commltments
and all other legal requlrements. The area of
land covered by an exploratlon llcence shall not
exceed l,000 km
2
.
SmaII-scaIe mining Iease: The MCO shall, on
recelpt of a valld appllcatlon, grant and lssue a
small-scale mlnlng lease (SML) wlthln 45 days. An
SML shall not be granted ln respect of any area
wlthln an exploratlon llcence area, mlnlng lease
area or quarry lease area to any person except the
holder of an exploratlon llcence, quarry lease or
mlnlng lease coverlng the area.
The duratlon of an SML ls ve years ln the
case of alluvlal and artlsanal forms of small-scale
mlnlng, renewable for further perlods of ve
years, and ten years ln the case of other types of
small-scale mlnlng, renewable for further perlods
of ten years each, provlded that the mlnlmum
work obllgatlons have been met.
The area of land for an SML shall not exceed
3 km
2
. when the level of operatlons of small-scale
mlnlng exceeds any of the crlterla establlshed ln
the denltlon of an SML, the holder shall convert
such a lease lnto a mlnlng lease by submlttlng a
wrltten appllcatlon to the MCO.
Mining Iease: The MCO shall, on recelpt of a
valld appllcatlon, grant and lssue a mlnlng lease
wlthln 45 days of the appllcatlon. The duratlon
of a mlnlng lease ls 25 years, renewable every 20
years, provlded that the holder has complled wlth
mlnlmum work commltments and that all other
legal and regulatory requlrements have been
met. The lease area shall be determlned ln relatlon
to the orebody as dened ln the feaslblllty study,
together wlth an area reasonably requlred for the
worklng of the mlneral resources, not exceedlng
50 km
2
.
uarry Iease: All operatlons for extractlng
constructlon materlals requlre a quarry lease. On
recelpt of a valld appllcatlon, the MCO shall grant
a quarry lease wlthln 45 days. The mlnlster may,
at any tlme, amend or suspend the lease and
requlre the holder to apply for a mlnlng lease. The
duratlon of a quarry lease shall not exceed ten
years and may be renewed as often as requlred,
provlded the renewal appllcatlon ls made wlthln
three months before the explry of the lease. The
area of land shall not exceed 5 km
2
.
Water use permit: The area of land ln respect of
whlch any water use permlt (wUP) ls granted shall
not exceed the area reasonably requlred for the
purposes of the permlt as dened
ln the regulatlons. A wUP wlll re-
maln ln force as long as the mlnlng
lease, SML or quarry lease for whlch
use lt was granted remalns valld.
CeoIogicaI
background
S|NCL the dlscovery and explol-
tatlon of the country's vast oll
resources, exploratlon actlvlty ln
Nlgerla for other mlnerals has been
mlnlmal, and world-class mlneral
deposlts have yet to be ldentled.
Nlgerla lles wlthln the extenslve
Pan-Afrlcan (650-450 Ma) moblle
belt that separates the west Afrlcan
and Congo cratons. The Nlgerlan
Pan-Afrlcan has remalned enlgmat-
lc and underexplored. The geology
of Nlgerla, however, ls comparable
to the geology ln some other
Afrlcan countrles where world-class
deposlts have been found, and
many geosclentlsts belleve ma[or
deposlts awalt dlscovery ln Nlgerla.
7H PANAFRICAN DRDCNY
The Pan Afrlcan moblle belt ls ln-
terpreted to have evolved by plate
tectonlc processes whlch lnvolved contlnental
colllslon between two blocks, the west Afrlcan
craton (cl850 Ma) and the Pan-Afrlcan belt.
The Nlgerlan schlst belts are thought to have
been deposlted ln a back-arc basln developed
after the onset of subductlon at the cratonlc
margln at about l000 Ma. Closure of the ocean
at the cratonlc margln about 600 Ma and crustal
thlckenlng to the east, led to the deformatlon and
metamorphlsm of the sedlments, partlal meltlng
of the upper mantle and lower crust and the
subsequent emplacement of the Older Granltes ln
Nlgerla and lnto Cameroon.
The last stage of the Pan-Afrlcan orogeny
was characterlsed by brlttle deformatlon, whlch
resulted ln a very conslstent con[ugate strlke-sllp
fault system conslstlng of malnly NL-Sw and Nw-
SL sets of faults.
