Ministry of
Mines and Steel Development
MinDiver
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THE WORLD BANK
A PUBLICATION OF WORLD BANK ASSISTED MINERAL SECTOR SUPPORT FOR ECONOMIC DIVERSIFICATION PROJECT
February, 2020, Vol. 1 No. 7
ADEGBITE LEADS NIGERIAN TEAM TO AFRICA MINING INDABA PREACHES RESTORATION TO GLORIOUS MINING ERA, UNVEILS INCENTIVES FOR INVESTORS
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he minister of Mines and Steel Development, Arc. Olamilekan Adegbite, has led the Nigerian Team to the 26th African Mining Indaba, in Cape Town, South Africa, with the message that the country is poised L-R: World Bank’s Christopher Sheldon, Minister of Mines and Steel Development, Arc. to restore its glorious era as a Olamilekan Adegbite; Managing Director, Kogi Iron, Mr. David Turvey; and Permanent Secretary, Ministry of Mines and Steel Development, Mr. Edet Sunday Akpan at the mining nation. Conference in Cape Town, South Africa. This year's edition, tagged 'Investing in African Mining The event, which is the restoring the country to a mining Indaba', held between February 3-6, largest mining fiesta in Africa, was nation after it was neglected for 2020 with almost 7,000 delegates a unique opportunity for Nigeria to over five decades due to the from over 90 nations around the present its pragmatic plans towards discovery of oil. Cont’d on Pg. 3 world in attendance. Photo: @DreyMide
SPECIAL REPORT
FG Holds 1st Stakeholder Conference on ASM, Launches Nationwide Remote Sensing Monitoring System
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he Ministry of Mines and Steel Development in collaboration with the Mineral Sector Support For Economic Diversification (MinDiver), has held its first public stakeholder meeting on the formalisation of artisanal mining activities and the launch of the nationwide ASM Remote Sensing Monitoring System.
The move became necessary because of the determination of the Federal Government to transform every facet of the mining industry in Nigeria especially the artisanal and small-scale mining sector which directly provides livelihood for about one million people and over two million citizens indirectly.
Also, the small-scale mining activities account for over 75 per cent of the current mineral production in the country which are used as raw materials in industries and for exports. However, with the mining activities in the ASM sector hitherto conducted outside regulatory framework, they posed Cont’d on Pg. 8
Agbaja Cast Steel Project to Stop Import of Scrap Steel into Nigeria
MinDiver
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February, 2020
INTERVIEW
Agbaja Cast Steel Project to Stop Import of Scrap Steel into Nigeria David Turvey, is the Managing Director, Kogi Iron Limited. In this interview, he opens up on the activities of the first integrated iron ore to steel development project in Nigeria. Excerpts. Can you please tell us what Kogi Iron is envisioned to achieve? ogi Iron Limited through its Nigerian subsidiary, KCM Mining Limited, has a project that will be the first integrated iron ore to steel development project in Nigeria on this scale. Personally, I have been a director of this company for only nine months but I have known about the activities of this company for at least eight years as an investor. The Agbaja Cast Steel Project is designed, planned and envisioned to replace the imports of scrap steel and intermediate steel and help support the growth of the domestic steel fabricating industry. The company has existed over the past six years engaged in technical work on the discovery and evaluation of a large iron ore resource in the Lokoja area of Kogi State on the Agbaja Plateau. The activities so far has involved a lot of drilling, sampling, chemical analysis and
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technical test work. The Company has defined more than 400 million tons of well quantified and qualified iron ore at 45% iron content to the standard of the Australian JORC Code indicated and inferred resource classification. A well quantified resource is what is required for any project to receive appropriate funding - we can call it internationally bankable if you like. That's very important for Nigeria in order to develop professional systems that can be banked and financed appropriately. Two years ago, the company decided not to export the iron ore as modest grade and declining price would limit commercial returns. Realistically, unless iron ore price stays over a USD$ 100/tonne delivered to China, it would be a difficult business to export our iron ore. However, this iron ore can be used to produce steel. So, in the last two years, we took an approximately
David Turvey
200 tonne sample of iron ore along with local coal and local limestone to South Africa and completed steel test work at a laboratory bench scale. Highly professional consulting groups produced international quality steel from the Nigerian raw materials - that was proof of concept. In addition, the company completed a market survey and introduced ourselves to the market because we are not going to produce final steel products, rather we intend to produce an intermediate steel billet product that will replace the import of scraps. Rather than the industry importing scrap steel at a very high price, we will provide our billet steel to existing customers that melt steel and produce steel products such as rebar and I-bar shapes. Initially, our Company intends not being fully integrated in producing final products because we don't want to put the current people out of business. We want to help them to grow and it's a very important part of our business strategy and vision. This year 2020, we are funding and conducting a feasibility study to a level that will be public and, more importantly, it can be audited and due diligence done by interested potential investors. Study results will be released so that Cont’d on pg. 14
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February, 2020
LEAD NEWS
Cont’d from cover page
ADEGBITE LEADS NIGERIAN TEAM TO AFRICA MINING INDABA Conscious of the platform as a deal-making and matchmaking stage designed to sell Nigeria's enormous mineral potentials to investors and stakeholders in the global mining community, Arc. Olamilekan Adegbite, sent a strong message to investors when he spoke at the Nigeria Day Forum that all is set to restore the country back as a mining nation that it was before the discovery of oil. His words: 'Within the last one year, the country had taken further landmark steps to make mining in Nigeria more attractive for investments and this forum has provided great opportunity for us to show case our immense potentials in the mining sector to the international community. We are here again to show that in the last one year after we gathered here to discuss our mining space, we have taken further landmark steps to make mining in Nigeria more attractive for investments.' According to him, the need to return the mining sector to its glorious era was predicated on the need to tap all available potentials to diversify the nation's economy and set it on the path of prosperity. 'In the preoil era, mining contributed up to 5 percent to the growth of the nation's economy and this led at that time to the development of some of our major infrastructure such as roads, railways, and electricity to serve mining sites in many parts of the country. In fact, what is known today as mineral based economic corridors were developed by the British Colonial government to provide services to mine sites.' Regretting that the discovery of oil shifted the attention of Nigerian leaders from mining leading to the neglect of the sector that once thrived as one of the main contributors to the development of the Nigerian economy, hope is rising as the sector is today being looked upon by the administration of President Muhammadu Buhari as a major pillar to diversify the economy for job and wealth creation, poverty alleviation and contribution to the GDP. He said the restoration agenda has become necessary for the building of a robust and competitive economy, through focus on ease of doing business and premised on the provision of a conducive environment for the non-oil sectors like mining and agriculture to fast track economic growth and development. 'This imposes on the sector enormous responsibility which requires active collaboration with key players in the mining community, and that is why we are here to continue with our conversation on what we can do with key players in the mining sector globally to explore and exploit our immense mineral potentials for our common benefits.' 3
Arc. Olamilekan Adegbite speaking at the Mining Conference
Investors listening to a presentation
DG NGSA, Dr Abdulrazaq Garba; Permanent Secretary MMSD, Mr Edet Sunday Akpan; Minister MMSD, Arc. Olamilekan Adegbite; British Geological Survey's Jenny Foster; DG MCO, Engr Simon Nkom and Cyril Azobu of PwC at the Conference in Cape Town.
