Commercial gold mining begins in Osun this year, says minister

Thursday, 19 May 2011 00:00 From Florence Lawrence, Abuja Business Services - Business News

THE assessed commercially viable gold fields in Osun State may become operational by the end of this year, going by the projection of the Minister of Mines and Steel, Musa Sada.

But the usually long gestation period of solid minerals may delay Nigeria’s full enlistment into the league of gold producing nations.

Indeed, Sada noted that before Nigeria can boast of realistic economic contribution to its Gross Domestic Product with enormous minerals endowed, it will take another five to 10 years.

But he affirmed that the first large scale gold mine is expected to be operational in the state later this year and 2012, as the Federal Government has considerably set the stage for the take- off of the nation’s mineral sector even though it will wait for its gestation period that will delay the economic diversification.

Architect Sada noted that the sector reform in the last six years will yield result in another the next five to 10 years with improved institutional framework, improved administration and acquisition of geological data among others.

“Although, mining business has long gestation period, the recorded transformation is expected to translate into substantial revenue for government, increased job creation in the industry and rapid development of the rural communities where this minerals are located in the next five to ten years,” he added.

Also, the new complex for the Cadastral office, he declared, would address the procrastination of titleholders in the country, as it can check which site is not operational with the acquisition of modern equipments.

He advised those with such practice to return to the ministry and sort assistance for partnership when they are unable to meet the requirement.

World Bank has harped on the need for government to improve the budgetary allocation for mineral sector to sustain projects kick-started by development partners.

According to Sada, the sector will broaden the economic base of Nigeria and will free it from the boom and dust of crude oil trade at the international market.

The sector, in 2009, generated $135 million revenue, against $35 million realised in 2005.

“It is important to note that this is a different sector than the oil sector. It is a sector of many small and medium size businesses, artisenal miners, lot of potentials for downstream industry.

“Besides, the mining sector creates revenue, it is important that same is not allowed to be lavished without sustaining the sector which is not the case now. The sector is capital based, and needs to be funded with infrastructural facilities needed to sustain the sector.”

However, to keep the growth of the sector and sustain its functionality, he said, “development partners can get a project started but then, it has to go on its own. It is important that we look forward that Nigerian government takes more of its own responsibility in the funding from the budget for the solid minerals development, probably see it as Natural Resources Development Fund, as it becomes a partnership with private sector to manage it and grow it further.”

World Bank’s representative in Nigeria, Onno Ruhl expressed satisfaction at the expenditure of N10 billion World Bank Assisted Sustainable Management of Mineral Resources Project, which has transformed the sector in the last six years.

jmaine:

Great but i would be monitoring their environmental performance on a personal level. . .the Zamfara lead poisoning case must not repeat itself . . . Just hope the mining activity will be regulated properly to entrench best practices that will benefit all