Sales agreements for a 22-year period have been reached with buyers in Europe and North America. Apart from oil and gas, the principal mineral resources are coal, iron ore, tin, uranium, phosphates, limestone and marble. Production in each case is insignificant in global terms. The low output, despite large deposits, is mainly attributable to the use of obsolete equipment, poor maintenance and inadequate working capital. In April 1998 the government announced the National Policy on Solid Minerals, which aims to develop the sector by providing incentives to attract investments.
Coal reserves are substantial.
Production, mainly in the Enugu region, began in 1916 and peaked at over 900,000 tonnes in 1959. It has since slumped and was only 21,944 tonnes in 1998, with power failures and obsolete equipment leading to a reduction in capacity. Plans are in hand to recommission mines, and there has also been some limited foreign involvement, in conjunction with the Nigerian Coal Corporation, as a result of which coal exports resumed in 1996. The Economist Intelligence Unit Limited 2001. All rights reserved.