Nigeria is blessed with abundant mineral resources and most of these remain untapped. The country is so blessed with solid minerals and in large quantities too. Due to presence of oil in the country as well the government has not devoted enough time to the solid mineral sector although it has started by declaring its intension to support investors in this sector. This it has done by streamlining the process of acquisition of mining title and setting aside solid mineral support fund for investors in the sector. One of such mineral that Nigeria has in abundance is Coal
Coal is classified as one of the strategic minerals in Nigeria. It is a flammable black rock used as a solid fossil fuel. It is mainly made up of 65-95% carbon and also contains hydrogen, sulphur, oxygen and nitrogen. In Nigeria, coal can be found in the Middle belt and South-eastern regions of the country (Kogi, Benue, Gombe and Enugu).
Synonymous with coal in Nigeria is Enugu – Enugu State. ‘Coal city’ as it is popularly referred reflects the abundance of the mineral resource in the area. A reasonable estimate in these regions is put at nearly 3billion tons of indicated reserves in 17 identified coal fields and over 600 million tonnes of proven reserves. Coal has many important uses worldwide. The most significant use of coal is in electricity generation, steel production, cement manufacturing and as a liquid fuel. Other important users of coal include alumina refineries, paper manufacturing, chemical and pharmaceutical industries. Several chemical products can be produced from the by-products of coal. Refined coal tar is used in the manufacture of chemicals, such as creosote oil, naphthalene, phenol, and benzene. Ammonia gas recovered from coke ovens is used to manufacture ammonia salts, nitric acid and agricultural fertilizers. Thousands of different products have coal or coal by-products as components such as soap, aspirins, solvents, dyes, plastics and fibres, such as rayon and nylon.
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure. Coal is composed primarily of carbon, along with variable quantities of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal is a fossil fuel that forms when dead plant matter is converted into peat, which in turn is converted into lignite, then sub-bituminous coal, after that bituminous coal, and lastly anthracite. This involves biological and geological processes. The geological processes take place over millions of years
APPILICATION
Coal as fuel
Coal is primarily used as a solid fuel to produce electricity and heat through combustion. According to the EIA, world coal consumption is projected to increase from 2012 to 2040 at an average rate of 0.6%/year, from 153 quadrillion Btu (1 Quad are 36,000,000 tonnes of coal) in 2012 to 169 quadrillion Btu in 2020, and to 180 quadrillion Btu in 2040.
China produced 3.47 billion tonnes (3.83 billion short tons) in 2011. India produced about 578 million tonnes (637.1 million short tons) in 2011. 69% of China’s electricity comes from coal. The US consumed about 13% of the world total in 2010, i.e. 951 million tonnes (1.05 billion short tons), using 93% of it for generation of electricity. 46% of total power generated in the US was using coal.
When coal is used for electricity generation, it is usually pulverized and then burned in a furnace with a boiler. The furnace heat converts boiler water to steam, which is then used to spin turbines which turn generators and create electricity. At least 40% of the world’s electricity comes from coal,
Coking coal and use of coke
Coke is a solid carbonaceous residue derived from coking coal (a low-ash, low-sulfur bituminous coal, also known as metallurgical coal), which is used in manufacturing steel and other iron products. Coke is made from coking coal by baking in an oven without oxygen at temperatures as high as 1,000 °C (1,832 °F), driving off the volatile constituents and fusing together the fixed carbon and residual ash. Metallurgical coke is used as a fuel and as a reducing agent in smelting iron ore in a blast furnace. The result is pig iron, and is too rich in dissolved carbon, so it must be treated further to make steel.
Gasification
Coal gasification can be used to produce syngas, a mixture of carbon monoxide (CO) and hydrogen (H2) gas. Often syngas is used to fire gas turbines to produce electricity, but the versatility of syngas also allows it to be converted into transportation fuels, such as gasoline and diesel, through the Fischer-Tropsch process; alternatively, syngas can be converted into methanol, which can be blended into fuel directly or converted to gasoline via the methanol to gasoline process. Gasification combined with Fischer-Tropsch technology is currently used by the Sasol chemical company of South Africa to make motor vehicle fuels from coal and natural gas. Alternatively, the hydrogen obtained from gasification can be used for various purposes, such as powering a hydrogen economy, making ammonia, or upgrading fossil fuels.
During gasification, the coal is mixed with oxygen and steam while also being heated and pressurized. During the reaction, oxygen and water molecules oxidize the coal into carbon monoxide (CO), while also releasing hydrogen gas (H2). This process has been conducted in both underground coal mines and in the production of town gas which was piped to customers to burn for illumination, heating, and cooking.
C (as Coal) + O2 + H2O → H2 + CO
If the refiner wants to produce gasoline, the syngas is collected at this state and routed into a Fischer-Tropsch reaction. If hydrogen is the desired end-product, however, the syngas is fed into the water gas shift reaction, where more hydrogen is liberated.
CO + H2O → CO2 + H2
Liquefaction
Coal can also be converted into synthetic fuels equivalent to gasoline or diesel by several different direct processes (which do not intrinsically require gasification or indirect conversion). In the direct liquefaction processes, the coal is either hydrogenated or carbonized.