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February, 2020
LEAD NEWS
Adegbite said as the largest economy in the Sub-Saharan Africa with a GDP of over $460 Billion and immense natural resources, Nigeria provides an attractive investment destination that is backed by strong government support, vision and determination to ensure the growth of a viable, stable and profitable business. 'Nigeria is considered one of the ten most improved economies in the World Bank Doing Business Report 2020; and this is partly due to our resolve as a nation to open up our mining space through strategic reforms using the Roadmap to encourage investments into our natural resources wealth that are available in commercial quantities and scattered in the six geo-political zones of our nation.' With the Nigerian economy experiencing steady improvement and relative stability across many key macro-economic indicators in recent years through sound policy direction that encourages private sector participation; he urged big players in the industry globally to take early advantage of the opportunities to invest. 'In the mining sector, we are resolved to restore the nation to the mining hub that it was before the advent of oil. Our country is open to foreign investment and Nigeria has proven to be home to several successful global brands and businesses and we are looking to big players in the mining sector to take early advantage of the great opportunities now available in our country.' For investors worried about insufficient geosciences data, inefficient mining titles administration and challenge of unregulated artisanal and small scale mining, he assured them that the government is doing a lot to address such inadequacies in Nigeria's mining infrastructure. His words: 'The critical issue of insufficient geo-sciences data and information as well as weak data dissemination systems which have all served as major constraints to would-be investors and investment decision makers are being tackled through the National Integrated Mineral Exploration Programme embarked upon in 2018 to focus on identifying and targeting prospective mining fields for the purpose of generating integrated geoscience information that will help to de-risk the mining sector. Efficient mineral titles administration has been enhanced and upgraded to the newest EMC+ Systems in Cadastre management architecture at the Mining Cadastre Office to meet full international standard and make it more efficient and transparent. 'Also, we have engaged a consortium of companies called SOFRECO through the support of the World Bank to establish a Remote Sensing Monitoring System to electronically conduct the surveillance of ASM activities nationwide for
Minister Adegbite (third right) with members of the Nigerian Team
Minister MMSD, Arc. Olamilekan Adegbite (middle) with some investors at the Investing in Africa Mining Indaba Conference in Cape Town, South Africa.
The Minister (centre) and some members of the Nigerian Team:.............
Left to Right: DG, NGSA, Dr. Garba;............... DG, MCO, Engr. Nkom; DG NSRMEA, Engr. Hassan; Director Concession, MCO, Engr. Damagun
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regulatory enforcement and intervention programs.' The minister further noted that the government is prepared to support companies with licences and ready to do real mining business in Nigeria: He explained: 'I want to support those who have licences and support their capabilities. I want to take the industrial minerals one at a time and develop them. The government is serious about mining and diversification of the economy from oil and gas into mining and the government is putting a lot of money into this. The government is spending about $150m in the exploration project and putting a lot of money in the digitalisation of the Mining Cadastre Office to enable it go live. NGSA is also creating digital data storage for online access from any part of the world. These are part of the efforts government is making to generate interest in the industry and to tell investors that we are open, transparent and ready to do things properly.' He said Nigeria is one of the few countries in the world where tempting incentives have been packaged for investors. 'There are juicy incentives streamlined for the benefit of every investor. They include duty free incentive when an investor brings in mining equipment provided it is certified that the equipment brought in are strictly for mining purposes. The government also gives three years tax holiday which is extendable for five years. There is also 100% ownership policy; which means, as an investor, you own what you mine and pay government 5% royalties.' Adegbite said these are regimes put in place to encourage mining in Nigeria. 'We have done mining in the past in the 50s and 60s when the British were here and mining was in the fore front but abandoned upon the discovery of oil and gas. We are back now, determined to restore our lost glory
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The Minister speaking on investment opportunities in Nigeria’s Mining Sector.
in mining and want investors to quickly come in and invest so that they can generate employment for our people.' The Permanent Secretary, Ministry of Mines and Steel Development, Mr. Edet Sunday Akpan, described the industry as the key to unlock Nigeria's economic potentials and propel rapid national development. He said the federal government has fully realised the economic derivatives in the mining sector and it is determined to develop the sector. 'This conference is key to the growth of the mining sector in Nigeria in terms of its opportunity to network with investors.' Director General, Nigeria Geological Survey Agency, Dr Abdulrazaq Garba, on his part said investors are beginning to ask the right questions about the mining opportunities in Nigeria. For this reason, he said Nigeria commenced an integrated exploration project on several commodities that has to do 5
with the metalogenic provinces in the country so as to make information easily accessible to investors. 'We are looking at the Sheath Belt and the western part where we have gold and the pegmatite belt within the central part of Nigeria where we have minerals like lithium and battery minerals and the Benue Trough where we are looking at baryte and lead zinc. We have gone far. We have three companies on this project. Juggernault working on lead zinc, AG Vision on gold and Rapid Link on lithium minerals or tantalum.' According to him, the idea behind the project is to identify tracks of mineralisation that will be ranked on priority basis between one and three. 'As at today, we have been able to assert those tracks of mineralisation and the companies have commenced drilling and our target is that by the end of this quarter, we will be able to at least do some resource quantification for
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February, 2020
some of the prospects. Once that is done, it will be an ideal opportunity for an investor to come in and invest in the sector.' Dr Garba noted that investor's confidence is what the project is aimed at. 'The aim is that, when we identify these pockets of mineralisation, it will lead to two things. One is to know areas where we have encumbrances or where people are already holding licences and new areas where there are openings for new investors. In the new areas, we expect companies to take advantage and show interest since government will push them out for bidding to ensure interested companies come forward to bid. For areas encumbered, government will facilitate relationship between incoming companies and owners of the titles.' The Director General, Mining Cadastre Office (MCO), Engr. Simon Nkom, stated that the restoration agenda for the mining sector is already being pursued with utmost responsibility by the MCO.
