Tag: Alake

Mining companies placing a premium on local content in their operations have been assured of Federal Government support.

Minister of Solid Minerals Development, Dr. Dele Alake, gave the assurance during a site tour of the Segilola Resources Operating Limited (SROL), an indigenous gold mining company in Ilesa, Osun State.

In a statement by Segun Tomori, Special Assistant on Media to the Minister in Abuja on Friday, Alake expressed the commitment of the federal government to support mining companies that place a premium on local content in their operations.

He noted that the Minister lauded the extensive work that has gone into the facility, expressing delight that over 95% of its staff are Nigerians, urging other operators to take a cue from them.

He advised mining companies to emulate the international best practices of the Segilola gold project to develop the sector.

Commending the high Nigerian component of the project, Alake remarked that the firm has applied local content in its procurement and employment policies.

The Minister praised the company’s tenacity of purpose and efficient methods deployed to push through with its vision, despite daunting challenges at inception.

Read Also: Economy: Better days are ahead for Nigerians, says Dele Alake

Stressing that his focus has been to redirect local and international attention to the mining sector, Alake revealed that the implementation of his 7-point agenda is to reposition the mining sector.

“I have made sanitising the security of the mining environment one of the critical points of my 7-point agenda. Recently, as part of the process of actualising that policy, I had to unveil the creation of a marshal. They have a base in all the states of the country.

Emphasising the imperative of a harmonious relationship with host communities, Alake lauded SROL for overshooting its community development targets, urging mining companies across the country to follow suit to ensure a safer, unfettered operating environment which will culminate in maximum beneficiation for both operators, the host communities and government.

The Managing Director and Chief Executive Officer of the mining company, Segun Lawson stated that the company is a world-class project powered by Nigerians, appealing for support from the Federal government to enable it to scale up and contribute better to the economy of the country.

Presenting the achievements of the company to the Minister, officials said the company operates an open pit system involving drilling and blasting, hauling and loading the rocks before processing into gold.

Solid Minerals Development Minister Dele Alake has said despite the present economic reality, better days are ahead for the country, its economy, and the citizens.

Alake spoke yesterday after inspecting the $600 million iron ore mining and processing facility belonging to African Natural Resources and Mines Limited (ANRML) at Gujeni in Kaduna State.

The minister lauded the resilience, foresight, commitment, and focus of the company, which he likened to the efforts of President Bola Ahmed Tinubu’s administration at restructuring the economy.

He urged Nigerians not only to have faith in the administration but to be persistent, consistent, patient, and focused.

Alake said the current administration’s restructuring efforts had gone pass the gestation period while its fruits would soon ripen for all to harvest.

He said: “We have set our minds in this administration and, invariably in Nigeria, to achieve success. That is why Mr. President is restructuring the economy.

Read Also: Economy: Better days are ahead for Nigerians, says Dele Alake

“Like I said, when this company (ANRML) started seven years ago, we saw one of the foundations through a video documentary the amount of concrete that went into erecting the foundation, just to carry a giant edifice. That’s what we are going through.

“When we get through the gestation period, the results will manifest, and it will herald prosperity.

“The restructuring of the economy of this country is really with its attendant pains. But now we are going through the pains. It is the pain that is the precursor to joy at the end of the road.

“Just as this company went through the pains to erect this solid structure that we have here today, smiling. We are rejoicing with it for being courageous enough to set its eyes on the ball and be focused enough to pursue it. We have the result today.”

Alake advised the company on what to do next, saying: “I recommend self-mentality and self-orientation to all of us: to be persistent, consistent, patient and focused.

“When all the restructuring initiates of this government scale through their gestation period, the results will begin to manifest and the whole country will begin to enjoy. I can assure Nigerians that better days are coming.”

Solid Minerals Development Minister Dele Alake has launched a new mines security apparatus.

He said the overall mines security would comprise the Nigeria Security and Civil Defence Corps (NSCDC), the police, the army, navy, and the air force and be domiciled in the 36 states of the federation and the Federal Capital Territory (FCT).

The minister said the seven-point agenda had received the blessing of President Bola Tinubu before he unfolded it.

Alake spoke yesterday in Abuja at the launch and formal handing over of the Mines Marshal to the ministry to secure the mining environment.

Read Also: Improve your skills, groom youths, Alake tells mining professionals

He said: “You will recall that on assumption of office, I launched a seven-point agenda, the roadmap for this sector, which will be driven by the ministry under my stewardship.

“Now, the seven-point agenda has received the blessing of Mr. President before he unfolded it. You will recall that a very major critical component of that seven-point agenda is the issue of security.

