Professor Ibrahim Abdullahi Madugu is the Director-General, National Metallurgical Development Centre (NMDC), Jos. In this interview with Ruth Tene, he says with proper government attention, the solid minerals sector would contribute significantly to job and wealth creation.
What is the NMDC about?
The NMDC was set up in 1993 and metamorphosed from the National Steel Council (NSC) specifically to carry out mineral beneficiation, value addition, among others, based on the act stipulated in the ACT 50 of 1992, which states that that the agency undertakes, through laboratory research and text mineralogical appraisal, core examination and evaluation of solid mineral samples for the purpose of ascertaining the mineral species contained therein, carry out liberation studies, characterization and identification of ores, materials' micro-structures, designed to disengage mineral species so as to release their valuable great constituents.
? The NMDC is the only agency mandated to carry out mineral identification test, processing studies and other metallurgical value addition processes such as smelting and melting. This mandate has created a lot of multiplier effects, including training, job and wealth creation. The centre also carries out research in metal and on different metal products for development. Specifically, we test for metal properties, both mechanical and chemical. Our job starts from where the explorationists (those who explore for various minerals ) stop; when they explore for minerals, they pass whatever? their findings are, I mean the samples they receive, and we now, in turn, will check these samples and ascertain the quality of these minerals. At the same time, we now, in turn, develop flow sheets that will lead to value additions to these minerals. Without value addition to theseminerals, we will end up like other countries such as Guinea, Liberia who just export their mineral ore or just the way we export our crude oil and re-import it back as finished products, but we at the NMDC help the government in finding out the mineral compositions of mineral ores, whether iron, manganese, lead zinc ore or tin (caseterites) ores. So we add value and develop small scale industrialists by giving them flow sheets and technology to set up and process their various metals. By so doing, if the mandate of the agency is properly implemented, we are capable of generating more than one million jobs across the whole federation, because? all the 744 local government have no fewer than one to five different types of mineral deposits.
With the wealth you claim to have in the sector, why do you think it contributes just about 1% to the nation's GDP
Unfortunately, just like my minister has been advocating, we need to have more investments in the solid mineral sector; the investments in the sector is on the low side. If you compare it with the amount of minerals that are available in the country, you will agree with me that the investment is very low. A typical example is the NEITI conference that we just attended; you will notice that they were always talking about oil, oil, oil,? but once in a while? they chip in on the solid minerals. The investment in the solid minerals sector is quite low and the government must invest in it before privatization – as my minister has always said, and evolve a correct mineral policy. the government has to invest in the mineral sector of our national economy, if the government invest, we can create an enabling environment that can actually bring in more investors that are seriously into mineral exploration and extraction, not just exploitation and buying; that is, when you mine them, you must process them up to? finished or semi-finished products and by so doing create more jobs in the sector. The NMDC is there in the forefront; we have the equipment at our disposal to carry out various tests for both the construction industries, oil and gas sector of the national economy and for the various metal fabrication units.
How much will you say the NMDC achieved in 2011?
In terms of budget implementation, I would say we were able to achieve based on what was available or what was given to us. So, we were able to use it altogether and we were able to add value. We extract – in a way, but we give it value addition to what is available in the country. We were able to deal in lead, zinc ore; we were able to beneficiate and process kaolin deposits, clay deposits as well and add more value to it. A number of customers came to us for value addition on these minerals and we were able to separate tin ore that exists in Jos for people who brought their minerals for processing as well.
What is the reason behind government's lack of interest?
?Well I would not say government is not interested; government is interested actually. I think it is the awareness which we are out to create, the awareness needs to be created seriously. Government is highly interested in the sector, but then it has to be complemented with the investment level which, I must tell you the truth, is very? low.
If you say government is interested, how come the low budget and what alternative sources of funding are you looking at?
With the low budgetary allocation, it only makes it a little more difficult for us to function properly, but if you want the agency and the sector to function at the same time, this sector can comfortably compete with oil. And if you want that to happen, the only way it can happen is when you can have or attract more investors by creating the enabling environment, which our ministry is trying, through various fora, to create.
What are those major minerals that Nigeria can depend on, aside oil?
Most of the minerals in Nigeria are in large and commercial quantities, such as iron ore deposits, which is in very huge amount, and we have a very huge amount of ores cutting across all states of the federation, such as Kogi, Zamfara, Kano, Katsina, and parts of Benin and Edo. We have manganese, which is a strategic mineral. The country has a lot of gold and of recent, again, I heard that maybe some diamond deposits somewhere, but it is yet to be fully ascertained.
