₦airaland Forum

The Federal Government has assured investors of its determination to derisk the mining sector by generating adequate geoscience data that will add value to the nation’s mineral deposit.

Minister of State for Mines and Steel Development, Abubakar Bwari, stated this yesterday in Abuja at a One day inception meeting and presentation of project activities of the National Integrated Mineral Exploration Project (NIMEP).

Bwari said the key objective of the exploration project was to rapidly generate integrated geosciences information in greenfield and brownfield settings.

According to him, “because government is determined to making mining one of the arrow heads of its diversification drive, we decided to embark on this exploration project to generate the sort of critical information that can spur investment in the sector.

“This project is the first of its kind in the country and is designed along typical exploration phases with time-bound deliverables. This inception meeting is therefore one of a series of meetings we will be having to examine the outcomes of each phase for wider stakeholders participation. Today’s event is therefore meant to present the outputs of the deskwork studies done by the contractors before they resume field work.

The minister however allayed the fears of title holders and other stakeholders whose titles fall within the project area. He assured that their interests will be fully protected as the results of the exploration will further enrich their properties.

“This integrated exploration project embarked upon by the Ministry under the Natural Resource Fund could therefore not have come at a better time than now when the world is becoming interested in our mining endowments once again. We must therefore continue to do all we can to ensure that we make the sector more attractive for investors,” Bwari said.

Source https://www.miningng.com/mining-fg-assures-investors-of-adequate-support/

AKURE – GOVERNOR Rotimi Akeredolu of Ondo State has disclosed that equipment for the exploration of bitumen have arrived the state.

He expressed optimism that the exploration of the huge deposit of bitumen in the state would contribute in no small measure to tackling unemployment and further boost the economy of the Sunshine State.

Ondo State has the largest bitumen deposit in Africa and the second largest in the world.

The Governor particularly commended Engr Akin Odumakinde for championing the exploitation of bitumen in the State.

Akeredolu, who spoke during the combined 29th and 30th convocation of the Federal University of Technology, Akure, congratulated all the graduands, including holders of higher degrees, on the attainment of their various feats.

Governor Akeredolu said Ondo State Government and the university would continue to partner in areas of science and technology, saying that invention must come from University.

The governor also congratulated the university management and honorary awardees on their contribution to the development of humanity.

Those conferred with the award of honorary degree of Doctor of Science are Engr Akin Odumakinde, Mr. Lawrence Olusegun Aina and the Alani of Ido Ani, Oba Olufemi Olutoye. While describing the awardees as great achievers whose contributions have variously impacted the society, Akeredolu said Ondo State owes them a lot of gratitude.

Engr Akin Odumakinde while responding on behalf of the awardees disclosed that arrangements were on top gear to synergize with the Federal University of Technology, Akure to establish bitumen research center.

“Every year, Nigeria import thousands of tonnes of bitumen at $500 per tonne when in actual sense there is bitumen deposit in the Nigeria particularly in Ondo State “, he said.

FUTA Vice Chancellor, Prof. Joseph Fuwape, hailed Akeredolu as a development partner who is committed to the upliftment of education.

According to the VC, Governor Akeredolu has shown abiding interest in the development of FUTA through his regular visits to the school.

https://www.miningng.com/equipment-needed-for-bitumen-exploration-in-ondo-now-in-akure-gov-akeredolu/

The House of Representatives yesterday passed for second reading a bill for an Act to repeal Nigerian Minerals and Mining Act, 2007 and establish the Nigerian Minerals and Mining Commission. Leading debate on the motion, Hon. Femi Gbajabiamila stated the bill aimed at repealing the former Act and establish the Commission.

This he said would aid in the drive for the diversification of the economic base of Nigeria. The proposed Commission, according to him would ensure “competition, discourage diversion and sabotage prevalence in the mining sector, oversee foreign participation and investment and ensure quality regulation of the entire sector to enforce adequate penalties when due.”

Supporting the bill, Hon. Idris Ahmed (APC, Plateau) stated that the effects of the proposed Commission would be more far reaching especially to rural regions, saying that ministries being run by ministers who were politicians were highly liable to compromise along lines of personal gain and favoritism. Also in his contribution, Hon. Mohammed Tahir Monguno (APC, Borno) reminded the House that the potential of the mining sector had been highlighted by the minister at the beginning of the life of the present administration. Another lawmaker, Hon. Edward Pwajok (APC, Plateau) reminded the House that with the dwindling oil as a national resource, the proposed Commission would better regulate activities of the mining sector to ensure the revenue from the sector gets to government. Hon. Kayode Oladele noted that the Bill had been passed by the Senate and only sought concurrence in the House.

He stated that the proposed Commission would ensure continuity and effectiveness in the regulatory and remission function of the mining industry despite any change in government. Hon. Mohammed Sani Abdu (APC, Bauchi) stated that the best time for mining in Nigeria was when the Nigeria Mining Corporation was in effect, when the Ministry of mining took over the functions, the vibrance of the mining sector died. The bill was subsequently passed when Speaker Yakubu Dogara put it to a voice vote.
https://www.miningng.com/reps-pass-bill-to-establish-mining-commission/

The Federal Government has awarded a mining contract to 10 exploration and consulting companies as part of the country’s efforts to develop the sector, the mining and steel development minister, Abubakar Bwari, said on Tuesday.

Bwari did not say how much the contracts were worth, but in July he had said eight firms would be awarded a government contract to the tune of N12.7 billion ($41.5 million).

Nigeria, Africa’s top crude oil producer, is aiming to diversify its economy by developing other industries such as mining through various incentives.

“Recently we gave a contract to four exploration companies, with six consulting firms to explore our mineral resources focusing on gold, zinc, iron ore, rare earth metals,” Bwari told Reuters on the sidelines of the Mines and Money conference in London.

He said Nigeria had offered mining companies three to five years’ tax holiday, duty and tax-free importing of equipment, full ownership of their businesses and the ability to take profits out of the country.

“Apart from the normal budgetary allocation government has given intervention of $100 million and we are focusing on exploration,” he said, adding that the funds would be used to help government to develop the sector.

The World Bank was in Nigeria a few weeks ago to discuss progress on spending the $150 million the bank agreed to lend the country in April to develop the mining industry, Bwari said, adding that he would like things to move more quickly.

Companies such as Toronto-listed gold company Thor Exploration and Australian zinc miner Symbol Mining have operations in Nigeria.

Recently, the minister said his ministry would be awarding N14 billion contract for exploration of strategic mineral from the N30 billion mining intervention fund.

He explained that the ministry was able to access N15 billion from the fund.

The Federal Executive Council (FEC) had in November. 2016 approved N30 billion intervention fund for mining exploration.

The fund was drawn from the Natural Resource Development Fund and given to the ministry as intervention fund to focus on exploration activities which was the heart of mining.

The natural resource fund is meant primarily for the agriculture, mining and water resources sectors. Bwari said that the N30 billion was meant to focus on exploration of minerals and other activities in the sector.

He said with the release of the fund, the ministry would be awarding N14 billion contract for exploration of strategic minerals.

According to Bwari, the ministry will be awarding another contract to cover minerals such as Barites, and Phosphate among others that were not on the list of minerals that are currently being explored.

According to him, the ministry will also look at the possibility of Nigeria using its huge phosphate mineral deposits for fertilizers to boost agricultural products.