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He said as custodians of mineral title licences and leases, the issue of mineral title regime is being handled in a most transparent manner to boost investors' confidence and generate their interest in the industry. 'Restoring Nigeria to a mining nation that it once was is being taken seriously at the Mining Cadastre Office. Already, the issue of mineral title regime is being handled in the most transparent manner with security of tenure for licences guaranteed. We play by the rules and ensure licences are given on first come first serve basis.' Engr. Nkom said MCO's role in the National Integrated Mineral Exploration Project Programme (NIMEP), is to ensure that areas encumbered by way of mineral titles will go through transparent bidding process which will entail that delineated areas are advertised for companies to submit their bids in line with laid down procedures enshrined in the law. 'One important thing is that we are working in
partnership with a committee in the NIMEP programme to make sure that the identified areas are blocked until when their resourcefulness are determined.' He said the mineral title administration is already being automated for optimised and reliable performance. 'The MCO has installed an eMC+ online cadastre management system which is a top technology in the world. This project will be ready to be launched before the end of the first quarter of this year. This advanced technology will enable investors to see what we have from anywhere in the world and apply for mineral titles with ease.' Engr. Nkom said all these initiatives are geared towards restoring Nigeria to a mining nation. 'All these are planned to improve the effectiveness of mineral titles administration in a bid to restore the confidence of investors and return Nigeria to a mining nation.'
Nigeria is Ready for Direct Foreign Investments in Mining – Gov Sule
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asarawa State Governor, Engr. Abdullahi Sule, has said that Nigeria with its extensive mineral deposits and the economic diversification program of the Federal Government is ready for direct foreign investments in the mining sector. He gave this view at the recently concluded 2020 African Mining Indaba, in Cape Town, South Africa. The governor who spoke at the Nigeria Day forum during the mining event, told investors that although Nigeria is seen as an oil country, there is now a national resolve to restore the glorious era of the country as a mining nation. His words: 'For me, Mining Indaba is a good learning opportunity. It is exciting that I am here again to talk and this time
about mining. Nigeria is an oil and gas country but the present government has decided to diversify its economy and mining is a focal area because of its huge potential.' He noted that the critical question within the government is,
where will Nigeria be without oil? The Governor noted that this thought has generated a fundamental line of action at the highest level of government. He explained: 'At the national level, we have a committee called the National
Arc. Adegbite and Governor Sule of Nasarawa State at the African Mining Indaba.
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Economic Council which has the Vice President as chairman and the Governors of the 36 states as members. One of its purpose is to look at the future of Nigeria and the possibility of zero oil revenue. That again led to the formation of a committee to look at two sectors; mining and agriculture. So, if you are an investor or a miner, this is the best time to start thinking of Nigeria. Within the committee also, there is another sub-committee to review what is being done in the mining sector. The committee is to look at where things are working or not and advice on how they can be made to work better for results. So, there are a lot of good things happening in Nigeria at the moment coupled with the array of minerals we have in the country. We are interested in having investors come down to our country to explore the multiple opportunities in our mining industry.' Governor Sule, further noted that the renewed working synergy and understanding between the Minister of Mines and Steel Development and state governors gives great hope to the sector. 'One of the good things that has happened since this Minister came in is that
LEAD NEWS
there has been a better relationship, synergy and understanding between the investors, ministry, communities and the state governments. It presents a better opportunity to showcase our mineral potentials for economic gains.' On the issue of security concerns around mine sites, he said investors must realise that the situation has become a global phenomenon with every mining nation in the world having a fair share of it. 'To be honest with you there are always concerns with security challenges when it comes to mining. But it is not just in Nigeria but in every country of the world where mining takes place. This is because mining attracts a lot of economic activities. The advantage we have in Nigeria is that mining activities take place far from urban areas and major cities. The situation is being curtailed now because there is a relationship between the federal government that owns the minerals and the state governments that own the lands and some of the communities where the mining activities take place.'
He encouraged interested investors to discard the erroneous perception that investors cannot come into Nigeria due to security concerns noting that the reforms being undertaken in the country is all encompassing. 'Our environments are safe for investors to come in. Based on the ongoing reforms, investors can confidently come in and do business of mining without fear. From all we have been saying, investors should know that they are in good hands in Nigeria, right from when they get their licenses without hassles based on our reformed and transparent minerals title administration up to when they carry out their mining activities. We have a president who is a believer in transparency and investors cannot have a better time to come with full confidence to invest than now.' He said Nasarawa State, as home of Solid Minerals, is prepared to receive investors interested in investing in the minerals available in the state. 'I urge you to come to Nasarawa State; a state with abundant mineral resources.'
Ogah Tasks Federal Mines Officers on Mining Regulations Enforcement
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he Minister of State, Mines and Steel Development, Dr Uchechukwu Sampson Ogah, has tasked Federal Mines Officers to ensure strict compliance to mining regulations by operators in the states. The Minister gave the charge when he visited the Federal Mines Office in Abeokuta during his oneday working visit to Ogun State. He urged the staff to ensure that miners in the state adhere to mining regulations and operate under established guidelines. He urged them to work as a team to ensure the desired success. He added that the Ministry will ensure there is direct access between the Federal Mines Offices and the State Governments. Dr. Ogah enjoined them to work towards generating more revenue by making sure mining companies in the state pay due royalties, saying that 7
with the large deposit of limestone in the state, and the number of mining companies, generating more revenue could be achieved. Zonal Inspector, Southwest, Donatus Uba, said the zone is working out modalities to sensitize companies on the dangers of storing explosives and detonators without informing the Mines Officers or adhering to safety rules; noting that such negligence could lead to explosion and loss of lives and property. He thanked the Ministry for providing support for the Mines Surveillance Task Force in the zone. Also, the Federal Mines Officer, Ogun State, Engr Ayelabola Olubunmi disclosed that a campaign, tagged, "Zero Campaign Against Artisanal Mining" has commenced, to curb the spate of illegal mining and increase the revenue generation in the state.