“Before now, insecurity had bedevilled the sector. It combined with all variables to shortchange Nigeria in revenue, So, among others, the issue of combating insecurity in this sector became a must for the success of this mineral sector of Nigeria.”

The minister of solid minerals development, Dele Alake, has said the federal government would ban or foreclose on the issuance of mining licenses to investors without requisite plans for local value addition.

He said this administration is no longer going to allow anybody or license any company that wants to go into the mineral sector without giving it a plan for local value addition like processing, and refining and this has a multiplier effect on the economy.

Alake also said such value addition instantly generates employment rather than a few people carting away lithium, gold, and the like to other countries to sell. These minerals must now be processed in Nigeria, creating more value and beneficiation for local communities where they are sourced.

The Minister made these statements yesterday in Abuja while playing host to members of the House Committee on Solid Minerals on an oversight visit to the ministry.

Special assistant media to the minister, Segun Tomori made this known in a press statement.

He stated: “The Minister of Solid Minerals Development, Dr. Dele Alake has affirmed the resolve of the federal government to foreclose the acquisition of mining licenses by prospective investors without requisite plans for local value addition.

“Speaking while playing host to members of the House Committee on Solid Minerals on an oversight visit to the ministry, Alake applauded the lawmakers for their support in repositioning the mining sector, stressing that changing the economic fortunes of Nigeria is a joint task by both the executive and legislature.

“He also seized the occasion to assure the legislators of the significant contribution of sub-nationals to mining development, stressing that state chairmen of the Mineral Resources and Environmental Management Committee (MIREMCO) and five members of the committee are nominated by state governments.

“The importance of this committee cannot be overstated because whether we like it or not, we are at the cusp of history and it does beckon on us individually and collectively whether as executive or legislature to change the paradigm of Nigeria’s economic fortunes because we have to diversify our economy away from the mono-cultural dependency on oil. Again, that underscores the significance of this committee because of the importance of the ministry in that regard. That is why I view your visit here today with all sense of proprietary, responsibility, and appreciation of the oversight functions that you are saddled with.

“We welcome you and believe that from the type of comradeship that I have personally enjoyed with the committee and the leadership, I have no doubt in my mind, that what the executive of this ministry needs to forge ahead to achieve its stated objectives in terms of logistics support, legislative framework crafting is assured. It gives me great confidence that when you have members of a committee that understand the issues at stake, understand the problems that the ministry faces, and know how to give the necessary backup, then we in the executive will have no excuse for failure. We can only forge ahead.” The Minister said.

He added: “Highlighting the renewed interest of the international community in Nigeria’s mineral resources, Alake stressed that his 7-point agenda has put the mining sector on the global front burner since his assumption of office

“With the support of the Permanent Secretary, management and the House committee, we have been able to project the sector globally and the result of our efforts culminated in my election as the Chairman of the Africa Minerals Strategy Group (AMSG) on the sidelines of the Future Minerals Forum (FMF) in Riyadh, Saudi Arabia based on our 7-point agenda which was applauded by all and sundry. This is a group that consists of all African countries’ Ministers of Solid Minerals/Mineral Resources”.

“Speaking further, the minister revealed that with the pact that led to the formation of the AMSG, there is now unity of purpose on the African continent on the issue of local value addition.

“We are no longer going to allow anybody or license any company that wants to go into the mineral sector without giving us a plan for local value addition like processing, and refining and this has a multiplier effect on the economy. It instantly generates employment rather than a few people carting away lithium, gold, and the like to other countries to sell. These minerals must now be processed in Nigeria, creating more value and beneficiation for local communities where they are sourced, “Dr. Alake added.

“On security, the Minister revealed that the Federal Government has finalized a new security outfit to secure the nation’s natural resources that will incorporate the existing structure of the Nigeria Security & Civil Defence Corps (NSCDC) with an infusion of technology and specialized training.

“We have come up with what we believe can stem insecurity around natural resources like solid minerals, forests, and marine economy. We decided to use the existing structure of the NSCDC because of the cumbersome process of establishing a new security architecture.  In terms of deterrence, the new NSCDC corps will be useful, “he asserted

“According to the Minister, there will be a command in every state of the country, and will involve the infusion of a huge dose of technology, noting the modern day security architecture is predicated on mostly technology than reliance on only boots on the ground.

Read Also: Alake pushes for alternatives to loans

“What a whole battalion can do, one single drone can do it, so the new security outfit will be largely technologically driven, and they will be under the overall command of the Ministry of Solid Minerals Development (MSMD). They are to secure our mine sites, and help in stemming theft, illegal mining, and carting away of our solid minerals. The command structure of the new outfit will be inaugurated in the coming days, the Minister affirmed.