The minister of state said that exploration would be conducted on the mineral to ascertain its quantum in the country.

https://www.miningng.com/fg-awards-mining-exploration-contract-to-10-firms/

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https://www.miningng.com/mining-engineer-geologist-at-geocardinal-engineering-services-limited/

Owners of burrow pits, haulage operators, tipper drivers and other stakeholders in the sand mining sector have commended the Edo State Government led by Governor Godwin Obaseki for re-opening certified burrow pits across the state.
The decision to re-open certified burrow pits across the state was announced by the Commissioner for Environment and Sustainability, Dame Omoua Alonge Oni-Okpaku.

Edo State Governor, Mr. Godwin Obaseki cross-section of owners of burrow pits and other stakeholders who spoke to journalists at the weekend, hailed the state’s decision to re-open only certified burrow pits across the state, a step they said, will restore sanity to their business.

Mr. Ernest Omorodion, who owns a burrow pit in Ovia North East Local Government Area, said, “I must commend the decision of the state government to re-open only certified burrow pits. It is a smart initiative which will ensure only designated areas are mined for sand. It will restore sanity in the business and drive out the bad eggs, who have soiled the business.”
Omorodion said, “Before the ban was placed on burrow pits in the state, those of us who are genuinely into the businesshad expressed concerned about the indiscriminate burrowing of pits in the state by illegal operators who are driven by profits without regard for the environment.
“I urge government and the relevant authorities to ensure strict monitoring and compliance.”

Johnson Omeiza, a haulage operator, described the re-opening of certified burrow pits as “a timely intervention.”
He said, “Considering the manner in which mining activity at the pits was carried out before the ban was placed, there was no way the actions of illegal operators would not have led to environmental disaster. Some of these areas are prone to erosion. If the trend had continued, communities would have been wiped off.
“With this step, we are reassured that government’s regulations will control how some operators carry out their activities. We expect them to pay regular visits to the sites to ensure best practice.”
In a statement signed by Oni-Okpaku, the state government said that burrow pits that have been duly evaluated have been reopened and urged operators who are yet to collect their clearance to report to the Ministry of Environment and Sustainability for the document.

https://www.miningng.com/operators-hail-obasekis-sand-mining-reforms/

The Federal Government’s plans to diversify the economy through solid minerals may not be realised if illegal mining across the country is not curbed. It is also disturbing that 80 percent of mining activities in Nigeria are illegal and have caused the country to lose billions of naira annually. The ugly development has equally constrained the contribution of the mining sector to the Gross Domestic Product (GDP).

The Permanent Secretary, Ministry of Mines and Steel Development, Georgina Ekeoma, made the revelation in Jos at the opening ceremony of a “Capacity Building for Special Mines Surveillance Task Force on Illegal Mining” workshop. Participants at the event were drawn from various security agencies including the Nigeria Customs Service (NCS) and the Nigeria Security and Civil Defence Corps (NSCDC).

We decry the activities of illegal miners across the federation particularly in Ebonyi, Niger, Plateau, Oyo, Taraba and Zamfara states. There is no doubt that illegal mining poses serious threat to the economy. Also, illegal mining activities can cause earth tremors.

For instance, between 2014 and 2015, the nation was reported to have lost an estimated $9bn to illegal mining across the country.

The menace thrives because of the seeming neglect of the solid mineral sector in favour of crude oil by successive administrations. It is good that the Federal Government has expressed concern over the activities of illegal miners in the country. Unfortunately, the development has also made the sector unattractive for investors.

Beyond the lamentation over illegal mining, the government should urgently stop the menace. There is no better time than now to pay priority attention to the exploitation of solid minerals and checking the activities of illegal miners. With uncertainties in the oil sector, government should shift attention to solid minerals. It has, therefore, become imperative for the government to stop illegal mining activities.

Two years ago, the Federal Government declared that state governments could explore and exploit mineral resources in their domains. Hitherto, that right was the exclusive preserve of the Federal Government as enshrined in item 39 of the Second Schedule where it stated that “all mines and minerals, including oil and gas fields, belong to the Federal Government.” The Petroleum Act 1969 says almost the same thing. But, there are legal bottlenecks that have to be removed before this can become a reality. That section of the Constitution needs to be amended and ratified by at least 24 States of the federation.

With over 44 confirmed mineral resources across the country, the government should not delay any longer to develop them. The solid mineral sector can contribute between $4bn and $6bn to the economy annually. For this to be realised, illegal mining must be curbed across the country.

Let government deploy technology to monitor illegal mining. It will be recalled that two years ago, the Federal Government approved the sum of N987 million for the purchase of 50 Toyota Hilux vehicles for monitoring and curbing illegal mining activities across the 36 states and the Federal Capital Territory (FCT).

We hope that the project was executed. All the same, we believe that curbing the activities of illegal miners will require collaborative efforts of the federal and state governments. This is the time to set up the Mineral Resources and Environmental Committee as provided for, in the Mining Act.

Last week, the Ministry of Mines and Steel Development urged members of the Presidential Special Mines Surveillance Task Force drawn from relevant ministries and security organisations to be alive to their duties. No doubt, their assignment is critical to the realisation of government’s objective of using the sector to generate revenue and create jobs.

Therefore, to move the sector forward, it must be properly regulated. While the Federal Government should set the rules for the exploitation of solid minerals, states and local governments must be carried along in the regulation of the sector.

Therefore, the Task Force mandated to check illegal mining should diligently carry out the assignment. Anyone caught aiding or abetting illegal mining should be arrested and prosecuted. For government’s diversification efforts to succeed, illegal mining must be discouraged.
https://www.miningng.com/curbing-illegal-mining-activities-in-nigeria/

ABUJA – Abubakar Bawa Bwari, Minister of State for Mines and Steel Development (MMSD), has expressed willingness to partner the Czech Republic in the growth of the mining sector in line with the economic diversification and job creation agenda of the President Muhammadu Buhari’s administration.

Bwari spoke when Mare Skoll, the Ambassador of Czech Republic, and his team paid him a courtesy visit in Abuja.

He assured the guests that Nigeria would collaborate with friendly countries to engage in mining related activities to fully explore and tap the potentials and opportunities that exist in the sector.

He expressed delight at their visit, noting that Nigeria has the potentials and the wherewithal to develop the country to the class of other mineral destinations like South Africa, Canada, Australia, China and some European countries that have excelled in the sector.

To realise this, the minister said the ministry developed a roadmap with the aim to attract and enlighten investors that would in turn assist in maximising the opportunities available within the sector to enable the country attain its rightful position in the sector.

Bwari explained that interested investors could key into the various value chains such as exploration, exploitation, processing, and trading of minerals that are available in the country.

He said investors also have the option of importing mining equipment either to lease or sell to Nigerians for exploration, exploitation, refining, and processing of minerals.

Source: https://www.miningng.com/fg-to-partner-czech-republic-on-mining-development/

The House of Representatives ad hoc Committee on Ajaokuta Steel Company Limited has submitted its report to the House recommending that the loot recovered from the late Head of State, Gen. Sani Abacha, be channelled towards reviving Ajaokuta Integrated Steel Plant.

The committee in the report, which was obtained by SUNDAY PUNCH, claimed that most of the money allegedly looted by Abacha was meant for the completion of Ajaokuta.

A large chunk of the money has, however, been put into the Social Investment Programme of the Muhammadu Buhari government, includes school feeding programme and skill acquisition initiative.

But the committee in the report signed by its Chairman, Mr Femi Gbajabiamila, and the Secretary, Ifeanyichukwu Abraham, said the Abacha loot could be put to better use.

The report stated, “That since it is known that most of the Abacha loot was got from the debt buy back deal involving Ajaokuta, then the recovered loot still flowing into Nigeria should be used to supplement the funding of the completion of Ajaokuta integrated steel plant.”