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February, 2020
SPECIAL REPORT
Cont’d from cover page
FG Holds 1st Stakeholder Conference on ASM, Launches Nationwide Remote Sensing Monitoring System
Kian Smith's Nere Teriba; President Miners Association of Nigeria, Alh. Mohammad Kabiru Kankara; Permanent Secretary MMSD, Mr. Edet Sunday Akpan; Minister MMSD, Arc. Olamilekan Adegbite; at the stakeholders forum on the formalisation of ASM.
considerable risk to human health, damage to the environment, and constituted a source of revenue leakage to the government. To fully harness the potentials of the artisanal mining sector, the government has taken pragmatic steps to formalise the activities of small scale miners and integrate them into the mainstream of the national economic development program. These steps will ensure that the sector is more productive, profitable and safer. Speaking at the stakeholder meeting, the minister of Mines and Steel Development, Arc Olamilekan Adegbite, gave the assurance that government has decided not to criminalise the activities of small scale miners but properly integrate them into the organised mining industry so as to enhance their contributions to the nation's economy. His words: “It gives me great pleasure to host the first public stakeholder consultative meeting on the formalization of artisanal miners into cooperatives, and small-scale miners into larger mineral and financial enterprises, together with the design and implementation of an Artisanal and Small-Scale Mining (ASM) remote sensing monitoring system in the mining and steel sector. “The sector's legitimacy and worldwide acceptance are premised on its contribution as a source of livelihood and employment for many people amidst rising poverty levels. It is the most important non-farm activity in the developing world but has mostly 8
operated informally and in the shadows without legal rights and access to minerals and limited access to capital, equipment, and technical assistance. This has kept it from achieving a safer and better livelihood for its operators. As a result, we will intensify efforts to ensure that the ASM sector is properly integrated into Federal and State levels' poverty alleviation and rural development strategies and programs.' Speaking further, he said under the new strategy, the ministry is planning to collaborate with other relevant government agencies to achieve its lofty goals:“This will provide a platform for the ministry to partner with the Federal ministries of Environment, Health, Labour, Finance, Budget and Planning, Federal Inland Revenue Service (FIRS), Small and Medium-Sized Enterprise Development Agency of Nigeria (SMEDAN), State Governments, the private sector, non-governmental organisations, impact investors, and donors to develop, formalise, support, and monitor the sector.' Emphasizing the importance of the sector worldwide the minister explained: 'According to recent estimates by the World Bank, the ASM sector employs at least 40 million people worldwide. In Africa, the estimates are quite significant as 9 million people are employed in the sector.” He further noted that many developing countries across Africa, East Asia and Pacific, Latin America and South Asia have come to terms with the importance and potential of the sector and have
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February, 2020
SPECIAL REPORT
Minister MMSD, Arc. Olamilekan Adegbite in a warm handshake with Senate Sub-Committee Chairman on Solid Minerals, Senator Umaru Tanko Almakura, at the workshop on the formalisation of ASM.
Cross section of stakeholders at the workshop on the formalisation of ASM into groups.
embraced it as a tool for poverty alleviation having r e a l i s e d i t s e m p l o y m e n t c a p a c i t y. He disclosed that the ministry had begun the formalisation process with the registration of over 600 cooperatives for artisanal miners. The Permanent Secretary of the Ministry, Mr Edet Sunday Akpan, reiterated the Ministry's resolve to comprehensively reform the ASM sub-sector urging participants to identify limitations and make appropriate recommendations on the best ways to approach the formalisation initiative in order to achieve the desired goal. His words: 'What we are doing today is the right step towards the growth and development of not just the artisanal and small-scale mining sector but the entire mining industry in Nigeria. The entire idea of formalisation is to sustain the mining industry for sustainable growth.' Commending the involvement of MinDiver in the formalisation process, he said the Federal Government is working to do more for the sector through the international credit facility to support the Mineral Sector Support for Economic Diversification (MinDiver) Project, whose activities have been carefully designed to attract investment and accelerate development in the Nigerian mining sector. The Permanent Secretary also said the engagement of Messrs SOFRECO and Beak as consultants to deliver consultancy services on the formalisation of ASM is particularly important because of the ministry's resolve to comprehensively reform the ASM sector. 'We are doing this because we have come to realise that although ASM has remained a major source of livelihood to many Nigerians, its mode of operation falls very short of the expectation of government. The
reason for the reform is to ensure sustainability, continuity and co-existence with the formal industrial mining operation. Amidst the difficult regulatory challenges, however, the Ministry is working assiduously to establish a vibrant and robust ASM sector in Nigeria.' Chief Executive Officer of the Kian Smith Gold Refinery Project, Nere Teriba, who works closely with some of the artisanal and small scale miners said part of the solution to the activities of the ASM must be seen from the business point of view as most artisanal miners work in areas officially covered by other miners' licences. She advised that in the course of empowering them, it should be done in such a way that their activities will not infringe on other miners' rights. She said her company, the Kian Smith Gold Sourcing Programme, has developed some incentive mechanisms which include a health-care scheme for the small scale miners. We have also created some economic and development incentives to assist their operations. Mrs Teriba revealed that her programme has so far opened 900 bank accounts for the artisanal miners, signed 11 agreements with mining licences prospects and two leasing companies all in a bid to integrate and assist the artisanal miners. 'In a nutshell, my advice is that Nigeria should look for a win-win formalisation ways with the artisanal miners.' Peter Buch of Beak Consulting Group, one of the two companies setting up the ASM Remote Sensing Monitoring Systems expressed worries over the environmental and social hazards associated with the operations of artisanal mining but was optimistic that with the steps being taken by the Nigerian government ASM activities can be safer and more productive.
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SPECIAL REPORT
'Most of them are poor and mine for subsistence. You see women and children on mine sites exposed to health challenges and there is no health facilities to take care of what they inhale from mine dust. They take water that is not clean and have no access to education because they join their parents early in the trade of artisanal mining.' Mr Buch speaking further on the impact of the ASM on environment and social structure said the issue of health and safety in the mining communities is very important. 'There is need to provide health facilities, hospitals, schools and good water around mining communities because good health and education is needed for good mining. When you see abandoned mining pits all over the country it is worrisome because these affects people in the mining community socially and environmentally.' He said the formalisation plan of the government is in the right direction since it will avail the government the opportunity to know the challenges facing the subsector. Senator Tanko Almakura, who is the Committee Chairman on Solid Minerals at the Senate, described the mining industry as the hope of the Nigerian economy.The former governor of Nasarawa State further said if the industry is properly harnessed, it can be the game changer for wealth and job creation.
He said the National Assembly is ready to partner with the executive to ensure all bottlenecks are cleared for the country to develop and harness its potentials in the mining sector. 'The National Assembly is partnering with the executive to ensure all bottlenecks associated with the industry are cleared for the country to develop its mining sector. At the National Assembly level, we have formed a Roundtable to focus on Power, Mining and the Agriculture sectors so as to come up with a final document that will promote job and wealth creation. Details of the Roundtable are being packaged for proper legislation and the creation of a legal framework for all players in the various sectors.' He urged stakeholders in the industry to come forward with suggestions and advice on the legislations that will transform the mining sector. He said the formalisation of artisanal and small scale miners into cooperatives must be taken as a priority program so as to ensure the rapid growth of the sector. He said the National Assembly is also working towards having government allocate more fund to the sector in order to boost mineral exploration in the country. 'We are working in synergy and collaborating with the government to ensure that every aspect that will develop the sector is vigorously pursued.'
