Nigeria is a miner’s delight because its mining laws and the process for mining title acquisition are simple. Mining of solid mineral in Nigeria is still in its infancy and investors who come in now will benefit enormously as virgin sites are scattered in many locations in the country. The benefit accorded an early bird in Nigeria mining industry will be enormous because government is willing to encourage investment in that sector and therefore is giving concessions to investors in the mining industry now. Concession can be in the form of tax rebates and support in sourcing of heavy duty equipment used in mining.
Limestone is a sedimentary rock, composed mainly of skeletal fragments of marine organisms such as coral, forams and molluscs. Its major materials are the minerals calcite and aragonite, which are different crystal forms of calcium carbonate (CaCO3). Classified as one of the strategic mineral in Nigeria, Limestone is a rock with an enormous diversity of uses. The largest and purest deposits of limestone are found in the Southwest and Middle belt regions of the country. Limestone in the Southwest region of Nigeria has been estimated at 31 million tonnes. Most limestone mining activities are mainly for cement production. It could be the one rock that is used in more ways than any other.
Most limestone is made into crushed stone and used as a construction material. It is used as a crushed stone for road base and railroad ballast. It is used as an aggregate in concrete. It is fired in a kiln with crushed shale to make cement. It is one of the basic building blocks of the construction industry. Limestone has many other uses. Powdered limestone is used as filler in paper, paint, rubber, and plastics. Crushed limestone is used as a filter stone in on-site sewage disposal systems. Powdered limestone is also used as a sorbent (a substance that absorbs pollutants) at many coal-burning facilities.
Limestone is not found everywhere, but Nigeria has an exponential amount widespread in its sedimentary basins which provide the raw materials for the cement factories at Calabar, Cross River state; Sokoto, Sokoto state; Nkalagu, Enugu state; Okpella, Edo state); Ashaka, Gombe state; Gboko, Benue state; Ewekoro and Shagamu Ogun state; and Obajana in Kogi state. The resource base of the known limestone deposits is about 2.3 trillion metric tons with 568 million tons of proven reserves.
As at year 2015, cement production capacity of the country was between an estimated 26 million tons and 28 million tons per annum, given that all the cement plants are operating at their full capacities. The domestic demand totals between an estimated 18.3 million metric tons and 20 million metric tons per year. The increasing demand of cement for infrastructural development presents an opportunity for investors to set up factories in different parts of the country to meet the domestic demands of the yearning customers and also export to the sub-regions for economic growth
APPLICATION
- It is the raw material for the manufacture of quicklime(calcium oxide), slaked lime (calcium hydroxide), cement and mortar.
- Pulverized limestone is used as a soil conditioner to neutralize acidic soils (agricultural lime).
- Is crushed for use as aggregate—the solid base for many roads as well as in asphalt concrete.
- Geological formationsof limestone are among the best petroleum reservoirs;
- As a reagentin flue-gas desulfurization, it reacts with sulfur dioxide for air pollution control.
- Glass making, in some circumstances, uses limestone.]
- It is added to toothpaste, paper, plastics, paint, tiles, and other materials as both white pigment and cheap filler.
- It can suppress methane explosions in underground coal mines.
- Purified, it is added to bread and cereals as a source of calcium.
- Calcium level in livestock feed is supplemented with it, such as for poultry (when ground up).
- It can be used for re-mineralizing and increasing the alkalinity of purified water to prevent pipe corrosion and to restore essential nutrient levels.
- Used in blast furnaces, limestone binds with silica and other impurities to remove them from the iron.
- It is often found in medicines and cosmetics.
- It is used in sculptures because of its suitability for carving.
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 LIMESTONE at the site. BAN will also help you arrange security at your mining sites.