There ls evldence that both gold mlnerallsatlon
and rare-metal pegmatltes ln the basement rocks
ln Nlgerla are related to these con[ugate fault
systems. |n the Kushaka schlst belt of northwest
Nlgerla, gold-quartz reef mlnerallsatlon (Tsohon
8lrnln Gwarl and Kwaga) ls hosted by N-S shear
zones developed along antlcllnal axes of tlght
folds and dlsrupted by the NL-Sw trendlng Kalan-
gal fault. Slmllarly, the rare-metal pegmatltes of
the Kushaka belt are developed along antlcllnal
axes closely assoclated wlth the Kalangal fault.
nigeria.indd 7 31/1/06 3:40:19 pm
8 Mining 1ournal special publication, London, Pebruary 2006
NICRIA
The geology of Nlgerla
comprlses a 8asement
Complex, a sulte of ounger
Granltes, a Sedlmentary
Serles and Tertlary/Pecent
volcanlcs.
The asement CompIex
underlles about half the
surface area of Nlgerla and
conslsts of three broad lltho-
loglc unlts:
Q a polycycllc metamorphlc
mlgmatlte-gnelss com-
plex (wlth quartzltes, am-
phlbolltes and calcareous
rocks), wlth ages ranglng
from Llberlan (c2800 Ma)
to Pan-Afrlcan (c600 Ma).
Metamorphlsm ls gener-
ally ln the amphlbollte
facles grade,
Q low-grade (greenschlst fa-
cles) sedlment- domlnated
schlst belts (of mostly
phyllltes, schlsts, quartzltes,
greenstones and banded lron formatlons)
trendlng mostly north and north-northeast,
and best developed ln western Nlgerla.
The schlst belts are consldered to be Upper
Proterozolc supracrustal rocks that have been
lnfolded lnto mlgmatlte-gnelss complex, and
Q syntectonlc to late tectonlc granltolds (Older
Granltes) whlch lntruded both the mlgmatlte-
gnelss complex and the schlst belts.
Gold and assoclated metals occur wlthln the
schlst belts, and tantallte, columblte and tln are
assoclated wlth pegmatltes ln the Older Granlte
sulte. Hlgh-quallty gemstones can be assoclated
wlth pegmatltes.
The Younger Cranites are dlstlnct from the
Older Granltes (Pan-Afrlcan granltolds), and are
hlgh-level anorogenlc volcanlc and hypabyssal
rocks emplaced wlthln the Precambrlan basement
complex. They are characterlsed by arcuate to
clrcular lntruslons and form the southern extenslon
of slmllar rlng complexes ln the Alr dlstrlct ln Nlger
to the north.
There are more than 70 lndlvldual rlng com-
plexes constltutlng a dlstlnct petrologlcal provlnce.
The ages of the rlng complexes ln thls provlnce
vary conslderably. The Nlgerlan occurrences range
ln age from 3l3-l4l mllllon years and occupy
about l% of the surface area.
The ounger Granltes form rugged hllls of 1u-
rasslc age, and contaln casslterlte and columblte.
valuable deposlts of these mlnerals have been
formed by weatherlng of the granltes. Alluvlal
concentratlons also occur. There are also small
quantltles of wolframlte ln certaln ounger Gran-
ltes, and some contaln the potentlally valuable
radloactlve mlneral, pyrochlore.
Pocks comprlslng the Sedimentary
Series have been deposlted ln seven ba-
slns surroundlng the crystalllne rocks. The
baslns occupy about half the surface area
of Nlgerla. Plve of them, the Nlger Delta,
8enln, 8lda, 8enue and Anambra baslns,
appear to have been lnltlated durlng the
Cretaceous and are related to the openlng
of the Gulf of Gulnea.
Two others baslns, Sokoto and Chad,
are part of the Taodenl and lllumedden
baslns respectlvely, and outslde Nlgerla
they have hlstorles datlng back to the
Palaeozolc.
Tectonlcally, the sedlmentary baslns
can be classled lnto three groups:
Q Marglnal Sag 8aslns - the Nlger Delta
and the 8enln (Dahomey) baslns fall
ln thls category. They were formed
ln response to the tenslonal reglme whlch
accompanled the openlng of the Lquatorlal
Atlantlc durlng Aptlan and Alblan tlmes. The
marglnal sag structure ls the result of the
collapse of the margln on the oceanward slde
due to sedlment loadlng.
