Responsible exploitation of Nigeria’s solid mineral endowment of 27 billion barrels of oil equivalent of bitumen could significantly impact the country’s economy, in terms of financial return on investment for credible investors, job creation and poverty alleviation

The Honourable Minister of Mines and Steel Development, Mrs. Diezani Alison– Madueke made this declaration during a Ministerial Press Briefing on the ongoing bitumen bidding activity.

The Minister who decried  the rate at which bitumen is being imported into the country for road construction, said that the exploration and exploitation of Bitumen resource would create job opportunities, achieve poverty reduction through the operations of the Artisanal and Small Scale Mining (ASM) thereby creating a ‘trickledown effect’ for the host communities. 

She said that the Ministry, in its bid to attract investors, had demarcated the bitumen areas that are being put up for bid into three (3) block structures, based on the need to make them commercially viable. The bitumen belt spreads across Edo, Ondo, Ogun and Lagos states.

Mrs. Alison-Madueke added that the bidding exercise aimed at attracting investors to the exploration and exploitation of the nation’s bitumen includes the setting up of bitumen bidding committee in the Ministry and placing advertisements for the expression of interest for the bitumen blocks (Block A and C) with Blocks A and C covering 4,700 square km, and 3,670 square km, respectively, were advertised in Nigerian and International dailies.

The Minister said that about sixteen (16) companies, from Nigeria, China, United States of America, Canada and South Africa, responded to the Request for Expression of Interest (EOI).  Upon completion of the evaluation of the EOIs and the corresponding determination of a shortlist, a Request for Proposal (RFP) will be issued, requesting for the submission of technical and financial submissions.

Mrs. Alison–Madueke disclosed that a road show on bitumen was held in London in June 26, 2009, as part of the Ministry’s efforts to further showcase the potential in this mineral and heighten investor interest in same.

The Minister also reiterated Federal Government’s effort at creating an enabling environment for the investors.

In another development, the Minister had earlier met with a delegation of Australian investors led by the Australian High Commissioner to Nigeria, Mr. Jeff Hart in her office.

The Minister assured the delegation of the present administration’s readiness to collaborate with the Australian government at developing the mines and steel sector.

She noted that Australia is a mining community with a lot of foreign investors who have the technological and financial capability to develop the sector.

She said that the Ministry is expecting to participate in the Mining Investment Fora in Australia, Johannesburg and China later this year, as well as embark on road shows and discussions to build awareness of the potential associated with Nigeria’s mineral endowment.

The Minister therefore promised to schedule a meeting between the delegation and Directors of the Ministry to discuss the way forward.

Earlier on in his address, the Australian High Commissioner said that his mission to the Ministry was to introduce Mr. Akindele Obe, the Managing Director of AKATA Resources Pty Ltd, a Pert–based Australian Company that is backed by investors who have technical and financial capabilities in oil, gas and mining, who have an interest developing the country’s coal mines for export purposes.

The Managing Director, AKATA Resources, Mr. Akindele Obe said that there are a lot of foreign investors who are interested in developing the nation’s mines and steel sector, adding that a major challenge for foreign investors is lack of knowledge on how to operate in  Nigeria’s Mining and Steel sector.