Nigeria+Strategic+Minerals

=CGCCOC and Tongyi Mining Co. Likely to Increase Exploration of Strategic Minerals in Nigeria=

Executive Summary:
China, notably China's CGCOC Hansom (Beijing) Trading Co. LTd. and China's Tongyi Allied Mining Co. Ltd., are likely to increase investment in exploration and mining of strategic minerals in Nigeria. Nigeria Minister of Mines and Steel has stated that Nigeria contains seven strategic minerals. CGCOC is currently investing in gold exploration; with gold being named one of the seven strategic minerals. Tongyi Allied Mining Co. Ltd. is operating in the exploration and mining of cassiterite and columbite. Nigeria has a great potential for strategic mineral exploration and are looking to grow this sector of their economy. Recently, Nigeria and China has signed a Memorandum of Understanding for the establishment of the first solid minerals laboratory in Nigeria. It will be driven by the private sector and meant to replicate the sector in China.

Discussion:
Nigeria has great potential for solid minerals. In Jan. 2013, China and Nigeria signed a memorandum of understanding for the establishment of the first solid minerals laboratory in Nigeria, no more details have been released. Also, China has two major mining companies operating in Nigeria. China's CGC Nig Ltd takes part in gold exploration in Nigeria. China's Tongyi Allied Mining Co Ltd has exploration and mining in cassiterite and columbite.

There has not been a substantial amount of research done on the solid minerals sector in Nigeria, but the government is hoping to change that. Mr. Ledum Mitee, a chairman for Nigeria Extractive Industries Transparency Initiative (NEITI), stated, "It is NEITI's firm belief that the time for Nigeria to fully embrace the development of the solid minerals sector of the extractive industry is now, we successfully undertook a scoping study in the solid minerals sector which confirms that all notable minerals are available in commercial quantity in all states, local government and communities in Nigeria starting from gold, bitumen, diamond, salt, coal, iron ore, limestone, lead and zinc and the country can benefit in revenue from them". Nigeria's Minister of Mines & Steel Development identified seven strategic minerals in Nigeria (coal, bitumen, tantalite, gold, iron ore, zinc, and limestone) and stated that Nigeria is going to further research and explore these possibilities.



** Analytic Confidence: **
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, did not use a structured analytic method worked alone and collaborated with a team. The subject is moderately complex and the deadline was moderately difficult to meet.
 * Analyst:** RoseAnna Wright