Q Plft or Aulacogen 8aslns - these conslst of
the 8enue, 8lda and Anambra baslns, and
were formed durlng the Cretaceous, elther by
dlstenslon resultlng ln grabens bounded by
normal faults, or by locallsed tenslon caused
by large-scale transcurrent faults. The 8enue
basln hosts slzeable deposlts of lead and zlnc
(wlth assoclated germanlum, cadmlum and
sllver), barlte, llmestone and other mlnerals.
Q |ntra-Contlnental 8aslns - these lnclude
Sokoto and Chad. The sedlmentary mate-
rlal lllng the baslns shows complete cycle
development, characterlsed by contlnental
facles ln the basal sectlon overlaln by marlne
facles and contlnental sedlments. The Sokoto
basln hosts large deposlts of llmestone and
some phosphate and gypsum. The Chad basln
contalns some quantltles of bentonltlc clay,
trona, gypsum and dlatomlte.
7ertiary/Recent voIcanic activity has taken
place lntermlttently. The most extenslve outcrops
are ln the 8lu and Longuda plateaux of northeast-
ern Nlgerla and on the 1os Plateau. Scattered oc-
currences are found wlthln the 8enue Trough. The
domlnant rock ls basalt wlth alkallne am nltles. The
basalt ranges from 22 mllllon years to 7 mllllon
years ln age.
Ceolo|col
sett|n ol the
7sohon 8|tn|n
Cwot| olJ
m|netol|sot|on
nigeria.indd 8 31/1/06 3:40:21 pm
Mining 1ournal special publication, London, Pebruary 2006 9
NICRIA
MineraI deposits
CDLD
Gold occurs ln alluvlal and eluvlal placers, and ln
prlmary velns ln several supracrustal (schlst) belts
ln northwest and southwest Nlgerla. The most lm-
portant occurrences are found ln the Maru, Anka,
Malele, Tsohon 8lrnln Gwarl-Kwaga, Gurmana,
8ln aurl, Okolom-Dogonda[l and |perlndo areas.
There are also a number of smaller occurrences
beyond these ma[or areas.
Om clally-recorded gold productlon ln Nlgerla
dates from l9l3 and output peaked ln the perlod
l933-43, when some 3.2 Moz were produced.
Productlon decllned durlng the Second world war
perlod and never recovered, as mlnes were aban-
doned by mostly colonlal companles. Nlgerlan
Mlnlng Corp (NMC) started to explore for gold
ln the early l980s but the programme was sus-
pended because of a lack of funds. The dlscovery
of petroleum ln l956 and lts subsequent domlna-
tlon of the Nlgerlan economy also contrlbuted to
the lack of attentlon to gold exploratlon desplte
the conslderable potentlal.
|n the absence of any systematlc exploratlon
and development, Nlgerla's goldelds have
experlenced lntense artlsanal actlvlty, targetlng
prlmary gold-quartz reefs and assoclated alluvlal
deposlts.
The two most lmportant former gold mlnes
ln the Maru schlst belt are at Dukl and Maraba.
Gold at Dukl ls hosted by a shear zone traverslng
quartzlte-schlsts, the mlnerallsatlon occurrlng
Att|sonol
olJ
m|n|n |n
7sohon
8|tn|n
Cwot|,
loJuno
5tote
Att|sonol
t|n m|nets
nigeria.indd 9 31/1/06 3:40:23 pm
10 Mining 1ournal special publication, London, Pebruary 2006
NICRIA
nigeria.indd 10 31/1/06 3:40:30 pm
Mining 1ournal special publication, London, Pebruary 2006 11
NICRIA
wlthln en echelon quartz velns for over l km of strlke. No surface mln-
rallsatlon remalns but exploratlon drllllng by NMC has shown the
ontlnulty of the gold-quartz-sulphlde velns below the old worklngs.
At Maraba, gold occurs ln two sub- parallel quartz veln systems
about 300 m long) hosted by andaluslte- graphltlc schlsts close to the
12 Mining 1ournal special publication, London, Pebruary 2006
NICRIA
for about 900 m. Gold occurs wlth base
metal sulphldes, magnetlte and llmenlte.
