In the last few years, Ogun State, otherwise known as the Gateway State, emerged as the nation’s industrial hub, accounting for a significant portion of the nation’s industrial production. That wasn’t by accident, as it followed several conscientious efforts made by the state government which were geared towards making the state investors’ delight and supported by a one-stop shop which caters for the needs of the investors. A number of investors’ forums left no serious local and foreign investors in doubt that Ogun meant business.
One of the immediate or short term successes recorded by the drive to make the state investors’ haven is that Ogun in 2018 topped the chart of the states in Nigeria with the highest solid mineral production. It was followed by Kogi, the Confluence State where miners produced 15.1 million tonnes of solid minerals. Others states are Cross Rivers, 3.49 million tonnes; Akwa Ibom, 1.92 million tonnes; FCT Abuja, 1.89 million tonnes; Edo, 1.71 million tonnes and Sokoto, 1.64 million tonnes.
Although Zamfara State witnessed a high number of security breaches in 2018, dogged miners produced 1.56 million tonnes of solid minerals; Gombe, 1.47 million tonnes; Ondo, 1.44 million tonnes, and Lagos, 1.31 million tonnes.
In 2018, miners produced 55.85 million tonnes of solid minerals, representing 22 percent over 45.78 million tonnes produced in 2017.
Ranking of solid minerals by production
Limestone, granite, laterite, clay and granite dust were the five most produced solid minerals in Nigeria in 2018. With the production of 27.2 million tonnes limestone, this solid mineral accounted for 49 percent of the nation’s solid mineral production in 2018. Granite production in 2018 equalled 9.6 million tonnes and when combined with limestone, the two most produced solid minerals accounted for 66 percent of Nigeria’s solid minerals production.
Solid minerals investors also produced 5.08 million tonnes of laterite; 3.5 million tonnes of clay and 3.4 million tonnes of granite dust. The five most produced solid minerals amounted 48.76 million tonnes, representing 87 percent of the nation’s solid minerals production in the last fiscal year.
Sand production amounted to 2.28 million tonnes; granite aggregates, 2.1 million tonnes; shale, 0.95 million tonnes; sapphire, 0.64 million tonnes; coal, 0.35 million tonnes; lead/zinc, 0.31 million tonnes and manganese, 0.16 million tonnes.
That was not exactly the trend in 2017 when the five most produced solid minerals were granite, limestone, laterite, shale and sand. In 2017, granite production amounted to 17.45 million tonnes while limestone produced in the country totalled 13.96 million tonnes. When combined, the two most produced solid minerals in the country in 2017 accounted for 69 percent of the nation’s solid minerals production in the country.
Laterite production amounted to 3.7 million tonnes; shale, 2.79 million tonnes, and Sand, 2.39 million tonnes. The five most produced solid minerals equalled 40.3 million tonnes, representing 88 percent of the nation’s solid minerals production.
Others are granite dust, 1.95 million tonnes; granite aggregates, 1.6 million tonnes; clay, 0.93 million tonnes; coal, 0.40 million tonnes; dolorite, 0.15 million tonnes, and stone dust, 0.11 million tonnes.
New investments in solid minerals sub sector
Symbol Mining from Australia, according to our earlier findings, began the production of high grade zinc and lead in Bauchi State, North East Nigeria. The project was executed in collaboration of two local joint venture projects which are Tawny and Imperia in Nasarawa and Bauchi states respectively. The list of new investors also includes Minutor International that is interested in gold, zinc, lead, lithium and copper in mining sites across Nigeria. We also have Africa Industries , and with its 12 subsidiaries is interested in extracting iron ore from mining sites in the country. There are Mines Geo-techniques and Numero Resources Limited which have their eyes on gold in Kebbi State.
In addition, Segilola Nigeria Limited mines gold in Osun State just as KCM Mining Limited is into iron ore production in Kogi State.
Further, in December 2018, Kian Smith Limited got the first license to start gold refinery in Ogun State. Importance is attached to gold because according to the Federal Ministry of Mines and Steel Development, a well organised gold value chain, has the potential to trigger an economic revolution in the same way it revolutionised countries such as India, South Africa, Switzerland and others.
The company will work on the model which sources gold from registered artisans for effective monitoring and regulation of gold.
According to Kian Smith Trade and Company, Ofosinere Teriba, vice chairman indicated that about 500,000 jobs would be created in the industry within the two years of its operation. He assured that Kian Smith would provide 99.99 percent refined gold, including three tonnes of gold, one tonne of silver, among other mineral resources.
Dangote Cement gives hope to solid minerals investors
Dangote Cement Plc is a good case of how profitable investments in solid minerals could turn out to be. Since inception, the cement giant has recorded many feats, and today, the firm stands as the most capitalised stock on the Nigerian Stock Exchange (NSE). In 2018, Dangote Cement posted N901 billion as gross revenue representing 11.9 percent increase over N806 billion the firm made in 2017.
Gross profit was N517.9 billion for the period in contrast to N454.3 billion it realised in 2017. Operating profit for the period was N338.69 billion, a 11.3 percent improvement when compared with N304.2 billion realised in 2017. Profit after tax was N390.3 billion, translating to a whopping 91 percent increase over N204.2 billion it realised in 2017. It has proposed N16 per share final dividend for shareholders. The firm has production plants majorly in Ogun and Kogi states, which are the topmost states for solid mineral production in Nigeria.
TELIAT SULE
