FG to promote local barite production to meet international standards

 The Federal Government will create a new framework to promote  local production of the country’s barites to meet international acceptable standards.

Mr Olamilekan Adegbite, Minister of Mines and Steel Development, said this on Thursday in Abuja at a Stakeholders Forum on Local Barite Development in Nigeria.

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Barite is a mineral deposit consisting of barium sulphate, generally white or colourless, it is the main source of barium used in oil and gas drilling.

Barite is also used in areas where the pressure of gas or liquid is low, for catheterisation.

The minister said the initiative to develop the framework was in line with President Muhammadu Buhari’s vision for a more diversified, inclusive, and sustainable economy.

He added that the federal government had initiated mining sector reforms that would deliver the objectives of Economic Recovery Growth Plan (ERGP) in restoring growth, investing in the people and building a globally competitive economy.

Adegbite added that in line with the objective,​ the ministry of mines and steel development facilitated the development of an industrial mineral road map.

He said the road map was aimed at optimising the country’s industrial minerals to meet the standards of the manufacturing, industrial, and construction industry and to reduce import dependency.

He said the road map delineated seven key minerals for quick development of which barite was one of them.

He said out of the total value of Nigeria’s industrial minerals imports in 2016, barite represented 3.6 per cent according to evidence from recent demand and gap analysis.

Adegbite said it was regrettable that the country spent millions of hard earned dollars yearly importing barite which was abundant, especially in the northern part of the country.

He added that with each import of barite, we are shipping thousands of jobs from our country to other countries.

“This is why I am quite delighted to initiate a road map for the development of barite that would reverse this trend,’’ the minister said.

He added that to meet the overarching objective, government had mapped out a development strategy toward creating a sustainable industry in the country to support, regulate and monitor stakeholders along the barite value chain.

He expressed optimism that the process would assist local companies with proven reserves that met industry standards to develop capacity and close the demand and supply gap that currently existed in the country in the short term.

“The long term plan is to place a ban on the importation of barite once the local market is satisfied and export barite to other African countries where oil and gas drilling activities are taking place.

“This will lead to jobs creation and boost the nation’s revenue base,” the minister maintained.

Alhaji Abubakar Bello, NEXIM Bank Managing Director, who spoke on financial options in the development of barite industry at the event, said the bank was ready to finance and develop barite production in the country.

He said the bank was also promoting and building capacity in addition to developing advisory service and financing contract mining with equipment support.

“ As a development bank, we also work toward de-risking the sector by assuming risks of financial institution,’’ he said.

Earlier, Mr Dolapo Olagunju, Ministry of Mines and Steel Development Barite Consultant said packaging and achieving optimal standard was critical to making Nigeria`s barite acceptable in international market.

He raised issues of insecurity in some parts of the country which he said  had stalled operations in mining sites.

He added that there was need to ensure security and proper regulation of the mining and solid mineral sector.

(NAN)