The reglonal and local controls of gold
mlnerallsatlon ln the Nlgerlan Pan-Afrlcan
basement are prlmarlly structural, conslst-
lng of transcurrent fault systems and
subsldlary faults and other penetratlve
structures. Peglonal faults were probably
the maln plumblng system from whlch
gold-bearlng hydrothermal nulds were
subsequently focused lnto the subsldlary
fault and other structures. Thelr lnterac-
tlon wlth sultable wall rocks or structures
caused gold deposltlon. Gold exploratlon
ln the Nlgerlan Pan-Afrlcan basement
should therefore focus on ldentlfylng
the approprlate structural pattern and
hydrothermal alteratlon.
7AN7ALUMNIDIUM
Pare-metal pegmatltes contalnlng economlc
concentratlons of columblte-tantallte (coltan) are
wldespread ln the Pan-Afrlcan basement of Nlge-
rla. These pegmatltes are also lmportant sources
of preclous and seml-preclous stones (such as
beryl, aquamarlne and tourmallne).
Untll recently, these pegmatltes were known
malnly wlthln a broad 400 km-long northeasterly-
trendlng belt, hlstorlcally an lmportant tln prov-
lnce, stretchlng from the wamba-Kem - Nasarawa
area (near the 1os Plateau) through |sanlu-Lgbe ln
central Nlgerla to the |[ero-Aramoko-|lesha areas
of southwest Nlgerla, wlth a few occurrences ln
the Obudu and Oban masslfs of southeast Nlgerla.
Slnce the mld-l990s, new rare-metal pegmatlte
elds have been dlscovered wlthln the known
belt and ln schlst belt areas ln western Nlgerla.
nigeria.indd 12 31/1/06 3:42:02 pm
Mining 1ournal special publication, London, Pebruary 2006 13
NICRIA
The most promlnent of these areas are: 8lrnln
Gwarl (Kushaka belt), Maradun (Maru belt) and
Magaml ln the northwest, and Pategl-Oro (Lema-
Share), Oshogbo-|badan and Shakl (Oke Ogun)ln
the southwest.
Other lmportant rare-metal (tungsten-rlch)
pegmatltes are known ln the Anka and Kalama
areas, and blsmuth-rlch types ln the Zarla area.
The new dlscoverles have been made by
artlsanal mlners spurred by recent hlgh prlces for
coltan. Ore grades are very varlable between, and
even wlthln, pegmatlte bodles, generally ranglng
from <l00 ppm to >l0% (Nb+Ta). |n many areas,
conslstent grades of 250-500 ppm are noted over
large areas.
More than 500 t of columblte-tantallte concen-
trate (coltan) have been produced by artlsanal
mlners from the new pegmatltes elds slnce thelr
dlscovery. Coltan concentrates can show propor-
tlons of Ta2O5, Nb2O5 and SnO2 of l5-43%, 6-l8%
and 2-35%, respectlvely.
|n most of these new areas, there are typlcally
more than a dozen FOFDIFMPO serles of dykes, sllls
and lrregular pegmatlte bodles, usually formlng
promlnent rldges. Most of the pegmatlte bodles
seldom exceed 200-300 m ln length, or l-2 m ln
wldth, and exhlblt a varlable degree of troplcal
weatherlng. The host rocks lnclude gnelsses,
mlgmatltes, schlsts, amphlbolltes (greenstones)
and granltolds.
Although the pegmatltes have sharp contacts
wlth thelr host rocks, wallrock alteratlon (mostly
tourmallnlsatlon) ls a common phenomenon.
Another common feature of the rare-metal
pegmatltes ls thelr close proxlmlty to ma[or and
subsldlary fault structures.
The pegmatltes comprlse quartz, K-feldspar
(mostly mlcrocllne perthltes), plagloclase, mlca,
mlnor tourmallne, and occaslonally beryl, lepldo-
llte and spodumene.
Mlnerallsatlon ls ln the form of dlssemlnatlons
and dlscrete concentratlons of columblte-tanta-
llte accompanled by casslterlte, llmenlte and lron
oxldes, and occaslonally wolframlte, blsmuthlnlte
and nuorlte.
|n some pegmatltes, the ore mlnerals may be
predomlnantly casslterlte and/or wolframlte.
Most of the Nlgerlan rare-metal pegmatltes are of
granltlc orlgln.