MAN Calls for Collaboration between Government and Miners on ASM Reforms
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he President of Miners Association of Nigeria (MAN), Alhaji Kabiru Mohammed Kankara, has advocated full collaboration between the government and the association to address critical issues and challenges associated with artisanal mining. He said as an umbrella o rg a n i z a t i o n o v e r s e e i n g t h e activities of miners in the country, collaboration between the association and government will facilitate the formalization of artisanal mining activities. He said the unregulated activities of artisanal miners if unchecked could cause a major setback for the development of the sector. Kabiru made this known during the 1st Public Stakeholder Meeting for the Formalization of Artisanal Miners and ASM Remote Sensing Monitoring System held in Abuja.
'Overtime, the term 'illegal mining' has become a mainstay in the Nigerian mining space, and this is due to the incessant activities of miners who are constantly carrying out crude mining activities in different parts of the country. These activities pose serious danger to health and also result in huge economic loss to the country. Recent Ministry of Mines and Steel Development estimates indicate that between 2015 and 2016, Nigeria lost over $8 billion largely to informal mining activities.' He stated. Alhaji Kabiru emphasized the need for the speedy formalization of artisanal miners into cooperatives and small-scale miners into larger enterprises, as well as the implementation of the remote sensing monitoring system. He stated that, notwithstanding the obvious challenges associated with artisanal mining, which includes but not
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limited to banditry, lack of compliance with health, safety and environmental regulations, land degradation without accountability, lack of human capital development, smuggling and revenue loss; opportunities still abound in this practice, as artisanal and small-scale mining accounts for over 80 per cent of the solid minerals mined in Nigeria. He also said the formalization of artisanal mining can give rise to other ancillary industries through beneficiation and value addition that will in turn generate employment and wealth creation. 'Antagonizing artisanal miners and labelling them as criminals is not the solution to the challenges in the sector, rather, there is the need for proper synergy between government and the Miners Association in adopting best strategies to address the issues at stake.' He added.
MinDiver News INTERVIEW “Formalized ASM Sector, Boost to the Mining Sector� February, 2020
Patrick Ojeka is the Director, Artisanal and Small-scale Mining (ASM) in the Ministry of Mines and Steel Development. As the man overseeing one of the most dynamic sub-sectors in the mining and steel industry in the country, he sheds more light on the mode of operation of the ASM, general overview of the sector and how a formalised ASM sector will boost economic development in Nigeria after the Stakeholder meeting. Excerpts: Nature, scope of your resentation at the workshop uring my presentation, I sought to look at the characteristics and causes of artisanal and smallscale mining in relation to operational ground rules and government's efforts in helping them formalise into cooperatives and into larger mineral and financial enterprises. I also looked at the plan and processes of formalization so that as stakeholders in the sector, we will be able to re-categorise them in such a way that they will no longer be classified as illegal miners but those who need assistance to grow so that the sector also will in turn grow and not hurt itself. Along the line, some aspects of the presentation clearly stated where we are and where we are going as an industry. As it is, we understand that increasing demands of mineral resources have escalated globally, sadly artisanal miners still remain poor because of their mode of operation. These are people who strive to earn a living from mother earth. So, it is a two-edged sword. ASMs in Nigeria are the informal operators, while the small-scale operators, according to some persons, are the SMEs in the sector. Artisanal mining implies the use of any other means in mining other than the mechanized method. Artisanal mining implies any operation that uses means of nonmechanized method for mining. Based on this, we can say that the artisanal miners lack capacity in this respect. They equally lack capacity to access mechanized instrument for operations. Therefore, as simple as the quick axe, the hammer, the head pan and the shovel, they are already in operation. Meanwhile, compared to the artisanal miners, the small-scale operators who practice as artisans and other forms of mining operations use low-level technology methods which require substantial expenditure. Small-scale operators also have their challenges in the area of financial capacity to acquire heavy equipment. So, they either lease or do what they can to open the mother earth. They have better capacity compared to artisanal miners. Why the classification? Classification gives us the idea of differentiation between small-scale and artisanal miners. Artisanal miners basically operate manually for subsistence purposes. Their activities are labour intensive with poor capacity and poor training. And they don't mind whether they find themselves on the title tenement of someone else anywhere. They just go ahead to do what they find themselves doing for subsistence purposes. Small-scale miners run as a business team and have a high level of organization. They are formal and can also be informal. Some of them engage the services of artisanal miners. They operate in Nigeria just like it is done globally. There are special characteristics of small scale and artisanal miners globally. But in Nigeria, detailed
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characteristics of population involved in small scale mining is not readily available. But if you look at the population of Nigeria, a population of about 200 million people and then look at the landscape, the length and breadth of Nigeria, the number of persons entering into artisanal mining every day is in the minimum of three million people directly Patrick Ojeka and indirectly. The seasonal nature of their operations Their mode of operation is usually through casual labour and affected by seasonal changes. We are in the dry season now and their activities are booming in the field. Many of them will be in the field now, but during the rainy season because they don't have capacity to operate when the fields are filled with surface water or underground water they go to work in their farms. Their work force is diverse comprising in some cases foreigners from the sub-region who migrate as a result of the ECOWAS Treaty. The recent incursion of the Chinese has become a bit of a concern for the government which is looking into how it can curb the situation. Methods of ASM One of the methods of artisanal and small-scale mining include lotto mining. Small scale operators in the country, professionals and experts all understand what lotto means. Lotto is drilling and later going inside to work. The quarry system applied is to use hammer and chisel to break the ground into small bits and then employ the use of chemicals like mercury particularly in the case of gold mining. These are the core methods of mining that they adopt on the field. But it has high risks of collapse, stopes, unsafe shaft access, poor illumination and ventilation. Working conditions of artisanal miners They operate crudely with no personal protective equipment or clothing. They work long strenuous hours and the use of drugs are common indulgence in some sites. Women and children are used as providers of ancillary services. They work without shelters in some sites, operate without proper sanitation and healthcare and consume contaminated water from ponds and streams. And that is why the ministry resolved to assist by formalising them into an organised group. For the ministry, it is important that they are formalised because of their importance and eventual contribution to the GDP through revenue and taxes that will accrue. For this reason, it is important to pay
MinDiver
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February, 2020
INTERVIEW
attention to them and their health because health is important to government. But this class of persons can sometimes be uncooperative as we have seen when we render extension services to them. Our experience is that even when you give them new clothing that will help in their operations, they will rather use it for Christmas or partying than for work, with claims that it makes them clumsy while using to work. They also work for outrageous hours. For instance, if you go to villages and hamlets where these people are settled, you will realize that you cannot get them at home by as early as 5 am because they would have long gone out to work all day till about 8 pm in the evening. The use of drugs The use of drugs is common practice on artisanal mining sites and when you encounter and interface with them for the purpose of counselling, they will tell you the drugs enhance their capacity and give them strength to work harder. But of course, they do not realize that even though it is enhancing them to work, it is also damaging other parts of their bodies. They also expose their children who mostly provide auxiliary services at the sites to these dangers. ASM's Impact on the environment Artisanal mining has many negative impacts on the environment because of the mode of operation. We have tried to educate them, but we don't get quick positive responses. Government's efforts led to the establishment of the Mineral Resources and Environmental Management Committee (MIREMCO) to proffer concrete solutions to environmental issues at the grassroots level. There are serious challenges such as environmental pollution, high level of degradation and mines accident that lead to deaths. All these occur mostly in most mining fields and sometimes when there are mine collapses. I am happy that as a result of our enlightenment programs they are beginning to take some safety precautions. Also, the artisanal miners exert pressure on social infrastructure. This happens when there is a new discovery of gemstone or gold in a community and hundreds or thousands of miners converge on the site in search of fortunes. This sudden population over stretches social facilities such as water supply, accommodation and electricity in the community. The unanticipated convergence of such large number of persons also lead to crime. Formalising artisanal mining will make monitoring and regulation easy. Positive side of artisanal mining It provides employment directly and indirectly for almost 3 million people. You see, if an artisanal miner earns as little as five thousand naira in a day, you will realize that by the time you follow him, he has about four to five dependants on that five thousand naira. So economically, he is providing for more than ten persons in the household. That is why we consider that no matter how negative the activity is, there are positive sides to it. Equally, it provides raw materials for the construction industry and local factories. Government's effort? Government has come out with a policy that gives full recognition to the activities of this category of miners and the role they play in the industry. In the Mineral and
