Mining continues to dominate that

dubious category of Nigerias second

tier of industrial endeavour. Dwarfed by
the contribution of oil to the nations GDP
(3% of the worlds oil supplies come
from Africas most populous nation) the
solid minerals sector has been charac-
terised more by its economic potential
than its ability to deliver tangible wealth
in recent years.
It was not always like this. Before the
discovery of oil and gas it was solid min-
erals that largely sustained the Nigerian
economy, coal and tin being among those
natural resources being mined and
exported on a scale unthinkable today.
But poor management by state-owned
enterprises, compounded by corruption
and an altogether incoherent exploitation
of the nations undoubted yet hitherto
largely inaccessible mineral riches, have
thwarted efforts to develop the industry.
International blue-chip mining com-
panies have given it a wide berth, but its
underperformance in recent years,
which President YarAduas administra-
tion puts down to neglect, maladminis-
tration and simple lack of technical
expertise, could be coming to an end.
The price of regeneration in the solid
minerals sector, however, could be high;
very high indeed. If Nigeria is to achieve
its aim of being one of the top 20 world
economies by 2020, it would need to
inject up to USD10 billion a year into the
industry for the next decade, according
to some reports.
For some years government has
acknowledged the need to simplify the
procedures for obtaining mining licenses
and streamline the red-tape necessary to
attract investors. And the presidents
ministerial reshuffle is widely expected to
result in the impetus necessary to
remove the inertia that has stifled devel-
opment in the sector.
The potential rewards for investors
are immense, as are the rewards for
Nigeria itself, not just in contribution to
the national coffers, but as a means of
arresting the drift of labour from poor
rural areas to the more affluent urban
concentrations. But to exploit the sub-
stantial known reserves of gold, tanta-
lite, lead, zinc and bitumen, along with a
range of industrial minerals, Nigeria is
aware that it must first attract the tech-
nical expertise and financial muscle of
foreign investors.
There are encouraging signs that this
may be about to happen. Recently, the
Australian mineral exploration company,
Erin Resources, through its Nigerian
operating company Erin Mineral
Resources, declared it was to invest
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Solid Minerals Overview
Digging deep for Nigerias second wealth

