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SME Guide

Harnessing Anambra’s Hidden Treasures: The State’s Extensive Mineral Resources Hold Immense Potential

Anambra State, located in southeastern Nigeria, is endowed with abundant natural resources that have yet to be fully tapped into. With strategic investment and development of its mineral sector, Anambra could unlock vast economic growth and establish itself as a major mining hub in Nigeria.

An Overview of Anambra’s Geology and Mineral Deposits

Anambra State covers an area of 4,844 km2 and features varied geology and terrain that hold substantial mineral reserves. The state contains three major geological formations:

  • The Benin Formation in the west features coastal plain sands, gravel, and alluvium.
  • The Ogwashi-Asaba Formation in the middle belt has fine-grained sands, laterites, and shale.
  • The Anambra Basin in the east consists of shales, limestone, ironstone, and coal measures.

Several minerals occur across Anambra in potential commercial quantities, including:

Glass Sands

Glass sand, also known as silica sand, is a principal raw material for glass, ceramics, and foundry castings. Anambra has extensive deposits of silica sand along stretches of the Anambra River Basin. The Ogboji community hosts high-grade silica sands spanning over 50 hectares at depths of 2–10 meters. With beneficiation, the Ogboji sand can meet international glass industry standards.

Other significant glass sand reserves have been identified in Okija, Oba, Igboukwu, Nanka, and Owerre-Ezukala. High-purity silica is also obtainable from pegmatites and quartz veins across the state.

Kaolin (Clay)

Kaolin, also called china clay, is a white clay material composed mainly of kaolinite used in ceramics, paint, rubber, paper, medicine, and cosmetics. Anambra has an estimated three million metric tonnes of kaolin spread across Okija, Owerri-Ezukala, Nnewi, and Nsugbe.

The Ukpor kaolin in Nnewi North LGA has pure deposits up to 20 metres thick, making it highly suited for technical ceramics, refractories, and fertiliser manufacture.

Gypsum

Gypsum, a soft sulphate mineral, has extensive usage in cement, plaster, blackboard chalk, and drywall. Substantial gypsum resources have been located in the northern half of Anambra, including near the towns of Ogbaru, Dunukofia, Awka North, Ayamelum, Anambra East, and Oyi.

Thick gypsum beds underlying limestone formations point to potentially large, high-grade deposits. Gypsum samples from Oyi LGA have assayed up to 98% purity.

Limestone

Limestone is a valuable industrial mineral utilised in cement, lime production, water treatment, iron and steel making, glass manufacture, and agriculture.

Significantly high calcium limestone deposits have been proven in northern Anambra through drilling by the Nigerian Cement Company at Nkalagu and Obajana. Further exploration has delineated extensive limestone reserves exceeding 100 million metric tonnes around Ezimo, Uga Okigwe, Nsugbe, and Nnewi South LGAs. The Obajana limestone shows excellent cement-grade composition.

Iron Ore

Iron ore is a vital mineral used for producing iron and steel. Anambra’s Nteje formation contains substantial ironstone bands grading from 20–54% iron content. Major deposits occur around the Oba-Nsugbe-Okija areas of Anambra east and north.

Drilling and geophysical surveys have indicated ore reserves exceeding 30 million metric tonnes. The lignite beds underlying the ironstones can also provide power for future steel mills in the region.

Coal

Coal is a valuable fuel and carbon source used for electricity generation and metal production. Anambra’s eastern half contains extensive coal measures, as evidenced by outcrops along the Ezinifite-Umuawulu clays.

The Ezimo and Inyaba coal mines previously exported coal from shallow underground workings but were shut down post-independence.

Modern geological surveys have demarcated new mineable coal reserves in the Kogi formation exceeding two billion metric tonnes around Enugu-Ezimo, Oba, Nnewi, and Inyaba. The coal is mainly sub-bituminous to bituminous in rank.