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Mining Act, artisanal and small-scale mining activities have been given formal recognition with guidelines on their operations. We also have the report of a baseline study of ASM activities which was conducted in 2008 across the country and about 270 mines were visited. The report with all the necessary base line information is available. The place of regulatory policies The Minerals and Metal Policy of 2008 has streamlined minerals operation in the country as well as mineral regulation.The ministry is holding it as its reference handbook the development of mining. It highlights the content of the Nigerian Minerals and Mining act as it relates to the ASM sector. So, section 34 establishes the Solid Minerals Development Fund to provide fund for extension services while section 90 talks of the activities purely. Section 90 and 91 gives credence to ASM. It further explains the services that government needs to provide free of charge so as to encourage Nigerians to formalize and mainstream. In 2016, and in order to manage the sector effectively, there was a reform of the system in the ministry which established firm institutional instrument for the management of mining activities. We have the Artisanal and Small-scale Mining Department, and other departments like the Mines Inspectorate, Mines Environmental Compliance Department, the Mining Cadastre Office and the Nigerian Institute of Mining and Geosciences in Jos which is to continuously train professionals and skilled manpower for the sector. We are training to entice foreign investors to come in. If you bring foreign investors and there is no trained manpower to meet up with their operational requirement, the tendency is that they will bring skilled labour from outside and then deny Nigerians the opportunity of playing the role we ought to play in the sector. Concept of formalisation Formalisation was basically an idea that involves the process of organizing the artisanal miners. Formalization as a form of classification was a long process which started with small formal elementary sensitization. We started by individually counselling persons on how they can protect their health and environment. We believe that it is important from the beginning of the formalization process to let them agree to merge the various mining groups into larger associations so that government and other institutions can interface with them for necessary support. As we speak, we have registered over 1,400 cooperatives across the country. In a nutshell, the process involves advocacy and sensitization of miners, and their formation into groups to form cooperatives. They are allowed at their own level to levy themselves as cooperatives and also allowed to form their own structure with a chairman, secretary and other officials. Then, they can apply to be registered with the ministry with payment of a token of five thousand naira. Efforts by states During our first ASM meeting in Kaduna, we were told that MIREMCO in the state had gone ahead to group artisanal miners into cooperatives awaiting the next stage of
MinDiver
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registration with the ministry to become formalized. In Ebonyi State, twenty-one cooperatives were formed and have fully registered with the ministry and are operational in the state. So, far these are the two states that have responded. In other states, we encouraged the MIREMCO Chairmen and officers of the ministry in the field to equally toe this path when they discover they have a large catchment of artisanal miners. Our advice to them is simple; go in, interface with them, sensitize them, group them and form them into cooperatives so that they can be registered and easily accessed. We advise that to benefit, get an operative license, fill and register it, come together as a group, form a cooperative, pay the token of five thousand naira to get registered and then you will be issued with a cooperative registered certificate. That leads to the interface between the cooperative and MCO to access the Cadastral Unit (CU) which is the carrot to entice others. Once they are given one CU, that CU becomes the licence into the cooperative and through that model, the marginal phase of tenement holders can be sliced up for them to work and make their operations seamless. Challenges In any activity, there must be challenges. The challenges faced by those of us involved in this formalization process is enormous. The lack of common affiliation, casual and meagre source of labour are all challenges. I have classified Artisanal workers into three categories. They are the resident; that is those from the mining zone and the catchment community. Then there are the nomadic miners that go to where the minerals are. The third category comprise the aliens; which represent our ECOWAS brothers and recently the Chinese. The last two categories are very difficult to track down. But those who live within the catchment zone are always available and can be met at home and any time you intend to get in touch. The nomadic ones are real issues we cannot track them down to any location and register them. They do not show any interest in the exercise. There are many benefits when miners group into cooperatives. For instance, essential services are rendered free of charge and in that process, government provides other services and amenities with complete health and safety gear and they can access it year in year out. Government is also making arrangement for them to be able to access funds with the Bank of Industry. Regular verification For us to be able to get the kind of result we envisage, there is need for regular verification. That is one critical aspect of this exercise. We are doing this to ensure that the list brought to the ministry has a face. Otherwise, individuals can stay in the confines of their homes and form cooperatives that will now rubbish the whole process. So, one physical activity in the formalization is the verification exercise. It is a very important aspect. What are the challenges confronting ASM? Like the Honourable Minister have always said, artisanal and small-scale miners are the pathfinders in this industry. They possess natural instincts with which they use
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to determine mineral occurrences in every location and wherever they are that is where the SMAs will obtain coordinates tactfully since they have seen an activity. They then go a step further by coming to the Mining Cadastre Office, get a vehicle and head to the mine. But of course, when you come to the technological determination of mineral occurrences, they lack that capacity. And they lack information about body of occurrences. Because of that they can continue to erroneously excavate thinking that they will strike minerals somehow. Their operations are based on speculation because they don't have the capacity to acquire any heavy machine. They have no firm legal statute. No financial assets. These are areas the formalisation programme will resolve. Marketing They have issues with their marketing architecture. They don't have direct access to the market but operate mainly through intermediaries. Because of the vicious cycle of poverty, the rich and the money bags take advantage of their ignorance and deny them the huge profit they ought to get to scale up their mining technology. Giving artisanal miners direct access to the mineral market is also a part of the formalisation programme. This will enable them to have maximum benefit from their labour. Need for basic technology The issue of the use of technology is basic to safe and profitable operation. The use of labour intensive method is unsafe, slow and unproductive. The introduction of mechanical operations will make mining at this level safer and productive. Solutions The solution to some of their problems can be achieved through our sustained extension services which involves teaching them new mining methods such as mineral reserve evaluation techniques, mine quarry design and planning, application of model mining technology, environmental impact assessment, health and safety and entrepreneurship. Other areas are bookkeeping and proper accounting methods especially for the newly registered cooperatives. To give miners access to mining equipment, the ministry is taking appropriate steps to establish partnership with private investors to establish equipment leasing facilities. At the downstream level, mineral products are being shipped abroad raw without any measure of value addition. What this means is that everybody involved in the mining process are not making the maximum profit from their sweat because the actual value of what they are exporting has not been determined. So, the current plan is geared towards establishing mineral processing plants in the country to add value so that miners can get the premium for their labour. I want to conclude by stating that a properly formalized ASM sector will boost rapid economic development. However, to achieve our plans to formalize the ASM sector, we will need the collaboration of all stakeholders including agencies like the Bank of Industry, Ministry of Trade and Industries, Customs and Immigration Services and the Academia.