The 18-member committee, which visited several stakeholders including monarchs and members of the community where the company is domiciled, reported that the project was started by President Shehu Shagari in 1983 but subsequent governments failed to take necessary steps to complete it.

It added that when the Russian company that built the Ajaokuta firm (‘Tyazh Prom Export’TPE) left the site and Nigeria in 1994, the Ajaokuta Steel Complex was 98 per cent completed and that what was left as two per cent was due to failure of subsequent Nigerian governments to meet up with financial commitments and political will to complete the enabling external infrastructure to guarantee an uninterrupted functional steel company.

The committee added, “Harmful vested interests have predominantly played out in the last 15 years. For instance, in 2001, President Obasanjo travelled to Russia and signed a bi-lateral agreement that included the completion of Ajaokuta Steel plant.

“President Putin of Russia sent 40 experts to conduct a technical audit and secured funding for the project. Surprisingly, President Obasanjo reneged on the agreement and gave Ajaokuta and National Iron Ore Mining Company to SOLGAS Energy which lacked both the technical expertise and funds to manage the two companies.”

The committee said this was detrimental to the interest of Nigeria as SOLGAS entered into another agreement with Global Infrastructures Nigeria Ltd.

It said the Federal Government under the late President Umaru Yar’Adua, upon consideration of the ‘Report of the Administrative Panel of Inquiry into the operations of ASCL,NIOMCO and DELTA STEEL at the Federal Executive Council meeting of April 2, 2008 nullified and terminated all the concessions entered into by the previous government of Obasanjo for breach of agreement and unwholesome practices and that ‘the agreements (concessions) were largely skewed in favour of SOLGAS.

The report added, “That the company, Global Infrastructure Nigeria Limited is a dubious company with no good track record of any success story on ‘steel skill production and manufacturing’ and has been earlier indicted in Bulgaria for asset stripping and breach of contract and indicted by the Federal Government of Nigeria by late President Yar’Adua in 2008 for obvious criminal and unwholesome practices.

https://www.miningng.com/ajaokuta-reps-panel-recommends-use-of-abacha-loot/

As Nigeria continues its struggle to acquire alternative energy source through 30 per cent coal power generation, communities have lamented the increasing impact, coal mining has on their water sources, RUTH TENE NATSA writes

Executive Director, Global Rights and host community activist, Ms Abiodun Baiyewu, said mining is a water intensive activity that requires access to a lot of water, noting that the water needs of mining companies and artisanal miners will always challenge the conflicting needs for potable water of their host communities.

She said coal adds an added dimension to the mining, agriculture and energy dynamics, noting that while the rest of the world is divesting from coal, Nigeria has decided that it would generate 30 per cent of its energy need from coal.

Speaking at the stakeholder’s engagement on contextualising Nigeria’s water resource management in mining and energy policies in Abuja, yesterday, she said the dramatic shrinking of lake chad in less than 40 years to 1/10th its size as well as, the rapidly shrinking Kaduna river, river Niger and even River Benue are all ominous signs of the fate of these natural resources in Nigeria and it is true that it is largely due to climate change.

Ms Abiodun said the essence of the programme was to bring together core stakeholders on our natural resources in Nigeria, with particularly water and other ministries that somehow impact our water resources in Nigeria. Water is the greatest security threat that we have in Nigeria right now and is at the base of every ongoing conflict across the country.

“The core challenge with water presently is climate change but then there are other man-made causes such as mining and Nigeria’s decision to generate 30 per cent of its energy source from coal and that Nigeria is not thinking very deeply on its energy future even in the face of climate change”

She maintained, “Coal is very water intensive, whether from mining or coal power generation itself. Nigeria has not even started coal power generation, yet communities in which they have started to mine have started losing their water and their waters are polluted as well”.

“Communities such as Awo community in Kogi State, Maiganga/Komta communities in Gombe, they have all lost their waters to just a few years of coal mining.”

The Activist revealed that after speaking with some of these communities and scientifically testing some of the water, the level of pollution in less than a decade of coal mining in those communities is simply devastating.”

She stressed the need for coherent policies that would be holistic and be in sync and the sequence must be forward thinking so that if we must think of our energy future, we must think in terms of the next 40-50 years in which coal will no longer be relevant, so we must invest in renewable sources which will then be a smarter way of investing and guaranteeing the development future of our country and also its financial future.

Also speaking, a representative of Awo Akpali community, Ankpa Local Government of Kogi State and chairman of the Community Development Association, Adejoh Ibrahim Samuel, lamented the loss of water in their communities to Dangote coal mines.

In his words, “Dangote Coal Mines came to our community in, 2016, they cleared the bush after paying grossly inadequate compensation to us and then mining started February 2017. Immediately mining commenced, our community began to run out of water for the first time in the history of the community, we experienced dryness in our stream”

“There was no water for such a long time, when it began raining, the water was so bad, that we could not even use it for our baths, talk more of cooking. At this point, the community began to face lots of water challenges and were only able to survive as a result of the only borehole provided by the missionaries in 1992.”

He added, “it got to a point when they also began experiencing smells from the borehole water and had to cry to the company because in the Community Development Agreement signed with the company, there was provision for the company to provide a borehole for the host community and we cried to them. They began the project and till now it is still ongoing.

“They claimed two weeks ago that they had completed the project, but sadly the water is salty as he noted that the location of the company is on the hill top of the community which is in the valley and the mining pits are directly on the source of our water.”

“We have three sources of water in the community, these are Enedue, Enejane and these two sources connect about 18 communities, which they use for their domestic activities. At the same site we also had a spring source, but right now the dumpsite of the company has collapsed and covered the spring water.

He said they had made several reports and the Mineral Resources and Environmental Management Committee (MIREMCO) had called the company and community to a dialogue, however, the company failed to honor the last two meetings

The chairman called on the federal government to help the community remedy the water situation as communities had been disconnected from their stream as a result of pollution.

Recall that prior to the water challenge, the company provided tanker water to one of the communities, even though, they could not ascertain the source of the water and now that supply had been stopped.

On the community’s water source currently, he said, “community members have to travel some distance to fetch/buy water from private boreholes, adding that even some of the water sources are salty and not drinkable, even as he lamented that erosion has washed away the farmlands and they have no roads again, the road has been disconnected.

In his keynote address, the permanent secretary to the Ministry of Water Resources, Musa Ibrahim, said Nigeria prior to the assumption of office of the current administration varied from inadequate policy issues, poor funding, low budgetary allocation, lack of political will and inadequate power supply among several others.

He said the federal government through the Partnership for Expanded Water supply, Sanitation and Hygiene (PEWASH) had initiated projects to rehabilitate 77,693 facilities and provide 17, 264 facilities to increase access to rural water supply from 57 per cent to 62 per cent, provision of 42, 201 new facilities to increase access to rural water supply from 62 per cent to 80 per cent

The permanent secretary maintained that Nigeria is blessed with abundant water resources; however, the sustainability is threatened by land degradation, deforestation, rapid population growth, poor sectorial investment as well as climate change. All of these have placed pressure on water resources systems of our country, he said.

“Community members have to travel some distance to fetch/buy water from private boreholes, adding that even some of the water sources are salty and not drinkable, even as he lamented that erosion has washed away the farmlands and they have no roads again, the road has been disconnected”

Source https://www.miningng.com/stakeholders-blame-nigerias-receding-waters-on-coal-mining/

President Muhammadu Buhari has confirmed the appointments of over a dozen new chief executive officers of federal ministries, departments and agencies.

