BPE January 10, 2006

Nigerian Mining Corporation

BACKGROUND

The NMC is a Federal Government Public Statutory Corporation established by Decree number 39, as contained in Gazette No 54, Vol. 59 of 1972, and amended by Decree 34 of 1976 (now NMC Act, Cap. 317, 1990). The NMC as provided by the Decree was to play a dominant role and to act as a catalyst in the development of the mining industry in Nigeria, charged with the following functions:

• Exploring and prospecting for, workings, mining or otherwise acquiring, processing and disposing of minerals of various kinds occurring in Nigeria other than petroleum and coal
• Smelting, roasting, assaying, amalgamating, refining, or otherwise treating the minerals aforementioned in any manner calculated to render the products and by-products of any such minerals marketable;
• Purchasing the ores or the products and by-products of any of the minerals aforementioned from any source outside Nigeria in any case where they are not available in Nigeria
• Marketing the ores, products and by-products of any or all the minerals aforementioned
• Performing other functions conferred on it by or pursuant to this Act.

THE COMPANY’S PRODUCTS

NMC’S SUBSIDIARIES:

• Nigerian Kaolin Processing co. Ltd, Kuba B/Ladi LG Plateau State
• Nigerian Barytes Mining and Processing Co. Ltd, Azara, Awe LG Nasarawa
• Nigerian Tin and Allied Products Ltd, Gurum, Plateau State
• Nimco Gold Mining Company Ltd, llesha, Osun State
• Nimco Terrazzo Company Ltd, Gurum, Plateau State
• Nimco Quarry Products Ltd, with sites in eight locations in the country which are namely: i) Kujama, Kaduna; ii) Kuru, Plateau; iii) Gano, Kano; iv) Gubi, Bauchi; v) Suleja, Niger
• Consolidated Tin Mines Ltd
• Nigerian Brick and Clay Products Ltd also in 8 locations:
  • Naraguta Bricks and Clay Products Limited, Jos
  • Ibadan Bricks and Clay Products Limited, Oyo State
  • Ikorodu Bricks and Clay Products Limited, Lagos state
  • Enugu Bricks and Clay Products Limited, Enugu State
  • Kano Bricks and Clay Products Limited, Kano State
  • Kaduna Bricks and Clay Products Limited, Kaduna State
  • Maiduguri Bricks and Clay Products Limited, Bornu State
  • Bricks and Clay Products Company, Izom, Niger State

NMC Projects:

• Nimco Feldspar/Quartz, Lokoja, Kogi State
• Nimco Talc Project, Okolom-Isanlu, Kogi State
• Gypsum Project, Potiskum, Yobe State

Associated companies:

• Laka Gold Company Ltd, Laka, Kebbi State
• Oil Chem. T.C Ltd, Km 20 Lafia /MaKurdi Road Lafia, Nassarawa State
• Mangesite Company Ltd, Tsakasimata, Adamawa State
• Prime Ace Metals Ltd, Sepeteri, Oyo State
• Kampe Valley Mining Company Ltd, Isanlu Area Of Kogi State
• Nigerian Freedom Mining Company, Ikpeshi, Edo State
• Jakura Marble Industry Ltd, Jakura Near Lokoja, Kogi State
• Nigerian American Mining Company Ltd, Ameka, Ameri Eyingba in Abakaliki, Ebonyi State
• Tropical Mines Ltd, Odo Ijesha Iperindo Near Ilesha Osun State
• Africorp Limited, Okolom Near Isanlu, Kogi State And Kampanin Kwali Near Anka, Zamfara State
• RBG Resources Ltd, Jos, Tin Fields, Plateau State
• Makeri Smelting Company Ltd, Jos, Plateau State
• Nimco Roofing Tiles
• Cross-River Limestone Company Limited
• Katsina Kaolin And Ceramics, Katsina State
• Nigeria Marble Mining Company Limited, Igbetti Oyo State
• Plateau Ceramics
• Arewa Ceramics, Misau –Bauchi
• NESCO Limited, Jos
• Andevco Mining Company Limited, Beni, Niger State
• Mubi Burnt Bricks Industry Limited, Mubi- Adamawa State
• Izom Bricks and Clay Product Limited, Izom Niger State

Ownership Structure

The NMC is 100% owned and funded by the Federal Government under the supervision of the Federal Ministry of Solid Minerals Development. (MSMD). It has eight (8) Subsidiaries, four (4) Projects and has shares in over twenty-one (21) Associated/Joint Venture companies.  All the subsidiaries of the Corporation are wholly owned by the NMC except the Bricks and Clay Product Company and Consolidated Tins Mines, all in Jos, where FGN has majority share holding. This in effect translates to Federal Government owning them through the agencies of the Corporation

PRIVATISATION PROGRAMME

The BPE has strived to secure investors with technical expertise relevant to the industry. In case of NMC and its holdings, it will encourage and at the same time enlist the interest of private sector participation in mining the abundant mineral resources the country is endowed with.

Method of divestiture

• The NMC will be privatised under the medium term schedule.

All the subsidiaries and projects (after incorporation) of NMC will be privatised through Core Investors sale while FGN’s shares in the associated and joint venture companies will be sold to interested buyers. Already we have advertised for and received Expressions of Interest from potential investors for the Brickworks and Clay Products Companies