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Cont’d from pg. 2
Agbaja Cast Steel Project to Stop Import of Scrap Steel into Nigeria potential investors can review the information and decide whether it's a good project or bad project, not just financially but practically and physically. The report will include relationships and benefits for the community, government policy, markets, infrastructure and a financial model. Our team and consultants will be busy this year and the truth is, it will take four to five years before any steel can be produced. The feasibility study will take some 10 to 14 months to complete, followed by due diligence by both equity and debt investors over 4-6 months to support project financing before 2 years' construction period and 6 months commissioning. A long process, though that's the vision. You said something about spending ten million US dollars this year, can you give a breakdown? Yes, the company plans to spend approximately US10 million dollars this year as outlined in recent corporate presentations on our website. The presentations summarise in what areas the Kogi Iron/KCM Mining team intends to spend the funds. We have already raised some funds and have started some work, including several community projects. Tell us about the community development projects At the end of last year 2019, the team started several community development projects based on available funds and the existing community development agreement. The Company commends the government of Nigeria in aligning investment policy, granting of exploration and mining licenses, and conditions of development licenses from the ground up via the local community. In this way a company has to sign up early and continue to make the community happy with the company's performance based on the community development agreement.
I think it's a great way to go because the world these days requires that mining developments should be driven socially from the local level so that the whole country can back the project. For a project like ours, it is the whole country that benefits not just the host community. I'm quite proud that we allocated funds at the end of last year and I know we will continue to spend time and funds to support the Agbaja Plateau communities. In what specific area are you spending? We asked the local KCM Mining team based on our Community Development Agreement to ask the community to identify their priorities since there was limited funds in the short term. Based on feedback, we eventually spent funds in three specific areas namely; education, water projects and construction of bridges. There were a variety of bursaries given in the 65 different communities around our project. It is a large area and we wanted a fair, equitable and direct impact in all of the communities. So, 2-3 people from each community on the Agbaja Plateau received a bursary for education irrespective of the population of the community. We also funded a water well in the community identified with the greatest needs, where people walk the farthest every day for water. We also noticed that several bridges on the road up to the plateau needed some repairs, and since it was related to their essential infrastructure, we didn't build a big new road rather we made sure that after the rains it was made good and accessible without danger. Tell us about your opinion on how MinDiver is handling the Prove of Concept Initiative that involves Kogi Iron? The company has only recently started discussions with MinDiver and it's still a bit unclear to
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me where MinDiver needs or wants to spend the World Bank and government funds. I agree that MinDiver should continue to spend funds on capacity building in policy administration and the Mining Cadastre. Personally, I am very comfortable and applaud the government for the MinDiver project and how funds are being spent because it is not all about big projects, but about capacity building across the board and from the grassroots up. In effective administration, you need to have strong policy and administrative systems to support investment in the mining sector. However, it is important that some MinDiver funds are allocated to support important mining projects for the country like the Segilola Gold Mine and Kogi Iron's Agbaja Steel Project. We have heard from and believe the Minister understands that these are two advanced mining projects that are vital and of importance to the country. We all need to freely and often communicate about all aspects of our mining projects and their administration, so that there can be improved understanding and less misunderstandings. We welcome the opportunity to discuss our feasibility study as it progresses, with the government and the public and especially with the local communities. We believe the World Bank and government will see valid reasons via the MinDiver Project to support growth in the mining sector at all levels, from artisanal local miners to small junior companies and to larger foreign mining companies. The company congratulates the government of Nigeria on MinDiver and its many efforts over the last ten years to develop an information data base to be made available and workable for investors. The MinDiver mandate and World Bank's mind set on the funding of community-based projects in relation
MinDiver
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February, 2020
to mining has significant merit and validity. This helps the whole community to understand what impacts and benefits can be realised from the mining industry. Our Company wants to meet MinDiver's charter and ensure best practice in environmental and water management as the first step, not the last. You mentioned something about having 400 million tons of iron ore in your project, what does that indicate? The Agbaja iron ore deposit contains an indicated and inferred resource under the Australian JORC Code classification which means we have an internationally bankable professional number. This is the first well quantified iron ore resource in Nigeria and it has taken some 20 to 30 million US dollars in expenditure over more than 6 years to realise this milestone. So, it's a significant mineral asset the company has defined in this country, and we are happy with the security of our mining titles. With the kind of market you have for this product, yet not thinking of export, what strategy have you put in place to market it locally? Nigeria's steel market is already big enough. Five to ten years ago according to the UN trade database, Nigeria imported approximately 4.7 million tons of scrap steel at a very high price by world standards. Currently, scrap is less available and suppliers do not want to sell to customers in Nigeria even at the highest price. In 2018, steel fabricators in Nigeria only bought about 2.7million tons of scrap steel at very high prices. Every fabricating plant that is buying this scrap and re-melting it to reproduce rebar products is only at 30% capacity. So, Nigeria has current demand, historic demand and latent demand of different scales of 2.7 million tons up to 5 million tonnes per year. The Company has completed a market study of who has the smelters and who could be a
INTERVIEW
