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Nigerian Bentonite

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Title: Nigerian Bentonite


1
Nigerian Bentonite
  • THE SUCCESS OF THE NIGERIAN BENTONITE
  • ByOlukunle Amoo, Bestkamco Resources, Toronto,
    Canada
  • Prof.W.O. Emofurieta (Terra Miners Nig, Ltd)
  • Agent
  • Watts, Griffis and McOuat, Toronto.

2
Nigerian Bentonite
  • Records have it that oil drill operations started
    in 1951 using imported bentonite largely from the
    US.
  • Before now millions of dollars are spent in the
    procurement of bentonite annually which has not
    been healthy for the economy of the country.
  • The justification for the importation was based
    on the belief that Na-bentonite did not exist in
    Nigeria particularly being a tropical country
    because Na-bentonite is traditionally a temperate
    mineral.

3
Nigerian Bentonite
  • But fossil Na-bentonite deposited under reducing
    and alkaline environment can occur in tropical
    countries.
  • In 1992, Terraminer reported the occurrence of
    more than 2 billion metric tons of bentonite
    reserve in Nigeria and the successful development
    of oil-well drilling mud from same but many did
    not believe.As of today, proven reserve has risen
    to more than 4 billion MT.
  • In 2001, SPDC decided to use the Nigerian
    Bentonite for the drilling of all the SHELL- EA
    Project Wells as a test.

4
Nigerian Bentonite
  • It is now on record that more than 600 wells have
    been successfully drilled in both east and west
    of the Niger Delta without the slightest hitch
    and it is still drilling at this moment.
  • Quite recently, the Nigerian Steel company has
    decided to use our raw bentonite ore as a binder
    in their manufacturing operations. They will be
    needing 100MT/day as well as need by other oil
    drilling companies.
  • There is therefore, absolutely no need for the
    importation of even a gram of bentonite or Aqua
    Gel into Nigeria anymore.This brings me to the
    thrust of my discussion with you today.
  • You are all welcome.

5
Geological Summary of the Deposit
  • The bentonite deposit occurs as a continuous
    highly fossiliferous sedimentary bed of early
    Mid-Eocene age (SPDC Report, 1999) with an east
    west strike and a dip of 5 to 10 degrees.
  • The deposit is secondary in origin.
  • It is more than 10km wide, stretches through
    hundreds of kilometres and more than 40m thick on
    the average.
  • Pitting, sampling, mineralogical, geochemical
    analyses and geophysical surveys have revealed
    very consistent thickness and composition.

6
Geological Summary of the Deposit
  • The deposit is capped by one and a half to two
    and a half-meter thick soft layer of combined
    humus soil and a thin gypsum-shale overburden. In
    some places, the deposit is overlain by a massive
    continental sandstone.
  • Terra Miners Nig. Ltd is currently quarrying the
    deposit in an open cast mine for oil well
    drilling operations in the Niger Delta of
    Nigeria.

7
Location Edo State, Nigeria
8
The Project
  • The project owners have acquired a mining license
    covering a portion see figures attached of a
    deposit of bentonite a clay material, which is
    used primarily in both the oil drilling and
    steelmaking process.
  • The owners currently have secured market orders
    for the delivery of over 8000 tons for the
    current year. The main purchasers to date have
    been/are
  • Delta Steel (20 tonnes per day) but 100 Tonnes
    per day as Plant begins Operation early in the
    year.
  • Haliburton drlling mud supply company (1000
    tons).
  • The current owners have been supplying bentonite
    to the local market since 2001.

9
Proposed Investments Structure
  • The current Nigerian operator functions at an
    artisan level.
  • To meet the current and projected future need the
    project would benefit greatly by having access to
    an experienced, international industrial minerals
    operator.
  • The likelihood of success for this project would
    be greatly enhanced with experienced management,
    good equipment and processing facilities, a good
    quality control system and the ability to supply
    the market on a continuous year round basis.
  • With the right partners, good management and a
    firm market contract, this could be a very good
    project.

10
Investment Model
  • Forming a joint Nigerian- international company
    or partnership to supply both the local and
    international bentonite market
  • The proposed structure would see the current
    Nigerian property owner and licence holder
    (operator) vend into the new co. the property
    assets, all current and future supply contracts
    and all current Nigerian business relationships
    government contacts etc.
  • The foreign investor would provide capital or
    equipment required to enhance the operation and
    the foreign investor would upon a minimum level
    of investment become the operating manager.
  • Initial JV earn in structure, for an investment
    of
  • 1 million10
  • 3 million 20
  • 5 million .40

11
Investment Model
  • Upon achieving the investment level of 3
    million, the foreign investor would become the
    technical operations manager.
  • Upon achieving the level of production required
    to supply the local market the partners would
    agree to discuss development of foreign markets,
    subject of course to any applicable Nigerian
    regulations.
  • Any additional capital investments required to
    meet the foreign market specifications and
    quantity of product required etc. would be based
    on the ownership ratio and should either party
    elect not to participate their percentage of
    interest in the joint company or partnership
    would be diluted.

12
Government Policy
  • The current Government policy to ban importation
    of bentonite and barite is best for the country
    and investment in this industrial Minera,
    Bentonite. This policy is rigidly being
    implemented and enforced.
  • Government is assisting indigenous companies in
    shopping for credible Technical Partners and
    financiers.
  • The indigenous companies should be backed
    officially and assisted financially by foreign
    Funding and Technical knowhow to take off
    properly.

13
CONCLUSION
  • A massive montmorillonitic clay deposit has been
    discovered in Nigeria with an estimated reserve
    of more than 4 billion MT..
  • It is suitable for oil well drilling operations
    in all environments, including land, swamp,
    shallow off-shore and deep off-shore.
  • Teamwork and patriotism are cardinal to
    technological development.
  • Nigeria has put a ban on importation of
    bentonite.
  • The industry, when set up will provide jobs for
    many skilled and unskilled Nigerians and a
    training ground for the younger ones particularly
    now that the Nigerian Steel Company is set to use
    our bentonite ore as a binder in the manufacture
    of steel in Nigeria..

14
Quarry Site
15
Nigerian Bentonite
  • THANK YOU ALL !!!
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