Energio on the cusp of major iron ore opportunity in Nigeria

Friday, 18 Nov 2011

Energio is developing a world class iron ore opportunity at the Agbaja Iron Ore Exploration Project in Nigeria, which has resource potential of 1 to 2 billion tonnes of iron ore.

Kogi State is home to the largest iron and steel factory in Nigeria with the full backing of The Federal Government of Nigeria. The licenses have close proximity to existing rail road and power infrastructure provides potential advantages in reduced capital expenditure and allows fast track project development.

Energio aims to complete field programs and drilling program in 2011 with a target of maiden JORC resource in first quarter 2012. Energio has a strong cash position of USD 4.729 million which is sufficient to complete the current round of drilling and take Agbaja to initial resource estimation in mid 2012.

The company will seek approval at the Annual General Meeting to be held on 30 November 2011, for a change to its activities. Energio has exercised its call option with TGP to acquire 100% of the fully paid ordinary shares in KCMH Australia from TGP. KCMH Australia is the holding company of KCM Nigeria which owns of a package of iron ore licenses in Kogi State, Nigeria.

KCMH Australia holds 75% of the shares in KCM Nigeria having recently exercised an option to acquire a further 5% shareholding in KCM Nigeria in return for making cash payment of USD 412,000.

KCMH Australia is an Australian privately owned company which has been focused on acquiring iron ore Licences in Nigeria since 2007. TGP holds 100% of the shares in KCMH Australia.

sourced proactiveinvestors

Astra Resources targets thermal coal through JV in Nigeria

Sunday, 23 Oct 2011

Diversified mining company Astra Resources PLC which is the UK parent company of Astra Mining, is continuing with an aggressive global expansion, and has now signed a memorandum of understanding for a joint venture development of a thermal coal exploration license in Nigeria.

This announcement follow hot on the heels of two deals earlier in the month, which included an agreement for iron sands development in north east Philippines and trading licenses in India. The MOU allows Astra subsidiary Muyiwa Pte Ltd to take super-majority ownership of African company Barjalex Nig Ltd who owns a coal exploration license covering the Manejo and Odele communities in the Ika District of Ankpa Local Government in Kogi State three kilometres south of Ogboyaga.

This exploration license covers an area of four square kilometres, which is expected to be expanded immediately to 12 square kilometres. A joint venture agreement is in the process of being drafted with the transaction receiving the full support of the local community.

Dr Jaydeep Biswas CEO of Astra said Nigeria is struggling to meet the growing nation’s energy requirements using electrical power, resulting in a renewed focus on alternative energy sources.

He said that “Currently the transmission and distribution of electricity is not adequate for the country, and as Nigeria becomes more industrialized it is predicted to experience more frequent power failures and load-shedding, resulting in economic losses, damaged equipment and the need for expensive stand-by power.”

He added that “As Nigeria has major under explored and underexploited high quality coal resources, the Nigerian government is focusing on developing coal-fired power plants and in turn revitalizing the coal mining industry.”

He also said “The coal present in the district and surrounds is low in sulphur and ash, and high in calorific value making it ideal for power generation and export into the international market. The Barjalex transaction creates a beach-head for growth in a region which has the potential of 800 million tonnes of thermal coal.”

Mr Biswas says if power becomes available and the population becomes more accustomed to modern conveniences, the “KW per household” factors will increase, further expanding the demand for electrical power.

He said that “Even by conservative measures, the country appears ready to absorb the output from 10,000 MW to 15,000 MW of additional generation capacity during the next 20 to 25 years. He added that in order to meet these needs, approximately 3.2 million tonnes of coal will be required per year for each 1000 MW of capacity.”

With a population approaching 140 million, statistics indicate that Nigeria can be considered to have between 20 million and 25 million households.

Estimates of the minimum load demand or generating capacity indicate that the 10,000 MW of capacity targeted by the Federal Government of Nigeria is a reasonable reflection of the capacity necessary to satisfy the country actual needs for electricity supply in the near term and that as electricity becomes available the demand can grow to over 15,000 MW.

(sourced proactiveinvestors)

Nigeria to open investment promotion units in Mines Ministry

Monday, 22 Aug 2011

In a bid to attract local and foreign direct investment for the development of the nation' mining industry, Nigerian government said that it will open investment promotion units in the Ministry of Mines and Steel Development and its agencies.

Mr Musa Mohammed Sada minister of mines and steel development made this known when he received a delegation of investors from Dubai, United Arab Emirates. He said the process of establishing the investment promotion units is in progress.

He explained that when the program is completed, both local and foreign investors will easily access on line any investment information they seek for in the minerals and metal sector. He said that the Federal Government was ready to assist and collaborate with foreign investors towards the development of Nigeria’s mining industry.

Mr Sada said that one major challenge militating against the development of the nation’s mining industry was funding. He added that the present administration was trying to address that challenge through the establishment of a Solid Minerals Development Fund, whose Board of Directors will be inaugurated soon.

