Tag: Alake

The minister of solid minerals development, Dele Alake, has made a case for an increase in funding for his ministry to enhance its capacity to carry out detailed exploration of the nation’s vast mineral deposits.

He made the case during an investigative hearing of the Senate Committee on Solid Minerals.

Soliciting the support of the nation’s upper chamber of the National Assembly, Alake identified the twin issues of poor funding for exploration and insecurity as the main challenges hampering the development of the mining sector whilst limiting its role as the pivot of diversification of the economy.

The minister bemoaned the country’s low investment in mining exploration. $ 2.5 million was invested last year, citing figures from Standard & Poor’s report, which ranked Nigeria’s exploration budget 12th in Africa and placed Ivory Coast in the top position with $147 million.

“When we compare the exploration budgets of other African countries with ours, it is depressing.  According to Standard & Poor, as of 2023, Nigeria’s investment in exploration was $2.5 million against $147 million in Ivory Coast and $133 million in Congo. In our determination to compete, we had proposed a budget of N70 billion to invest in exploration that would cover the entire Nigerian landscape. Going by the budget for the Year 2024, our capacity to move at our desired speed may be undermined. We need your support to fund exploration and kit our personnel to regulate the sector, “Alake asserted.

In efforts to combat illegal mining, the minister informed the lawmakers about the recently unveiled 2,220-man-strong Mining Marshals, with 60 operatives deployed in each state of the federation and the FCT.

According to the minister, there are at least four categories of illegal miners: unlicensed miners; licensed miners mining outside their Cadastral Units; licensed miners mining minerals different from what they are authorised to mine, and miners mining with licenses exclusively restricted to Nigerians. The country loses over $9bn to illegal mining yearly.

Read Also: FG to unveil new mining license rate soon – Alake

Aside from the mining marshals representing the kinetic response to combat illegal mining, Alake revealed ongoing advocacy through Artisanal and Small Miners (ASM) extension officers and the launch of a campaign on radio spanning at least 113 radio stations across the country that will not only discourage the menace but also urge artisanal miners to form cooperatives and enjoy benefits of legalization.

He said at the last count, 152 cooperatives have already been formed across the country, in line with the Minister’s 7-point Agenda.

In line with the new value-addition policy of the federal government, Alake hinted at the imminent establishment of six more processing centres across the geo-political zones, stressing that efforts to effectively equip the mining marshal and other reforms of the ministry will require legislative backing for necessary statutes and improved funding.

Earlier Senate president, Godswill Akpabio lauded the minister for personally attending the public hearing, noting that his presence indicated the commitment of the presidency to making solid minerals the fulcrum of diversification of the economy.

Akpabio advocated concerted efforts by the executive and legislature to ensure resources frittered away through illegal mining and other nefarious activities are curtailed.

Chairman of the Senate Committee on Solid Minerals Development, Senator Ekong Sampson in his remarks stated that the 3-day investigative hearing is hinged on unravelling challenges hampering the development of the mining sector despite the vast mineral deposits across the country.

“We want to look at the challenges and see what we can do, together with the executive, to address these bottlenecks and ensure that solid minerals contribute substantially to our economy. Nigeria is blessed with vast mineral deposits. The time is now to harness these God-given resources for the benefit of all Nigerians,” Sampson stated.

Plans a foot by the Federal Government to review rates of mining licenses and other sundry fees payable by mining operators in the country.

Minister of Solid Minerals Development, Dr. Dele Alake dropped the hint during a consultative meeting with stakeholders in the mining industry in his office in Abuja.

Alake said the review rates became necessary to boost the capacity of the government to effectively reposition the mining sector.

He maintained that the review became inevitable if the government was to fulfil its obligations of providing an enabling environment for mining operations whilst also raising more revenue for the government.

He then solicited the support of stakeholders for the impending increase in fees for mining licenses and other sundry fees.

Read Also:FG to unveil new mining license rate soon – Alake

“For us to continue to ensure that we secure the mining environment and keep putting in place measures that will ease the operational difficulties and challenges that confront miners, we need to review the rates of mining licenses and other sundry fees. We felt that we can’t just do this without letting you know because invariably, you are the players in the industry,” the Minister stated.

