By Elizabeth Osayande

Nigeria is not only blessed with oil, it is abundantly rich in solid mineral endowments, which when utilized will boost economic growth and development, and will also serve as a sustainable route to job creation, and employment.

In this exclusive chat with Vanguard, Dr Kayode Abdulgafar Amuda, a distinguished academic and geoscientist with an impressive portfolio from Bayero University Kano. Dr. Amuda also serves as a Research Consultant for various private firms, reflecting his broad expertise and respected reputation in the field. An alumnus of the University of Ilorin, Ilorin, Ahmadu Bello University, Zaria, and the University of Science and Technology of China, Hefei, Dr. Amuda holds a BSc, MSc, and PhD. He is also adept in modern exploration techniques, particularly the use of remote sensing and GIS.

Amuda is affiliated with several prestigious professional organizations, including the Nigerian Mining and Geoscience Society (NMGS), the Geological Society of London (GSL) where he is a Fellow, the Geological Society of America (GSA), the European Association of Geochemistry (EAG), the Society for Geology Applied to Mineral Deposits (SGA), the International Association on the Genesis of Ore Deposits (IAGOD), and the National Association of Geoscience Teachers (NAGT), the Society for Geology Applied to Mineral Deposits (SGA), amongst others. He is also a licensed geologist, certified by the Council of Nigerian Mining Engineers and Geoscientists (COMEG).

Beyond his academic and professional pursuits, he is deeply committed to volunteerism in his major and community service. He serves as the Geoscience Program Coordinator for the esteemed NGO, Initiative for the Advancement of Mining, Earth Science, and Environmental Protection (IAMESEP), and is a Governing Board Member of the Bashir Fistula Foundation for Woman’s Health (BFFWH). With his extensive experience and expertise, Dr Amuda is well-positioned to provide valuable insights into Nigeria’s solid mineral wealth and the strategies needed for sustainable development and strategic investment.

Excerpts:

Looking at Nigeria’s solid mineral endowments and their potential for economic development, can you provide an overview of the sector?

Nigeria’s solid mineral resources include a diverse array of metallic minerals, non-metallic minerals, and energy minerals found within the Basement Complex, Younger Granites, and Sedimentary Basins. We have significant deposits of gold, iron, lead, zinc, coal, and gemstones. However, despite this wealth, the sector contributes less than 1% to our GDP due to overdependence on oil, unstable policies, and outdated geoscience data.

For instance, coal was the primary energy source for Nigeria from 1902 up until the 1960s for electricity generation. Additionally, Nigeria ranks 6th globally in heavy oil and bitumen reserves, with an estimated 38 billion barrels of oil in place. Tin production began in 1905, and up until 1972, Nigeria was the world’s sixth-largest producer. Our country was also the top exporter of columbite for over three decades from the 1930s.

The government should develop a strategic roadmap to improve this, and I see efforts by the current Minister of Solid Minerals, Honourable Dele Henry Alake, as determined to make a difference. With new policies aimed at attracting foreign investment, enhancing legal frameworks, and updating data, we can revamp the sector. The goal is to diversify the economy away from oil dependency, leveraging our mineral wealth for sustainable economic growth. If implemented well, the mineral sector could contribute at least 10% to our GDP, driving economic growth and creating jobs for our youth.

How significant is having a reliable database for Nigeria’s solid mineral wealth, and what factors influence the economics of mineral exploration?

A reliable database is essential. It provides accurate and up-to-date information on the quantity, quality, and location of our mineral resources, which is crucial for planning, investment decisions, and policy formulation. Investors need this data to assess the viability of mining projects, and it helps the government create sustainable policies. For example, often-quoted figures of over 3 billion tons of iron ore in Nigeria are misleading. The ferruginous quartzites in the Okene area hold about 250 million tons of low-grade iron ore, while the Agbaja deposit is estimated at about 500 million tons. This ore is of much lower quality due to the deleterious admixtures of phosphorus and alumina, which are very expensive to remove given the current prices of iron ore.

As one of our erudite scholars, Prof. S.S. Dada, highlighted in his presentation at the NMGS International Conference in Kano in 2018, the accumulation of valuable mineral resources in Nigeria is largely affected by continental dispersal within the Pan-African mobile belt. This contrasts with regions that have remained geologically stable over time, such as Ghana and South Africa, which have higher tonnages of metallic deposits. Consequently, the tonnage of our resources is typically not on par with the world’s giant metallic deposits. Nevertheless, the integration of remote sensing technology can aid in delineating prospective pockets of economically viable metallic deposits, ensuring a good return on investment. Accurate data prevents issues like the 1998 Bre-X gold scandal, which led to massive financial losses and necessitated the establishment of stringent reporting standards such as Canada’s National Instrument 43-101 (NI 43-101) and Australia’s Joint Ore Reserves Committee (JORC) Code.

The demand for minerals is influenced by supply risks and their economic importance. Rare Earth Elements (REEs), vital for mini-electronics and advanced technologies, are in high demand globally. Despite their abundance, environmental extraction challenges have led to China dominating the supply. Understanding and managing our mineral resources strategically is crucial.

