Coal exploration in Nigeria started as far back as 1916. Available data show that Coal (mainly sub-bituminous steam Coals except for the Lafia-Obi bituminous Coking Coal) occurrences in Nigeria have been indicated in more than 22 Coalfields spread over 13 States of the Federation.
The Coal Industry gave rise to the first set of industries in Nigeria and provided all the energy requirements for these industries up to the ‘late 1960’s. These include the Marines, the Nigerian Railways, Electricity Corporation of Nigeria (now National Electric Power Authority NEPA) and the Nigeria Cement company (Nigercem), Nkalagu. All these are in addition to use of Coal for domestic cooking and other industrial applications.
The leading role of Coal in the Nigerian energy mix started to decline with the discovery of oil in commercial quantity in Nigeria in the late 1950’s and was hastened by the Nigerian civil war which took place between 1967- 1970 during which period all the Coal Mines in the country were abandoned. The rapid development of the oil industry in Nigeria resulted to undue Governments’ reliance on oil for the country’s revenue and energy needs since the 1960’s and a neglect of the solid fuel Coal which is an alternative energy resource.
Coal, a black mineral that is found below the ground and burnt to produce heat, as been used for many years to power railways, power and manufacturing plants. Coal is not only used as fuel, they are also used in the industrial production of tar, gas and non edible oils.
Nigerian Coal is one of the most bituminous in the world owing to its low sulphur and ash content and therefore the most environmental friendly. There are nearly three billion {3,000,000,000} tonnes of indicated reserves in seventeen {17} identified coalfields and over six hundred million {600,000,000} tonnes of proven reserves in Nigeria and they can be found in mostly Enugu and Kogi states in Nigeria.
Given the large deposits of brown coal in the tertiary sediments east and west of River Niger; there are investment opportunity in the mining and processing of coal for the local and export market.
In Nigeria, Opportunities exist in the following section of coal mining/processing
1. Mining
2. Processing { Pellet Production}
3. Transportation
4. Steel Production
5. Sales of mining machineries/ equipment
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 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.
The percentage of royalty charged in the mining industry in Nigeria range between 3%- 5%.
————————————————————————————————————————————————————
365 Campaigner is a complete suite of social collaboration, communication and management tools for your team.
From List building solution to event announcement and CRM, 365 Campaigner provides everything you need to boost sales, step up productivity and manage all day-to-day activities. Tightly integrated.
365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals. Visit www.365campaigner.com for more information.
————————————————————————————————————————————————————–
At Foraminifera Market Research {www.foramfera.com}, we provide bespoke and up to date market research reports for start-ups and those already in business.
Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.
You can order our different detailed feasibility report on small scale coal mining in Nigeria from by clicking on the link below.
Report Title: SMALL SCALE COAL MINING IN NIGERIA, THE PRE-FEASIBILITY REPORT.
Report Code:FORA/05564-807/2015/COALMININGINNIGERIA/849999-0025
Do you require one- on- one consultancy on the subject matter? Contact us with any of the details provided below to arrange a meeting
Office Phone Number: 01- 295 24 1301- 295 24 13 {Monday – Saturday; 8 am – 5 pm}
Mobile Number: +234 {0} 8033782777 ;+ 234 (0) 908 335 7733 {Monday – Saturday; 8 am – 6 pm}
E-Mail Address: enquiries@foramfera.com
CC: foraminiferamarketresearch@yahoo.com
Office Address:
61-65 Egbe- Isolo Road,
Iyana Ejigbo Shopping Arcade,
Block C, Suite 39,
Iyana Ejigbo Bus Stop,
Ejigbo, Lagos.
