Nigeria Has Three Billion Tonnes of Iron Ore Ready for Ajaokuta, Says NSRMEA DG

•Seeks more funding for exploration, says raw material supply will not delay steel production

Wale Igbintade

The National Steel Raw Materials Exploration Agency (NSRMEA) has declared that Nigeria possesses an estimated three billion tonnes of iron ore reserves, enough to sustain operations at the Ajaokuta Steel Complex for decades, while assuring that raw material availability will not hinder the long-delayed steel plant once it begins production.

Director-General of NSRMEA, Kolawole Ogunbiyi, disclosed this in Kaduna while outlining the agency’s preparedness to support the revival of Nigeria’s steel industry through the supply of critical raw materials.

He said extensive geological exploration carried out over the years had confirmed that Nigeria possesses abundant deposits of iron ore, limestone and coal, the three essential raw materials required for steel production—with iron ore accounting for about 95 per cent of steel-making inputs.

According to him, the country’s estimated three billion tonnes of iron ore reserves represent a major strategic asset capable of driving industrialisation and reducing dependence on imported steel.

“The iron ore in Itakpe has no equal, both in quality and quantity. It has been subjected to laboratory tests to determine how viable and suitable it is for the steel rolling plant,” Ogunbiyi said.

He identified the Itakpe iron ore deposit in Kogi State as the backbone of Nigeria’s integrated steel development programme, noting that its high iron content and low impurity levels make it ideal for steel production.

Despite the abundant reserves, Ogunbiyi lamented that mining activities have remained below potential because the Ajaokuta Steel Complex—the principal off-taker for the ore—has yet to commence full commercial operations.

He explained that the original framework of the integrated steel project assigned the National Iron Ore Mining Company (NIOMCO), Itakpe, the responsibility of mining the ore for supply to Ajaokuta Steel Company for processing into finished steel products.

“The abundance of iron ore in Itakpe cannot be fully utilised because there are no off-takers like the Ajaokuta Steel Plant, which requires a significant portion of the raw materials to produce steel,” he said.

Ogunbiyi recalled that the federal government, in collaboration with Russian experts, conducted extensive aeromagnetic surveys and geological investigations that led to the discovery and detailed evaluation of the Itakpe deposits, as well as substantial limestone and coal reserves needed for steel production.

He said limestone deposits are currently being licensed mainly for cement production because Ajaokuta is not yet operational but stressed that sufficient quantities remain available for future steel manufacturing.

The NSRMEA chief also disclosed that Nigeria has large coal deposits in Obi-Lafia, Nasarawa State, but said additional in-seam exploration is required to determine their commercial viability and improve their suitability for steel production.

“There is coal in Obi-Lafia in Nasarawa State. It is found in large quantity, but the impurities must be extracted because the lower the ash content, the better it is for steel production. We are asking the government to support us in commencing in-seam exploration,” he said.

Ogunbiyi said the agency’s laboratory continues to play a critical role in testing the quality of discovered minerals before detailed exploration is undertaken to establish commercially viable reserves.

He appealed to the Federal Government to increase funding for mineral exploration, saying NSRMEA requires modern laboratory equipment, drones and advanced exploration technologies to strengthen geological investigations across the country.

According to him, improved funding would enable the agency to generate reliable geological data capable of attracting greater foreign direct investment into Nigeria’s mining and steel sectors.

He also called for stronger collaboration among government, investors, technology partners and industry stakeholders to fast-track the revival of the steel industry.

Ogunbiyi expressed confidence that ongoing efforts by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, to attract strategic investors would accelerate the commencement of steel production at Ajaokuta.

He said reviving the steel industry would diversify Nigeria’s economy, create thousands of jobs, boost local manufacturing and reduce the country’s dependence on crude oil exports.

The NSRMEA boss said the agency’s activities align with President Bola Ahmed Tinubu’s policy of ending the export of raw minerals without local value addition.

He also highlighted the Federal Government’s Early-Stage Mineral Exploration and Research Grant Endowment (EMERGE) initiative, which seeks to unlock more than $750 billion worth of untapped mineral resources through expanded geological research, de-risked exploration and increased local processing of strategic minerals, including iron ore, limestone, coal, gold and lithium.

Ogunbiyi maintained that with sustained investment in exploration and the eventual take-off of the Ajaokuta Steel Complex, Nigeria possesses the raw material base required to build a globally competitive steel industry capable of driving long-term economic growth and industrial transformation.