This is contained in a circular from the Secretary to the Government of the Federation (SGF), Mr. Boss Gida Mustapha, signed on his behalf by the Permanent Secretary, General Services Office (GSO), Office of the Secretary to the Government of the Federation (OSGF), Mr. Olusegun Adekunle yesterday.

The appointees include; Prof. Okechukwu Ukwuoma as Director-General, National Centre for Technology Management (NACETEM), for a second and final term of four years, Prof. Victor Adebayo Adetiloye as Chief Medical Director (CMD) Obafemi Awolowo, University Teaching Hospital, Ile-Ife, for second and final term of four years.

The new appointees for an initial term of four years are: Abdul-Jalil Suleiman, DG, Directorate of Technical Cooperation in Africa (DTCA), Chief Medical Director (CMD), University of Uyo Teaching Hospital, Dr. Bassey Emem Abasi.

Appointed for the Electricity Liability Management Company (NELMCO) are Mrs. Mojoyi Oluwa Dekalu-Thomas, Executive Director (Liability Management) and Mrs. Chinedum Olisakwe-Lawrence as Executive Director (Corporate Services) for an initial term of four years. For Border Communities Development Agency (BDCA), Capt. Junaid Abdullahi was appointed the Executive Secretary for an initial term of four years.

President Buhari also confirmed the appointments of Folashodun Adebisi Shonubi as Deputy Governor, Central Bank of Nigeria (CBN) for a period of five years in the first instance.

Mr. Banire Muiz Adeyemi was appointed part-time chairman, Assets Management Corporation of Nigeria (AMCON) for a period of five years.

Sule Yakubu Bassi was appointed Secretary, Nigerian Diaspora Commission for an initial period of four years.

For the Federal Judiciary Service Commission (FJSC), Senator Abba Ali and Mr. Mohammed Sagir were appointed members (non-legal practitioners), for an initial period of five years.

For the National Centre for Agricultural Mechanization (NCAM), Ilorin, Kasali Muideen Yomi, was appointed Director/CEO, for initial term of four years.

For the Agricultural, Rural Management Training Institute (ARMTI), Ilorin, Dr. Olufemi Ajayi Oladunni, was appointed Director/CEO for an initial term of four years and at the Nigeria Hydrological Services Agency (NHSA), Clement Onyeabo Nze is the Director- General for an initial term of four years.

For the Board of the Petroleum Product Pricing Regulatory Agency (PPPRA), Clement Isong is to replace Mr. Thomas Obafemi Olawore as member while for National Salaries, Income, Wages, Commission (NSIWC), David Isho Nyikyaa, was appointed Secretary.

The Special Investigation Panel for Recovery of Public Property, Obinna Francis Ogwuegbu, was appointed Secretary with effect and Adeyemi College of Education, Ondo, has Dr. Akinrinola Samuel Akintunde as Provost for an initial term of four years.

For the Federal Polytechnic, Ile-Oluji, Ondo State, Prof. Emmanuel Adebayo Fasakin is Rector for a second and final term of four years and for Nigeria Mining Cadastre Office, Obadiah Simon Nkom, is the Director-General/CEO for an initial term of four years.

The president enjoined the new appointees to regard their appointments as a call to national service and to carry out their responsibilities with uprightness, diligence and prompt response to the yearnings of the public.

Source: https://www.miningng.com/mining-cadastre-office-gets-new-dg/

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The Minister of Mines and Steel Development has said, lack of verifiable bussines plans, necessary collateral and some technical issues are responsible for artisinal miners inability to access the federal government’s N5 billion loan.

The Minister of Mines and Steel Development, Hon. Abubakar Bawa Bwari, said this while speaking recently at a dialogue meeting with chief executives of Nigerian banks and UNDP Country Director in Lagos.

He decry that the inaccessible to the loan and other form of financing through the capital markets and financial institutions is grossly affecting the financial turnaround of the sector.

He however said the sector growth and contributions to the nation’s Gross Domestic Products (GDP) would have increased if financial institutions do not look the other way.

He stressed that access to credit either from banks or capital markets had been low to meet the sector’s financing needs, adding that, institutional investors were also wary of investing in projects along the life cycle

He said: “We are prepared to build on the ACP-EU/UNDP/African Guarantee Fund program to operationalize the N5 billion fund that the Ministry established in collaboration with the Bank of Industry to support small and medium scale miners.

“Unfortunately, this scheme is not performing as expected due to the miners’ inability to provide the necessary collateral and inadequate business plans to support their applications and other technical reasons. We must find a middle way to solve this problem.

He noted that: “Without the financial sector, we simply cannot develop the sector to meet its true potential as the small and artisanal miners of development minerals who are looking to expand their operations do not have access to financing for capital equipment and operations.

“We need a shift in mind set among the financial institutions about the mining sector in general. Since we are here to unlock opportunities in the development minerals sub-sector, the first challenge we must tackle is for the financial institutions to recognise the value chain potentials of the development minerals sub-sector.

According to him, a major constraint identified in the roadmap was the underdeveloped financing and business environment for mining.

“Financing for other stages of the life cycle particularly exploration and production are limited. This is due to lack of bankable data for exploration and the lack of systematic understanding of mining’s potential. As a result, few banks have dedicated minerals and mining desks and teams.

He added: “Against this background, my ministry is keen to see the financing environment transformed to support the growth and development of the mining sector.

“This is in line with the ministry’s objective for mining to have a multiplier effect on the economy beyond direct royalty and tax receipts.

“This will be through the facilitation of mineral economic linkages, investment, and diversification. Promotion of side stream linkages such as the stock market and financial services to finance business development is central to this objective.

He stressed that the challenges required creativity and innovation to encourage participation along the value chain, starting with the upstream, which provides the anchor investment for the emergence of the value chain.

“Collectively we must address access to finance constraints faced by miners of development minerals and other minerals in general. We are extremely pleased with the ACP-EU development minerals intervention,” he said.
https://www.miningng.com/n5bn-loan-miners-lack-of-business-proposals-responsible-for-inaccessibility-minister/

In a move to end the incessant earth tremor panic experienced among the residents of the Federal Capital Territory, Abuja and its environs, the federal government yesterday inaugurated an earth tremor detecting machine.

Government noted that the decision to acquire the Seismometer detecting equipment represent the implementation of some aspects of the earth tremor committee’s recommendations.

The Minister of Mines and Steel Development, Alhaji Abubakar Bawa Bwari, while launching the equipment in Abuja, stated that the incidents of earth shaking experienced by residents evoked a lot of anxiety, especially among those living around Mpape and Maitama, but it also accelerated the robust plan by government to establish the necessary geo-scientific infrastructure to monitor and mitigate all aspects of both natural and anthropogenic hazards.

According to him, “Indeed, the federal government has since set up an inter-ministerial committee to fashion out a common front in tackling the challenge of earth tremors in Nigeria, which has become uncomfortably more frequent than expected.

“Therefore it is my pleasure to inaugurate the NGSA earthquake monitoring command and control centre at the Agency’s HQ, Abuja while expecting the completion of the other three stations within a very short time.”

The minister, during the launch of the equipment, said: “It is now very clear that the government of President Buhari has great interest in the safety of the citizens of this great country considering the immediate steps taken, following the recent earth tremors around Abuja which occurred in September and November, 2018.

“The various stakeholders here present; the Ministry of Science and Technology, NEMA, the FCT and Obafemi Awolowo University, Ile-Ife Seismic team and the Nigerian Geological Survey Agency among others have all had meaningful contributions towards understanding the mechanism of what we are faced with in recent times.”

Originally, NGSA designed a six station seismic monitors to be deployed across the country.

