Nigerian Bentonite

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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.

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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.

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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.

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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.

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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.

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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.

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Location Edo State, Nigeria
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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.

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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.

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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

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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.

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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.

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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..

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Quarry Site
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Nigerian Bentonite

• THANK YOU ALL !!!