NGN2.316-billion (USD20 million) in the

sector. Erin has set its sights on five proj-
ects in its first year, including exploration
for deposits of gold, nickel, diamonds,
tin, copper, lead, zinc, molybdenum, ura-
nium and iron.
In another move to modernise the
industry, which has traditionally been
artisanal in nature, the Nigerian Ministry
of Mines and Steel Development an-
nounced plans in November 2008 to reg-
ister some 400 mining cooperatives,
essentially formalising small scale min-
ing businesses. The ministry said that
the move would enable miners to access
a USD10 million World Bank loan and
other funds to develop the sector.
More recently and in the wake of
plummeting crude oil prices, the
President of the Senate, Chief David
Mark, called for deeper exploitation of
the countrys solid minerals as a way of
surviving the current global economic
crises. Mark, in a keynote address to the
Nigeria Solid Minerals Summit (NISOMS)
held in Jos, also invited banks and other
investors to take advantage of the liber-
alization of the sector. Chairman of the
Senate Committee on Solid Minerals,
senator Thompson Sekibo added his
own voice to the debate and called for the
use of public private partnership (PPP)
schemes as a way of boosting develop-
ment of the solid minerals sector. Mark
said: It is a need that must be met if we
wish to survive as a nation in the current
global economic crises. He continued:
There is the enabling environment for
the exploitation of Nigerias solid miner-
als resources. The National Assembly
have promulgated Acts that would
ensure smooth investment in the indus-
try, especially the Nigerian Minerals and
Mining Act of 2007, among others. I en-
courage both local and foreign investors,
small scale and artisanal miners to take
advantage of this opportunity. So also,
our banks should as a matter of neces-
sity begin to show keen interest in
investing in the industry by way of grant-
ing loan facilities to serious miners (in
the same way as) in other parts of the
world.
At present the solid mineral sector
accounts for about 1% of Nigerias GDP,
yet the country has significant coal and
iron ore reserves, in addition to known
deposits of gold, uranium, tin and tanta-
lum. Three years ago, the World Bank
put in place a USD120 million package in
aid to grow the solid minerals sector in
the country, repayable over a 30 year
period. It is believed to be the biggest of
its kind extended to any one nation. The
World Banks chief representative in
Nigeria, Craig Andrews, recently went
on record as saying that the project had
made very significant progress towards
achieving its development objectives.
These included the ongoing airborne
geophysical survey of Nigeria, and geo-
chemical mapping studies.
It is widely acknowledged that sever-
al factors are set to stimulate the min-
ing sector. Foremost among these are
Nigerias metallic and non-metallic min-
erals; second, international investors
are now showing more than a passing
interest in joining the search and are
prepared to bear the costs of exploration
and the risks that come with it, given an
increasingly favourable policy frame-
work. Free repatriation of capital, prof-
its and dividends are added incentives.
Solid minerals remain at the heart of
the governments ambitions to bring
diversity to an increasingly oil and gas-
centric economy. And following initia-
tives by put in place by the Federal
Ministry of Commerce and Industry, it is
hoped that still further diversification
will follow in its wake, not least in areas
such as iron and steel production, the
non-ferrous metals sector, the fabrica-
tion of metal products and consumer
durables.
With a string of known assets gem-
stones, kaolin, tantalite, bitumen, rock
salt, gypsum, lead, zinc, bentonite, barite
and coal, to name but a few Nigerias
leaders believe the country has much to
offer investors. And recent political
adjustments have shown a growing
awareness that public-private partner-
ships will play an increasingly important
role in the development of this poten-
tially vibrant sector.
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The World Banks chief representative
in Nigeria, Craig Andrews, recently went
on record as saying that the project had
made very significant progress towards
achieving its development objectives.
With a string of known assets gemstones,
kaolin, tantalite, bitumen, rock salt, gypsum,
lead, zinc, bentonite, barite and coal, to
name but a few Nigerias leaders believe
the country has much to offer investors.
Nigerias solid minerals are in many
cases a much under-utilised national
resource. A good example is its iron ore.
Although the country has an estimated 3
billion tonnes of iron ore in deposits
found in Kogi, Enugu, Niger, Zamfara
and Kadjuna states, the country current-
ly supports only a modest domestic iron
and steel industry. All that could be set
to change, however. In April 2008, a new
National Minerals and Metals Policy set
out to prioritise the development of
seven strategic minerals, among them
iron ore. The others are coal, bitumen,
limestone, barites, gold and lead/zinc.
And an internationally-attended confer-
ence held in Lagos in 2008 set out a 25-
point plan, or road map, designed to
breathe new life into the industry.
Iron is currently being mined at Itakpe
in Kogi state, which is at the centre of the
region known for its crystalline iron
deposits. The large deposit of iron ores
of Kogi and Enugu have yet to be fully
explored, but high quality iron ores
extracted at Itakpe and having concen-
trations of 67% iron (Fe) supply Nigerias
Aladja and Ajaokuta steel companies.
Mining is undertaken by the National
Iron Ore Mining Company for the
Ajaokuta Steel Plant and for the produc-
tion of super-concentrates for the Delta
Steel Plant at Aladja near Warri.
Additional demand has come from sev-
eral steel rolling mills, while export of
excess iron ore beyond what can be
processed domestically is currently
being explored.
Mining in general in Nigeria accounts
for only 0.3% of its GDP, and of iron ore
only a small proportion of that, thanks
largely to its vast oil resources having
become the countrys top priority.
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Solid Minerals: Iron Ore
Renewed effort is emerging to prepare iron and steel making for the 20/2020 Vision
Iron is currently being mined at Itakpe in
Kogi state, which is at the centre of the
region known for its crystalline iron
deposits.

