Nigeria is endowed with numerous mineral resources. Recent policy reforms have brought the solid minerals sector to the fore. The emphasis is on encouraging massive foreign investors’ participation ‘in this sector. 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 Phosphate Rocks.
Phosphate rock refers to a mineral assemblage that occurs naturally with an exceptionally high concentration of phosphate minerals. Phosphate usually occurs as the mineral apatite, Ca5F (PO4)3 in igneous and metamorphic rocks. It may be derived from a number of sources but the most common is the one that contains high concentration of phosphates in nodular or compact masses.
Phosphate fertilizer and detergents are the major user industries of phosphate rock. Metal treatment, water treatment, pulp and paper, glass and ceramics, textiles, plastics, rubber, pharmaceuticals and cosmetics, petroleum production, toothpaste, paints, fuels, cells are other end-user industries of phosphate rock.
Since phosphates are produced in a few countries and are consumed in most, there is a large international trade in phosphate rock, phosphoric acid and phosphate fertilizer. Growth in fertilizer demand worldwide is expected to average annual 2.7% over the next few years, which will directly increase demand for phosphate rock. The Federal super-phosphate Company, Kaduna and the National Fertilizer Company, Port-Harcourt requires about 300,000 tonnes of phosphate rock per annum. Other areas of phosphate use are in Flame retarder/fire extinguisher production, food and beverage industries, dentistry etc. All these would also increase future demand.
Locations of Phosphate Deposits in Nigeria
The Nigerian phosphate rock deposits are sedimentary in origin. They occur mostly in granular, nodular and vesicular forms with an average weight percent of P205 varying from 34.5 to 36.25%, which compares favourably with the phosphate at Hahotos, Togo (36.6%).
Occurrences of phosphate rock are known in Sokoto, Abia, Cross Rivers, Kogi, Ondo and Ogun States. The deposits of phosphate beds in the Sokoto embayment represent southward extension of the deposits in Niger Republic.
The deposits are found in areas within the geological feature termed the Illummeden Basin.
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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Report Title: PHOSPHATE ROCK MINING IN NIGERIA, THE PRE-FEASIBILITY REPORT.
Report Code: FORA/05564-807/2015/PHOSPHATEMININGINNIGERIA/19643-83
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