7antaIite occurrences in Nassarawa State
"CPWF(FPMPHJDBMTFUUJOHPGHPMEBOEUBOUBMVNQFHNBUJUF
JOUIF,VTIBLBTDIJTUCFMUPGOPSUIXFTU/JHFSJB
3JHIU"SUJTBOBMNJOJOH
PGUBOUBMVNQFHNBUJUFT
nigeria.indd 13 31/1/06 3:42:13 pm
14 Mining 1ournal special publication, London, Pebruary 2006
NICRIA
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18 Mining 1ournal special publication, London, Pebruary 2006
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LAD AND ZINC
Lead-zlnc mlnerallsa-
tlon ln the 8enue Trough
of Nlgerla has been of
economlc lnterest for more
than a century. Mlnerallsa-
tlon ls locallsed along a
NL-trendlng belt of sllghtly
deformed volcanlc and
sedlmentary Cretaceous
sequences about 5,000 m
thlck.
The trough ls belleved
to have orlglnated durlng
the separatlon of the
Afrlcan plate from the
South Amerlcan plate,
and can be partltloned
lnto lower, mlddle and
upper reglons, lead-zlnc mlnerallsatlon occurs
throughout the entlre 800 km length of the
trough. The type localltles lnclude Akwana, Arufu,
Amerl, Ameka, Lnylgba, |shlagu zurak and Gwana.
The best reserves are at Lnylgba (Nyeba), Amerl,
Ameka, Arufu, Akwana and Zurak. Deposlts are
stlll belng explolted on a mlnor scale and NMC
has estlmated remalnlng reserves at about l.5 Mt
averaglng 7% comblned Pb/Zn.
|n the Lower 8enue Trough deposlts (|shlagu,
Lnylgba, Amerl and Ameka) ore ls hosted ln Lower
Cretaceous carbonaceous shales, and gener-
ally occurs as open veln lllngs assoclated wlth
sub-vertlcal fault systems. Contacts are sharp and
brecclated, and the ore grade averages about l2%
Pb/Zn, wlth a lead to zlnc ratlo of 2:l.
The Lnylgba lode, the largest mlnerallsed body,
ls 2 km ln length and approxlmately 30 m wlde.
The Amerl lode, to the south of the Lnylgba lode,
trends almost N-S and appears to be an extenslon
of Lnylgba. The Amaka lode lles to the southeast
of the above two lodes.
|n the Mlddle 8enue Trough, velns at Akwana
and Arufu are hosted ln slllcled llmestones, are
generally sub-vertlcal, 0.5-l0 m wlde and extend
along strlke for approxlmately l00 m. Contacts are
sharp and grades vary from 3-5% comblned lead
and zlnc. At Azara, the velns are rlch ln barlte.
|n the Upper 8enue Trough, lead and zlnc
mlnerallsatlon occurs ln velns and velnlets ln
fractured quartz and sandstones at slx localltles ln
8auchl State.
These velns and velnlets range ln length
between l50-l,000 m and are 2-5 m ln wldth.
Most of the velns have been explolted ln the past
and are stlll worked by artlsanal mlners. Pyrlte and
chalcopyrlte are found ln assoclatlon wlth some of
these deposlts. Prevlous mlnlng has been based
on two parallel velns at |slmaya, and slngle velns
at Dl[l and Gldan Darl.
|t ls belleved that the lead-zlnc mlnerallsa-
tlon ln the 8enue Trough formed as a result of
brlne clrculatlon under the lnnuence of shallow
convectlve systems drlven by magmatlc lntru-
slons, wlth the ore components probably derlved
from compactlon and brlne release ln the basln.
CDAL
Coal exploratlon ln Nlgerla began ln l9l6 and
coal seams (malnly sub-bltumlnous steam coals
except for the Laa-Obl bltumlnous coklng coal)
occur ln more than 22 coalelds spread though l3
states. Proven reserves total about 639 Mt, wlth a
further 2,750 Mt ln the lnferred category.
There are four exlstlng operatlons, the Okpara
and Onyeama underground mlnes ln Lnugu
State, the Aba surface mlne ln Kogl State and the
Owukpa underground mlne ln 8enue State. |n
addltlon, there are l3 coalelds that have yet to
be developed. Of these, some requlre further ex-
ploratlon and road lnfrastructure, whereas others
have proven reserves and mlne access roads have
been developed.
