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Tag: Mining sector

  • Venezuelan investors eye Nigerian mining sector, says Martinez

    Venezuelan investors eye Nigerian mining sector, says Martinez

    Venezuela’s Deputy Minister of Mining, Alejandro Martinez, has expressed his country’s investors’ interest in exploring opportunities in Nigeria’s mining sector.

    Martinez made this known on the sidelines of the ongoing Mining Indaba in Cape Town, South Africa, during discussions with Nigeria’s Minister of Solid Minerals Development, Dr. Dele Alake.

    In a statement issued on Sunday in Abuja, Kehinde Bamigbetan, Special Adviser to Alake, quoted Martinez as saying that Venezuelan investors, particularly manufacturers of mining machinery and equipment, are eager to tap into Nigeria’s mining market.

    He sought the assistance of his Nigerian  counterpart to facilitate the collaboration by encouraging Venezuelan investors to visit the country and obtain information to aid their investment.

    According to the statement, Alake had earlier recalled how both countries benefitted immensely from petroleum production and sales until the campaign against global warming and economic recession compelled them to seek alternative revenues from solid minerals.

    Alake said: “Nigeria focused on petroleum. Now, the world is moving to green energy. Compulsorily, we have to shift our attention to our minerals. Diversification of the economy is a core component of President Tinubu’s Renewed Hope Agenda, and we have a lot of the minerals that the world requires. These include critical minerals like lithium, cobalt, nickel, and rare earth elements required by the world for energy transition.

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    The minister said the fact that both countries have had a fair share of political and economic challenges should encourage them to co-operate to explore their resources in a sustainable manner and to the highest benefit of the people.

    “I can assure you of Nigeria’s readiness to co-operate with Venezuela in areas of exploitation of our minerals, trade in minerals, and production spanning the entire value chain. Take lithium, for instance, we don’t want our lithium to be extracted and carted away. We want our lithium to be processed and used to produce electric batteries, phone batteries and solar power batteries to generate local employment that would create a catalyst and multiplier effect for our economy. I assume that is also your objective,” he said.

    Alake then invited Venezuela to join a new coalition of African, Asian and Middle East countries in mining named the “Super Region” formed to ensure trade among members, and take advantage of the opportunities.

    “It is a platform for countries with similar challenges aspiring to be economically independent, so we are ready and open for business with anyone, any nation, any investor that shows  seriousness and clear pathway for legitimate, sustainable and local value addition plans.”

    Members of the Venezuelan delegation at the crucial meeting included the country’s Ambassador to South Africa, Ambassador Carlos Fed Acevedo, and Ambassador Magaly Henriquez. 

  • Promises and perils of the mining sector

    Promises and perils of the mining sector

    By Oladele Oladipupo

    Nigeria, the most populous African nation is blessed with abundant mineral resources which are yet to be tapped. These resources include but not limited to the following: Gypsum, Gold, Lead, Granite, Iron Ore, Cobalt, Lithium, Magnesium and Columbite. The federal government, in an effort to revamp the ailing economy is contemplating on diversifying the nation’s economy by exploring the economic potential in mining sector which is a right step in the right direction. This action can be seen in the recent bill that was sponsored and presented by one of the lawmakers in the National Assembly.  The bill is to ensure adequate funding for mineral resources exploration and extraction through public-private-partnership. One of the objectives of the bill is to make sure that our mining sector reaches its full potential, creating jobs, fostering economic growth and enhancing Nigerians self-sufficiency in mineral sector. The primary goal is to secure adequate funding for exploring and extracting Nigeria’s abundant mineral resources through public-private sector participation. The bill will also provide for the creation of a technical management and advisory council comprising experts in law, geology, mining engineering, banking, and civil engineering.

    It is my conviction that once this bill is passed into law, it will definitely solve most of the challenges in the mining sector. For instance, today the sector is being dominated by illegal miners who are not professionals. These set of miners operate in an unsustainable way and are engaged in unethical practices; not only that, they also do not operate in line with international best practices. 