“However, following repeated tremors around Abuja, the initial programme of national deployment was adjusted to accommodate seismographic densification of Abuja. A 4-station Abuja network has therefore been put in place to have a closer and more effective oversight of the FCT.

“The 4-station triangulation network located at the Nasarawa State University, Keffi, University of Abuja, Gwagwalada and Veritas University, Bwari and the NGSA command and control centre at the NGSA HQ, Abuja are being installed.

“Moreover, the ministry will be conducting an airborne magnetic survey over Abuja to ascertain in greater detail the fracture systems that predisposes FCT to tremors.”

Speaking further, he revealed that the result of the high density seismic configuration cover of Abuja will not only enable NGSA quantify the magnitude of the tremors but will also more accurately locate the epicentre of tremors/earthquakes as well as improve the predictive capacity of our network.

He however, commend Nigerians for being more vigilant about their environment and assure them that government will continue to respond swiftly to assuage their fears.
https://www.miningng.com/mining-fg-inaugurates-earthquake-seismometer-detecting-equipment/

Nigeria’s Dangote Cement is among bidders for Kenya’s ARM , the troubled cement maker that is currently under the administration of accounting firm PricewaterhouseCoopers (PwC).

Africa’s richest man Aliko Dangote revealed the Nigerian conglomerate’s interest in ARM on Tuesday in an interview with Bloomberg News.

“There is a company which … has operations in Tanzania, Kenya and Rwanda and we are talking to that company to see if we can take it over,” Mr Dangote said without naming the acquisition target.

His description, however, fits ARM, which is the only cement manufacturer with operations in the three markets he named.

ARM portfolio in Kenya includes a clinker and cement grinding plant in Kaloleni and a cement grinding plant at Athi River.

The company also manufactures, imports and sells cement in Rwanda through its wholly owned subsidiary, Kigali Cement Company.

In Tanzania, ARM runs limestone, clinker and cement plants through its subsidiaries, Maweni Limestone Limited and ARM Tanzania.

Dangote Cement had not responded to our queries by the time of going to press.

The latest attempt to sell the Nairobi Securities Exchange-listed ARM comes after several bidders, including French multinational Vicat Group, walked away earlier this year.

PwC said the process of selling ARM or part of its assets was being handled by South African banking giant Absa, which was appointed as the transaction adviser.

“Various parties have been in contact with the administrators expressing interest in the company’s businesses and assets in both Kenya and Tanzania,” the administrators said in a report to ARM’s creditors.

“The transaction roadmap that has been agreed with Absa envisages receipt of binding offers by the end of January 2019.”

PwC will be able to receive more bids until December 3, after which shortlisted firms will be allowed to start their due diligence, including interviewing management. The interest in ARM comes after the administrators established that the company has a negative equity of Sh2.4 billion, meaning that current shareholders will suffer a major dilution if a takeover deal is concluded.

The plans of the bidders and the price they are willing to pay for the company or part of its assets remain unclear.

PwC, however, says the top priority is to keep ARM operational for the benefit of various stakeholders, including employees and lenders which it owes some Sh14 billion.

For Dangote, a buyout of a distressed ARM offers a bargain and a smooth entry into the Kenyan market where it had planned to venture into by 2021.

The premium investors are willing to pay to acquire the company has dropped drastically from the lofty stock market valuation it enjoyed in 2014.

ARM reached a market capitalisation of Sh44.5 billion or nearly 30 times its net earnings of Sh1.5 billion in that year as investors extrapolated its historical profit growth.

If Dangote’s bid is successful, the Nigerian multinational will inherit an ongoing business complete with plants, distribution networks and mining licences.

Dangote will then integrate ARM into its Pan-African operations which ride on economies of scale to set lower prices that in turn grows its market share at the expense of rivals.

The Nigerian firm, for instance, has cement plants in Ethiopia and Tanzania, each with an annual production capacity of three million tonnes.

Prior to its interest in ARM, Dangote had planned to build two cement plants with an annual output of three million tonnes in Kenya by 2021.

The multinational already has a licence to prospect for limestone in Kitui.

It has incorporated two majority-owned subsidiaries to house its local limestone mining and cement production operations.

It has a 90 per cent stake in Dangote Cement Kenya Limited and a similar stake in Dangote Quarries Kenya Limited.

Ahead of the proposed entry of a strategic investor, ARM’s administrators are planning to raise up to Sh1.9 billion in new debt to maintain the company’s production.

Such debt will rank higher than the existing loans. PwC says an operating ARM will fetch a higher price compared to selling dormant assets.

Source: https://www.miningng.com/dangote-in-race-to-buy-troubled-arm-cement/

The House of Representatives on Wednesday mandated its Committee on Environment to interface with relevant MDAs to ascertain the level of monitoring and compliance with world global standards in blasting, mining and borehole drilling.

This was sequel to a motion under matters of urgent national importance by Rep. Johnson Oghuma (APC-Edo), at plenary on the “urgent need to forestall impending earthquakes in Nigeria.”

Moving the motion, Oghuma expressed concern over the recent cases of earth tremor experienced in September and October in the Federal Capital Territory (FCT) around Mpape and Maitama areas, raising fears of imminent earthquake.

According to him, earth tremor is a form of seismic movement within the earth which occurs at a small scale but can lead to earthquakes if preventive measures are not taken to reduce the stress.

“The reports by Federal Capital Territory Emergency Management Agency (FEMA) indicates that the incidence was likely caused by stress in underground rocks resulting from human activities which include blasting and mining of rocks.

“The National Space Research and Development Agency had reported that communities in four states and Abuja might witness earthquakes if necessary preventive and monitoring devises are not employed immediately,” he said.

The lawmaker emphasised that it was necessary that preventive measures were taken to stop the catastrophe from happening.

Contributing to the motion, Rep. Johnson Agbonayinma (APC-Edo), said the issue of the tremor was important and should be taken seriously.

“What is happening these days is worrisome. Nobody knows which neighborhood will be next. Presently, we have nothing on ground on how to prevent, monitor or manage such occurrence.

“In developed countries like America, they plan for the future, they plan ahead for such occurrences but in Nigeria, we don’t plan. Once we fail to plan, we automatically plan to fail.

“The issue of boreholes is taking center stage in this matter. The drilling of boreholes must be regulated.

“I am appealing to government to rise up to the occasion and begin to do the needful,” he said.

Also in his contribution, Rep. Abiante Awaji-Inombek (PDP-Rivers), said that for tremor to happen in Abuja, it showed that something was happening to the management of our environment.

“The suspicion that the tremors might be as a result of mining activities should not be over looked. There must be an holistic approach to this issue.

“We simply have to rise to the challenge before us. We should not restrict our attention to Abuja only, we should look at potential hotspots,” he said.

The motion was unanimously adopted by members when it was put to a voice vote by the Speaker, Mr Yakubu Dogara.

The House further mandated the Committee on Environment to report its findings within six weeks for further legislative action.

Source: https://www.miningng.com/abuja-tremor-house-of-reps-seeks-compliance-with-global-standard-on-mining-drilling/

The Federal Government on Tuesday withdrew a suit against a miner and former Bauchi State governorship aspirant on the platform of the defunct Congress for Progressive Change (CPC), Alhaji Abdullahi Usman (Dan China), 16 Chinese nationals and nine Nigerians who were charged with illegal mining of lead and zinc.

The defendants were accused of engaging in illegal mining at Kampani Zurak in Wase Local Government area of Plateau state between 2015 and 2017.

It recalled that on 20th, February, 2018 the defendants were arraigned before Federal High Court sitting in Jos after the office of the Attorney-General of the Federation filed 4-count charge against them.