Lead-Zinc

Lead-zinc mineralization occurs around the Carboniferous-Cretaceous sediments flanking the Benue Trough. Significant lead-zinc veins and breccia pipes are found around Uga, Oseakwa, and Obosi in Anambra East LGA at depths between 85 and 150 metres.

Assayed grades of 4–8% lead and 1–16% zinc indicate promising prospects. More lead-zinc targets exist farther north around Oba, Oraeri, and Nsugbe.

Bauxite and manganese

Bauxite, the main aluminium ore, and manganese used in steelmaking have been located in southern areas of Anambra, adjoining similar deposits across the Niger River in Delta State.

Bauxite and manganese occur around clays and shales between Ogwashi-Asaba and Ogwuaniocha. The manganese ores assay 24–48% MnO2, while the bauxite analyses 4–52% Al2O3.

Crude Oil and Natural Gas

While Anambra remains largely underexplored for hydrocarbon resources, some oil and gas discoveries provide indications of wider potential.

The Anambra Basin has yielded natural gas from the OPL 915 well and condensates from the Ebenebe-1, 2, and 3 wells. The 150-million-barrel OPL 917 Owelle oil prospect also partially extends under Anambra from Imo State. These findings warrant expanded exploration of deeper formations.

Urgent Need to Develop Anambra’s Mineral Endowments

Anambra State’s considerable mineral wealth remains largely untapped despite its strong promise. Less than 1% of mining currently contributes to Anambra’s GDP.

With appropriate policies and strategic action, Anambra can transform its mining sector into an economic growth engine that creates jobs, generates exports, and enables industrialization.

Unlocking the state’s mineral potential requires urgent steps by both the government and private investors.

Key Recommendations

  • Perform extensive geological mapping and mineral prospecting across underexplored areas.
  • Offer tax holidays and incentives to attract large-scale mining companies.
  • Develop modern mining policies and regulations aligned with global standards.
  • Upgrade transport infrastructure for efficient mineral evacuation.
  • Provide a stable power supply to support mineral processing and beneficiation.
  • Establish a world-class geosciences institute for local training and research.
  • Promote downstream industries such as cement, steel, and ceramics manufacturing.
  • Implement sustainable mining practices to ensure ecological preservation.
  • Create mineral buying centres or commodity exchanges to support artisanal miners.
  • Harness mining revenues for further infrastructure and social development.

Building a Vibrant and Sustainable Mining Industry

Anambra State possesses the natural mineral bounty and human capital to build a thriving, responsible mining sector. With foresight and effective planning, Anambra can develop its mining industry across the entire value chain.

Geological Mapping and Exploration

Comprehensive geological mapping using advanced technologies such as remote sensing and geophysics is essential to locating promising mineral targets, especially in unexplored regions of the state. This should be accompanied by sufficient exploration drilling and sampling to broadly delineate the extent, grade, and volume of mineral deposits.

The state must incentivize junior mining companies to commit to exploration activities through transparent licencing, tax breaks, guaranteed rights to development, etc. Collaborating with universities and research institutes will also enhance exploration efficacy.

Mine Development

Once mineral resources are proven, the next step is to plan and develop commercial-scale mines alongside the necessary infrastructure. Modern mining methods and technologies should be adopted for operational efficiency and higher recovery rates while minimising environmental impacts.

Mines must be designed, engineered, and constructed to global standards. This provides opportunities for technology providers, engineering contractors, consultants, etc. Strict regulations and monitoring should enforce safe, sustainable mining practices.

Mineral Extraction and Processing

The mining stage must efficiently extract run-of-mine ore and process it through crushing, grinding, washing, separation, etc. to produce saleable mineral commodities. This provides income generation and export earnings.

Optimal mineral processing technologies should be applied to maximise plant recoveries. Partnering with qualified processing equipment vendors will enable mineral beneficiation. Supporting infrastructure like power, water, and roads are prerequisites.

**Refining & Manufacturing**

To derive maximum value from its minerals, Anambra should promote secondary industries such as steel mills, cement plants, ceramics factories, and refineries to refine and manufacture finished products. This will boost GDP, create numerous jobs, and generate higher revenues through the value chain.