    Even some  so-called professionals who possess valid mining licence do not operate in accordance with the federal government’s regulations. For instance, there have been cases of some mining companies that do not operate in line with international best practices. A recent example is the pathetic story in the Vanguard of January 7, concerning a registered mining company operating in Ebonyi State.  According to the story, two communities in Ebonyi State, Enyigba and Ezza, have a large deposit of lead which is supposed to be a blessing but unfortunately, it has brought untold hardship and misery to the two host communities. A mining company was granted a licence by the Federal Ministry of Solid Minerals to mine lead in the two communities. As a result of their unsustainable practices, the two communities have been seriously devastated with the sources of their drinking water and soil  contaminated by lead.  In fact, many people in the two host communities have been afflicted by lead-related ailments, resulting from the eating crops, vegetables, fruits, tubers, grains harvested in the two places and drinking polluted water. One of the community leaders in Enyigba Community Chief Ewa Nworie was quoted to have said: “We are not finding it easy to live in this community.  Lead pollution is affecting both our health and farm produce, our water is already polluted and the soil is contaminated by lead”. The people in the two communities are now appealing to the federal government to come to their aid.

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    After reading the story, I came to the following conclusions:

    First, An Environmental Impact Assessment (EIA) of the project was conducted in line with the EIA Act CAP E12 LFN 2004; however, the mining company failed to comply with the recommendations in the EIA document;

    Second, mitigation measures that were recommended in the EIA final report were not put in place.

    Third, most of the people in the host communities have been afflicted by lead related ailments resulting from eating contaminated crops.

    Fourth, the mining company refused to fulfill the provisions in the agreement which they signed with the state government and the host communities where they promised to provide hospital, schools, potable water, electricity and employment.

    Fifth, there was no proper monitoring of the activities of the miners by those that are saddled with the responsibility.

     I think it is important that the federal government take a drastic action by revoking their licence as well as closing down the mining sites and compel the miners to remediate the mining sites. Recall that similar incident happened in Zamfara State a couple of years ago where thousands of children died of lead poisoning and eventually, the mining sites were closed down. Lead is a highly toxic metal, it could be absorbed through the skin, respiratory organ and digestive system. It bio-accumulates in the body organs, tissues and saliva. Research has shown that young children are particularly vulnerable to lead and it can lead to permanent adverse health impact particularly in the development of the central nervous system.

    Various research findings have also indicated that lead causes long term harm in adults, including high blood pressure, cardiovascular diseases, renal failure, respiratory disorder, chronic obstructive pulmonary diseases and stroke. In recent times, humans are exposed to lead through the food chain by consuming plants or fruits grown in the lead environment or animals that graze on grasses around lead mining areas. It is important that the people in the host communities are educated and enlightened to know that some of the plants they eat contain lead which could harm them in future.

    Mining causes environmental degradation across the world not only in Nigeria but also in Asian countries. Therefore, miners need to be checkmated so as to adhere to the relevant mining laws. The federal government has put in place some instruments of intervention in order to ensure sustainable mining in Nigeria. These include but not limited to the following: the National Policy on Environment, the National Guidelines and Standards for Environmental Pollution Control in Nigeria, the Enactment of the Environmental Impact Assessment Act CAP E12 LFN 2004 which makes it mandatory for proponents of all new major development activities to carry out an EIA for their proposed project and Development of EIA Sectoral Guidelines for the Mining, Manufacturing, Energy and Agricultural Sectors.

    I would like us to cast our minds back to what happened in New York State in the early sixties where industries were dumping toxic wastes into Love Carnal River. Later, pregnant women around the carnal were giving births to deformed babies –  without limbs, nose, mouth and genital organs. Also in the early 1970s in Japan, a lot of people died of “Minimata disease” due to the application of mercury in cultivating rice. We need to take pro-active measures in order to avert such a disaster. Therefore, I am suggesting that any mining company that refuses to comply with the nation’s environmental laws should be sanctioned and have its licence revoked.

    Finally, the Federal Ministry of Solid Minerals should make sure that the mining companies are monitored to ensure that they carry out their mining operations in line with international best practices.

    •Oladipupo sent this from Agbara Estate, Ogun State. He writes via oladeleoladipupo@gmail.com

  • Professionals frown at budgetary allocation to mining sector

    Professionals frown at budgetary allocation to mining sector

    The President of the Geological Society of Nigeria (GSN), Mr. Uba Saidu Malami, has condemned the N9 billion allocated for the mining sector in the 2025 appropriation bill.