The case with suit number FHC/J/6/2018 was signed by Aminu Alilu, an Assistant Chief State Counsel of the Department of Prosecutions of the Federation under Federal Ministry of Justice.

The four charges against the defendants were said to be contrary to and punishable under the various provisions of Miscellaneous Offences Act, CAP M17, Laws of the Federation of Nigeria 2004 and the Nigerian Minerals and Mining Act, 2007.

During the sitting, the prosecuting counsel, Victor Joshua told the court that he was directed by the office of the Attorney-General of the federation to withdraw the case against the defendants.

The defendants’ counsel, Joseph Danboyi didn’t raise any objection, but requested for the court to release international passports and other documents of the defendants that were in the custody of the court.

The presiding judge, Justice Musa Kurya after listening to the both prosecuting and defendants’ counsels, he then frees the accused, before ordering the registrar of the court to release the documents of the defendants to them.
Source: https://www.miningng.com/illegal-mining-fg-withdraws-suit-against-dan-china-16-chinese-nationals/

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The Minister of State for Mines and Steel Development, Abubakar Bawa Bwari, yesterday in Abuja assured investors from Canada who have indicated investment interest in the Nigerian mining sector of a business friendly atmosphere.

Bwari gave the assurance at the Nigeria – Canada Investment Summit held in Abuja yesterday.

“Permit me to use this forum to assure our Canadian partners that it is now so much easier to do mining business in Nigeria, and we are more than prepared to welcome them with open arms,” he said.

He noted that this partnership between both countries was a renewed one as Canada provided training and critical expertise to the sector during the reform era which, according to him, began around 2013.

“We have noticed a gradual return of Canadian mining companies to our mining jurisdiction. One of the more famous ones is Thor Explorations Limited, which is registered in Canada and listed on the Toronto Stock Exchange, and which is continuing with its mines development and exploration works over Segilola Gold Project in Ilesha, Osun State.

“There is also James Bay Resources Ltd whose interest is Bitumen but which has also indicated interest in Lead Zinc.

“During the last PDAC conference in Toronto, the Nigerian delegation had a fruitful meeting with Canadian officials, and we promised to work together to settle some outstanding issues, including the signing of the Foreign Investment Promotion and Protection Agreement, FIPA. I am informed that the ministry of trade is working assiduously to get the document ready for signing soon,” he said.

Highlighting the attractions in the reformed mining sector, the minister said, “We have high grade deposits of many mineral types; we have a conducive investment climate comprising 100 per cent ownership of your mining project as guaranteed by the Nigerian Minerals and Mining Act, 2007; we have waivers for customs and import duties for plant, machinery and equipment imported for mining operations; we have tax holidays of three to five years; we have free transfer ability of funds and permission to retain and use earned foreign exchange; we have capital allowances of up to 95 per cent of qualifying capital expenditure.”

He said the present administration has managed to de risk the mining sector through better funding, better management of artisanal miners, better policing of the mining environment to ensure safety and environmental compliance, better explorations for quality data collection and better collaboration with stakeholders in the mining sector.
Source:https://www.miningng.com/fg-assures-canadian-mining-investors-of-business-friendly-environment/

Alhaji Sani Shehu, the President, Miners Association of Nigeria (MAN), has appealed to the Federal Government to install sensors that can detect earth tremor at various mining sites.

Shehu made the appeal in an interview with the newsmen on Sunday in Abuja.

He said that the appeal was because installation of detectors at the sites was beyond miners capacity.

The Federal Government set up a high level committee comprising the Minister of Mines and Steel Development, Federal Capital Territory, among others, to look into the recent earth tremor that occured at Mpape in Abuja .

The committee came up with some recommendations wherein one of them indicated that miners should install sensors at their mining operation sites.

The president said the suggestion was a good one and timely; however, he said that no indigenous mining operators would be able to afford and install such device at the mining sites.

“There is money in mining but not the type of mining that we are conducting in Nigeria; almost 99 per cent miners operating in Nigeria are small scale miners struggling to make ends meet,” he said.

Mr Dele Ayanleke, the National Secretary of the association, said that earth tremor was a public concern that should be given maximum attention.

Ayanleke said that it would be impossible for local miners to install sensors worth millions of naira at their mining sites.

“It is the responsibility of the Federal Government to provide such device because even the so called big mining nations do not task their operators to install such gadget.

“We are appealing to the government to look into the recommendation.

“In as much as tremor is a natural disaster that can not be stopped, government must provide necessary mechanism and expertise to proffer solution on how tremor can be curbed.
Source https://www.miningng.com/federal-government-urged-to-install-tremor-detective-in-mining-sites/

The Ministry of Mines and Steel Development says it has commenced Nationwide environmental monitoring to ensure mining title holders comply with mining laws and regulations.

Mr Sallim Salaam, the Director, Mines Environmental Compliance Department of the ministry told the News Agency of Nigeria (NAN) on Sunday in Abuja.

Salaam said that the programme would be conducted in the six geo political zones of the nation.

He said that the states selected from the six political zones included Edo, Cross River, Oyo, Ebonyi, Nasarawa, Benue, kogi, Kaduna, Zamfara and the Federal Capital Territory (FCT).

The director said that some teams from the department had visited six sites in Ogun and six others in Edo, adding that samples were taken from all the sites for analysis.

“We also visited lead and zinc mining sites in Ebonyi and a granite mining site in Calabar.”

He added that the programme, which started in October, would be completed by middle of December.

Salaam said the essence of the programme was to monitor mining title holders in those states to ensure that their mining activities did not pose environmental, social and health hazard to their host communities and workers.

” We want to ensure that they comply with all environmental requirements with regard to fulfilment of “Environmental Protection Rehabilitation Programme.

“The idea of this programme is to also ensure that all title holders reclaim all sites mined and to revert to the status-quo as required by the law,” he said.
Source: https://www.miningng.com/fg-begins-probe-of-mining-activities-in-nigeria/

Miners in Zambia, Africa’s second-biggest copper producer, said on Friday power supply cut had crippled operations in the country’s mines.

A spokesman for Luanshya Copper Mine owned by China Nonferrous Metals Mining Corporation (CNMC) said in Lusaka that the company expected to lose about four hours of production.

“Even though the power restoration has started, we have to launch the equipment gradually to avoid damage,” Luanshya Copper Mine spokesman Sydney Chileya said.

Industry sources said Konkola Copper Mines (KCM) owned by Vedanta Resources shut down all its operations except its smelter and the Konkola Deep Mine during the blackout.

KCM could not immediately be reached for comment.

But Zambian state power firm Zesco said the outage was due to a technical fault.

“We had a system disturbance which led to the loss of power on the Copperbelt, including the mines.

“We are investigating the cause of the disturbance. Power restoration has started but it will be gradual,” the utility’s spokesman Henry Kapata said.
Source: https://www.miningng.com/power-cut-cripples-mining-operations-in-zambia/

The continental multilateral financial institution, Africa Finance Corporation (AFC), is on the verge of finalising a $100 million (N36.5 billion) investment deal in Nigeria’s mining sector.

About half of the planned investment into the mining sector is coming by way of debt, equity, and off-take instruments.

The AFC Senior Vice President, Investments, Begna Gebreyes, told newsmen in an interview recently on the sidelines of the Nigerian Mining Week that the institution is a very big supporter of the Nigerian mining sector from inception.

According to Gebreyes, AFC has started investing throughout the continent, adding that the multilateral finance institution was actively desirous of investing in Nigeria.