The latter coalelds lnclude: the Azagba llgnlte
(Delta State), Ogboyoga (Kogl, Lzlmo and |nyl
(Lnugu) and Laa-Obl (Nassarawa). Other coal-
elds ln thls category lnclude Amanslodo (Lnugu),
Ute (Ondo), Lamla (Adamawa), Glndl-Akuntl
(Plateau), Afuze (8auchl), 1anata-Ko[l (Kwara) and
a southern extenslon of the Okpara mlne (Lnugu).
Untll the late l960s, Nlgerla's coal provlded all
the energy requlrement for the country's lndus-
trlal sector, whlch lncluded Nlgerlan Pallways,
Llctrlclty Corp of Nlgerla (now Natlonal Llectrlc
Power Authorlty) and Nlgerla Cement Co (Nlger-
cem). |n addltlon, coal was used for domestlc
cooklng and other lndustrlal appllcatlons.
Coal's leadlng role ln the Nlgerlan energy mlx
started to decllne wlth the dlscovery of oll ln com-
merclal quantltles ln the l950s. |ts demlse was
hastened by the Nlgerlan clvll war (l967-70) when
all the country's coal mlnes were abandoned.
|n llne wlth the government's prlvatlsatlon
pollcy, Nlgerlan Coal Corp ls belng prlvatlsed
through the 8ureau for Publlc Lnterprlses (8PL).
I7UMN
8ltumen was rst reported ln Nlgerla ln l900 and
exploratlon began ln l905 when the Mlneral Sur-
vey of Southern Nlgerla drllled shallow boreholes
ln the westernmost part of the so-called tar-sand
belt. Slnce then, over l00 exploratory holes have
been sunk throughout the belt, and about 40
more are belng planned for 2006. 8ltumen depos-
lts occur along a 5-8 km-wlde belt stretchlng for
over l20 km from Lagos to Ogun, Ondo and Ldo
states.
Lvaluatlon of the technlcal, economlc and
commerclal feaslblllty studles on the exploratlon,
development, transportatlon and renement of
tar sands has been accompllshed ln collabora-
tlon wlth Conoco of the US, and a resource of
over l3 bllllon barrels of oll equlvalent has been
estlmated.
The tar sands and bltumen seepages occur
along the northeastern frlnge of the 8enln 8asln,
whlch straddles the border between Nlgerla and
8enln. The basln ls belleved to have developed
durlng the beglnnlng of rlftlng assoclated wlth
the openlng of the Gulf of Gulnea durlng Upper
1urasslc-Lower Cretaceous tlmes. The onshore
part of the basln covers a broad arcuate area of
some 600 km
2
, and attalns a maxlmum wldth,
along lts N-S axls of some l30 km.
CeoIogicaI acquisition
and dissemination
THL Geologlcal Survey ln Nlgerla evolved as far
back as l903 and l904, when the Mlneral Surveys
of the Southern and Northern Protectorates of
Nlgerla were establlshed by the 8rltlsh Secretary
of State for the Colonles.
The Mlneral Surveys were mandated to carry
out broad reconnalssance surveys for mlneral
Lead-zinc mineraIisation in bonyi State
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Mining 1ournal special publication, London, Pebruary 2006 19
NICRIA
resources ln the two protectorates as potentlal
sources of raw materlals for lndustrles ln the UK.
Deposlts of tln, columblte, llmestone, bltumen,
lead, zlnc, coal, pottery clays, lron, gold, marble
etc were dlscovered ln varlous parts of the
country.
The Geologlcal Survey of Nlgerla (GSN) came
lnto exlstence ln l9l9 as an autonomous body. 8y
l930, permanent headquarters were establlshed
ln Kaduna, wlth a satelllte om ce ln 1os to expedlte
lts actlvltles ln the tln elds. Subsequently,
Kaduna remalned the eld headquarters but the
admlnlstratlve headquarters was moved to Lagos,
then the capltal clty.
Soon after lndependence ln l960, the
autonomy of the GSN was wlthdrawn and lt was
admlnlstered as a department, at varlous tlmes
under the supervlslon of several mlnlstrles. Thls
made lt extremely dlm cult for the GSN to carry
out lts functlons enectlvely.