    The National Assembly joint committee on solid minerals last Friday rejected the allocation during the budget defense by the Minister of Solid Minerals Development, Dr. Dele Alake.

    Malami, in a statement in Abuja described the allocation as grossly inadequate, stressing that the paltry sum of N9 billion, approximately $8m, represents a meager 1.67 percent of the proposed capital expenditure of N539.7 billion by the Ministry.

    Faulting the allocation the GSN leader said: “Nigeria is endowed with an abundance of solid minerals, including critical minerals like lithium, nickel, and gold, which are in high demand globally. However, the current budgetary proposal falls woefully short of the investment required to unlock the sector’s potential. 

    “Comparatively, other West African countries are allocating significantly more funds to their mining sectors. For instance, Ghana has allocated GHS 2.3 billion (approximately $340 million USD), while Côte d’Ivoire has allocated XOF 233 billion (approximately $390 million USD).”

    Commending President Bola Ahmed Tinubu administration’s bullish stance on mining, Malami argued that this should be backed by sufficient funding. 

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    According to him: “The current allocation will not support the ambitious roadmap laid out by the Ministry of Solid Minerals Development, and it will hinder the country’s efforts to diversify its economy away from oil.

    “I urge the government to reconsider the allocation to the solid mineral sector and provide more funds to support its development. This will not only generate revenue and create jobs but also position Nigeria as a major player in the global mining industry.

    “The time for rhetoric is over; it’s time for action. The government must prioritize the solid mineral sector and provide the necessary funding to unlock its potential. The future of Nigeria’s economy depends on it,” Malami maintained.

    Last Friday, the National Assembly’s Joint Committee on Solid Minerals rejected the proposed 2025 budget estimates, describing them as “grossly inadequate.” 

    The committee emphasised the need for a significant upward review to accelerate economic diversification efforts in the sector.

  • Mining sector: Licence, royalties review get stakeholders nod

    Mining sector: Licence, royalties review get stakeholders nod

    Stakeholders in the mining sector have risen  in support of the recent license review and proposed royalties paid on minerals by the federal government.

    They reached a consensus with the Federal Government at a meeting which lasted over three hours in Abuja with the Minister of Solid Minerals Development, Dr. Dele Alake.

    Addressing the stakeholders, the minister explained that the revised license rates are necessary to help the government recover investments made in improving the sector’s infrastructure. These changes are also aimed at deterring speculators who hold mining titles without any active mining operations.

     The minister further disclosed that additional measures, including the deployment of satellite imaging, are being implemented to sanitise the industry, attract credible investors, and support the Mining Marshals in eliminating illegal mining activities and prosecuting offenders.

    Read Also: Forensic audit of mining sector underway, says Alake

    He also announced the redeployment of federal mine officers as part of a broader effort to enhance performance. Adding that officers that are found wanting in their duties will face appropriate disciplinary actions.

    On concerns raised by stakeholders over interference by state governments—such as the shutdown of licensed mining operations and the duplication of federal regulations – Alake assured that discussions with state governors and the Nigerian Governors Forum (NGF) are ongoing.

    He assured that on-going deliberations by a joint task force of the ministry and the NGF would be scaled up to resolve knotty issues and foster cooperation.

  • Mining sector can contribute 8% GDP to economy

    Mining sector can contribute 8% GDP to economy

    Partner & Head, Energy & Natural Resources, Tax, Regulatory & People Services, KPMG, Ayo Luqman Salami has said the mining sector has the capacity to contribute 8 per cent Gross Domestic Product to the nation’s economy on annual basis adding Nigerian counterparts such as Ghana, South Africa, and even more in Zambia, with 12 per cent.

    He stated this during the KPMG 2024 Breakfast Seminar with the theme: “Mining-The Future Frontier for Nigeria’s Economic Diversification”, in Lagos.

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    He also said Nigeria has 0.12 trillion reserves in terms of value of mineral deposits, and in terms of tonnage.

    According to Salami in terms of the dominance of minerals and mineral deposits, Nigeria ranks number 22, with values of minerals about 1.12 trillion, over a billion US dollars adding Algeria and South Africa are just above Nigeria on the list with 19th and 11th positions respectively.