Organized mining began as early as 1903

and by the 1940s, Nigeria was a major
producer of tin, columbite, and coal. But
the discovery of oil stalled development
of the mineral extraction industries, as
government and industry both began to
focus on this new resource. Iron ore was
similarly a victim of the oil boom.
In August last year the Federal
Ministry of Mines and Steel Development
hosted a conference in Lagos to explore
what can be done to develop the coun-
trys deposits of iron ore and formalise
the steelmaking industry, so that it could
play its part in realising YarAduas much
trumpeted 20/2020 vision. It concluded
with the sketching of a 25-point agenda
to stimulate development in the industry.
It covered issues such as the building of
railway lines to service the steelmaking
facilities and other infrastructural
measures, and the additional steps that
government should take to create an
investment friendly environment.
The then minister of state, Alhaji
Ahmed Mohammed Gusau, in his key-
note address told delegates it was
important to recognise the important
role the metals industry had to play in
growing and diversifying the Nigerian
economy. Among the recommendations
arising from the event were calls for gov-
ernment to encourage structural reform
in the metals industry through capacity
building of its manpower base, which
had become severely depleted in recent
years.
The measures are aimed at formalis-
ing a largely disparate industry. In par-
ticular, it was concluded that the Metal-
SOLI D MI NERALS
EcoPhoenix Limited is Nigerias leading company focusing on the acquisition, exploration and
development of primary gold and base metal prospects throughout Nigeria. Driven by new techno-
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EcoPhoenix
The Exploration
Company
Abuja Office - EcoPhoenix Limited
Oyo State House (First Floor), Ralph Shodeinde Street, Abuja, Nigeria. By Federal Ministry of Finance, Central Business District
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Kaduna Office - EcoPhoenix Limited
29, Gwamna Road, Kurmin Mashi, Kaduna State.
Phone/Fax: +234 (0) 62 413057; 413047 (Office), E-Mail: ecophoenixltdnig@yahoo.com
... it was important to recognise the
important role the metals industry had
to play in growing and diversifying the
Nigerian economy.
lurgical Training Institute (MTI) and
other institutions had to be strength-
ened to meet the demands of the steel
sub-sector of the national economy. And
there was also a call for the government
to create the appropriate legal and reg-
ulatory framework to control operations
in the metal industry in terms of quality,
safety and environmental controls.
There were more specific recommen-
dations concerning the infrastructure
deemed necessary if the industry is to
flourish. They include the urgent com-
pletion of the rail line from Ajaokuta to
Delta Steel, Aladja, and an extension of
it to Warri Port, where there was a need
also for bulk handling and storage facil-
ities. Moreover, the conference noted, it
was vital to ensure that road and rail
links to locations of raw material were
completed without further delays. It rec-
ommended the construction of a rail link
from Ajaokuta to Oturkpo for the haulage
of cooking coal.
Some help is already in place for
those wishing to help develop the min-
ing sector generally. There is free repa-
triation of capital, profits and dividends,
and World Bank finance is now available
through various agencies, including the
Multilateral Investment Guarantee
Agency (MIGA), the International Bank
for Reconstruction and Development
(IBRD), the International Finance Cor-
poration (IFC) and the International
Development Association.
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SOLI D MI NERALS
205 CORPORATE GUI DES| NI GERI A
Leaders in Nigerias New Exploration Initiative
Nigeria is a nation richly endowed with a wide variety of
solid minerals. However, many of the known solid miner-
al occurrences and resources in Nigeria have yet to be fully
explored and developed into economically viable mining
operations.
EcoPhoenix Limited is Nigerias leading private exploration
company and was specifically created to operate under the
Nigerian Governments recent new initiatives to reform the
Solid Minerals Sector of the economy. These new initiatives
include radical legislative and structural reform, as well as
the change in the nature of Governments participation in
the Solid Minerals Sector and the introduction of private
sector investment incentives. All these factors are designed
to diversify and consolidate the nations economic base
whilst at the same time catalysing the rapid processing of
licence applications and the involvement of foreign and
local exploration companies.
EcoPhoenix Limited operates two offices in country, the
Head Office in Abuja and an Operations Office in Kaduna.
The company is focused on the acquisition, exploration and
development of gold, base metal and energy prospects
throughout Nigeria. The company implements interna-
tional standards for all its exploration activities and
engages the services of internationally respected con-
sulting groups and local centres of academic excellence.
Our operations are conducted with due recognition of
international environmental standards and a desire to
utilise the best of local human and physical resources.
Our objective is to explore for gold, base metal and energy
deposits, of commercially viable size and grade, which can
sustain profitable medium to long-term mining operations.
Initially we are targeting areas of known artisan workings
or sites of known historical mining activity in order to fast-
track the exploration and development of the deposits. We
utilise the latest geological, geophysical, and geochemical
techniques harnessed with the best data processing capa-
bilities to bring projects on line, in time and on budget.
Our staff has a wide range of experience across disciplines
relevant to our core business. With managers who have
operated in South Africa, Zambia, Ghana and Kazakhstan,
we can boast of extensive experience of working in coun-
tries that are willing to encourage the development of
their mineral endowment by introducing radical changes
to their governments involvement and governing legis-
lature. Our exploration department is staffed by a team
with considerable expertise in remote sensing, GIS, min-
eral exploration and environmental control. With many
years of experience in more than 30 countries between
them, the exploration team understands the challenges
of working with diverse cultures and in developing
nations. Our geological team has experience from across
the African continent, backed up by experts in a broad
range of geological and mine IT and software skills.
The EcoPhoenix team includes members who have held
internationally recognised positions in the industry, such
as our Managing Director, who was General Manager at
Ashanti Goldfields Corporation, Ghana for 7 yrs, as well as
serving as Chairman of the Ghana Chamber of Mines
Technical Committee. He was also a founding member and
Vice President of the Mining Association of Kazakhstan.
Our Director of Exploration has spent six years as Field and
Remote Sensing Geologist with Hunting Geology and
Geophysics UK and eight years with Anglo American Corp
SA as Divisional Remote Sensing Geologist.
Our Chief Geologist has operated as a Geological Consultant
with CSA International Consulting Group in Liberia, as
Exploration Manager with Ashanti Goldfields Exploration in
Ethiopia and as a mine and exploration geologist for the
Ghana National Manganese Corporation in Ghana.
The team has assembled a portfolio of licences that con-
tains an exciting mixture of precious metal, base metal and
energy mineral prospects. Of these licences, the majority
are brown field projects with some mineralisation having
already been defined by extensive local working or by pre-
vious geological investigation.
EcoPhoenix Limited has the right people, in the right place,
at the right time with the right equipment to help develop
the rich mineral endowment of Nigeria.
In Focus:
EcoPhoenix Limited: Exploring the Future