Tag: mining

  • Mining raises hope of two  million jobs

    Mining raises hope of two million jobs

    Mining has enormous potential for the employed, but they have not been fully tapped. According to experts, there is hope for job in the sector. They argue that over two million jobs can be created in the industry, if the government looks in that direction,writes AKINOLA AJIBADE.

     

    IT has become imperative to open up many areas because of high unemployment rate. One of such areas is mining which holds a lot of prospects, after oil and gas and agriculture. The industry, which is yet to be fully tapped boasts of solid mineral resources. The resources include tin, bauxite, iron ore, coal, bitumen, diamond, gold, lead and gemstone, among others.

    Stakeholders say the mining industry has the capacity to create over two million direct jobs in the country, if it is fully tapped. They said millions of tonnes of these resources are lying fallow under the bowels of the earth, as successful governments have failed to give it the desired attention.

    They said the solid mineral sector can create a huge platform for jobs irrespective of the literacy level of individuals. They said the solid mineral sector, more often than not only requires basic knowledge, thereby creating great prospects for employment generation for the masses.

    The National President, Progressive Miners Empowerment Association (PMEA), Mr Sunday Ekozien, had in a forum to showcase the contributions of the mining industry, said millions of unemployed youths can be taken off the labour market if the industry is revived. Ekozien said every state in Nigeria is endowed with mineral resources, adding that the resources would help in creating jobs and further galvanise the economy.

    He said the country has been a dumping ground for imported goods, while a lot of resources that can generate revenue and jobs are left untapped, adding that if the government can revive the sector, it could provide jobs for the teeming populace.

    He explained that there are diffenret levels of entry into the mining business, arguing that people have the power to determine the area they want. Ekozien said mining can be categorised into artisans, small, medium and large scale to suit the needs of investors. He said what is required to be effectively involved in artisan mining is about N1million, small mining N50 million, medium N200 million and large sacle mining N1 billion.

    He said each category determines the number of jobs to be created, advising Nigerians to try and invest in the mining industry.

    He explained that a mining site can accommodate as many investors as possible because there are different lines of jobs to be executed.

    Speaking on the issue, a quary operator in Idanre, Ondo State, Chief Sunkanmi Edunoye, said an artisan miner can create a minimum of 50 direct and indirect jobs, adding that the ability to create jobs depend on the nature of the solid mineral resources. He said a mining industry can create jobs for carpenters, welders, dredgers, bricklayers, transporters and food sellers, among other informal operators. He said formal operators that can work for a mining company include book keepers, accountants and marketers.

    Said he: “Different categories of people are bound to get jobs in the mining industry. While some jobs are seasonal, others are permanent. There are contract and permanent workers. It depends on the level of skills of people that want to work in the industry. Some miners prefer contract workers who would work over a period of time and get paid. Such miners believe contract staff can be done away with, when they do not have enough jobs at hand. This can save them the burden of incurring unnecessary costs. On the other hand are miners, who work throughout the year because they get a lot of businesses. This category of miners keep their staff because they are sure of getting money to pay them.”

    He said all segments of the mining industry have the potentials to create jobs, advising the government to invest in the industry.

    He said a study conducted on the mining industry, vis-à-vis its potential to create wealth in Nigeria, showed that millions of skilled and unskilled workers can get jobs to do if the industry is well managed. He said all segments of the mining industry have the potential to create jobs, advising the government to fund the industry well.

    “Besides oil and gas, the mining industry has potentials to create jobs. Also, it can as well contribute greatly to the nation’s Gross Domestic Product (GDP). Developed countries are generating billions of dollars in revenue from solid minerals. This has a multiplier effect on their economies. We can do the same thing in Nigeria. When this happens, there would be jobs for workers in the mining indystry and other allied areas.

    Also, a consultant and stakeholder in the sector, Mrs Emily Achor, said the mining industry holds great potential for employment generation.

    “There are different channels for job creation not only for geologists and mining engineers, but also for the miners who could be involved in the processes of minerals beneficiation (separation) even if they are not geologists, as well as the mining of gemstones which are used for different purposes both locally and internationally.”

    She said the employment of mining police is also another avenue for employment generation, adding that they will help in checking the activities of illegal mining operations across the nation. Achor said the activities of the illegal operators do not only deny government of revenue through the payment of royalties, but also endangers the lives of citizens through the destruction of the landscape and exposure to poisoning, as was the case with the Zamfara lead poisoning incidence.

    She said mining is a major contributor to the GDP of South Africa and Gabon, and many opportunities still remain untapped in the industry, as even rare fossils and plants can be excavated and polished for exhibition purposes, especially in countries that have never been exposed to the abundant natural materials Nigeria is blessed with.

    The Minister of Mines and Steel Development, Mohammed Musa Sada, confirmed that “the 350,000 jobs came from registered cooperatives groups, with some involved in quarry and gemstone mining. Because the operatives were licensed, there was an accurate figure of those benefitting from the available jobs opportunities, from minor to major among operators, especially in the chalk-making cottage industries in several communities now.”

