The Raw Materials Research and Development Council (RMRDC), is working with stakeholders and researchers for the development of solid minerals sector as panacea to Nigeria’s economic diversification agenda. BINTA SHAMA reports.
Huge solid minerals endowment
Study, shows that Nigeria is endowed with over 34 commercially viable solid mineral deposits that spread across the country. Since 1903, the country had been involved in exploration and exploitation of some of these minerals till independence 1960. Among the minerals exploited during these period are mostly tin, columbite, and coal which contributed to economic development. The annual Nigeria Extractive Industries Transparency Initiative (NEITI) Solid Minerals Audit Report put total revenue from the sector in 2013 at N33.86 billion, and in 2014 at N55.82 billion accounting for just 0.11 per cent of GDP.
In 2015, a marginal growth was recorded in solid minerals mining with accrued revenue hitting N69.2 billion and amounting to 0.33 per cent contribution to GDP. However, figures published by the National Bureau of Statistics (NBS) showed that the minerals and mining sector contributed 0.55 per cent to Nigeria’s GDP in 2016 while the corresponding figures were 40 percent,
In the last two decades, the global demand for mineral commodities has been on the increase. The increasing interest of the government in solid minerals development is to take advantage of increase in international commodity prices and global resurgence of exploration activities coupled with potential benefits to the economy.
Foreign Direct Investment
Foreign Direct Investment (FDI) in the non-oil sectors was not encouraged due to restrictions in favor of local and national enterprises, until 1995, when government relaxed virtually all restrictions. The situation was not helped by the Indigenization Decree of 1972 which led to exit of the multinational companies and their professional expatriates, leaving the bulk of mining operations to small-scale miners. This led to the decline in the production of metallic minerals. As a consequence, Nigeria now accounts for only 15 percent of all FDI inflows to Africa. Also about a decade ago, government controlled and monopolized the industry through state-owned corporations with associated decreases in productivity before the privatization process due to low returns on investment, bad management practices, etc.
The post-July 2005 minerals sector reform brought about changes in the sector, as the national policy on solid minerals development clearly defined the role of government. In addition, the policy pursued a continued privatization drive, private sector-led ownership, liberal and transparent access in mode of operations, strengthening of methods of geological data generation, good investment drive through promotion and marketing and human capacity building.
Mining Cadastre Office
As a follow up the 2007 Minerals and Mining Act upgraded the Mining Cadastre Office (MCO) in the Ministry of Mines and Steel Development (MMSD) to the sole agency in minerals title administration. Government also developed incentives for the mineral sector and made the private sector the engine of growth. In addition National Council on Privatization (NPC) was established to take care of divestment of government companies while the One-Stop-Shop Investment Centre (OSIC) became operational March, 2006 coupled with introduction of a new visa policy to facilitate quick entry of foreign investors.
Despite the free-market reforms, the volume of investment in the sector is still low. Lack of infrastructural facilities like electricity, water & good road network also militate against investment in the sector. Minerals processing plants requires enormous amount of energy in their processing requirement. The heat needed by machines for drying calcinations, briquetting, pelletising, nodulising are mostly from electricity. There is also need to standardize locally produced solid minerals through adequate research and development. As a result, there is need for well-equipped laboratories.
Solid Minerals Policy Roadmap
The federal government, through the Ministry of Mines and Steel Development, re-launched the Solid Minerals Policy Roadmap in September 2016. This aimed at ensuring policy continuity and consistency in the sector. The assiduous efforts of the government may however havestarted yielding results. The Minister of Mines and Steel Development in 2022, disclosed that advanced exploration and mining for gold, silver and lead has commenced in Baba Tsauni Area of Gwagwalada in the Federal Capital Territory.
RMRDC initiative
The Council at inception, recognized the need for the development Nigeria’s solid minerals resources for industrial use. The reports of multidisciplinary techno economic studies on the minerals sector coordinated by the Council in the 1990’s to the mid 2000’s identified most of the solid mineral resources, their locations, beneficiation processes required, their current uses and industrial potentials.
