The Federal Government has said that come 2022, the importation of Barite would be banned in order to promote Nigeria barites, to boost the economy, creating employment opportunities and saving 300 million dollars being spent annually on Barite importation.
During the inauguration of barite on Oct. 28, in Rivers, it said that efforts had been concluded not only put Nigeria on the radar of global mining communities but unlock the potentials of Nigeria’s solid minerals sector.
Barite is a non-metallic mineral largely used by the oil and gas industry as a weighting agent in drilling mud during drilling operations.
Barite is also used as a pigment in paints, weighted filler for paper, cloth, rubber, radiology for x-rays of the digestive system; it can also be used to replace minerals and organic materials such as wood, shells, and fossils.
Nigeria is blessed with barite in commercial quantity, the mineral is found in Nasarawa, Plateau, Taraba, Benue, Adamawa, Cross River, Gombe, Ebonyi, and Zamfara States with estimated proven reserve of 15 million metric tons.
In spite of its abundant availability in Nigeria, barite remains largely untapped and underdeveloped as a result of importation of the mineral by oil companies.
Barite is one of the seven strategic minerals identified by the Federal government to unlock the potentials of Nigeria’s solid minerals sector to boost its Gross Domestic Products (GDP). The seven minerals are: coal, iron ore, bitumen, gold, limestone, lead-zinc and barite.
The specific gravity of barite sets by the API range from 4.1 to 4.6 to be applicable as a drilling mud additive but Nigeria barite is said to meet the standard; Nigeria barite ranges from 3.8 to 4.8 which exceeded the API standard.
According to NEITI report in 2018, the seven strategic minerals contributed 49.7 per cent to the total royalty generated in the year; however, barite contributed a meagre N33, 000, representing 0.001 per cent of the total royalty.
In 2020, data by Statista shows that the global production of barite was estimated to be 7.5 million metric tons, down from 9.8 million metric tons in 2012. The global barite market is valued at $1.4 billion dollars in 2019 and it is projected to reach 2.4 billion dollars by 2027.
Over the years, the Nigerian Barite Miners have accused oil companies operating in Nigeria of economic sabotage for importing barite into the country, neglecting Nigeria barite.
They alleged that despite the abundant deposits of barite in Nigeria and the Federal Government’s local content policy, the International Oil Companies (IOCs) had continued to import the mineral as a component of ‘drilling mud’, a combination of chemicals used in drilling oil wells.
They said a law stipulating that 60 per cent of barite utilised by the IOCs operating in the country should be sourced locally was not being obeyed.
Mr Timipreye Sylva, Minister of State for Petroleum, who performed the official launch of the barite, said that imported barites would no longer be allowed for use by the Nigerian oil and gas industry from 2022.
Silva, represented by Mr Simbi Wabote, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB) encouraged prospective investors to explore and utilise the opportunity provided by the development.
He said the utilisation of locally produced barites and drilling fluids in the Nigerian Oil and Gas Industry was in line with the Federal government’s commitments towards maximum optimisation of local content and diversification of the Nigerian economy.
He added that it would create huge value addition and opportunities to drive the sustainable and competitive growth of the Nigerian economy.
He recalled that the Board had issued a guideline in May 2021 where it approved four firms for the supply of barites required for any drilling project or contract in the Nigerian oil and gas industry.
According to him, 10 companies will be upgraded to category A, as soon as they meet the requirements of the guideline for the utilisation of locally produced barite and drilling fluids in industry.
He also emphasised the need to address host community issues and environmental practices leading to land degradation, provision of adequate infrastructure and logistics, improved access to financing for equipment and working capital and patronage and utilisation of Nigerian barites by oil and gas operators and service companies.
He stated that improvements in these areas would positively impact the sustainable development of the Nigerian Barite value chain.
He gave the assurance that the Board would continue to collaborate and protect investors in the entire value chain of the Nigerian Oil and Gas Industry, adding that first and exclusive consideration would always be given to locally produced goods and services in line with the provisions of the NOGICD Act.
The Minister of Mines and Steel Development, Mr Olamilekan Adegbite, during the launch of the mineral, said that 300 million dollars is being spent on barite importation every year.
Adegbite said that 50 bags of barites were unveiled for the launch to encourage barite miners and also woo investors to invest in Nigeria barite; adding that the ministry is doing quality control on barites being produced and getting entrepreneurs to develop a robust bagging system to meet international standards.
He stated that the inauguration would end decades of importation of barites, affirming that Nigeria barite met the API standards, which is the global specification demanded by the oil industry.
He stated that Nigeria was blessed with 47 solid minerals deposited across the country and barite was among the seven strategic minerals designated by the ministry for top priority development.
Adegbite said that the ministry would set up a marketplace portal that would connect all stakeholders along the barites value chain to a hub that allowed easy coordination, stocking, effective costing and seamless sale of barite.
He added that the ministry would coordinate the process and ensure that appropriate revenues from the process are remitted to the Government.
He explained that the launch of made in Nigerian barites would increase revenue to Government through royalty payment and conserve foreign exchange spent yearly on importing barites.
The minister said that the development would also create jobs, especially in local communities where barites are mined and processed and earn Nigeria some foreign exchange when the mineral gets exported.
“This process is to satisfy our local industries, oil and gas and also export the product to our neighbouring countries such as South Africa and Ghana that just discovered oil,’’ he said.
The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said the bank is ready to support anything that would bring turn around to the solid minerals sector.
On his part, the Executive Governor of Rivers State, Nyesom Wike, represented by his deputy, Ipalibo Banigo, said he felicitated with the Minister and the Minister of State for the feat achieved, thanking them for choosing the state for the inauguration.
The Director-General, Nigerian Geological Survey Agency (NGSA), Mr Abdulrazak Garba, said with this development Nigeria stands to gain more in future as there are prospects of more barite beneath the country’s land space than the estimated 22 million tonnes because the barite mineralisation being worked on now is only within the depth of 30 meters, even amidst signs that there are deposits beyond that.
According to him, after a careful assessment, 12 processing companies have been engaged to add value to Nigerian barite locally, adding that Rivers was chosen as the venue for the launch because it is where the mineral is most used for oil exploration.(NAN)
•PHOTO: Barite
