The Minister of Solid Minerals Development, Dr. Dele Alake on Tuesday said that the ministry will commence the commissioning of lithium and rare earth processing plant in next quarter.
The Minister also disclosed that as at October 2024, not less than 250 new cooperative have been registered by the Artisana and Small Scale Mining Department.
Alake stated this at the second press briefing on the 9th edition of the Nigeria Mining Week scheduled to begin from 18th to 20th of November 2024 at the Abuja Continental Hotel.
“In the next quarter, the herculean efforts of serious industrialists in the mining sector will gradually unravel as we begin to commission lithium and rare earth processing plants across the country.
“El Thahadat plans to launch its lithium plants in Kwara and Kebbi states. Hasetins is launching its rare earth, mainly tantalite processing plant in the Federal Capital Territory in December, this year.
“A new gold refinery has just set up in Gwarinpa and the Ministry is working with the company to ensure its take-off. Undoubtedly, we are in the season of harvesting the visionary ideas of the Seven Point Agenda,” said Alake.
The Minister, while outlining the numerous successes achieved so far, said, “As at October, 2024, not less than 250 new co-operatives have been registered by the Artisana and Small Scale Mining Department. This is cheering news and confirmation of the efficacy of our two-pronged strategy to combat illegal mining by encouraging artisanal miners to abandon illegal mining for formalization as co-operatives.
“Futhermore, we have also recorded good news in trading. Our figures for October 2024 show that we now have not less than 150 buying centres.
“Recall that a major component is the establishment of the Nigerian Solid Minerals Company. Let me announce that a lot of progress was made in this regard in the past one week leading to the process of incorporation by the Ministry of Finance”
Alake who spoke on this year’s Nigeria Mining Week is themed, “From the Inside Out: Building the Mining Sector to be the Cornerstone of Nigeria’s Economy”, said it reflects their unwavering commitment to creating a mining industry that anchors national prosperity, supports sustainable growth, and fuels industrialization.
“Over the years, the Nigeria Mining Week has evolved into more than a gathering of industry experts; it is a powerful forum where we refine our shared vision, aligning our goals to create a robust, self-reliant mining sector. Guided by President Bola Ahmed Tinubu’s Renewed Hope Agenda, we envision an era in which Nigeria’s mineral wealth serves as the backbone of economic diversification, job creation, and community development, advancing our national interest for the benefit of every Nigerian.
“Our country is blessed with more than 44 minerals of various categories but to realize their full potential, we must move beyond extraction. We are focused on establishing systems and structures that allow Nigerians to benefit directly from our resources. Through local value addition, processing, and beneficiation, our aim is to transform Nigeria’s mineral wealth into industrial and economic power, generating jobs and supporting local businesses in ways that ripple through our economy,” the Minister stated.
In his remarks, Mr. Habeeb Jaiyeola, PARTNER, Mining Sector, PriceWaterhouseCoopers (PWC), who reeled out key discussion points for the upcoming Nigeria Mining Week, enjoined stakeholders in the mining ecosystem to key into the gain changing event.
Seplat Energy canvasses improved energy access for Nigeria’s development
BY SAM OTUONYE
Seplat Energy Plc, foremost indigenous energy company, says Nigeria’s development will require significant improvements in access to energy. According to the Company, lower-cost, more reliable energy will drive job creation, prosperity and social development and achievement of the United Nations’ Sustainable Development Goals (SDGs).
The Chief Executive Officer, Seplat Energy Plc, Mr. Roger Brown, said this while delivering the Keynote Address at the ongoing 42nd Nigerian Association of Petroleum Explorationists (NAPE) Annual Conference & Exhibition, happening in Lagos. Mr. Brown, who was represented by the Director, New Energy at Seplat Energy, Mr. Okey Mba, spoke on the Conference theme: Resolving the Nigerian Energy Trilemma: Energy Security, Sustainable Growth and Affordability.
According to him, Nigeria must improve energy access and achieve a balance between equity, security and sustainability; as the country faces the challenges of population growth and lack of economic and social development because of poor energy access.
“Nigeria’s development will require significant improvements in access to energy. With gas, significant development gains can be achieved with minimal impact on emissions. The country must transition away from reliance on biomass and oil as its primary sources of energy,” he stressed.
The Seplat Energy boss made a strong case for gas as Nigeria’s transition fuel; saying it is proven and accepted as transition fuel in developed North with large local resources in Africa (Nigeria having the largest) and multiple essential uses beyond power.
Mr. Brown explained that Nigeria’s abundant gas reserves offer a local solution to resolving the country’s energy trilemma; given that as gas is developed it is likely the reserves will grow materially. Nigeria has estimated 209 Tcf of reserves by many experts believe it is 2 to 3 times that amount.
“Nigeria’s estimated 40GW(plus) power generation sets (gensets) could be displaced by cleaner, cheaper utility-scale gas and renewables. Every gigawatt (GW) of generator power displaced by cleaner utility-scale gas will decarbonise Nigeria’s energy system and reduce the cost of energy. Our industry must focus on end-to-end solutions to unlock the full value of Nigeria’s gas so we can resolve the energy trilemma,” he added.