Shedding light on the recent revocation of dormant mining licenses, the Minister noted that the government followed due process and extant laws guiding the action, emphasising that a 30-day restitution window still exists for operators that were affected.

It will be recalled that the Minister announced a restitution fee of N10m, N7.5m, N5m and N2.5m for Mining Leases, Small Scale Mining Licenses (SSML), Exploration License (EL) and Quarrying License respectively for revoked dormant licenses including those earlier revoked for default in payment of annual service fees.

Highlighting efforts to reposition the mining industry, the Minister revealed that aside from ongoing reforms, the federal government is sanitising the mining environment through the newly unveiled mining marshals, which he affirmed has been conducting operations in parts of the country to protect legitimate miners and combat illegal mining.

The Director-General of the Mining Cadastral Office, Engr. Obadiah Nkom, who also chaired the fees review committee, stated that the committee recommended new rates that are affordable and will enhance the competitiveness of the fiscal regime of the mining sector in comparison with regional and global standards.

Plans are afoot by the Federal Government to review rates of mining licenses and other sundry fees payable by mining operators in the country.

Minister of Solid Minerals Development Dele Alake dropped the hint during a consultative meeting with stakeholders in the mining industry in his office in Abuja.

Alake said the review rates became necessary to boost the capacity of government to effectively reposition the mining sector.

He maintained the review became inevitable if government is to fulfil its obligations of providing an enabling environment for mining operations whilst also raising more revenue for government.

He solicited for the support of stakeholders for the impending increase in fees for mining licenses and other sundry fees. 

“For us to continue to ensure that we secure the mining environment and keep putting in place measures that will ease the operational difficulties and challenges that confront miners, we need to review the rates of mining licenses and other sundry fees. We felt that we can’t just do this without letting you know because invariably, you are the players in the industry, “the Minister stated.

Shedding light on the recent revocation of dormant mining licenses, the Minister noted that the government followed due process and extant laws guiding the action, emphasising that a 30-day restitution window still exists for operators that were affected. 

The Minister announced a restitution fee of N10m, 7.5m, 5m and 2.5m for Mining Leases, Small Scale Mining Licenses (SSML), Exploration License (EL) and Quarrying License respectively for revoked dormant licenses including those earlier revoked for default in payment of annual service fees.

Read Also: FG to empower women for leadership positions in mining sector – Alake

Highlighting efforts to reposition the mining industry, the Minister revealed that asides from on-going reforms, the federal government is sanitising the mining environment through the newly unveiled mining marshals, which he affirmed has been conducting operations in parts of the country to protect legitimate miners and combat illegal mining. 

The Director-General of the Mining Cadastral Office, Engr. Obadiah Nkom, who also chaired the fees review committee, stated that the committee recommended new rates that are affordable and will enhance the competitiveness of the fiscal regime of the mining sector in comparison with regional and global standards.

Speaking on behalf of the stakeholders, the President of the Miners Association of Nigeria (MAN), Dele Ayanleke commended the Minister for his efforts to put the mining sector on global frontburner, expressing support for ongoing reforms and plans to review fees payable by operators. He urged the minister to consider challenges faced by miners and ensure the rates are affordable. 

Stakeholders In attendance include President of Miners Association of Nigeria (MAN), Dele Ayanleke, Representatives of Women In Mining (WIN), Gemstone Miners Association (GMA),  top officials of the ministry and a host of others.

Federal government is poised to ensure that women are empowered for leadership positions in governance structures in the mining sector of the country’s economy.

The Minister of Solid Minerals Development, Dele Alake disclosed this on Tuesday, April 30, while unveiling Gender Strategy for Women in Nigerian Mining and Steel sectors in Abuja.

He said the strategy is a pioneering initiative to foster diversity, empowering women and enhancing the overall sustainability of the mining sector.

Alake asserted that President  Bola Ahmed Tinubu led administration prioritized gender equity and female participation in its ”Roadmap for the Growth and Development of the Nigerian Mining Industry”. 

”We believe that promoting gender equality is both a moral and strategic decision that will drive innovation, enhance productivity and contribute to the sustainable development of our nation. We encourage our stakeholders to also entrench gender equality in their organizations.

“As we gather here, we recognize the indispensable contributions of women to the success and sustainability of the mining sector role, thereby shaping our nation’s development, their talents, expertise and perspectives are also essential to the success and growth of the mining industry”; the Minister added.