customer for our billet. We plan to provide steel billet that is cost competitive and if purchased will improve the capacity of local smelters to grow their businesses. You raised a fundamental issue about confidence and transparency in the system, how far do you want to see that taken seriously? Our Company and any foreign investor want to see Nigeria being internationally comparable and competitive; to some degree, operate with professional and commercial best practices. Nigeria is working towards that and I am very happy. We came in the early days into the mining sector before the current systems and we were asked “are you comfortable with the security of title?� We have been in Nigeria for about ten years now and have managed with the evolving administrative systems, while retaining and progressing our exploration titles to mining titles. I believe the administrative system will further improve and I think things need to be more commercially oriented and timely in application to attract investment. By that I mean a situation where everybody benefits and the foreign investment is supported. What's your take on the erroneous narrative out there that steel is not sellable in the international market? Nigeria is in a unique situation as a big economy with great need. If you go to the western world and to developed countries, companies are closing down steel mills because they are already industrialized, have over-capacity and are not cost competitive. The world is awash with relatively cheap steel. Nigeria is different as it has no domestic steel production and has the right and the need to have a steel industry. At any time in history anywhere in the world, the first steel industry in a country is always supported by Government due to its
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strategic value to the economy. For example, the domestic steel industry in both the USA and China has been and continues to be significantly subsidized. In Australia, we had five steel plants and have closed down three, with the remaining two plants focussed on value added steel products. This is because we are already a developed country with limited demand, whereas Nigeria is different and in fact unique in being a large economy that doesn't have domestic steel production. How do you feel to be the pioneer of a project? Being an exploration geologist by training, the pioneering aspect of a project is what excites me. When people say you can't do it, my answer is that it hasn't been done yet. It could be done and let's work together to get it done. How do you see Nigeria going on production of iron ore? Nigeria has a large and growing demand and it has some iron ore deposits. However, there is no integrated iron ore to steel production. Nigeria's economy and potential for economic growth is dangerously exposed to the poor structure of the domestic steel industry. As such, it is an imperative for Nigeria to produce some steel internally. The Minister talked about the importance of infrastructure corridors, especially a central corridor because it can go east or west and north or south to sell products. So, our company is very lucky to have the Agbaja iron ore deposit located centrally. Back to iron ore in Nigeria, it is important for the geological survey to quantify all the iron ore occurrences and deposits and publish comparative information on which are the good deposits that warrant investment and development, based on sound professional and commercial principles. Our company is happy to be involved in this evaluation process in Nigeria.
MinDiver
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February, 2020
BACK PAGE NEWS
FG set to increase Mining Sector contribution to GDP
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he Minister of State, Mines and Steel Development, Dr Uchechukwu Ogah, has reiterated Federal Government's resolve to ensure increased revenue from the mining sector into government's purse. He said that the ministry is working hard in line with President Muhammadu Buhari's economic recovery plan to increase the mining sector's contribution to the nation's Gross Domestic Product (GDP) from the current less than one per cent to 3 per cent contribution by 2025. Dr Ogah who said this during a visit to the Governor of Niger State, Alhaji Abubakar Sani Bello, explained that the ministry had already embarked on several programs aimed at turning the mines and steel sector into a hub for economic development, wealth creation, revenue and employment generation.
He said it is worrisome that the sector, which at some point in Nigeria's history contributed up to seven per cent to the GDP, now adds less than one per cent due to sustained over-reliance on the oil sector. The minister who also interacted with miners in the state, said he visited the state government to create synergy between the state and the Federal Government on the development of the mining sector, and look at possibilities available that will help to create an enabling environment for sectoral growth. “ I am on a sensitization visit and I know Niger state is one of the key areas in the country with huge mining potentials. We are already sensitising investors on the mining potentials in Niger state, and we want the governor to help the ministry preach the gospel. The ministry is aware that the state government can help the miners to
'Coal to Power Project can Trigger Rapid Industrialisation'
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hief Executive and Managing Director of MOSRA Energy Limited,Chief Olukayode Ramos, has stated that Nigeria's coal resources if well developed can generate adequate power for the country and trigger accelerated industrialisation and job creation. He said MOSRA Energy Limited, developers of Nigeria's coal resources is working on exploring the very many opportunities that abound in the coal to power concept. Mr Ramos said the company is developing a coal mine project in Aniocha North LGA of Delta State, covering four different communities of Ukwu-Nzu, Obomkpa, Ugboba and Ugbodu with the site located about 5 kilometer off Benin – Onitsha highway. He described the coal to power project as a great economic opportunity in Nigeria, he said the asset has a life span of not less than 25 years. Chief Ramos said coal was one of the cheapest commodities needed to produce power and the country given its numerous development challenges should focus on the development of this resource.
'Our coal to power project is targeted at supporting the plan towards industrialisation. We have completed all conceptual mine design, equipment options, scheduling and waste management plan. Pit design is also completed and the PFS will be completed this March ending, with JORC also scheduled for completion this month. We have ongoing Community Development Agreement and ESIA with the host communities and our company has continued with exploration activities in the remaining coal license blocks within the area to increase reserves.' ‘The Project is going to be located in Ugbodu, in Delta State while power is going to be mined from the deposits in the Ukwu-Nzu, Obomkpa, Ugboba and Ugbodu communities. All these four communities are located within the same area of about 5km radius. The land has not been prone to settlements or flooding within the last 100 years and is close to Onitsha and Asaba Power Station.'
Dr. Uchechukwu Sampson Ogah Minister of State, Mines and Steel Development
create the enabling environment to surmount the security challenges they are facing. “I want to say here that it is not only royalty and derivation that is the benefit, if we come together, we can build a stable economy we develop the mining sector and can end our over reliance on the oil sector. The state can invest in the mining sector. We are ready to work with the states and local governments since we cannot achieve our target without the support of all the tiers of government.” Governor Sani Bello of Niger State expressed his agreement with the minister on the need for synergy between the federal and state governments so as to address most of the challenges militating the growth of the sector. “With synergy we will be able to share ideas. No doubt, insecurity is a major challenge, and unfortunately today, mining sites have become terror sites. I have had sleepless nights because of the migration of illegal miners into the country through the state. And it is sad that both federal and state governments are not getting revenue out of the extensive mining activities being carried out by unregistered miners and illegal immigrants. Collaboration and synergy is key to tackling the challenges in the sector. We should share information on the activities on mine sites and work out common strategies to tackle the problems ."