HOW TO START GEMSTONE MINING IN NIGERIA

HOW TO START GEMSTONE MINING IN NIGERIA:

The Gemstone Mining Industry in Nigeria is very easy to enter with the right information. Contrary to public perception, you do not need millions of Naira to venture into the Untapped Multi Billion Dollar Gemstone deposits in Nigeria. The information bellow is structured for new entrants. But if you are already in the Gem Industry, it will enhance your understanding of the Sector.

1. As a starter and learner, you are going to operate as a medium scale miner. That is, you are going to employ between five to 15 miners to do the work for you. You learn along the line. You can either operate along the Keffi axis or Ibadan axis depending on where you stay in Nigeria. Keffi axis covers the whole North Central and parts of Bauchi (where you have the largest gem deposits in Nigeria) Ibadan axis covers the whole of South West states of Oyo, Osun and parts of Ogun and Kogi. The best place to start in South West is Ibadan. But Keffi is the main octopus.

2. Gemstone mining in Nigeria is easy to enter if you are shown the way because you do not need your own Mining License to start. Many connected individuals have Mining Licenses, but do not carry out the mining operation. What we do is to locate those who have such License and Site and partner with them. We take charge of the Site, hire miners (laborers), and sponsor the work. When we get minerals, it is shared according to pre agreed percentages. One percent goes to the Federal Government as Royalty as mandated by Law. The remaining 99% is shared between the License Holder and the Financier into 40% and 60% respectively. Some greedy License Holders will insist on fifty fifty. But that is not a problem since it is the Financier who controls everything. The License Holder settles the community (landowners) from his own share based on their agreement. The Financier settles his miners from his own share based on agreed percentage. The general practice is that the laborers sell their own share to the financier based on 'bush price'. It is considered a loss for a Financier to allow minerals from his site to be sold to an outsider except by him or herself.
                                                             

3. To start, you need only three documents. That is, a registered Company, an Export License and Permit to Possess & Purchase minerals. You can start without the last paper, but you must get it before you start to handle any mineral. Whenever you are ready to sell, you must obtain another paper called Permit to Export Mineral for Commercial Purposes.That is when you pay the one percent Royalty Fee to the Government.

But anyone with the financial muscle can acquire his or her own Site and all the Mining Licenses and start as a large scale miner. I facilitate the acquisition of all the licenses mentioned above from Company registration to finding a Site and even hiring of seasoned miners. See: http://gemstonenews247.blogspot.com.ng/p/consultancy-services.html  

4. Now, you are good to go! Gemstone mining is generally done using manual labor and semi mechanization. You are going to need a generator and water pumping machine along the line when you get to water, but not in all cases. To start, you must buy tools for you boys ( shovel, digger, hammer, Chisel, Cutlass, hand gloves etc) You must buy cooking utensils, provide accommodation and food stuff. Accommodation does not cost much because of the location. Most of the time, it is usually free because the villagers are always eager to identify with the miners knowing fully well that there is enough bread along the way.   When your boys sustain injury, you treat them. In some cases, you jam a rock. It means you have to blast your way through. Blasting does not cost much for insiders. There is manual drilling and machine drilling. It depends on your pocket.

5. If you are lucky, you reach minerals within the first six Months. Some times it may be up to a year or more depending on the mineral, location and topography. 

6. You need to hire a Site manager who is a seasoned miner to coordinate activities for you. Such manger is also paid when you get minerals. One thing I found fascinating in the Gemstone Mining Industry is that everybody (landowners, Miners, Managers etc)  understands the game: we all get dividends when we get product! And in that case, everyone is motivated to work harder by self interest! You must visit your boys once in a while. Once every week or two weeks is ok. And when going, you must bring something for the boys. Some smoke, some drink! That's the reality and that's mining for you! Keep your religious and medical view to yourself if you want to hire good miners.

7. All in all, from licenses to Legal Fees for Agreements and setting up the operation, you need to keep one Million Naira in your bank account to start.  You are not going to spend the whole money at the same time, but your boys may be calling for one thing or the other. Injuries will always occur once in awhile. And feeding laborers is not feeding Bankers! 

I welcome your comment and question.

FOR THE A TO Z OF GEM TRADE AND MINING IN NIGERIA, SEE MY BOOK, THE INTERNATIONAL GEMSTONE TRADE AND HOW TO START GEM MINING IN NIGERIA