He said: “AFC is a very big supporter of the Nigerian mining sector from inception. We want to support the Nigerian mining sector from inception. In the last four and a half years, we have started making investments throughout the continent, and we’re actively seeking to make investments in Nigeria.

“We’re very excited that before the end of the year, we will be successful in that endeavour. In this conference, we are spreading our message of interest and openness in the Nigerian mining sector.”

The AFC chief noted that the finance institution was wrapping up an investment deal in Nigeria, adding: “We’re very close. We are in a transaction which will be concluded before the end of the year.”

On the volume of investment the AFC is considering making in the Nigeria mining sector for a start, he said: “We’re looking at an investment size of a $100 million and we will be looking at half of the investment coming by way of debt, equity and offtake instruments.”
Source: https://www.miningng.com/afc-to-finalise-n36bn-investment-in-nigerias-mining-sector/

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The death toll from a mining accident in east China rose to 21 on Monday after rescuers pulled two more bodies from the mine following a nine-day search, state media said.

The tunnel where 22 miners were working was blocked at both ends by coal after pressure caused rocks to fracture and break on October 20, the official Xinhua news agency said.

Only one miner was rescued alive. The cause of the accident is still under investigation.

Rescuers working to clear the tunnel recovered six bodies Sunday, and another two on Monday.

The accident took place at a mine owned by Longyun Coal Mining Co. Ltd. in Yuncheng County in Shandong province.

Deadly mining accidents are common in China, where the industry has a poor safety record, despite efforts to improve coal production conditions and crack down on illegal mines.

In December 2016, explosions in two separate coal mines in the Inner Mongolia region and in northeastern Heilongjiang province killed at least 59 people.

Earlier that year, 33 miners were killed in a colliery explosion in October in the southwestern municipality of Chongqing, and in September, at least 18 were killed in a mine blast in the northwestern Ningxia region.

According to China’s National Coal Mine Safety Administration, the country saw 375 coal mining related deaths in 2017, down 28.7 percent year-on-year.

However, despite improvements, “the situation of coal mine safety production is still grim,” said the bureau in a statement following a coal mine safety conference in January.
Source: https://www.miningng.com/21-dead-in-east-china-mining-accident/

THE recent seizure of about N1.12 billion worth of gold about to be smuggled abroad grabbed media headlines. The Economic and Financial Crimes Commission, in intercepting the illegal gold shipment that was being smuggled through the Abuja airport to Dubai, United Arab Emirates, uncovered a syndicate of smugglers and refocused attention on the dominance of artisans and unlicensed operators in Nigeria’s puny mining industry. This exposes once more, the tragedy of a country that refuses to exploit its natural endowment in minerals to diversify revenue sources, create jobs and restructure the economy.

Despite a sharp drop in oil and gas revenues since mid-2014, near-empty public treasury, recession and frenetic borrowing, the federal and state governments have not seen the wisdom in urgently radically diversifying the economy, content only to mouth empty statements of intent. With 44 identified mineral types of varying quantities and all 36 states and the Federal Capital Territory hosting a combination of some of these, mining is another low hanging fruit that offers ample job creating, export and industrial potential. The Ministry of Mines and Steel Development said the sector contributed only 0.33 per cent to Gross Domestic Product in 2015, down from 4.5 per cent in the 1960s and 1970s when it was a major export revenue earner.

According to the EFCC, the attempted smuggling was orchestrated by a syndicate of illegal miners operating in Zamfara, one of the country’s poorest states that is however rich in gold. The then Minister of Mines and Steel Development, Kayode Fayemi, lamented in 2017 that the country lost about $9 billion in two years due to illegal mining. His deputy and successor, Abubakar Bwari, said a year later that over two million persons depended on artisanal mining nationwide. Instead of promoting a thriving, modern industry that would provide formal jobs, stimulate industrialisation and aid technology transfer, the government appears helpless while illegal miners hold sway over gold, copper, lead/zinc, clay, emerald and a host of others.

The International Labour Organisation, however, describes mining and minerals as “the backbone of most industries;” while a study by geology professor, Olugbenga Okunlola, identified local industries that would benefit from domestic mining to include steel, ceramics, lapidary, construction, glass, cement, agro minerals/fertiliser and electrical.

Whereas some experts say gold could earn the country an extra $1 billion annually, Zamfara for instance, generated only N6.02 billion internally in 2017, as shown by National Bureau of Statistics data, the seventh lowest among the 36 states, but collected N28.45 billion from the Federation Account: the assurance from oil and gas revenues generated elsewhere to service its foreign and domestic debts of $34.83 million and N69.92 billion respectively in 2017 explains why the state, like others, has not taken up incentives encouraging states to attract investors to exploit these resources. Kogi and Nasarawa states have the highest diversity of minerals, but posted only N11.24 billion and N6.17 billion IGR respectively in 2017 while collecting N39.64 billion and N35.19 billion from the central purse.

The Federal Government has not actualised the recent efforts of Fayemi 2015-18; and of Oby Ezekwesili, who held the ministerial office 2005-6: separately, both worked vigorously to prepare the sector for foreign and local investments, but did not stay long enough to see their plans through. Though there has been a rise in export volumes recently, with N26 billion worth of minerals exported in Q1 2018, according to the NBS, much more is lost to the government through illegal mining and smuggling.

We need to change gear and reverse dependence on oil for 80 per cent of our exports. Recent improvements in mineral exports are too meagre, as mining added only N400 billion to GDP in 2015.

Minerals are essential to the industrial sector that currently records less than six per cent to GDP. Apart from being critical to job creation, it is still a major export earner elsewhere: despite commodity price swings, PwC said the world’s top 40 mining companies recorded $600 billion in revenues in 2017, a 21 per cent rise above the $496 billion recorded in 2016. The Federal Government should accelerate action on its road map that followed its adoption of the Nigerian Minerals and Metals Policy 2008. Foreign Direct Investment is essential to drive the industry and stamp out illegal operators and smuggling. States need to compete for investments and external markets as other federal entities do. Mining remains a major primary industry in Australia’s six states and two territories, contributing 3.5 per cent to GDP, but 35 per cent of export revenues. In Canada, the figures are 3.6 per cent and 32 per cent respectively where the provinces of Ontario, Quebec, British Columbia and Saskatchewan compete for local and foreign investments and markets. Mining is recognised as the driving force behind industrialisation in South Africa, the continent’s most advanced economy whose 42,000 megawatts of electricity is 77 per cent powered by its coal; here, apart from the famed Enugu mines, coal deposits are said to abound in 12 other states, while we still rely mostly on gas for the 5,000MW we produce.

Our state governors must wake up to end their dependence on oil; they should invest to make their territories attractive for investment in minerals, agriculture and industry. Minerals offer a way out of empty state treasuries, borrowing and unpaid salaries and pensions. States should be autonomous productive units and all policies should be geared towards this and job creation.

Law enforcement agencies should clamp down hard on illegal miners, smugglers and the corrupt officials who aid them.
Source: https://www.miningng.com/mining-in-nigeria-still-an-un-tapped-lodestar/

The Chief Executive Officer of Jin Bao Rong Group of companies, a Chinese company based in Beijin, Ms. Zhang Fenglan has expressed her company’s intention to commence mining exploration in Nigeria.

According to a press release made available to newsmen, Ms. Fenglan disclosed this during a stop-over visit by the Hon. Minister of State for Mines and Steel Development, Hon. Abubakar Bawa Bwari and his entourage at the company on their way to attend the 20th China Mining Conference and Expo holding in Tianjin, China.

She stated that her company has bought over the West African Polaris Investment Ltd (WAPI), which owns some mineral titles in Nigeria and has the intention of commencing mining operations in the country.