  • Fed Govt, states to partner in mining sector’s reform

    Fed Govt, states to partner in mining sector’s reform

    The Minister of Solid Minerals Development, Dr Dele Alake said the Federal Government would be partnering with states to reform the mining sector.

     He said states will contribute significantly to the Federal Government’s quest to make solid minerals, a major revenue earner for the nation.

     The minister spoke yesterday in Abuja when Ekiti State Governor, Biodun Oyebanji, paid a visit to his office.

     Citing the preponderance of natural resources, including solid minerals in the state, Dr. Alake stated that the state will contribute significantly to the Federal Government’s quest to make solid minerals, a major revenue earner for the nation.

     The minister reiterated the commitment of the Federal Government to partner with states to reform the mining sector with a view to ensuring maximum benefits for host communities and accruable revenue for the government.

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     In his remarks, Oyebanji expressed gratitude to President Bola Tinubu for appointing an illustrious son of Ekiti as the helmsman of the solid minerals ministry, adding that the minister is the state’s best choice that has been using his vantage position to advance the cause of Ekiti State.

     Oyebanji  emphasised the imperative of collaborating with the Federal Government on mining sector reforms for economic development of federating units.

     “The other reason why I came is to discuss how Ekiti can partner with the Minister to ensure that we key into his vision. It is in the interest of states to collaborate because it is a win-win situation. “Any discerning state that wants to develop their domain must key into the mining sector. I see a lot of opportunities for sub-nationals. He is trying to democratise space, and it will create wealth. It will create jobs, and it will increase security. So, I don’t see how any state will not partner with the ministry because solid minerals are the new oil,” Oyebanji added.

  • PwC praises govt’s support to mining sector

    PricewaterhouseCoopers(PwC) has extolled the Federal Government’s commitment to developing the mining sector. The professional services firm observed that government policies toward overhauling the sector had been a major discussion.

    PwC noted that government’s efforts around diversification of the Nigerian economy including the mining sector have continued to be at the front-burner of conversations.

    The professional services firm said the contribution of the mining sector to the nation’s economic growth had increased within the last one year. Before now, contribution of the sector to the economy was less than one percent.

    Associate Director and Head Mining Industry Business Development, PwC Nigeria, Habeeb Jaiyeola, noted  that there had been a lot of inputs from the present government around policy development and areas that would boost the development of the mining companies and the private sector as well.

    Jaiyeola, who spoke with The Nation on telephone, said in the past one year, a lot of activities had been dedicated to the mineral development funding including the Bank of Industry’s (BoI) support to artisanal mining. We have seen a lot of support from the Federal Government in that regard, he reiterated.

    He said: ‘’We have also seen a lot of enforcement on monitoring especially around the illegal mining. There’s been a lot of improvement in that regard, he said, adding the clampdown on illegal miners had been given more attention by the government.

    “We have also seen a strong support by the Federal Government around the mining monitoring team on the field, a lot of them have been supported by vehicles and funding. We have also seen support by the government in monitoring revenue collection especially the declaration by the various mining companies where the monitoring is being enforced, also checking the various mining companies and what they actually produce in terms of quality.

    ‘’We have also seen growth in revenue generation of the Federal Government generally, as well as strong support by the government for the Mineral Resources and Environmental Management Committee (MIREMCO)’’.

    MIREMCO, he said, is the mining inspection regulatory committee at the state levels. Jaiyeola said this committee monitors the mining activities at the state level to ensure that a very strong influence was imputed from the Federal Government up to the state level. They also get information from the miners through the Federal Government and also from the Federal Government through the miners.

    Thus, their activities had not been really known and brought to the fore but with this current administration and efforts of the ministry as well as the industry we are now seeing strong support for the regulatory committee. The support we are seeing is quite significant from this current government, he added.

    According to him, the body was set up to assist every state that has mineral activities, support state activities, they act as the federal, state and private sector liaisons. They are more on the field to inspect what the miners are doing, they have a committee that is constituted by the representatives of the ministry, federal, state and local governments and communities as well, adding they are able to know what the issues on ground are, and able to channel these to the federal government for ease of attention.

    He said the PwC would continue to give its support to the development of the mining sector.