The minister posited that the present administration has demonstrated unwavering commitment to foster diversity and empower women by implementing its roadmap initiative. 

According to him, ”As part of efforts of the Ministry of Solid Minerals Development and Ministry of Steel Development, to implement this roadmap initiative, the Mineral Sector Support for Economic Diversification (MinDiver) engaged a consultancy firm, N & G Consulting Firm Ltd, to develop the gender strategy.”

To this end, as an affirmative and clarion call to action, the Minister declared: ” In line with the strategy objectives, which are firmly rooted in the principles of equality, diversity, and empowerment, in both Ministries, we are committed to increasing women’s participation in leadership and governance roles within the mining sector and communties”

Read Also: Our mining sites secured, Alake assures foreign investors

National President, Women In Mining In Nigeria (WIMIN); Engineer Mrs Janet Adeyemi, represented by Mrs Emily Ofodile, National Secretary; stated  that ” today’s launch serves as a beacon of hope – a rallying cry for collective action and solidarity. It is a platform to disseminate these transformative strategies, mobilize stakeholders, and ignite a movement towards meaningful change”. 

Speaking, the Permanent Secretary Ministries of Solid Minerals Development and Steel Development, Dr Mary Ogbe admonished industry players to remain steadfast in our resolve to implement the gender strategy” effectively, ensuring a mining sector that is equitable and inclusive.

Commenting,  Project Coordinator MinDiver, Engineer Sellim Salam, highlighted the importance of engaging a Consultancy firm to do a gender study and map out a strategy that will uplift the benefits and mainstreaming of women in the sector.

The Minister of Solid Minerals Development, Dr. Dele Alake, has said that the operations of the newly established specialised mining marshals have drastically curtailed illegal mining and secured mining sites across the country.

He stated this in Abuja while addressing the Nigeria-Australia Investment Roundtable virtually.

The Minister noted that the elite para-military force have brought sanity and relief to recognised miners by clamping down on those involved in nefarious activities around mining areas across the country.

He told his audience that 2,200 strong elite para-military force tagged “Mining Marshals” which is made up of a 60-man rapid response squad were deployed to each of the 36 states of the federation and the Federal Capital Territory (FCT).

The Minister also informed the Australian investors that plans for establishment of the private sector led Nigerian Solid Minerals Corporation has reached advanced stage, stressing that the corporation is poised for Joint Venture with investors on critical minerals like Lithium, Gold, Baryte Lead, Iron-ore amongst others.

“Both the legislative and corporate processes for establishment of the corporation have reached appreciable stages. I hope to invite you to the formal unveiling of Nigeria’s intervention in the international mining business, very soon,” he added.

On strengthening regulatory frameworks, the Minister revealed that after the revocation of 1,633 titles for default in payment of annual service fees, scrutiny has been extended to other categories of defaulters in a bid to tackle indiscriminate speculation, license racketeering and the menace of those that obtained licenses over the years but refused to move to site.

“We have raised the approval level of permits and licenses for buying minerals; export of minerals and operation of mineral processing centres whilst also authorising the publication of the monthly digest of mining statistics to keep the sector abreast of developments” Dr. Alake emphasized.

Alake urged them to make Nigeria their choice investment destination, reiterating the commitment of the Tinubu administration in providing incentives and removing impediments to ease of doing business.

Read Also: Alake woos foreign investors with mining incentives, policies

“Australians seeking to expand their mining portfolio to Africa should prioritise Nigeria in view of our positive investment friendly policies and ongoing rapid transformation. Many of the heavy equipment imported for mining can be evaluated to qualify for tax waivers and exemption from import duties”

“Nigeria also has a favourable funds and capital repatriation policy that ensures investors’ funds are not trapped”, the minister stated.

In a related development, the minister in a keynote address as Chairman of the African Minerals Strategy Group (AMSG) at the first Malawi Mining Investment Forum affirmed that value addition has come to stay as the AMSG is resolute in discouraging exports of raw, unprocessed minerals in Africa.

It will be recalled that Alake was unanimously elected as the Chairman of the African Minerals Strategy Group (AMSG), a forum of African Ministers of Solid Minerals/Mineral Resources, on the sidelines of the Future Minerals Forum (FMF) in Riyadh, Saudi Arabia, earlier in the year.