According to him, banks and other financial institutions in the country are beginning to show interest of investing in the nation’s mining industry as a result of reforms in the sub sector. He added that the sector is driven by the private sector while government administers and regulates.

Mr Sada stated that the Federal Government was focused on the development of seven strategic minerals such as coal, bitumen, iron ore, lead zinc, barytes, gold and limestone.

Mr Mujtaba Sarfaraz SVP of Mas Clearsight Limited said that the essence of their visit was to explore the possibility of investing in Nigeria's mining industry.

He disclosed that his company is into mine development and feasibility studies among other areas. Some of the minerals they intend to explore and exploit in Nigeria include coal, iron ore, manganese and copper among others.

(sourced Thisdaylive)

Nigeria finalizes agreement for pipe mill with Jiangsu Yulong

Tuesday, 08 Feb 2011
It is reported that Nigerian Content Development & Monitoring Board and China's major welded line pipe maker Jiangsu Yulong Steel Pipe have agreed to implement a schedule that will lead to the setting up of a 250,000 tonnes per annum longitudinal submerged arc welded pipe mill in Nigeria by September 2012.
The schedule which comprises six key activities and timelines was agreed on during a five day visit to Jiangsu Yulong's facility in China by an NCDMB team led by the executive secretary Mr Ernest Nwapa in January 2011.
The visiting team which included Mr Bola Akano representative of the MD of Addax Petroleum, a member of Sinopec Group, inspected Jiangsu Yulong's Longitudinal Submerged arc welding pipe mill, Helical Submerged Arc welding pipe mill and the High Frequency Resistance Welding Pipe Mill.
The visit was a follow up to the meeting held in September 2010 between NCDMB and representatives of Jiangsu Yulong at the Board’s headquarters in Yenagoa in Bayelsax State.
The Board's efforts are geared towards meeting the targets set for the industry by Ms Diezani Alison Madueke minister of petroleum resources during the inauguration of the Governing Council of the NCDMB by President Mr Goodluck Jonathan in September 2010.
The minister had declared that the steadfast implementation of the Nigerian Content Act will in the next four years lead to the establishment of three to four new pipe mills and other ancillary manufacturing plants to service the demands of the oil and gas industry.
In his remarks during the visit, Mr YongQing Tang the Chairman of Jiangsu Yulong reaffirmed the company’s commitment to set up in Nigeria and confirmed that 80% of the equipment for the production line dedicated to the Nigeria project had been manufactured and is awaiting testing and shipment.
Mr Tang who informed that the basic design of the proposed mill had been completed, added that the visit had demonstrated the commitment of the Nigerian Government to establish pipe mills in Nigeria and develop local steel pipe production.
According to him, Jiangsu Yulong looks forward to partnering with NCDMB, local companies and other Chinese companies like SINOPEC, operating in Nigeria which is familiar with the environment. He however, requested the Board to provide guarantees that the Nigerian National Petroleum Corporation and other major operators will patronize the LSAW mill when operational.
In his comments, Mr Nwapa assured Jiangsu Yulong that the Federal Government is actively promoting foreign direct investments, particularly in the energy sector and will provide all necessary support, approvals and incentives to the company. He said the Federal Government is committed to using locally manufactured pipes in the construction of Nigerian Gas Master Plan infrastructure which involves over 2000 kilometers of large diameter pipeline.
He noted that the Nigerian Content Law protects investors in any facility established in Nigeria to manufacture industry inputs and the NCDMB has demonstrated its ability to enforce this by ensuring that oil majors now source applicable line pipes from SCC Mill, which is the only manufacturer of pipes in Nigeria today.
He further assured Jiangsu Yulong that when the pipe mill becomes operational, NCDMB will not allow any operator in the industry to import longitudinal submerged arc welded pipes until the capacity of its facility and any similar plant is exhausted.
He further assured the company of the Board’s resolve to ensure that the intendments of the Nigerian Content Law as it relates to domiciliation for line pipe procurement is achieved, adding that the law is already being implemented and evidence of local production or concrete plans towards local production is prerequisite for the short listing of companies for contracts.
According to the project implementation schedule, Jiangsu Yulong will work with NCDMB between March and December 2011 to achieve critical milestones including land acquisition, permits, environmental impact assessment, detailed engineering and early site works preparatory to moving the mill. Both parties are also to organize training and attachment of Nigerian operators to ensure that a sizeable workforce is available when the plant is ready for testing.
A Chinese Contractor has already been engaged by Jiangsu Yulong, with the mandate to partner an experienced indigenous construction company in Nigeria for the construction of the plant between November 2011 and August 2012.
The Chinese Contractor and the senior executives of Jiangsu Yulong are expected in Nigeria in May 2011 for preliminary engineering work.
Mr Tang and Mr Nwapa thereafter inaugurated the project team for the Nigeria Pipe Mill which comprises personnel from NCDMB and Jiangsu Yulong as well as a consultant. The project team has since commenced work.
(sourced:vanguardngr.com)