  • ‘Why mining sector must be investor friendly’

    President, Women in Mining, Nigeria, Janet Adeyemi, has called for the amendment of the mining sector’s regulation to make it investor friendly.

    Adeyemi, who spoke to The Nation in Abuja, said the sector if well managed, through a transparent system, could be a major contributor to the gross domestic product (GDP) and create more employment.

    She said the conflict between surface and mineral rights and the Land Use Act 1978 (28) should be well defined.

    According to her, the mining cadastre office should be open to public scrutiny and be information and communication  technology (ICT) compliant.

    She identified challenges facing women  to include non-acceptability, low perception, lack of funds and skills, poor labour wages, adding that processing of titles is burdensome.

    Adeyemi emphasised communities’ engagement, how to create a strategic working plan for community involvement and growth, integrate artisanal mining into the mining system, and achieve safe mining practices.

    She said corporate investors must be committed to building the capacities of their host communities and encourage them to invest proceeds from them, only then can such corporation thrive in peaceful domain, she added.

    According to her, prospective investors in the sector must be committed to utilising the best international mining procedures to prevent crisis and advance their business. They must be committed to ensuring that mining adds value to the lives of the host community not induce poverty and disease, she added.

    She said mining was no longer an alternative; rather, it should take the main stage in national discourse, knowing that the green technology revolution is pushing hydrocarbon to the background, adding that cashew will soon displace oil.

    She said women in mining were involved in advocacy, sensitisation and promotion of the relevance of women in the industry, which according to her had taken them round all the mining destinations in the country.

    Sensitisation of young graduates to the sector through mentoring, the official mainstreaming of gender into the mining sector, co-hosting of the mine to money as well as crowd funding to run lead and zinc extraction in Taraba State, which according to her, is still ongoing, among others.

  • Economic diversification and the mining sector

    Although acclaimed as a land with huge endowments in mineral resources, Nigeria seemed unsure of what premium to place on the wealth buried underground. While South Africa and Ghana, among others, are making huge fortunes from mines and minerals, Nigeria is still grappling with establishing appropriate regulatory framework to instil best practice methods.

    All that may have become history as the Buhari Administration is paying more than a casual glance in the direction of the country’s vast and varied deposits across the country. Indeed, Nigeria has four minerals adjudged to be world class. These are: bitumen, coal, gold and barite. These four industrial minerals have a combined reserve estimate of over one billion tons. Other minerals of value in several states include kaolin, lead, zinc, tantalite, iron ore, limestone, dolomite, marble and feldspar.

    As the national economy grapples with the exigencies of volatility in global economic fortunes, it has become a notorious fact that the government must embrace diversification and aggressively elevate both agriculture and solid mineral sectors. These two sectors, no doubt, hold great potential for job creation, wealth generation and the quest for a resilient economy.

    Three years running, the Ministry of Mines and Steel Development has worked to evolve adequate regulatory frameworks and investment friendly policies. It is imperative that states and local governments pick up the gauntlet to explore avenues to create jobs and enhance wealth through the creation of special purpose vehicles or engage in joint ventures in exploiting the vast mineral deposits in their domain.

    Indeed, state and local government administrations must become smarter, no thanks to competing demands worsened by emergent environmental, social and security challenges.

    Although virtually all the 19 states in Northern Nigeria are generously endowed with solid minerals, many are also sleeping over their potential money-spinning natural resources. One outstanding example is Niger State, where the government is finalising plans to establish a mining city, described by the governor, Alhaji  Abubakar  Sani Bello, as the first of its kind in the country.

    The governor unveiled the plans at the second International Conference on Lead Poisoning in Abuja. The two-day parley was co-hosted by the Ministry of Mines and Steel Development and Medicines San Frontiers, MSF, to scale-up in developing a preventive governance framework for lead poisoning, especially the one associated with artisanal gold mining in Nigeria.

    “The city will be a comprehensive turnkey solution that will include a processing centre, on site laboratory, trade and investment centre, training centre and mining supply store. It will also be equipped to carry out exploratory services, including geo-physics services, geochemical sampling, resource estimation, reserve calculations, data interpretation and target generation,” the governor disclosed.

    The Niger State Mining city will also have a data room on the state’s mineral deposits, a ready market for processed minerals even as it seeks to promote safer mining methods to prevent hazards to man and environment.

