As the Chairman of the Solid Minerals and Allied Services Group of the Lagos State Chamber of Commerce and Industry (LCCI) and member of the Ministerial Committee on the Optimization of Revenue from Mineral Resources by the Ministry of Mines and Steel Development in Nigeria, Otunba Babatunde Alatise is very concerned about the state of Nigeria’s solid mineral sector, which he says is being trivialized. He told GBENGA ADERANTI what Nigeria must now do to save the sector, particularly now that foreigners are being arrested for illegal mining in some parts of the country and the price of crude oil, Nigeria’s mainstay, is collapsing.
How do you react to the upsurge in illegal mining activities in Nigeria?
I am deeply worried but not surprised. It must be a cause for great concern for any reasonable Nigerian, especially now that crude oil is almost hovering between zero dollar and the cost price.
Obviously, the diversification drive of the Federal Government is geared towards agriculture and solid minerals, and the recent upsurge in illegal mining activities is a threat to the N20 billion GDP target set by the Minister of Mines and Steel Development, who is taking the bull by the horn.
This worry must stem from the recent arrest of foreigners in Osun and Zamfara states, engaging in mining illegally?
Exactly so. The positive side from the recent arrests is that state governments are waking up to protecting their natural resources.
The Hon. Minister of Mines, Arch. Lekan Adegbite, has given the organised private sector a significant boost in investor confidence and we encourage his bold actions as a deterrent to other criminals and villains.
As a major player in the solid mineral industry, what do you think that government has not done?
Nigeria and Nigerians have not really taken the solid mineral sector seriously. The finance and investments sector needs to pay more attention to mining.
Many banks still do not have mining/solid minerals desks as of today. CBN has created NIRSAL to de-risk agriculture but mining is still waiting for its intervention funds locked up at BOI (Bank of Industries).
Banks are quick to fund real estate projects but still cannot see that industrial/construction minerals like sand, granite, cement, iron rods, etc are part of real estate. Banks and finance houses desperately need to build more capacity in this sector.
Non-oil goods accounted for 22% export, says NPA (Nigerian Ports Authority). So the ministry is doing something right. But we need export processing zones with well-equipped laboratories for geochemical, geological, geophysical tests to be carried out to further increase these numbers.
We still do not have a digital/physical market place for solid minerals. We need a mineral exchange where off-takers and miners can meet, network and negotiate metal and non-metal commodities.
I guess there is also much lack of information or misinformation. The discovery of crude oil has not helped Nigeria in this regard. The average Nigerian could tell you so much about oil subsidy, but when you say solid minerals and mining, he is tongue-tied.
Yet Nigeria is richly blessed in every state and region. For instance, Lagos is blessed with so much sand and laterite. Many people do not even know that sand is solid mineral. It is from sand you get silica for making glass and bottles. It is from a mixture of sand, granite and cement that you get concrete.
Just imagine the amount of gold in Zamfara and Osun states. The coal in Enugu, the iron ore in Kogi, the manganese in Cross River, the baryte in Benue, the phosphate in Ogun and so much more. What do you think FG should do about this?
The world is speedily moving towards renewable energy which is generated from solid minerals, and Nigeria is richly blessed.
FG must immediately review and streamline the solid mineral export policies and other outdated laws of the country like Explosives Act of 1967 to make room for immediate progress in the solid mineral sector as the price of crude oil has fallen drastically worldwide.
Mining solid minerals should be given priority and reclassified as essential service, as it is a major part of the diversification drive.
Port of exit officials like the Nigeria Customs Service, aviation, security and so on need training for easier scanning and identification of smuggled solid minerals.
What is your reaction to the illegal miners including foreigners recently arrested in Osun and Zamfara states?
As earlier mentioned, I am happy the Hon. Minister of Mines and Steel Development is leading this prosecution. Collaboration with the Ministry of Internal Affairs via the office of the Comptroller General of the Nigerian Immigration Service would be great, because it involves illegal aliens.
It is only the immediate prosecution of such mineral bandits that will check the rampant spate of illegal mining activities going on across Nigeria, perpetrated by both Nigerians and other nefarious foreigners.
It is very wrong to allow illegal miners, especially foreigners, to roam Nigeria free in search of our natural resources; an act that is unlawful in their country.
These foreigners know the penalty for illegally removing their country’s natural resources, yet they come to Nigeria and do whatever pleases them.
In most countries, I know there are rules to the excavation of solid minerals. I wonder why it is not the case in Nigeria where there has been a complete neglect of the sector.
It is economic sabotage to steal solid minerals, natural resources and our collective wealth as a nation, and we must learn from other mining jurisdictions in Africa where banditry and rebels control mining concessions, like the DRC.
I must say that it is time Nigeria started taking seriously the solid mineral sector and emulate mining countries like Canada, Australia and South Africa, because it is the only way to enjoy the benefits of the many solid minerals the country has been blessed with.
The diversification of our mono product economy is paramount to the alleviation of the suffering of the common man. From fixing unemployment to solving energy concerns and increased GDP, solid minerals development is the only way out of post-COVID-19 economy.
How best do you think illegal mining can be checked?
Today, checking illegal mining activities can be done via structural geology 3D forward and reverse kinematic modeling software.
This predicts unseen structures and reduces uncertainty about how much mining has been done in any location. So ministry officials will simply issue a mining demand notice/bill and degradation of environment penalty to all found mining illegally to deter future culprits.
Other ways are aerial surveillance of notorious illegal mining sites via unmanned aerial vehicles (UAVs) commonly known as drones.
These issues and more will take the front burner during the proposed 2020 Mining Business Development Summit of the Solid Mineral and Allied Group of the Lagos Chamber of Commerce and Industry.
What is the summit all about?
The first summit was organised at the chamber last year (2019). At the summit, we deliberate on many problems confronting mining and solid minerals and try to proffer solutions.
We all know that information is power. People do not know what to do with these solid minerals or even where to get them.
You are young and passionate about your industry. Since when have you been involved in mining?
I learnt under the tutelage of my late father, Alhaji (Otunba) Sikiru Olatunji Alatise, the Alagbala Adinni of Lagos and Otutubiosun of Ijebuland, Ogun State, who started his mining business in 1989.
Since 2007 when I joined him, I have learnt much more about the industry. I tell everyone that I am incredibly lucky to have been well exposed by my father who worked for several multinational companies like General Motors, UACN and Unilever.
I studied Mechanical Engineering at the Lagos State University and Computer Science in London Metropolitan University. I am registered with both COMEG & COREN and I am one of the youngest dealers in explosives in the country as at today.
I am also a second generation explosive dealer in Nigeria. You cannot enter the soil without excavating and sometimes exploding it. I am a member of the technical sub-committee on the export of explosives to African countries set up by the office of the National Security Adviser and the Export Committee at the LCCI.
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