Wednesday, April 2, 2014

MINING OPPORTUNITIES IN NIGERIA; BENTONITE MINING IN NIGERIA.



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MINING OPPORTUNITIES IN NIGERIA; BENTONITE MINING IN NIGERIA.

The Nigeria nation is blessed with abundant mineral resources; fossil fuels and solid minerals. The most popular being the fossil fuels since these constitute the nation’s greatest foreign exchange earner. They have, therefore, tended to overshadow the solid mineral sector of mining industry.

The mining industry in Nigeria is regulated by the The Nigerian Minerals and Mining Act of 2007,National Minerals and Metals Policy 2008 and Nigerian Minerals and Mining Regulations 2011.

About 34 minerals deposits have been identified in Nigeria and one of such is Bentonite.

Bentonite belongs to the group of clays whose technical properties are controlled by the proportion of montmorillonite, a sub-group within the smectitic clays. It is clay derived from deposits of weathered volcanic ash.

Bentonites are hydrated aluminosilicates, which composed predominantly of the clay mineral montmorillonite. They are composed of a 3-tier structure with alumina sheets’ sandwiched between tetrahedral silica units.

There are three principal types of bentonite namely:

(i) Natural sodium bentonite or sodium montmorillonite;

(ii) Natural calcium bentonite or calcium montmorillonite; and

(iii) Sodium activated bentonites or sodium activated montmorillonites

Natural sodium bentonite as the name suggests, occurs with sodium as the predominant exchange cation. They are characterized by high swelling, high liquid limit and high thermal durability. It is usually used for oil and gas drilling mud.

The vast majority of the montmorillonites occurring in abundance worldwide is of the calcium type and is referred to as calcium bentonite. Much lower swelling and liquid limit values compared to natural sodium bentonite, characterize them.

Calcium bentonite is used as a bleaching agent in cooking oil industries, bleaching agent in lubricant oil recycling, as a catalyst, absorber, filler, etc.

Benitonite has a wide range of industrial uses.

- It is used as foundry sand bond in iron and steel foundries and in iron ore pelletizing in metallurgy; this is probably the largest use for bentonite;

- As insulators in civil engineering;

- As an efficient materials for drilling mud (because the gel-like suspension it forms in water)

- As bleaching clay in oil refining; clarifying and decolourising;

- Filtering agent for clarifying wine, beer and treating waste water;

- Ingredient in cosmetics, animal feeds and pharmaceutical;

- Colloidal fillers for paints, and decolourising agent in food industries;

- As soil conditioner, carrier for insecticides/pesticides, coating for seeds and mineral additive in agriculture.

The availability of bentonite in Nigeria and the wide range of industrial application enhance the attractiveness of the bentonite processing ventures.

The present level of consumption is about 200,000 MT (for oil well drilling only); much of this is sourced from the foreign market.

Bentonite Deposits in Nigeria

Marine shale units that are highly enriched in montmorillonite are found in Nigerian sedimentary basins. Notable among these are the Awgu shale in Eastern Nigerian, the Imo shale that forms a belt across Southern Nigeria, the Fika shale in the North-eastern parts, and the Dukamaje and Kalambaina formations in the North West. Many of sections of these formations are said to possess mineralogical compositions of more than 80% montmorillonite.

Most of the shale are enriched in Calcium and mixed Montmorillonite, but sections abound that are enriched in sodium. Most of the occurrences are Cretaceous or Recent in age.

Bentonite clays also exist in the North-east quadrant of Nigeria (Borno, Yobe, Taraba and Adamawa) where a probable reserve of more than 700 million tones

has been indicated. Similarly, over 90 million tones have been reportedly found in Afuze, Ekpoma-Igunebon road, Ovibiokhuan and Okpebho areas of Edo State.

Some occurrences have also been reported in Abia, Ebonyi and Anambra States.

Obtaining Mining Lease in Nigeria

There are two options available to a company or an individual to enter into the mining industry in Nigeria.

Through the acquisition of an existing mining property from the original owner. Approval must be obtained from the Ministry of Solid Minerals Development for such a purchase.

By obtaining on application, either a Prospecting Right (PR), an Exclusive Prospecting Licence (EPL), or a Special Exclusive Prospecting Licence (SEPL), the application should state financial and technical capability qualifying the applicant for entry into the mining sector.

Incentives / Government Policy on Mining in Nigeria

In order to encourage investment in the solid minerals industry in Nigeria, Government is the offering the following incentives

1. 3-5 years Tax Holiday

2. Deferred royalty payments

3. Possible capitalisation of expenditure on exploration and surveys

4. Extension of infrastructure such as roads and electricity to mining sites, and provision of 100% foreign ownership of mining concerns.

The percentage of royalty charged in the mining industry in Nigeria range between 3%- 5%.

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The training cuts across different segment of the economy to include Agriculture, Export and Import, Food and Beverage, Manufacturing, Mining and Quarry, Oil and Gas, Retail Industry, Telecommunication, Tourism and Transportation and are facilitated by seasoned professionals in their respective fields.

Please do visit the link below to access available training programmes

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www.nigeriaoilandgasportal.com { The one stop for the oil and gas industry in Nigeria}
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