    The State may have taken the lead in proactive steps to mitigate environmental damages associated with unsafe mining practices that are rampant all over the country. Indeed, attention has been on Nigeria since 2010 when lead poisoning killed no fewer than 400 children at Yargalma Village in Bukkuyum Council, Zamfara State. Five years later, a similar calamity visited Niger State where 30 children were prematurely killed at Shikira community in Rafi Council.

    While the government cannot stop artisanal mining completely, the governor said steps were taken to enthrone safer mining methods, train staff on laboratory analysis and management of lead poisoning, deploy more staff at Magiro Health Post and upgrade Kagara General Hospital to treat lead poisoning cases. The government is also cooperating with partners as MSF, the United States Centre for Disease Control and Prevention, World Health Organisation, the Nigeria Centre for Disease Control, the Nigeria Field Epidemiology and Laboratory Training Programme, among others.

    While calling for vigilance at all times, Bwari said despite remediation efforts, “there will always be some recontamination” owing to slow response to treatment and defiance by local miners using unsafe and crude methods. “The effective, long–term solution in ending further lead exposure is through behavioural change and the use of appropriate and economically feasible technologies,” the minister noted

    Bwari also emphasised the need for continuous enlightenment on the use of safer mining and processing methods and listed steps taken by his ministry as quick remediation of contaminated areas; grouping of artisanal miners into cooperatives and supporting them with tools and training; continuous monitoring of miners’ activities to prevent contamination of the environment and encouraging the establishment of gold processing zones far from residential areas.

    The second edition of the confab on lead poisoning closed with the resolve for closer cooperation by stakeholders on preventive and remedial measures. Specifically, participants recognised the need for proper case management, remediation and safer mining practices in Zamfara and Niger states in addition to improving emergency response capacity by government organs and community leaders.

     

     

     

  • Fed Govt eyes N141b from mining sector

    The Federal Government is eyeing a sectoral contribution of N141 billion from Minerals and Metals to the gross domestic product (GDP).

    This will be an increased contribution to the GDP, from N103 billion in 2015 to N141 billion in 2020, at an average annual growth rate of 8.54 per cent,  the Minister of Mines and Steel Development, Dr Kayode Fayemi said yesterday in Abuja.

    He spoke  at the inauguration of the newly constituted Boards of agencies and parastatals.

    Fayemi also stated that other targets for the sector includes the facilitation of Coal to Power Plants to contribute to our energy mix towards bridging the energy deficits.

    He said: “The mining sector remains crucial as one of the frontiers of the Federal Government’s recently launched ‘Economic Recovery & Growth Plan (2017-2020)’, in which the Minerals and Metals sector was duly recognised as one of those to drive Nigeria’s recovery. The strategic document projected to grow sectoral contribution to GDP from N103 billion (2015) to N141 billion in 2020, at an average annual growth rate of 8.54 per cent.

    “Consequently, the ministry has been selected as one of the critical players in the ERGP Focus Labs about to be launched by Mr. President this week.

    “Other targets for the sector include the facilitation of Coal to Power Plants to contribute to our energy mix towards bridging our energy deficits; the production of geological maps of the entire country by 2020 on a scale of 1:100,000; as well as the sustainable integration of artisanal miners into the formal sector.

    “Moreover, we are being guided by other far reaching prescriptions contained in our ‘Roadmap for the Growth and Development of the Mining Industry’, which was approved in August, 2016 by the Federal Executive Council, which provides a pathway for the sustainable turnaround and growth of the mining and metals sector over the short, medium, and long term. As you may well know, Institutional Strengthening and effective sector governance is one of the major themes that run through our roadmap.

    “It is therefore noteworthy that this inauguration is coming at a time we have commenced the full operationalisation of the Roadmap, as well as the implementation of the World Bank supported Mineral Diversification Project. We therefore count on the patriotic service of the new Board members to play their own part as crucial enablers in the industry, towards advancing a common vision for the revitalisation of the sector.”

    Fifty three members were inaugurated into the Nigerian Geological Survey Agency (NGSA), National Steel Raw materials Exploration Agency (NSRMEA), National Metallurgical Development Center (NMDC) and Council of Nigerian Mining Engineers and Geoscientists (COMEG), including four board chairmen.