Could you elaborate on the impact of reporting standards on mining practices?

Certainly. The Bre-X scandal highlighted the need for transparency in reporting mineral resources. In response, Canada implemented NI 43-101, and Australia established the JORC Code, ensuring mineral exploration reports meet rigorous standards. This improves investor confidence and fosters responsible mining practices. Recently, the African Minerals Development Centre launched the Pan African Resource Reporting Code (PARC) to standardize resource estimation across Africa, promoting responsible investments and sustainable development.

What are the key elements needed to attract and retain investors in Nigeria’s mining industry, and how do processing facilities play a role in this?

Attracting and retaining investors requires a stable and transparent regulatory environment that protects their interests while promoting sustainability. Financial incentives like tax breaks, grants, and low-interest loans can make investments more appealing. Investing in infrastructure, such as transportation and energy facilities, reduces operational costs for mining companies. Partnerships between the government, private sector, and local communities build trust and cooperation.

Processing facilities are crucial in the mining value chain, converting raw minerals into marketable products. These facilities must be equipped to handle specific minerals and incorporate technologies that maximize recovery rates while minimizing environmental impact. Regulatory requirements, including environmental impact assessments and sustainable waste management plans, ensure operations are environmentally responsible. Well-equipped and compliant processing facilities are vital for successful and sustainable mining projects, attracting long-term investments.

How do you see the future of mineral exploration in Nigeria, and what steps should the government take to prepare the youth for careers in this industry?

The future of mineral exploration in Nigeria is promising, with significant potential for economic growth and diversification. However, to realize this potential, addressing key challenges is essential. One major issue is the interference of state governments in mining activities, which can lead to conflicts and inefficiencies. Reinforcing the legal framework to clarify the Federal Government’s authority over mining is crucial. Additionally, establishing a collaborative framework where state governments can participate in advisory capacities will foster cooperation and harmonize efforts. Promoting ongoing dialogues between state and federal governments is vital to resolve conflicts and streamline operations.

To prepare the youth for careers in the mining industry, the government should maintain and provide up-to-date data on the country’s mineral wealth to educational institutions for cutting-edge research. Utilizing IT through GIS and remote sensing technology can reduce costs and improve the quality of exploration data. Universities should incorporate practical modules that blend traditional methods with new AI technologies, equipping students with the skills needed to thrive in the labour market. Moreover, encouraging the establishment of local processing facilities through incentives and enforcing regulations will add value to our resources, promoting economic development and job creation.

Focusing on manpower development by integrating relevant geoscience training into university curriculums is imperative for sustainable mining and exploration in Nigeria. This will equip future geoscientists with the necessary skills and knowledge to excel in both research and industry. Furthermore, fostering collaboration between mining companies and academic institutions is crucial. By providing practical industry services and experiences directly to students, we can bridge the gap between academic theory and real-world application. This approach will lead to a more competent and capable workforce, driving sustainable mining practices and contributing to economic growth.

How robust are Nigeria’s professional commissioning, licensing, and regulatory agencies? Additionally, what is your reaction to a recent declaration from the Minister of Solid Minerals to establish the Nigerian Solid Minerals Corporation? How much impact can that have on sustainable solid mineral exploration?

Indeed, Nigeria has a robust framework with agencies such as the Nigerian Geological Survey Agency (NGSA) and the Ministry of Solid Mineral Development (MSMD). We also have a professional licensing organization, the Council for Mining Engineers and Geoscientists (COMEG), to certify individuals and companies. To maximize their effectiveness, we need a strategic approach to synergize their functions. Establishing a centralized coordination body can ensure seamless collaboration, facilitate information sharing, streamline regulatory processes, and align policies with sustainable development goals.

Regarding the recent declaration by the Honourable Minister of Solid Minerals, Honorable Henry Dele Alake, on establishing the Nigerian Solid Minerals Corporation, IAMESEP recently issued a communique after their meeting on Collaborative Strategies in Nigerian Solid Mineral Development and submitted their appeal to the Honourable Minister.

I believe that while establishing the Corporation is a positive step towards structured and efficient management of the country’s mineral resources, it is imperative to avoid duplication of efforts with existing agencies. The Corporation should centralize oversight, facilitate infrastructure development, promote research, and implement best practices. This approach will streamline operations, ensure compliance with regulations, and attract investments, ultimately leading to sustainable and profitable mining operations and contributing to national economic growth.

Lastly, how can we combat illegal mining in Nigeria?

Combating illegal mining requires a comprehensive approach. Strengthening regulatory frameworks and ensuring strict enforcement of mining laws is paramount. Increasing surveillance and monitoring of mining activities can help identify and address illegal operations swiftly. Providing alternative livelihoods and economic opportunities for those involved in illegal mining reduces the incentive to engage in such activities. Public awareness campaigns about the negative impacts of illegal mining on the environment and local communities can also garner public support for legal and sustainable mining practices.