Two factors – an existing law on exploration and lack of funds – have been identified as the major hindrances to the exploration of solid minerals in the country.
Investigations by our correspondents in 11 states – Kaduna; Ogun; Anambra; Kano; Ekiti; Kwara; Cross River; Rivers; Delta; Osun; and Ondo – showed that the absence of reliable geo-sciences data, basic infrastructure, and expertise are the other reasons why investors and most states shy away from the sector.
But despite the apathy, illegal mining activities boom in most of the areas with some of the mineral deposits.
Major solid mineral deposits in the states investigated include gold; tin; columbite; feldspar; glass sand; pyrocholve; welfram; and boxide.
Others are phosphate; silica stone; copper; limestone; laterite; lead; zinc; gold stone; mica; among others.
Going by the provisions of Minerals and Mining Act Cap M12 Laws of the Federation 2004, “All minerals in, under or upon Nigeria’s continental shelf; rivers; streams; and water courses or any area covered by its territorial waters and Exclusive Economic zone belong to the Federal Government.”
According to the Act, only a corporate body registered in Nigeria can be granted a mining lease for a period not exceeding 21 years. Such lease can, however, be renewed for a further term of 10 years.
The lessee pays a surface rent in advance.
Of all the states surveyed, only Kaduna and Ogun states are currently making strong moves to substantially explore and exploit some of the mineral deposits in their domain.
A firm, Canec Nigeria Limited, a subsidiary of Canec London, was recently given the go-ahead by the Federal Ministry of Solid Minerals to start the exploration and exploitation of gold in the Birnin Gwari Local Government Area of Kaduna State.
The company is also to explore and mine other solid minerals in other parts of the state.
The state is endowed with metallic, non-metallic or industrial minerals; precious metals; precious stones; radioactive minerals; and structural building materials.
In Ogun State, the government in conjunction with the private sector recently began moves to exploit bitumen and phosphate.
A pilot tar sand plant is to be built in the state by a United States-based company, Mepro Incorporation. The state government is expected to buy 10 per cent equity share in the venture.
There are no fewer than 15 mineral resources, including phosphate; bitumen; oil and gas; feldspar; clay; silica sand; limestone; granite; and laterite in the state.
Information from the Department of Mineral Resources in the Ondo State Ministry of Special Duties indicated that two companies established by the state government were mining some mineral resources in the state before they became moribund.
The Oluwa Glass Plc, Igbokoda was making use of glass sands in the area, while the Nigerian/Italian Ceramic Products Limited was mining and using ceramic in Ifon for its products.
The Federal Government in 2003 granted licences to Bitumen Exploration and Exploitation Company Limited and NISSAND Limited for the commercial exploitation of bitumen in Agbabu in the southern part of the state.
Activities on the field have virtually ceased due to what the supervising agency, the Bitumen Project Implementation Committee, described as lack of funds.
Experts in the sector put the cost of establishing a refinery for bitumen at $5billion, an amount the two companies are said to be unable to raise because of the fear of insecurity.
Mineral deposits abound in Cross River State, but the state government appears to be more interested in the development of tourism and agriculture.
Only limestone is currently being exploited by the United Cement Company, which bought over the state defunct Calabar Cement Company.
The company is already undertaking the construction of a plant that would produce two billion tonnes of cement per annum, in Akamkpa.
The state, according to the Ministry of Special Duties, which supervises the Department of Mineral Resources, also has coal; lignite; petrol; kaolin; marble; and limestone.
States like Kano; Ekiti; Anambra; and Rivers do not even have ministries dedicated to solid mineral development.
In almost all these states, the departments of solid minerals are either under the Ministry of Commerce or the Ministry of Environment.
A policy on the development of kaoline, one of Anambra State’s key solid mineral resources, is non-existent.
The mineral, reputed to be a raw material for the production of gum and industrial chemicals, is available in commercial quantities in the state.
It was, however, gathered that over the years, the Federal and the state governments have not made any collaborative efforts to explore its potential.
A report on the mineral by the Onitsha Chamber of Commerce, Industry, Mines and Agriculture, showed that “millions of tonnes” of the resource could be obtained in the remote areas of Aguata Local Government Area.
Investigations at the Kwara State Ministry of Solid Minerals and Natural Resources revealed that although the state was endowed with natural resources, the Governor Bukola Saraki-led government has focused it attention on agriculture.
Only recently, the government brought in some of the displaced white Zimbabwean farmers to ply their trade in the state.
Illegal miners are, however, said to be smiling to banks in the state because there is almost no measures to check their activities.
The Commissioner for Solid Minerals and Natural Resources, Alhaji Aliyu Mohammed, told our correspondents that the government would have loved to go into mining but for the huge capital that was needed to do so.
Mohammed said, “You know mining is capital-intensive. We are already sourcing for a private investor so that we can go into partnership with him because if you talk about proper exploration, with the number of solid minerals available, definitely we will need about N500million and you know the risk involved, you might go into it come out positive or negative.”
In Uyo, the Akwa Ibom State Commissioner for Environment and Mineral Resources, Mr. Linus Ekon, blamed the states disinterest in solid minerals development on the MM Act.
Ekon added that, since the sole right of mineral exploitation was vested in the Federal Government, any state, individual or group that engages in mining would be doing so illegally.
Investigation in Ekiti State revealed that apart from the list that the Federal Ministry of Solid Minerals published on such endowments on a state-by-state basis, the state’s Ministry of Commerce does not even have information on the sector.
Apart from oil and gas which are prevalent in most parts of Rivers State, the state is home to numerous other resources that if exploited could earn the state huge revenue daily.
A new documentary released by the state government showed that the state is rich in clay; gravel; laterites; quartzitic sands; and hydrocarbons.
The study showed that clay could be found in all the 23 local government areas of the state in commercial quantity.
In Osogbo, the Special Adviser to Governor Olagunsoye Oyinlola, Chief Tayo Omojowogbe, identified lack of investors, expertise and laws governing exploration as the hurdles militating against the state’s efforts at mineral exploration.
Investigations showed that the government did not have data on the volume of minerals in the state.
Kano State, like other states, is blessed with abundant mineral resources, which remain largely untapped.
Some of the minerals are tin; columbite; feldspar; glass sand; kaolin; gemstones; gold stones; lead; zinc; copper; pyrocholve; welfram; gold and boxide.
Cases of illegal mining are restricted in most parts of the state to quarrying of stones used for building and road construction.
The Chief Press Secretary to the Minister of Solid Minerals, Mr. Charles Nwodo, in an interview with our correspondent also said the absence of reliable geosciences data and the lack of basic infrastructure were some of the factors hindering investment in the sector. He was silent on what the Federal Government was doing about the restrictive law, which the states complained about.
He said what was of concern to the government was the speculative attitude of operators and their huge debts in mineral rents.
Nwodo warned that such operators would have their licenses and leases revoked.
The Punch, Monday, July 18, 2005 Copyright 2005 Punch (Nigeria)
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