Coal liquefaction methods involve carbon dioxide (CO2) emissions in the conversion process. If coal liquefaction is done without employing either carbon capture and storage (CCS) technologies or biomass blending, the result is lifecycle greenhouse gas footprints that are generally greater than those released in the extraction and refinement of liquid fuel production from crude oil
Refined coal
Refined coal is the product of a coal-upgrading technology that removes moisture and certain pollutants from lower-rank coals such as sub-bituminous and lignite (brown) coals. It is one form of several pre-combustion treatments and processes for coal that alter coal’s characteristics before it is burned. The goals of pre-combustion coal technologies are to increase efficiency and reduce emissions when the coal is burned. Depending on the situation, pre-combustion technology can be used in place of or as a supplement to post-combustion technologies to control emissions from coal-fueled boilers.
Industrial processes
Finely ground bituminous coal, known in this application as sea coal, is a constituent of foundry sand. While the molten metal is in the mould, the coal burns slowly, releasing reducing gases at pressure, and so preventing the metal from penetrating the pores of the sand. It is also contained in ‘mould wash’, a paste or liquid with the same function applied to the mould before casting. Sea coal can be mixed with the clay lining (the “bod”) used for the bottom of a cupola furnace. When heated, the coal decomposes and the bod becomes slightly friable, easing the process of breaking open holes for tapping the molten metal.
Production of chemicals
Coal is an important feedstock in production of a wide range of chemical fertilizers and other chemical products. The main route to these products is coal gasification to produce syngas. Primary chemicals that are produced directly from the syngas include methanol, hydrogen and carbon monoxide, which are the chemical building blocks from which a whole spectrum of derivative chemicals are manufactured, including olefins, acetic acid, formaldehyde, ammonia, urea and others. The versatility of syngas as a precursor to primary chemicals and high-value derivative products provides the option of using relatively inexpensive coal to produce a wide range of valuable commodities.
Historically, production of chemicals from coal has been used since the 1950s and has become established in the market. According to the 2010 Worldwide Gasification Database, a survey of current and planned gasifiers, from 2004 to 2007 chemical production increased its gasification product share from 37% to 45%. From 2008 to 2010, 22% of new gasifier additions were to be for chemical production.
Because the slate of chemical products that can be made via coal gasification can in general also use feedstocks derived from natural gas and petroleum, the chemical industry tends to use whatever feedstocks are most cost-effective. Therefore, interest in using coal tends to increase for higher oil and natural gas prices and during periods of high global economic growth that may strain oil and gas production. Also, production of chemicals from coal is of much higher interest in countries like South Africa, China, India and the United States where there are abundant coal resources. Coal to chemical processes does require substantial quantities of water. As of 2013 much of the coal to chemical production was in the People’s Republic of China.
EXPORT OF COPPER
Coal can be exported after sorting into size and packaging. Packaging is usually in 50 Kg since the price is quoted in Metric tons. 1000/KG makes 1 ton, coal unlike other solid mineral is not so heavy so shipping should be in 40ft container so as to contain maximum quantity instead of 20ft.
The sorting of the coal simply refers to the breaking down of the coal into the desired sizes as agreed with the buyer. In the export of the coal, some of the cost to consider includes; cost of the coal at the site, cost of transportation to site of crushing/loading {in case the mining site is not accessible to trucks}, cost of crushing, cost of packaging, cost of loading it to the truck, cost of transportation to Warehouse/port, cost of analysis, cost of freight, agent fee, and miscellaneous. All these cost will be worked out for any potential investor so that you can have a better view of the return on investment.
Coal presents enormous potential to Nigeria because the country has it abundance but lack of interest in that sector is making the nation to lose a lot. There are many bye –products of coal that will help boost Nigeria economy. The government is seriously interested in this sector and any potential investor will be able to leverage on this to negotiate a better deal.
REQUIREMENT AND CONDITIONS FOR MINING 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 Lease from the original owner. Approval must be obtained from the Ministry of Solid Minerals Development for such a purchase.
- Fresh mining lease
Procedure for Mineral Title Licences/Leases and Permits:
Duly completed application form
Coordinates of the area of application
Certificate of incorporation
Attestation
Letter of consent from landowner(s)/occupier(s)
Types of minerals
Work programme/pre-feasibility report
Evidence of payment
Technical capability
Financial capability
In order to encourage investment in the solid minerals industry in Nigeria, Government is offering the following incentives
- 3-5 years Tax Holiday
- Deferred royalty payments
- Possible capitalization of expenditure on exploration and surveys
- 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 Nigerian Minerals and Mining Act of 2007, National Minerals and Metals Policy 2008 and Nigerian Minerals and Mining Regulations 2011.
CONCLUSION
Business Advisory Network ‘BAN’ will work with you and assist you to process mining lease from the federal government. We will help you source for a site with rich mineral content. Mining is a technical field although the financial reward is enormous; therefore to succeed you need experts to guide you to avoid fatal mistakes that will erode your capital.
Other things BAN can do for you include but are not limited to helping you to determine the grade of Coal at the site, source market for your mined minerals, both locally and internationally. BAN will also help you arrange security at your mining sites. It will interest you to know that it export of crude coal is not where an investor will make a kill but in processing the mined coal and obtaining the numerous bye-products. Nigeria has a lot to gain from developing its coal sector and is willing to partner serious investors to develop this sector.