Fiscal incentives can attract manufacturing investments. A skilled workforce can be prepared through technical training programmes tailored to industry requirements. Such downstream ventures will boost the growth of the entire mineral sector.

Policy and Regulation

A robust legal and regulatory framework is crucial for a thriving, responsible mining sector. Policies should be competitive yet fair by striking the right balance between attracting investment and optimising public benefit.

Regulations must mandate environmentally sound practices, health and safety standards, responsible mine closure planning, and sustainable community development through mining projects. Strict monitoring and transparency will ensure compliance.

Clearly defined permitting processes, reasonable taxation, and a responsible land access framework will provide stability and operational clarity to mining companies.

Infrastructure Development

Since mining is a capital-intensive, long-term activity, reliable supporting infrastructure must be provided. Paved roads, rail lines, power grids, water supply, etc. will enable efficient transportation and sustainable, profitable mining. Investments in infrastructural expansion will also benefit other sectors.

Partnerships with contractors can deliver infrastructure projects, especially if community participation is encouraged. Adequate infrastructure opens up mineral-rich areas for responsible development.

Funding and Investment

Developing a profitable, sustainable mining sector requires substantial capital investment by both domestic and foreign players. The government can facilitate investment through proven tax breaks, transparent licencing, favourable policies, enforcement of agreements, etc.

Financial institutions and capital markets should offer innovative mining financing products and platforms. Partnerships with reputable mining companies can provide technical expertise and project funding. A State Minerals Development Fund could directly support promotional activities.

Local Participation

It is vital for Anambra’s citizens to actively participate in and benefit from the state’s mining industry by developing relevant skills and venturing into supporting services. This will enable socio-economic upliftment and greater public acceptance of mining.

To develop homegrown mining expertise, geosciences and technical education must be promoted in schools and universities, alongside training institutes for skill development. Locals should be employed, engaged as vendors, and empowered to establish ancillary businesses that serve mining companies.

Research and Innovation

Continuous research and innovation are necessary to keep developing competitive, sustainable, and safer mining practices. Collaborations between academics and industry on aspects like mineral processing, mine automation, environmental protection, occupational health, etc. will drive technological advancement.

The government can fund mining research programmes at universities and R&D centres on industry-relevant topics. Innovation incubators can assist local entrepreneurs in developing impactful mining technologies. Such efforts will position Anambra’s mining sector at the cutting edge.

Sustainable Development

Responsible mining entails ensuring ecological preservation, community development, and future productivity beyond mineral depletion. Strict environmental management of minesites, biodiversity conservation, mine rehabilitation, and social investment must be enforced.

Mining should be planned based on the highest standards of sustainability. Companies must maintain transparency and engage communities as partners throughout the mining lifecycle, from exploration to closure. Making sustainability integral will make Anambra’s mining sector socially and environmentally responsible.

Outlook for Anambra’s Mineral Sector

By proactively harnessing its considerable geological endowment in a prudent and sustainable manner, Anambra State is strongly positioned to build a thriving, socially responsible minerals industry that drives broad-based economic growth.

With the right strategies and policies, Anambra can attract quality investments to responsibly mine and process minerals while also developing downstream industries and local capabilities.

If fully optimised, Anambra’s mineral sector holds the potential to:

  • Become the state’s foremost export earner.
  • Contribute over 20% to the state’s GDP.
  • Employ over 50,000 people directly in mining and associated jobs.
  • Generate over $5 billion in annual revenues for the state government.
  • Catalyse massive infrastructure and technology clusters across mineral zones.
  • Enable widespread industrialization and diversification of the state’s economy.

Anambra State’s extensive, high-quality mineral resources therefore represent hidden treasures that can profoundly transform the state’s economic fortunes and deliver widespread prosperity when responsibly tapped. The time has come for Anambra to mine its full mineral potential.

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