How would the removal of fuel subsidy affect the NMDC?
Do not forget we are a government agency and government would have to take a number of factors into cognizance; that we actually buy things from the public market. I think government in a way will know how to handle that; it will affect us actually because we are not different; we are also Nigerians.
What is the NMDC looking to achieve in the year 2012?
If we can have our machines in top form, we want to be more involved in mineral processing and adding more value to Nigeria minerals, and, at the same time, reaching out to the oil and gas sector and to our machine development sector. We would like to have collaboration with the Standard Organisation of Nigeria (SON) and the Small and Medium Scale Enterprises which?? can help them to develop technology and develop people who can go into foundries, foundry production and small scale mineral processing in an organised manner.? We can help SON in determining why certain buildings are collapsing in terms of the steel structures, because if buildings collapse, we look at both? the concrete and the steel? structure embedded in the concrete. So, looking at all that, we will be able to participate because we have the expertise and the manpower. It is only NMDC that was mandated by the country to carry out minerals and metal research.
How much is the moribund state of the Ajaokuta Steel company affecting your own performance?
?? To be frank with you, the neglect of the Ajaokuta steel sector has had a serious adverse effect on the economy as a whole, not to our agency alone. Most of the agencies under the mines and steel sector are sectors to feed the iron and steel sector of the country. Our own is not left out of this, because we are supposed to be the major testing arm of the iron and steel industry. Our agency was set up and financed by United Nations Industrial?? Development Organisation (UNIDO) up to a point – until 1996, before they withdraw their financing. Actually we have three of these kinds of agencies in the whole of Africa , one in Egypt, our own here in the south western Nigeria and the last one in South Africa, of all these three agencies, ours apparently is among the least funded and we can do better than what we are doing now, but without the iron and steel programme being in top form, I think we would have a lot to do, but not as much as we will love to. That is why we are diversifying our research processes, to see how we can generate resources through private partnership.
How much steel would you say Nigeria has?
Nigeria does not have steel; the steel we have is quite on the low side. Most of our major steel plants are moribund, as most of the major steel industries. When I say steel plants, I mean steel plants that can produce up to 1million tonnes, because in the parlance of steel production, if your production is not up to 500,000, you are regarded as a micro mill. Most of the steel producing mills today, I call them micro mills and these mills depend on craps. As our minister has always said, these craps are exhaustible in a very short period of time. Our scrap population has never been taken; we do not even know how much scrap we have, but right now,? seeing what we have from accident cars, they are being evacuated, so very soon they will be depleted.
Has your agency submitted its budgetary expenditure for 2011?
We are going to do that with the house, we have presented to the ministry, we presented to both houses and I will say that from the little given to us, we have been able to use that judiciously to try to get certain projects going. The project we have right at hand right now, if we have them going, the country? will not need to carry out research on? certain aspects. Mainly, we are trying to install certain furnaces.? I can say that, in the whole of west Africa, the electrical art furnaces, apart from Nigeria at research levels, no research organization has such furnaces. If we are able to have such furnaces, we will be able to carry out research to produce stainless steel, alloyed steel; these are steels needed in the defence industries. We will be able to come out? and tell our defence people 'if you use so and so alloy, you will be able to produce so and so armoured plate, guns, armoury, machinery components? and so on. Actually,? nobody will give you anything on a platter of gold; it? is either you acquire it directly or indirectly, so NMDC is supposed to be the hub of our development into research and development? in minerals and metals. So, with the recent equipment that we are trying to get installed, if we can install them, and if our research findings are properly utilised by those who? will need them – because the government certainly needs our research out puts,?? if they use it properly, our attainment of Vision 20:2020 will be close.
With the security challenges in the country, will you say the sector is being affected?
The security challenges actually affect everybody? because nobody is comfortable. The?? government is taking care of that, which I can't speak on, but I can say that it affects everybody. Go to the road blocks, you are stopped and checked and when? you are moving you are checking your back.
Aside funding, what do you see as major challenges in the solid mineral sector?
Aside funding, there is the lack of foreign investors coming in? as quickly? as we would have loved them to come. We have? a number of works in the pipelines. They want to come; we want to see them, and these things have been there since Aloma Ali, the man who set up the solid minerals ministry, but we keep looking forward to their coming. But I'm sure that with the dynamism of the current minister – the way he is pushing very hard, before the year runs out, we will see some major investors.