LOCAL SOURCING OF RAW MATERIAL 1.1 AGENCY FOR LOCAL SOURCING OF RAW MATERIALS The raw material potentials of Nigeria are enormous. These potentials have been documented by the Raw Materials Research and Development Council (RMRDC) which was established in 1987 and given the mandate to ensure increased utilization of local resources for industrial development and output. To date, the Council has carried out detailed surveys of the nation's resources which have been documented in over 30 different publications. The Council has also been actively encouraging the efforts of private and corporate entrepreneurs in developing these resources. Examples of the Council's involvement are found in the establishment of pilot projects in five centres in the country. These are: (i) Talc Project in Niger State (ii) Pharmaceutical Grade Kaolin in Katsina State (iii) Cocoa Processing in Ondo State (iv) Phosphate Beneficiation Plant in Sokoto State (v) Soda Ash Plant from Trona in Maiduguri, Borno State. 1.2 SUPPORT ROLE OF THE RAW MATERIALS RESEARCH AND DEVELOPMENT COUNCIL (RMRDC) 1.2.1 Joint Venture Scheme The Council, through its Joint Venture Scheme, supports individuals or groups of investors (local/foreign) with necessary data on specific projects and offers technical advice, assists with preparation of feasibility studies, and advises on sourcing of machinery and finance. The Council may also take up equity in the projects under specified terms and conditions. 1.2.2 Information on Raw Materials RMRDC has developed a computerized information system known as the Raw Material Information System (RMIS).Through databases in the system vital information on raw materials development and utilization can be generated. The RMIS project was supported by the United Nations Development Programme (UNDP). 1.2.3 Boosting of Farm Outputs In recognition of the need to boost the supply of agricultural produce and meet the requirements of industries, the Council embarked on the following programmes: (i) Seed Multiplication Agricultural research institutions were commissioned to develop high-yielding varieties of some crops which are known to perform satisfactorily in the different ecological zones in the country. The seeds and seedings so developed were distributed to farmers in the relevant zones. The result has been a significant increase in the overall farm output of crops such as cassava, soya beans and ginger. (ii) Development of Agro-Minerals Some of the mineral deposits in the country could be used as sources of fertilizer by farmers. Laboratory and green house studies indicate the suitability of the rock phosphate in Sokoto State as fertilizer by direct application into acid soils. Other tests also confirm good outputs in rain forest zones. 1.2.4 National Risk Fund RMRDC initiated the formation of a venture capital company known as the National Risk Fund. Other sponsors of the company include banking institutions and manufacturing companies. The Fund offers financial support to projects, especially those of pioneer status, which will utilise local raw materials for the production of marketable goods. 1.3 SOLID MINERALS Nigeria is richly endowed with a variety of solid minerals much of which is yet to be exploited. Statistically, the level of exploitation of these minerals is very low in relation to the extent of deposits found in the country. There are tremendous opportunities for investments in the solid mineral sector in Nigeria. Prospecting Licences for investors (both local and foreign) to participate in the exploitation of the vast mineral resources in Nigeria is granted by the Federal Ministry of Solid Minerals. PROFILE OF SOLID MINERAL DEPOSITS IN NIGERIA *Talc Over 40 million tonnes deposits of talc have been identified in Niger, Osun, Kogi, Ogun and Kaduna States. The Raw Materials Research and Development Council (RMRDC)'s catalytic plant of 3,000 tonnes per annum is the only talc plant in the country. The talc industry represents one of the most versatile sectors of the industrial minerals of the world . The exploitation of the vast deposits would therefore satisfy local demand and that for export. * Gypsum Gypsum is an important input for the production of cement. It is also used for the production of Plaster of Paris (P.O.P) and classroom chalks. A strategy for large-scale mining of gypsum used in the cement industries is urgently required to sustain the existing plants and meet the future expansion. Currently cement production is put at 8 million tonnes per annum while the national requirement is 9.6 million tonnes. About one billion tonnes of gypsum deposits are spread over many states in Nigeria. * Iron Ore There are over 3 billion metric tonnes of iron ore deposits found in Kogi, Enugu and Niger States as well as the Federal Capital Territory. Iron Ore is being mined at Itakpe in Kogi State and is already being beneficiated, up to 67 per cent of Iron. The Aladja and Ajaokuta Steel complexes are ready consumers of billets and other Iron products for down-stream industries. *Lead/Zinc An estimated 10 million tonnes of lead/zinc veins are spread over eight states of Nigeria. Proven reserves in three prospects in the East-Central area are 5 million tonnes. Joint venture partners are encouraged to develop and exploit the various lead/zinc deposits all over the country. *Bentonite and Baryte These are the main constituents of the mud used in the drilling of all types of oil wells. The Nigerian baryte has specific gravity of about 4.3. Over 7.5 million tonnes of baryte have been identified in Taraba and Bauchi States. Large bentonite reserves of 700 million tonnes are available in many states of the federation ready for massive development and exploitation. *Gold There are proven reserves of both alluvial and primary gold in the schist belt of Nigeria covering the south western part of the country. The deposits are mainly alluvial and are currently being exploited on a small scale. Private investors are invited to stake concessions on these primary deposits. * Bitumen The occurrence of bitumen deposits in Nigeria is indicated at about 42 billion tonnes; almost twice the amount of existing reserves of crude petroleum. Analytical results suggest that this potential resource can be used directly as an asphalt binder. Most bitumen used for road construction is currently imported. *Coal Nigerian coal is one of the most bituminous in the world owing to its low sulphur and ash content and therefore the most environment- friendly. There are nearly 3.00 billion tonnes of indicated reserves in 17 identified coal fields and over 600 million tonnes of proven reserves. * Rock Salt The national demand for table salt, caustic soda, chlorine, sodium bicarbonate, sodium hydrochloric acid and hydrogen peroxide exceeds one million tonnes. A colossal amount of money is expended annually to import these chemicals by chemical and processing companies including tanneries and those in food and beverages, paper and pulp, bottling and other industries including the oil companies. There are salt springs at Awe (Plateau State), Abakaliki and Uburu (Ebonyi State), while rock salt is available in Benue State. A total reserve of 1.5 million tonnes has been indicated, and further investigations are now being carried out by government to ascertain the total reserves. *Gemstones Gemstones mining has boomed in various parts of Plateau, Kaduna and Bauchi States for years. Some of these gemstones include Sapphire, Ruby, Aquamarine, Emerald, Tourmaline, Topaz, Garnet, Amethyst; Zircon, and Flourspar which are among the world's best. Good prospects exist in this area for viable investments. * Kaolin An estimated reserve of 3 billion tonnes of good kaolinitic clays has been identified in many localities in Nigeria.