Nigeria expects 12 bln USD direct foreign investment in solid mineral sector

The Nigerian government said at the weekend more than 12 billion U.S. dollars of foreign investment was expected in the solid minerals sector in the next five years.

Demola Gbadegesin, an aide to the Solid Minerals Development on Privatization, said in the capital Abuja that the investment was expected from the full exploration of coal, bitumen and gold.

"There are presently over 34 identified minerals deposit spread across the country," he said, adding that the investment expected in the coal sector was 8 billion dollars, bitumen 3 billion dollars and 1 billion dollars for gold.

In the coal sub-sector, Gbadegesin said investors for the Okpara coal mine in Enugu would stake in 3 billion dollars for immediate surface mining, and 1 million dollars for briquette production.

"Underground mining at Okpara will witness an investment of 1 billion dollars, export activities and the establishment of an Independent Power Plant (IPP) will receive 10 million dollars and 1.2 billion dollars direct investment," he said.

He said that at the Ogboyoga coal mine in Kogi the bidding companies would invest 5.1 billion dollars in surface mining, briquette, underground mining, export activities and the establishment of an IPP in the next five years.

Gbadegesin said the two bitumen blocks at Ondo/Ogun and Ondo up for privatization would also attract over 3 billion dollars in the provision of production facilities and production cost within the next five years.

The minister's aide said that the exploration and mining of the gold deposit in Waya in Kebbi, Igun in Osun and Dukki in Zamfara would attract more than 1 billion dollars in the two years.

"The Baryte deposit in Azara, Nasarawa and Karim Lamido in Taraba will also attract about 60 million dollars from exploration and actual mining," he said.

According to him, over 60 reputable national and international companies with wealth of experience in mining pre-qualified are in the country undertaking spot assessment of various mining proprieties offered for privatization.

He said that the ministry was working hard to divest government from mining operating interest as well as attracting strong and credible players into the sector.

Source: Xinhua