Seplat Energy’s focus is on supporting more power generation, reducing emissions and creating new gas product lines with its joint venture investments aimed at enhancing capacity at the ANOH and Sapele gas plants, and so on.
Seplat’s JV investments in gas will deliver significant value for all stakeholders, as the company leverages new business lines in Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG), and decarbonizing its operations through reduced flaring and diesel replacement.
FG to regulate gas terminals, apply penalties
BY SAM OTUONYE
The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, is set to begin the monitoring and regulation of gas terminals, a major criterion in determining the price of Liquefied Natural Gas, also known as cooking gas.
It said natural gas or its derivatives will no longer be evacuated from a terminal for export or supply to bulk customers in Nigeria without a valid wholesale gas supply licence as contained in the proposed Midstream and Downstream Petroleum Operations Regulations, 2024.
The proposed regulations, which have received stakeholders’ assent, will enable the authority to reduce the complexities of navigating and implementing their numerous regulations in the petroleum industry.
At a stakeholders meeting last month, the authority said the operations regulations would consolidate 12 of the authority’s earlier gazetted or published regulations.
The Director of Distribution System Storage and Retailing Infrastructure, Mr Ogbugo Ukoha, said it would also provide the prescribed fees and penalties for midstream and downstream petroleum activities.
Recall that the price of cooking gas has skyrocketed from N700/kg in June 2023 to N1,500/kg in October 2024. To curtail this, the government stopped the export of locally produced Liquefied Petroleum Gas, also known as cooking gas, to prioritise domestic supply.
A copy of the document according to investigation showed that part of the recommendations submitted include providing oversight functions on gas terminal operations.
It also reinforced that petroleum liquids or natural gas or its derivatives imported into Nigeria shall not be discharged without necessary regulatory checks.
The document read, “From the commencement of these regulations, a gas import or export terminal shall not be operated without a licence granted by the Authority;
“Natural gas or its derivatives shall not be evacuated from a terminal for export or supply to bulk customers in Nigeria without a valid wholesale gas supply licence granted by the Authority. The loading or unloading of natural gas or its derivatives shall not be carried out without the authorisation of the Authority. A person wishing to export natural gas or its derivatives from Nigeria shall apply to the Authority in accordance with guidelines made by the Authority.
“Petroleum liquids or natural gas or its derivatives imported into Nigeria shall not be discharged without – sampling, testing of products from an approved laboratory, and the issuance of a certificate of quality from the Authority.”
It stressed that the interested firm must have an establishment, design, construction or operation of a gas processing facility.
It added, “Interested persons shall not undertake the following gas operations in the Nigerian midstream and downstream industry without a valid licence, permit, or authorisation granted by the Authority; the establishment, design, construction, or operation of a gas processing facility, including the modification and decommissioning of such facilities; the offtake of natural gas or gas products and derivatives from a gas facility; the establishment, construction, or operation of a natural gas blending facility; blending operations in a gas depot, the establishment, construction, modification, operation, and decommissioning of gas import and export terminals and the designation of gas export points.”
For petrol import, it stated that “no person shall load or unload petroleum liquids in a licensed bulk storage facility without the approval of the Authority. A bulk petroleum liquids storage facility shall not be used for product export and import without the approval of the Authority.
“Petroleum products to be exported from Nigeria from a bulk petroleum liquids storage facility shall only be sourced from a Nigerian refinery or petrochemical plant. Petroleum products shall not be exported from a bulk petroleum liquids storage facility without a valid certificate of quantity and quality and a wholesale petroleum liquids supply licence issued by the Authority.
“Petroleum products owned by a third party shall not be stored in a petroleum products distribution facility or depot without a valid throughput agreement registered with the Authority. A holder of a bulk petroleum liquids storage licence shall comply with section 188 of the Act.”
Meanwhile, the NMDPRA has listed 146 penalties and fines to be paid in the new regulations.
It said the penalties in midstream and downstream petroleum operations may arise as a result of a failure to undertake midstream and downstream petroleum operations in a manner that ensures the safety of lives and property, safe and sustainable operations, and the protection of the environment.
Some of the fines include, “$2,000,000 for the importation of off-spec petroleum products, N5m per truck for product evacuation from hydrocarbon processing facility by truck or rail without authorisation, $10,000 for product evacuation from hydrocarbon processing facilities through a vessel without authorisation, another $10,000 for vessel arrival at the loading berth without authority clearance, N5m per truck for product diversion by truck or rail and $20,000.00 for product diversion from hydrocarbon processing facility through a vessel.
“N3m for third-party blending by a plant owner without authorization, N2m for third-party blending by a product owner without authorisation, not more than $250,000 and suspension of not more than 1 year for the engagement of non-authority accredited contractors for fabrication, construction, calibration, testing, or any other midstream and downstream activities. Not more than $250,000 or suspension of not more than 1 year for carrying out midstream and downstream activities without Authority oil and gas industry service permit and $5,000 for using storage or changing tank products or pipeline product services without authorisation.”
Others are a fine of $25,000 for the introduction of deadwood, capillary tube or false bottom, etc in crude oil storage tanks, N3m for engaging in third-party petroleum products distribution without a permit, N5m for denial of access to Authority Personnel and a hefty fine of N20m and suspension or revocation of licence for assault or harassment of Authority personnel.