She used the forum to express her company’s concern and challenges so far encountered since they ventured into the project and solicited the support and cooperation of the Ministry of Mines and Steel Development to hasten the processes of renewing some of the expired mineral titles, for the company to begin full scale operations in Nigeria.

The Minister pledged Federal government’s determination to encourage and support genuine foreign investors in the Nigerian mining sector while the Director-General, Mining Cadastre Office, the Agency responsible for granting mining licences in Nigeria, Engineer Mohammed Amate, also gave them a brief on the guidelines for mining in Nigeria and the need for the company to work in accordance within the law of the country.

In another development, the Minister and his entourage visited a coal to power electricity plant referred to as a super power plant located in the Yincheng Hangu area, which is about an hour drive to the city centre of Tianjin, China.

The plant has been generating about 4000 megawatts of electricity since completion and it is seen as the most advanced and environmentally friendly coal to power project so far in China.

The Minister stated that the Federal government will look at the possibility of replicating similar coal to power project in Nigeria to further improve power generation in the country.

Source: https://www.miningng.com/chinese-company-to-commence-mining-in-nigeria/

Nigeria’s Ministry of Mines and Steel Development says private investors have expressed their readiness to commit about 3.32 billion dollars to fund some projects in the mining sector.

Alhaji Abubakar Bwari, the Minister of State, made this known at the 3rd Nigeria Mining Week on Tuesday in Abuja, Nigeria’s Capital City.

The three-day event is being organized by the Miners Association of Nigeria in partnership with PricewaterhouseCoopers and Spintelligent.

According to Bwari, the fund will be used to fund gold mining and refining, foundry works, lead/zinc exploration and production, tin, tantalite and columbite mining and processing.

The Minister of State said that the ministry was making effort to focus on tackling challenges hindering the formal exploitation of gold, tin and lead-zinc as well as stop indiscriminate exports of these mineral commodities to foreign smelters.

Bwari said that the ministry had also developed a new Export Guidelines for the Export of Mineral Commodities to ease challenges surrounding the granting of export permits and other licensing issues.

He said that the mining week was aimed at repositioning the sector in order to make it one of the frontiers of economic diversification in line with the Federal Government’s economic agenda.

Bwari said that in view of the Federal Government’s effort at creating alternative sources of wealth, through the development of mineral resources, the ministry came up with a number of innovations in the sector.

“We have strengthened our policy and institutional frameworks for investors in the mineral sector to ease their businesses.

“Government has released funds from Natural Resources Development Fund for the generation and provision of necessary geosciences data to attract investors.

“Five exploration contracts and consulting services for gold and platinum group metals, Rare Earth Metals, Base Metals, Barytes, and Iron Ore, were recently awarded through competitive bidding to carry out resource mapping for potential minerals.

“The Electro-magnetic survey data for three highly prospective gold and lead zinc zones have also been acquired and are available for interested investors,’’ he said.

He said that government had also initiated a “Partnering Scheme’’ with the private sector for the provision of infrastructure through the implementation of a National Integrated Infrastructure Master plan.

According to the Minister of State, the construction of a 3,035 megawatts Mambila Plateau Hydro-power Plant is already under way and this will boost economic activities in that zone of blue sapphire and bauxite minerals.

Bwari said that the dredging of River Niger had been completed, while work at Warri Port and the Escravos Channel was almost completed:

“These works would facilitate export and import of goods through Warri Port using flat bottom vessels.

“The Central Corridor Railway Line linking Warri Port to Abuja through the North central, home to iron ore, steel plants, coal resource and pegmatite bearing lithium is also under construction.’’

The Minister said that the rail line from Warri Port through Ajaokuta to Itakpe was already completed.

He noted that completion of the ongoing works in Warri Port and Escravos would ease access to the deep sea, and open up business opportunities for Ajaokuta and Delta steel Plants by paving way for the shipment of bulk goods.

Source:
https://www.miningng.com/private-investors-to-commit-3-23-billion-to-mining-projects-bwari/

A comprehensive register of oil, gas and mining companies owners in Nigeria will be unveiled on December 31, 2019, the Nigerian Extractive Industries Transparency Initiative (NEITI), has said.

Dr. Waziri Adio, its Executive Secretary, NEITI, disclosed this in Abuja at a one day stakeholders’ engagement meeting on the implementation of the beneficial ownership roadmap in extractive industries in Nigeria.

Adio said this move would help to establish transparency and accountability in the extractive sectors, adding that with such information, Nigerians will begin to know the real persons having significant influence directly or indirectly in the nation’s extractive sectors.

“We are going to have the register of all the companies operating in Nigeria by December 31, 2019. A lot of discussions have been going on both at the level of the EITI and at the level of the Open Government Partnership (OGP) and the Corporate Affairs Commission (CAC). We have had a lot of discussions, we need to stop talking; we need to start acting.”

According to him, hidden ownership could be used to fuel terrorism financing, money laundering, and drug financing, noting that such act could benefit only the minority elite in the country.

“We know that hidden ownership can be used as a mask for conflict of interest; it can be used as a mask for abuse of office; it can also be used to facilitate corruption; it can be used to facilitate tax evasion, it can also be used to perpetrate money laundering, drug financing and terrorism financing,” he explained.

The Executive Secretary nevertheless expressed concerns on the challenges of adopting beneficial ownership disclosure in the country, noting they ranged from lack of legislation on beneficial ownership disclosure; low level of awareness on the issue, and lack of capacity and readiness to comply with the disclosure of beneficial owners.

Garba Abubakar, Corporate Affairs Commission (CAC) Director, Legal and Compliance, explained that the fact that Nigeria has no register of beneficiaries did not mean that the laws do not refer to it.

The CAC boss revealed that there were sections of the Company and Allied Matters Act (CAMA), which compelled businessmen to disclose their shareholders and their capacity of ownership of shares.

He, however, said the commission was proposing a law that would make it mandatory for companies to disclose their beneficial owners, adding that “already, the beneficial owners’ form register had been designed”.
Source
https://www.miningng.com/neiti-to-unveil-oil-gas-mining-register-next-year/

Nigeria and a German firm, Messrs GAF, on Thursday signed a contract that would enable the country to migrate its mining cadastre operations and services online.

The Director General, Mining Cadastre Office, Mr Mohammed Amate, signed the contract sponsored by the World Bank on behalf of Nigeria, while Dr Tobias Wever signed on behalf of the German firm.

By the contract, the German firm will construct a portal for the MCO and provide both hardware and software required to enable the office to automate its operations and services so that they could be accessible to any investor anywhere in the world.

Amate said, “The upgrade essentially will entail the establishment of a web-based cadastre management and information system, including e-records. It will also integrate the networking of the six zonal offices and improve information sharing with other relevant government bodies.

“The new system will further provide better services for customers and further promote investments in Nigeria’s minerals sector.

“The system upgrade will allow the enforcement of applicable laws and regulations, secure storage of cadastral data and information, provide efficient and reliable services to investors and other stakeholders such as online applications, reduction in application/investors as well as real-time availability of cadastral update.”

Speaking at the event, the Minister of State for Mines and Steel Development, Mr Bawa Bwari, expressed appreciation to the World Bank for demonstrating support and commitment to the diversification agenda of the Federal Government.

He said the cadastral office was being taken to the zones in order to get nearer to the people.

Bwari added that the government had also demonstrated commitment to the mining sector through increased funding.

https://www.miningng.com/nigeria-german-firm-sign-contract-for-mining-automation/
https://www.miningng.com/nigeria-german-firm-sign-contract-for-mining-automation/