‘Nigeria can generate $292bn from iron ore, lead’

The Nigerian Institution of Metallurgical, Mining and Materials Engineers on Thursday said available reserves of iron ore and lead in the country could generate about $292bn.

Chairman of NIMMME, Ayodeji Adeyemo, who spoke during his investiture on Thursday, said it was regrettable that despite abundant mineral deposits, the contribution of mining to the GDP was not up to one per cent.

Quoting the 2018 report of Geology and Mineral Resources of Nigeria and their uses, Adeyemo noted that the estimated deposits of iron ore and coal in the country were three billion tonnes each while that of lead/zinc was 10 million tonnes.

He added that available data in the National Bureau of Statistics showed that the GDP of coal, metal ores and other mined and quarry products stood at N102bn ($330m) in 2016 during the recession, and rose to N126bn ($407m) in 2017.

“Despite the growth of about 240 per cent observed in the GDP contribution of these minerals between 2011, when it was N52.5bn ($170m), and 2017, the contribution of mining to the overall GDP reduced from 0.14 per cent to 0.11 per cent.

“This is far too low compared to the earning potential of minerals available in Nigeria. For instance, with the available reserves of iron ore and lead, the nation can generate $280bn and $12bn, respectively,” Adeyemo said.

He added that available reserves of other minerals, such as gold, coal, tantalites and cassiterite could generate huge revenue for the country.

Stressing that the mining and indeed the metal industry was vital to the country’s quest for industrialisation, he said the Ajaokuta Steel Complex, upon completion, could generate 15,000 direct jobs and 500,000 indirect jobs.