The new Solld Mlnerals Pollcy (l998) developed
by the Mlnlstry of Solld Mlnerals Development,
recognlsed the need to allow the GSN to functlon
as an autonomous agency ln llne wlth worldwlde
practlce. The establlshment of the Geologlcal
Survey of Nlgerla Agency (GSNA) was approved ln
2000 and became operatlonal ln 2003. The GSNA
has lts headquarters ln Abu[a, a Natlonal Pesearch
Laboratory and Llbrary ln Kaduna, om ces ln 36
states, plus an om ce for the Pederal Capltal Ter-
rltory
7H CSNA 7DDAY
Slnce lt became operatlonal, the GSNA's mlsslon
ls to become a proactlve, open, nexlble and
knowledge organlsatlon worklng actlvely wlth
partners to provlde geosclentlc lnformatlon and
knowledge for wealth creatlon, lnfrastructure and
sustalnable development. |t alms to re-emerge as
the ultlmate referral polnt for geosclence lnforma-
tlon ln Nlgerla.
The GSNA's functlon ls to:
a) serve as a reposltory of all geologlcal and
mlneral exploratlon data generated by varlous
organs of government, the prlvate sector and
all educatlonal and research lnstltutlons,
b) process, package and dlssemlnate such data
ln the form of publlshed maps, bulletlns, re-
cords, occaslonal papers etc, and update these
publlcatlons perlodlcally as deslgnated,
c) carry out geologlcal mapplng of the country
by alrborne, remote-senslng technlques and
ground surveys, and undertake other surveys
at varlous scales so as to malntaln up-to-date
knowledge of the geology and an lnventory
of the mlneral resources of the country's land
mass and ad[acent contlnental shelf areas,
d) explore and evaluate the country's mlneral re-
sources by geologlcal, geophyslcal, geocheml-
cal, drllllng and remote senslng technlques, so
as to dlscover and dellneate them, determln-
lng thelr quallty and reserve,
e) recelve, store and study maps, report records
and samples from all companles holdlng mln-
eral llcences who, by leglslatlon, are requlred
to lodge coples of reports wlth the GSNA,
f) have control over the stratlgraphlc coverage
of the country and excluslve authorlty to
publlsh the om clal geologlcal maps.
DA7A CNRA7IDN AND MAPPINC
The GSNA has a robust programme for data acqul-
sltlon focuslng largely on lnvestor needs. The
programme lncludes:
Q reglonal mapplng of the 36 states of the
Pederatlon and the Pederal Capltal Terrltory,
Q alrborne geophyslcal surveylng over the entlre
country (923,768 km
2
) to lnclude l.94 mllllon
llne kllometres of magnetlc and radlometrlc
data, and LM surveys ln some target areas,
Q reglonal geophyslcs ground follow-up,
conslstlng of vLP/|P, reslstlvlty and gravlmetrlc
studles,
Q geologlcal mapplng of m lneral targets ldentl-
ed from alrborne surveys, eld mapplng,
artlsanal actlvlty and local knowledge,
Q development of mlneral occurrence data-
bases, and
Q productlon of maps and databases ln dlgltal
format.
DICI7AL CDLDCICAL MAPS AND DA7AAS
The GSNA and lts predecessors have been
lnvolved ln geologlcal mapplng slnce l9l3. Many
maps were hand-drawn, and most of the data and
accompanylng reports have now been collated ln
analogue format.
Through lts new G|S unlt, the GNSA has
produced dlgltal geologlcal and mlneral maps for
the country. Paster and vectorlsed verslons of the
maps have been produced and are avallable as
DXP (Autocad ) or APC (Arcvlew) les.
|n addltlon, the GSNA lnherlted a database
of mlneral occurrences conslstlng of about 500
records, and thls database ls belng upgraded as
new lnformatlon emerges. The lntentlon ls to
make all lnformatlon avallable ln dlgltal format.
AIRDRN CDPHYSICAL SURVYS
The acqulsltlon of comprehenslve credlble geo-
physlcal data began ln l972, when Huntlng Geol-
ogy and Geophyslcs Ltd and Palrey Surveys Ltd
were commlssloned to carry out alrborne surveys
over vlrtually the entlre country. The country was
dlvlded lnto slx zones:
1 Nlger Delta and onshore reglons
2 Lower 8enue
3 Upper 8enue
4 Chad 8asln
5 Central North
6 Sokoto and Mlddle Nlger
(Zones 2,3 and 6 lncluded both magnetlc and
radlometrlc surveys, whereas coverage of zones l
and 4 was conned to a magnetlc survey.)