“In his remarks, the Chairman of the committee, Hon. Gaza Gbefwi stated that the House Committee on Solid Minerals, in fulfilling its constitutional responsibility of oversight, paid a visit to the ministry to ensure that the executive is doing what it is supposed to do for citizens to get maximum beneficiation from the mining sector.

“He expressed appreciation to the Minister for cooperating with the legislature in its oversight function of checks and balances, emphasizing that the committee will do what is necessary to back up reforms with requisite legislation that will enable the executive to propel the sector into an enviable position, with significant contribution to the nation’s economy.”

The Minister of Solid Minerals Development, Dele Alake is canvassing for alternatives to loans by African countries using proven mineral reserves as equity.

He said the first month after a minister is sworn into office, he is literally bombarded by institutional and private loan sharks promising above the table and under the table deals Special Assistant Media to the Minister, Segun Tomori in a statement on Monday, March 11, said Alake made this known at a Ministerial Roundtable on Powering Africa in Washington DC in the United States of America.

He stated: “The Minister of Solid Minerals Development, Dr. Oladele Alake has urged mineral-rich African countries to use the proven mineral reserves of their countries as equity in joint ventures instead of taking loans that worsen the plight of their people.

Speaking at a Ministerial Roundtable on  Powering Africa in Washington DC recently, Alake deplored unwholesome pressure on African governments by loan marketers despite global concerns over the declining capacity of many countries to settle their debts.

“It is an interesting paradox that inspite of their chronic indebtedness, African countries remain the target of institutional and private loan sharks marketing short and longterm credit to ministries, departments and agencies.

“Indeed, in the first month after a Minister is sworn into office, he is literally bombarded by these marketers promising above the table and under the table deals.”

He added: “Alake,who doubles as the Chairman of the African Minerals Strategy Group, the body of ministers of mining and mineral development in Africa, canvassed an alternative to loans, which he defined as using proven mineral reserves as equity.

His words: ” In the mining sector, in-situ equity, where the verified value of unextracted mineral can be the equity of the owner in joint ventures, is a better financial arrangement than the road to chronic indebtedness.”

Read Also: IWD: Alake pledges to empower women

“Recalling how he had taken issues with indiscriminate loan deals of African governments  as a journalist, Alake said only loans that can be liquidated by the returns on the project should be taken to save the people from poverty.

“I have criticised the predilection of Nigerian governments to sign the dotted lines of loan agreements on the flimsiest excuse mostly with stiff conditions which hurt the common people. Therefore, I believe African governments should exercise patriotic circumspection and due diligence before committing their sovereignty.”

“The minister’s presentation set the tone of his meetings with investors on the sidelines of the conference.

“In top -level talks with the delegation of the United States International Development Finance Corporation (IDFC), Alake shared the vision of the Tinubu Administration to reposition the sector  to compete with others to attract investments.

“According to him, the administration has focused on developing the critical minerals sector to diversify the economy from oil. “There are certain things that we need to bolster that sector, and all the support we can get is crucial . First and foremost is critical big data, which is exploration. We are actively working to sanitise the sector, including establishing a new security architecture to secure the mining environment. Speaking further at the parley with the Chief Operating Officer (COO) of the US IDFC, Agnes Dasewicz and her team, Alake stated that Nigeria has an abundance of 44 critical minerals that exist in commercial quantities, emphasising on-going reforms by the President Tinubu administration are poised to sanitise the sector and make it attractive to big players.

“In her submission, Dasewicz lauded the renewed focus on solid minerals by Nigeria, emphasising her corporation’s interest in providing the required support to strengthen the mining sector value chain. “We very much partner with private sector players to deliver financing to mining companies to help them really expand what they can do. Some of the focus sectors that we have are critical minerals and infrastructure; health and agriculture as well as energy. We would love to do more in the critical minerals sector, and we know there is a lot of potential in that regard, in Nigeria, “Mrs. Dasewicz added.

“To execute areas of partnership, further engagement will continue between the Minister’s team comprising Solid Minerals Development Fund (SMDF) Executive Secretary, Fatima Shinkafi, other top ministry officials and representatives of the US IDFC.

“The Minister also had fruitful deliberations with a cross section of private sector players in the mining industry, including KRL International, securing their commitment to take more than a cursory look at the mining sector.”

The Federal Government and the government of the United States (US) have formed a working group to work out modalities for mining development partnership between both countries.

This is a follow-up to last week’s Abuja meeting with the United States Deputy Chief of Mission David Greene, the Minister of Solid Minerals Development, Dele Alake.

