Nigeria: Firms Win Solid Mineral Blocks

Thursday, August 31st 2006

Sinopec, a subsidiary of the China Petroleum and Chemical Company yesterday blazed the trail in the Nigerian solid minerals sector when it emerged winner of the nation’s Bitumen Block2, unarguably the first bitumen deposit to be formally exploited in Nigeria many years after the mineral was discovered in the country. The Chinese mining firm offered $18.6m to win the bid, while the second contender, Denca Services /Guangdong Geology Construction Group offered $13.5m to clinch the position of reserve bidders.

Livingspring Minerals, a private company established with the backing of the Osun State government won the bid for the Igun Gold District (ML20501, ML20507and ML10904) with an offer of $350,000.00. The indigenous firm defeated two international mining companies namely Central Asia Gold and Dome Minerals to acquire the title to the asset. Central Asia Gold a publicly quoted company on the Australian and Toronto Stock

Exchange with goldmines in Western Australia, Ghana, Tanzania and Mongolia apparently underestimated the worth of the Igun Gold District given its offer first and final offers of $50,000.00. Dome Minerals Nigeria Limited, a subsidiary of Dome Ventures of Canada also fell into the same trap with its offer of $15,500.00.

Similarly, Equator Mines, a company involved in the provision of technical services and consulting in Solid Minerals exploitation and development won three bids. These include the Nigerian Kaolin Limited, Kuba-Ladi, Plateau State (ML5543, ML11930, ML5647, ML1939 and ML4069); Nigeria Feldspar/Quartz, Lokoja (QLS2283, QLS2284, QLS2285 and QLS2286) as well as Nigeria Tin and Allied Mining and Products Limited, Gurum, Plateau State.The results were announced at the financial bid opening for the bitumen blocks, mining titles and properties held yesterday at the Transcorp Hilton, Abuja. The bids were in respect of some subsidiaries and mineral licenses/leases of the Nigeria Mining Corporation (NMC) located across the country and bitumen blocks 1and 2 sited in Ondo and Ogun states respectively.
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