Represented by secretary of the forum, Moses Engadu, Alake urged other African countries to take a cue from Nigeria by putting in place policies that will promote value addition for maximum beneficiation to citizens and boost the economies of countries on the continent. 

“In Nigeria, we have taken the bull by the horn by making the submission of plans for post-extraction processing a new criterion for the approval of mining licenses. We are putting together complimentary measures to evaluate the compliance of existing mining companies with our policy on value addition, “the Minister added.

Alake charged African countries to speak with one voice and insist on value addition, expressing optimism that investors that mean well for the continent will embrace the policy for mutual beneficiation.

The Minister of Solid Minerals Development, Dr. Dele Alake, has told Australian investors that Nigeria is Africa’s choice mining investment destination.

He said this was due to Nigeria’s incentives and policies designed to promote the ease of doing business in the sector.

Alake said this while virtually delivering his address at the Nigeria-Australia Investment Roundtable meeting.

A statement yesterday in Abuja by his Special Assistant on Media, Segun Tomori, said the minister urged the community of investors to consider Nigeria highly as their investment destination, especially with the commitment of President Bola Tinubu’s administration to removing impediments to the ease of doing business.

The News Agency of Nigeria (NAN) reports that investors in the mining sector in Nigeria are granted a tax holiday of three to five years, deferred royalty payments, and exemption from Customs and import duties for their equipment, among other benefits.

Alake said: “Australians seeking to expand their mining portfolio to Africa should prioritise Nigeria in view of our positive investment-friendly policies and ongoing rapid transformation.

“Many of the heavy equipment imported for mining can be evaluated to qualify for tax waivers and exemption from import duties.

“Nigeria also has a favourable funds and capital repatriation policy that ensures investors’ funds are not trapped.”

Read Also: Alake hails Nasarawa’s commitment to mining development

According to him, plans have reached an advanced stage for the establishment of a private sector-led Nigerian Solid Minerals Corporation.

The minister said the corporation was poised for joint ventures with investors on critical minerals, such as lithium, gold, baryte, lead, and iron-ore.

He told the Australian investors about Nigeria’s efforts to combat illegal mining and insecurity around mining areas, particularly through the establishment of the Mining Marshal Corps, which currently has 2,220 personnel.

Alake explained that out of the number, a 60-man Rapid Response Squad had been specially trained and deployed across the 36 states of the federation and the Federal Capital Territory (FCT).

“Illegal mining is not just unlicensed mining. It covers licensed miners operating with invalid licences or licensed miners operating outside their coordinates or mining minerals not approved in their licences.

“The specialised mining marshals have, in the little time of operations, discouraged illegal mining, brought relief to recognised miners.

“They are clamping down on those involved in nefarious activities around mining areas across the country,” he said.

The federal government on Wednesday, April 24, announced the revocation of 924 dormant mining licenses across the country as part of its efforts at sanitising the mining sector.

Announcing the revocation, the minister of solid minerals development, Dele Alake at a press conference in his office in Abuja, said exploration, mining, small-scale mining, and quarrying licenses were involved.

This is coming on the heels of the revocation of 1,663 mining licences last November for failure by the licensees to pay statutory charges, fees, and dues to the federal government.

Revocating the licences, the minister said the action was in line with constitutional provisions, adding that adequate notice was given to all concerned parties through the official Gazette of the Federal Republic of Nigeria, No. 227, which was published on December 27, 2023.

According to the minister, “The notice gave all concerned parties 30 days to regularise their status, including clarifications on what caused the license to be dormant. Thus, although a total of 963 licensees were published and notified of the threat of revocation, no fewer than 39 either moved to the site immediately or convinced the authorities of the challenges hindering their operations.”

A breakdown of revoked 928 dormant licenses showed that 528 exploration licenses; 20 mining leases; 101 quarry licenses, and 273 Small Scale Mining Licenses (SSML) were affected.

Read Also: Alake backs Oyo’s quest for mining licenses

Speaking further, the Minister stated that the action followed due process and fair consideration whilst it underscores the commitment of the Federal Government to implement the standard policy of “Use it or Lose it” as enshrined in mining guidelines.