Alake on Tuesday led a Nigerian government delegation that met a delegation of the US government led by Senior Advisor to the US President on Energy and Infrastructure, Amos Hochstein on the sidelines of the ongoing Investing in Africa Indaba, Cape Town, South Africa.

The special assistant on media to the minister, Segun Tomori made this known in a statement.

He added: “In his submission, Hochstein stressed that the US has a special relationship with Nigeria, spanning several decades and cutting across diverse sectors. He affirmed the interest of the United States to work with Nigeria to unlock investments in the mining ecosystem spanning infrastructural development, technical assistance in upscaling mining operations and investment in the mining industry.

Read Also: Era of carting away Africa’s minerals over, says Alake

“Let’s figure out a way between us where we can share whatever you have with our team, then we can work with companies to see what makes sense for the United States to do. We will then look at what the infrastructural needs are to unlock and make those investments more attractive. If you want to build a clean mining sector, you can’t do that without electricity. We are already working with your government on clean energy options for us to finance, “the US presidential aide added.

“The minister in his remarks lauded US interest in the mining sector, emphasising that as Nigeria’s longstanding ally, a new vista of collaboration for mining development will strengthen bilateral relations and translate to mutual benefits for both countries.

“We are putting in place reforms to ensure that we have an enabling environment in the sector, different from the experiences we had in the past.  I suggest that we form a small joint working group that will fashion out modalities for collaboration and fast-track the flow of information on both sides.

On financing, the Solid Minerals Development Fund (SMDF) Executive Secretary, Fatima Shinkafi stated that a certain percentage of oil resources comes to the fund, highlighting SMDF’s partnership with the African Finance Corporation (AFC) to deploy more resources for the generation of more geo scientific-data that will assist investors in making informed decisions on critical minerals.

She said: “Nigeria through the SMDF has resources to co-invest, so it’s not a situation of coming cap in hand without any commensurate contribution.

“Both countries thereafter nominated members into the working group that will commence deliberations in earnest.

“Accompanying head of the US delegation, Amos Hochstein to the parley were Ag. Special Coordinator, Partnership for Global Infrastructure Investments, Helaina Matza; Ribhuti Jain, Regional Managing Director (MD), Development Finance Corporation (DFC); Nisha Biswal, Deputy CEO, DFC; Lyndsey Mewill, Chief of Staff to Amos Hochestein amongst others.

“On the Nigerian delegation were DG, Mining Cadastral Office (MCO), Obadiah Nkom; Executive Secretary SMDF, Fatima Shinkafi; DG, Nigeria Geological Survey Agency (NGSA), Dr. Abdulrasak Garba, Director, Investments Promotion and Mineral Trade (IPMT), Ime Ekrikpo amongst other top officials of the Ministry of Solid Minerals Development (MSMD).”

Nigeria made significant strides in the global mining sector on Monday, February 5, by securing the leadership position in the newly established Africa Minerals Strategy Group.

Dele Alake, Nigeria’s Minister of Solid Minerals Development, was unanimously chosen as the inaugural chairman of the group.

During the resolution signing ceremony, Alake urged African leaders to unite and collaborate effectively to ensure the optimal utilization of the continent’s mineral resources for mutual benefit.

The event which was held on the sidelines of the 30th edition of Investing in Africa Indaba, Cape Town, South Africa, was attended by ministers of mineral development of Uganda, Democratic Republic of Congo (DRC), Sierra Leone, Somalia, South Sudan, Chad, Botswana, Zambia and Namibia.

More than 15 countries have pledged support, with the list expected to grow as the AMSG under Nigeria’s leadership swings into action.

Read Also: Alake’s strategies to tackle storms in Nigeria’s solid minerals sector

 Alake, in a statement issued by his special assistant on media, Segun Tomori, stressed that the era of carting away solid minerals is over, charging countries on the continent to speak with one voice on value addition as a prerequisite for investment in the mining sector.

He said: “Today, there is an economic scramble for Africa. The critical metals needed for the energy transition are in Africa. Therefore, if we do not come together this time around and take our destinies into our own hands, we will go through the same harrowing experiences of the past. That is why we formed this body.

It will be recalled that Nigeria and Uganda in January rallied African Ministers of Solid Minerals/ Mineral Resources on the sidelines of the Future Minerals Forum (FMF) in Riyadh Saudi Arabia, on the need to unite and champion value addition in the mining sector to boost the economy of African countries.

“Let those who want our minerals know that if you go to country A, you have the same regulations and laws guiding the sector. You go to country B, you find the same. So, there is no divide and rule anymore. That is when we can show sincerity of purpose, and the world will begin to take Africa seriously. On behalf of our president, I pledge our full support to achieve our objectives.”