Economic integration of Coper Metal in NIgeria to attract Direct Foreign Investment for Sustainable Development by Asipita Salawu

Economic Integration of Copper Metal in Nigeria to attract Direct Foreign Investment for Sustainable Development

Abdulrahman, A. S.; Okonkwo, E. T.; Yusuf, H.; Abdullahi, A. T.

Department of Materials and Metallurgical Engineering

Federal University of Technology, Minna, Nigeria

[email protected]

NSE Annual Conference: SUNSHINE 20151

mailto:[email protected]

INTRODUCTIONNigeria happens to be one of the

most endowed nations in Africa; apart from crude oil, her minerals reserves are still relatively untouched, despite the abundance of a variety of these minerals, most of them in commercial quantity.

One of the minerals which has been discovered to be available in Nigeria and can be exploited by the country for economic gains is Copper.

Copper is a highly valued metal with some useful properties such as ductility, high thermal and high electrical conductivity. 2

INTRODUCTION CONT. Mining, beneficiation and

refining of copper ores are flexible.

There is high global demand for copper.

http://minerals.usgs.gov/minerals/

Taking advantage of the high global demand for copper to generate substantial foreign exchange is definitely a step in the right direction.

More so, with the current volatility and accompanying uncertainties of the oil and gas market.Engr. Dr. A. S. Abdulrahman MNSE 3



The Paradigm Shift Prior to the oil boom era of the

1970’s and 1980’s, Nigeria was known internationally as a key producer of minerals such as Coal, Tin, Columbite and so on.

Early developmental projects in the country were also funded through the proceeds from sales of these commodities

The discovery of crude oil in the country and its seemingly financial viability had over the years eroded the interest of the country in the solid minerals sector and consequently relegated Nigeria to its current place as a mono economy .

Engr. Dr. A. S. Abdulrahman MNSE 4

African Countries Commodities Dependence.

S/N COUNTRIES COMMODITY PERCENTAGE

DEPENDENCE

1 Algeria, Equitorial Guinea,

Libya, Nigeria

Coal, Petroleum 90

2 Botswana Diamond, Copper,

Nickel etc

80

3 Sierra Leone Diamond 80

4 Congo Kinshasha Diamond,

Petroleum, Cobalt,

Copper

80

5 Zambia Cobalt, Copper 65

6 Mali Gold 50

Copper Ore deposits in NigeriaReports from the Federal

Ministry of Mines and Steel Development, Nigeria ,

revealed that Copper ore deposits have been discovered in the country and as such, copper becomes one of the industrial minerals resources for the country.

It is however difficult to estimate the actual amount of copper ore in the country as it occurs as associated minerals in the body of the ore.

Although known reserves have been estimated to be around 10,000,000 tons’

Copper deposits so far discovered in Nigeria are mainly in the Northern part of the country such as;

Nassarawa, Plateau, Zamfara, Bauchi and Gombe States.

Unfortunately, these deposits are among the many in Africa that are yet to be exploited.

Engr. Dr. A. S. Abdulrahman MNSE5

Challenges Some of the identifiable

challenges which need to be taken into consideration with a view to preventing or addressing them, are:

Economic Anomaly of the Mining communities:

Mining jobs and incomes accruing form them are very unstable

The advent of new technology which displaces labour

Environmental impact of the mining activity

Displacement of other economic activities which hitherto was the communities means of sustenance

Environmental Impact: Air Pollution Water Pollution Water Shortage

These problems notwithstanding, the mining and processing of copper has not slowed down and this is attributable to the fact that methods and processes have been developed for the purpose of containing the problems that arise from mining and processing of copper.


The way forwardThe call for copper mining in

Nigeria does not entail a switch from oil and gas rather a diversification to multi-commodity economy.

It means more revenue for the country both from its current main stay and from copper.

Furthermore, as earlier mentioned, the need for increased interest in copper is based on its high demand in the global marketplace as a result of its application in the areas of:

Electricity generation and transmission

Communication equipment production

Construction: For plumbing, roofing and cladding, copper pipes etc

Transportation: copper is used in cars, trains, and other means of transportation

Others: Including sculptures, cookware and musical instruments


Conclusions The current posture of the Federal

Government of Nigeria to explore other sources of revenue generation such as Agriculture and Solid minerals is without doubt a step in the right direction as this decision when implemented, would yield substantial benefits for the country in form of job creation, poverty reduction, increase in foreign exchange earnings, increase in foreign direct investment to mention just a few.

In diversifying into the solid minerals sector, the Federal government of Nigeria must essentially, allow the sector to be driven by private investors while its responsibilities should be mostly that of a facilitator for conducive environment and regulator.

In addition to other minerals available in Nigeria, copper particularly, needs to be given some consideration for exploitation to the benefit of the nation. This is because the millions of tonnes of copper ore within Nigeria’s borders have no economic benefit to the country as long as they remain untapped.

The United States of America has mined its copper reserves since the 1840’s and is still one of the world’s top producers/consumers of copper. Despite this, it still imports copper from Chile, Mexico and Canada .

While Nigeria may not have as much copper deposits as Zambia or Chile;

the top producers of copper in Africa and the world respectively, she can definitely take a share of the global market by exploiting the copper resources within the country as the demand for copper globally cannot be exceeded by the injection of Nigerian copper into the global market.

Engr. Dr. A. S. Abdulrahman MNSE 8

RecommendationThis paradigm shift requires

however, some immediate actions that the Federal Government of Nigeria needs to take as follows:

Encourage Private Sector Participation

Publicise Available Incentives for Willing Investors

Sensitization and Awareness Creation

Infrastructural Development

Proper waste management procedures

Firm and Effective Regulation

Welfare of Host Communities


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Questions??Questions??