    He said the registered cooperatives informed the cottage industry’s programmes, with one programme in each local government, which has since kicked off in several states of the federation.

    “We increased the number of investors in the mining sector due to the transparent manner in which titles are now issued on a ‘first come-first served and use it or lose it basis.’ A total of 2,476 active mineral titles were issued this year, compared to 666 titles issued out in the previous year, thereby significantly reducing illegal mining activities.”

     

  • Australian tycoon makes waves mining iron ore in Nigeria

    Australian tycoon makes waves mining iron ore in Nigeria

    At 77, Ian Burston is pursuing ambitious iron ore projects in Nigeria that might make others nervous. Andrew Burrell reports

    IAN Burston was almost killed when his parachute failed to open during national service in 1956. He walked away unharmed when taken hostage by gunmen in Istanbul in 2001. And he emerged from a prostate cancer scare two years ago with renewed verve.

    Now the great survivor of the Australian mining industry is pioneering a bold push into iron ore mining in Nigeria at a time when many are jittery about the volatile price of the commodity and the hazards of doing business in Africa.

    While many of his peers are content to stroll around the golf course, 77-year-old Burston is embarking on one final corporate play that will easily see him through to his 80th birthday.

    “I’m having a bloody marvellous time — I might stick around doing this until I’m 85,” he laughs over lunch at his favourite Perth restaurant next to the glistening Swan River.

    Burston isn’t overly concerned about the dramatic fall in the iron ore price — to below $US90 at one particularly nervy moment last month — that has forced some big miners in Australia to scale back their expansion plans.

    He predicts the price will stabilise at around $US120 a tonne, though he admits this could take some time. And even if it drops to $US80 a tonne, as some predict, he insists he won’t be worried because his planned Agbaja iron ore mine in Nigeria will still make a very handy profit at that price.

    Last week, Burston’s new listed vehicle, Energio, announced a maiden Joint Ore Reserves Committee (JORC) resource of 448 million tonnes at Agbaja after drilling about 15 per cent of its tenements over the past year.

    It was the first JORC iron ore resource ever reported in Nigeria, which has long been dominated by the oil industry.

    In a career spanning several decades, Burston has run Rio Tinto’s Hamersley Iron division and held senior executive roles at Portman Mining, Aurora Gold, Aztec Mining and Kalgoorlie Consolidated Gold Mines. He also served as a non-executive director of Fortescue Metals Group and Cape Lambert.

    His most recent company, African Iron, which was focused on iron ore in the West African nation of Congo, was this year taken over by South Africa’s Exxaro Resources for $338 million, just 12 months after it listed in Australia.

    Burston says he feels more comfortable these days doing business in West Africa, despite the risks of bribery and corruption there, than in the high-cost environment of Australia.

    “It’s getting bloody hard to compete in Western Australia now for two reasons — your infrastructure is so tight, you haven’t got enough ports to get it out, and we are doing some queer things about what we expect operators to cough up to establish their business,” he says.

    “I think we’re being very clumsy. And I think by the time we find out how clumsy we’ve been, these other places will be up and going.”

    Foster Stockbroking analyst Mark Hinsley wrote in a research note this week that Energio’s Agbaja project was shaping up as a “multibillion-tonne iron ore play” given its higher than expected maiden resource estimate.

    He cites the project’s proximity to rail and port infrastructure and Nigeria’s stable government and Western-friendly mining laws as reasons for confidence.

    Burston says China has actively encouraged the development of a West African iron ore industry as it seeks to bring more balance to the market after years of paying what Beijing considers to be exorbitant prices for the steelmaking ingredient.

    But he is not worried that China’s bid to import 400 million tonnes of iron ore a year from West Africa will drive down prices so much that it will damage the viabilty of Energio’s project, which is aiming to start producing 20 million tonnes a year by 2014.

    “I’ve done my figures on (the cost of) getting it onto the ship and it’s less than $US50 a tonne,” he says. “If the iron ore price goes down to $US80 a tonne, that’s not going to worry me.

    “Twenty million tonnes a year at $US30 a tonne is a profit of $US600m a year.

    “The biggest problem we’ve got is every bastard who doesn’t know how to spell iron ore is telling us how to do it.

    “Once we are successful, then the floodgates (in Nigeria) will open, because there’s so much iron there you can’t ignore it.”

    Burston says that unlike in Australia, miners are being welcomed into West Africa through lower taxes and stable royalty rates.

    “The Nigerian government is backing us to the hilt,” he says. “We sit within 70km of an established heavy-haul railway line which has never been used and which goes straight down to the port — what a break that is.

     

    “And the local community can see jobs — everybody wants to work. We advertised for a couple of field hands and at 4am we had a couple of hundred guys out the front, all with their own shovels and all trying to be first interviewed. We nearly had to get the police in to send them home.”

    Burston entered the mining industry after what he terms his Sliding Doors moment while training as a paratrooper in 1956.

     

    Source: The Australian