Based on these, the Council initiated programmes and projects designed to develop them through quality assessment and characterization, research and development, pilot plants establishment and investment promotion using joint venture instruments. Follow up actions led to establishment some indigenous solid minerals processing companies. As at 2002, the annual national demand for cement was over 10 MT, while local production was about 2 million MT. With the support and concerted efforts in promoting investments, Nigeria has achieved self-sufficiency in cement production with potential to export. Today the country produces over 50 million MT/annum. By 2006, about 35 solid minerals processing companies have been established in various states of the federation processing kaolin, calcite limestone, phosphate, barite, talc and dolomite.
Collaboration efforts
The Council’s efforts in collaboration with those other relevant MDA’s have led to the characterization and classification of most of the deposits of these minerals in the Country. Investment promotion activities and joint venture programmes in collaboration with private sector organisations have resulted in the design, fabrication and installation of granulated limestone processing plant in Calabar, Cross River state and hydrated lime production plant in Kwakuti, Niger state in collaboration with Bembu Mining and Engineering Services Ltd. The Council also incorporated a company named Finestones Processing Nigeria Ltd. Located in Calabar, Cross-River State, for the processing of granulated limestone for fertilizer blending purposes. The entire equipment required for the granulated limestone production was designed, developed, fabricated and installed by an indigenous company, Musabaha Nigeria Limited. The plant has an installed capacity for the production of 20,000 tonnes of granulated limestone per annum. To promote increased capacity utilization in the cement industry, the council has designed and fabricated a gypsum scrubber/washer for the beneficiation of Gypsum for POP and Cement manufacturing.
Collaboration with mandated research institutes, private sector investors and state governments have also resulted in establishment of small scale plants to process raw materials found in commercial quantities in several localities. Some of the projects include: Talc processing Plant in Kagara (Niger State), Phosphate Rock Benefication plant (Sokoto state), Phosphate Beneficiation Plant, Ifo (Ogun state), Kaolin Processing Plant, Gwarzo (Kano state), Fertilizer Blending Plant, (Enugu state), Granulated Limestone Plant, Calabar, (Cross River state), Pharmaceutical Grade Kaolin Plant, Kankara, (Katsina state), Integrated Mineral Grinding Plant, Owerri, (Imo state). These plants have stimulated the emergence of several SMEs. For instance, substantial quantity of raw phosphates used by Kaduna Super Phosphates are met through some of the companies established through the initiative. Likewise, the Kankara Kaolin beneficiation plant has led to establishment of many small scale companies that supply kaolin for fertilizer production locally.
Research and development
Through its R&D programme, the Council had been able to set up plants for production of laboratory chemicals and reagents for Schools, Caustic Soda and precipitated calcium carbonate production, upgrade indigenous process used by native communities in Nassarawa state to add value to raw salt and to promote investment in local salt processing, pproduction of calcined kaolin to replace 40% of imported titanium dioxide in paint making using the kaolin deposit in Alkaleri. In addition, RMRDC has been able to develop a protocol for producing pharmaceutical grade talc from locally mined ore deposits at Kagara, Niger State. Likewise the R&D programme has led to production of ceramic water filter candles and other ceramic products such as tiles, porcelain, china wares, etc. local using kaolin, kyanite and quartzite deposits in the country.
In other to promote industrial utilization of coal in the country, RMRDC in collaboration with the National Steel Raw Materials Exploration Agency (NSRMEA) had earlier in 2017, carried out on the field and laboratory analysis of coal samples from Okaba and Ogboyega coal in Kogi state and clay samples from Ubulu-Uku and Ukwu-Nzu in Delta state to determine their suitability for the production of coal briquettes, refractory bricks and other industrial uses. The findings revealed industrial utilization potential of these commodities, and round table discussions are being held with stakeholders for investment promotion purposes.
Further innovative interventions
In order to overhaul the gemstone value chain in Nigeria the Council incorporated Business Innovations Centre (BIC) which formed partnership with Aku Engineering Limited and Mina Stones Ltd to establish a Gemstone Buying Centre at the African University of Science and Technology (AUST) Abuja. The gemstone buying centre has created a standard market that brings together gemstone producers and buyer.