The surveys were nown at an altltude of 200 m
at a llne spaclng of 2 km and a tle-llne spaclng of
20 km. Data are avallable ln analogue contoured
maps and are valuable for reglonal studles, espe-
clally where the area of lnterest extends for more
than l.5 km.
New, more preclse surveys, were lnltlated
ln 200l. They comprlse xed-wlng alrborne
gradlometer and radlometrlc geophyslcal
surveys, nown at a llne spaclng of l00 m, a tle-llne
spaclng of 500 m and a nylng altltude of l00 m.
Phase l, representlng 44% of the country ls due
for completlon ln 1uly 2006. Data for thls phase
are belng released on completlon of each block.
Phase 2 (the rest of the country) was due to be
awarded ln 1anuary 2006 and ls expected to be
completed ln December 2006.
PubIished by:
Mlnlng Communlcatlons Ltd
Albert House
l Slnger Street
London LC2A 48Q
Tel: +44 (0)20 72l6 6060
Pax: +44 ( 0)20 72l6 6050
L-mall: edltorlalQmlnlng-[ournal.com
www.mlnlng-[ournal.com
Supplement edltor: Poger Lllls
Deslgn and productlon: Kelth 8aldock
Prlnted by Stephens & George, Merthyr Tydl, UK
Mlnlng Communlcatlons Ltd 2006
5IFDPWFSQJDUVSFTIPXT
;VNB3PDL"CVKB
nigeria.indd 19 31/1/06 3:42:48 pm
20 Mining 1ournal special publication, London, Pebruary 2006
NICRIA
THL Nlgerlan Government has ldentled solld
mlnerals as one of the slx key sectors for the
dlverslcatlon of the economy. The world 8ank
ls provldlng support by provldlng nance for the
Sustalnable Management of Mlneral Pesources
Pro[ect. The pro[ect focuses on lmprovement
ln sectoral governance and transparency, the
organlsatlon of small-scale and artlsanal mlnlng
for poverty reductlon, and the creatlon of an en-
abllng mlnlng envlronment for large-scale mlners.
The pro[ect ls lntended to lncrease the
government's long-term lnternatlonal and technl-
cal capaclty to manage Nlgerla's mlneral resources
ln a sustalnable way, and to establlsh a basls for
poverty reductlon and rural economlc renewal
ln selected areas of the country by generatlng
opportunltles ln artlsanal and small-scale mlnlng.
The pro[ect has three components:
Strengthening governance and transparency
in mining: Actlvltles belng pursued under thls
component are:
Q development of a computerlsed Peglstry and
Mlnlng Cadastre System ln accordance wlth
lnternatlonal best practlces, lncludlng the re-
valldatlon of the exlstlng mlneral tltles across
the country (already under way),
Q lnstltutlonal capaclty bulldlng to provlde
for em clent publlc mlnlng lnstltutlons and
transparent management of the sector, and
Q development of good envlronmental and so-
clal management practlces wlthln the mlnlng
sector - a Sectoral Lnvlronmental and Soclal
Assessment (SLSA) for the mlnlng sector has
been developed.
Private sector deveIopment: |n order to pro-
mote lnvestment ln the mlnlng sector, the pro[ect
ls supportlng the Geologlcal Survey of Nlgerla
Agency (GSNA) ln geophyslcal and geochemlcal
mapplng, mlnerals assessments and the develop-
ment of a natlonal solld mlnerals lnformatlon
system.
.conomic deveIopment and diversication
in artisanaI and smaII-scaIe mining areas: Thls
alms at asslstlng small-scale mlners and lmprov-
lng the llvellhood of the host communltles, whlch
depend dlrectly or lndlrectly on the exploltatlon
of solld mlnerals. The followlng actlvltles are be-
lng carrled out:
Q basellne studles to determlne the lmpact of
small-scale mlnlng on soclal, economlc, health
and gender lssues ln mlnlng communltles,
Q communlty-drlven pllot pro[ects almed at
lmprovlng technlcal, envlronmental, health
and soclal condltlons of small-scale mlnlng
operatlons and communltles,
Q upgradlng the School of Mlnes at 1os to a
centre of excellence for mlnlng englneers and
geologlsts,
Q support for prlvate-sector lnstltutlons, and
Q studles on speclc lndustrlal mlneral com-
modltles, such as barlte, gypsum and benton-
lte, wlth emphasls on lmport substltutlon and
sector development.
SustainabIe Management of MineraI Resources Project
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