In light of the development, Alake said: “Investors across the globe are now free to apply for any of the affected Cadastral Units on the basis of “first come, first served. It is our belief that this decision will sanitise the licensing system by penalising those who have commercialised the opportunities offered by the sector into a bazaar.”

Noting that the revocation is not meant to be punitive, the Minister announced an opportunity for affected licensees to make restitution, imposing fines for different categories of revoked licenses, stressing that this also applies to the 1,633 titles revoked last year for default in payment of annual service fees.

“For revoked Mining Licenses, a fine of N10m applies; N7.5m for Small Scale Mining License (SSML) while N5m for Exploration License (EL). They will be required to make the payments within 30 days to qualify for consideration, “Alake emphasised.

The minister then warned that henceforth, the Federal Government will not tolerate the nefarious activities of license racketeering or those that obtain licenses for speculation to offer them to the highest bidder.

“A good lesson from this exercise is for investors to do their homework and be ready to flag off their projects as soon as they obtain licenses. Nigeria is open for business, and we shall encourage smart, serious, and adventurous investors to set up and provide jobs to our teeming youths,” Alake added.

The minister of solid minerals development, Dele Alake, on Monday, April 22, hailed the Nasarawa state government for supporting the establishment of a lithium processing facility in the state and providing an enabling environment for mining operations.

He spoke while hosting the Nasarawa state governor, Abdullahi Sule in his office in Abuja.

The minister noted that the investment of the state in the construction of the lithium factory and efforts to secure the mining environment in Nasarawa underscores the commitment of the state government to mining sector development.

He said: “I want to commend the governor for taking the bull by the horns and providing adequate security for mining sites. That is why we have a preponderance of peace around mining operations in Nasarawa. I commend that to other state governments as well.

“Also worthy of commendation is the immense support the state has provided for the construction of the lithium processing factory, which is nearing completion. It will be one of the largest lithium processing factories in Nigeria.”

Alake then urged other states to take a cue from Nasarawa.

The minister also emphasised that partnerships with the federal government and private sector are paramount to ensure that the local value-addition objective of the Tinubu administration is realised, in earnest.

Gov. Sule in his remarks revealed that the first Lithium processing plant being constructed is almost ready for commissioning, adding that other issues that centred around insecurity around mining sites and fostering cooperation with the Federal Government for mining development prompted his meeting with the minister. 

Read Also: Alake promises to probe suspected illegal mining in Benue

The governor also hinted at collaboration with the National Agency for Science and Engineering Infrastructure (NASENI), for the utilization of Lithium produced by the state as a raw material for the production of solar panels, and motor vehicle batteries among others.

“We had extensive discussions with NASENI for the use of our lithium as a raw material for their products and in the area of agriculture. I think that is one important thing that you are going to see from our Lithium processing plant. NASENI comes in to buy the pure Lithium so that they can be used in the manufacture of solar panels and motor vehicle batteries and their likes”, Governor Sule added.

The Minister of Solid Minerals Development, Dele Alake at the weekend said that the federal government would investigate the alleged illegal mining operations in Benue state.

He also vowed that those found culpable will face the full wrath of the law.

The minister spoke after listening to submissions from representatives of the affected mining operators and relevant mines inspectorate officials from the state. 

Some weeks ago, a video of 15 trucks laden with minerals alleged to be uranium and extracted from Kwande Local Government, Benue state went viral. 

Following the revelation by the video, the minister ordered discreet investigations by the Mines Inspectorate of the ministry. 

Findings from the investigations indicated that the video was the result of inter-firm rivalry over control of mining areas.

This prompted the minister to summon relevant stakeholders from the state to get the true picture of the situation. 

Read Also: Alake backs Oyo’s quest for mining licenses

After listening to all submissions, the Minister noted discrepancies in the account divulged by representatives of the communities, the operators and mines inspectorate officials, vowing to ensure painstaking investigations and bring to book those that might have run foul of the law.

“I have listened to all submissions and noted discrepancies in presentations by operators and stakeholders.  We will thoroughly investigate all issues related to the incident and any operator found culpable will have their licenses revoked, if some of our officials also connived to perpetrate sharp practices, they will also be made to face the full weight of the law”, Alake vowed.