Achievements Of Solid Minerals Sector In 365 Days

In efforts to drive the economy aside oil, the Minister of Solid Minerals Development, Dr. Dele Alake on assumption of office in August last year, launched a 7-point agenda to tackle the hydra-headed challenges bedevilling the sector whilst bequeathing an efficient governance structure that will not only attract more investors but captivate the interest of international big players.

The creation of the Nigeria Solid Minerals Corporation, which topped the 7-point agenda, conceptualised to be a Special Purpose Vehicle (SPV) for the mining sector is still at the planning stage.

The new corporation is to be private sector driven with a proposed 50% equity reserved for a consortium of private sector players; 25% for the Federal Government and 25% for members

The ministry has also put in place a machinery to partner the National Assembly through the House of Representatives Committee on Solid Minerals to amend the 2007 Nigeria Minerals and Mining Act, NMMA, to enact the requisite statutes to give legal teeth to the new corporation.

Alake formally received a contingent of the newly activated “Mines Marshall” from the Nigeria Security and Civil Defence Corps (NSCDC) under the Ministry of interior.

The 2, 220 Mines Marshall who were specially trained by the military has a command structure of an initial 60 operatives deployed to each state of the federation and the FCT, and under the operational control of the Ministry of Solid Minerals Development.

It is pertinent to note that the mines marshal is the first layer of the security apparatus deployed to secure mining sites and grow productivity.

Aside from the infusion of technology into the operations of the new outfit and the potential addition of more operatives from sister agencies like the Nigeria Police, other levels of security operations that will rout entrenched economic saboteurs and illegal miners is in the offing.

Data generation also received the attention of the minister, as a draft of partnerships through the Solid Minerals Development Fund (SMDF) to unlock the requisite financing for generating Big Data on the minister’s eight (8) priority minerals ( gold, baryte, iron-ore, lead/zinc, coal, limestone, bitumen and lithium) and their deposits have being actualised.

One of such is the MOU with a German firm, GeoScan GmbN, late last year, for the deployment of cutting-edge technology that will be able to carry out exploration up to 10,000m below the surface of the earth.

The Solid Minerals Development Fund, SMDF, entered collaboration with the African Finance Corporation (AFC), as an innovative way for the ministry to devise means to unlock the needed capital for exploration of critical minerals. This was crucial to attract international big players as the generated big data will guide them in making informed decisions about investing in the mining sector value chain.

In order to free up space for more serious minded and genuine investors in the sector, Alake revoked 2,557 licences due to default in payment of annual service fees.

Artisanal miners were therefore given a 30-day ultimatum on Alake’s assumption of office to form artisanal cooperatives which has since yielded fruits as about one hundred and fifty (150) cooperatives and counting, have been formed, which will not only enable government to formalise their operations but also track due royalties and taxes accruable to the federation.

Not many also know that the minister last year, launched the revised guidelines for Community Development Agreements (CDA) which aims to ensure host communities derive maximum benefits from operations of mining companies while due royalties accruable to government are secured for economic development.

Similarly, two committees, one ministerial and the other technical, were inaugurated to develop a blueprint to enable Nigeria effectively harness its estimated 42b barrels of Bitumen deposits, to which already, investors that won the first round of Bitumen blocks bids are set to get to work.

To this end, Eighteen (18) investors were granted bitumen exploration licenses while sixteen (16) won mining licenses, respectively.

On the international scene, the progress being made and the renewed vigour in projecting the sector since the advent of the President Bola Tinubu administration has not gone unnoticed as just recently, on the sidelines of the Future Minerals Forum (FMF), in Riyadh, Saudi Arabia, Alake was unanimously elected the pioneer chairman of the African Minerals Strategy group (AMSG).

The AMSG, a body of African Ministers of Solid Minerals/Mineral Resources has taken up the gauntlet as the prime mover of the continent’s new bargaining chip of value addition as against the age-long practice of mere extraction or carting away of unprocessed solid minerals.

Consummating his role at the “Invest in African Mining Indaba”, Cape Town, South Africa, Alake rallied his colleagues towards putting in place concrete policies and legislations in member countries to make value addition mandatory for prospective investors.

Other aspects of the 7-point agenda like creation of six (6) mineral processing centres to focus on Value Added Products and Joint Ventures with Mining Multinationals is a work in progress which is expected to come on stream after the new solid minerals’ corporation becomes operational.

Recently, the Minister unveiled the Nigerian Minerals Resource Decision Support System, NMDSS, aimed at helping investors make informed decisions in the sector.

The NMDSS is a comprehensive software platform that serves as a one-stop shop for investors seeking credible and decisive information on Nigeria’s mineral resources, facilities and infrastructure.

Statistics from the mining Cadastral office indicated that the nation through the solid minerals sector has generated over sixteen billion naira between May 2023 to April 2024. this comprises collections from Royalty and Fees which shows an achievement of the sum of over six billion naira as surplus surpassing the target of N10,566,635,560.24.

The Ministry generated and collected the sum of over Fourteen Billion naira as at the year ended 31st December, 2023 which represents 72.1% positive variance and 172.1% performance when compared with the annual budgetary target of N8,680,197,621.00 for year 2023.

This sums were gotten from collections from royalty and fees made by companies and mining title holders and a total of Sixteen Billion, Three Hundred and Ninety – Five Million, Six Hundred and Forty Thousand Seven Hundred and Seventy – One Naira Fifty-Eight kobo (N16,395,640,771.58) was generated from May, 2023 to April, 2024 against the total target of N10,566,635,560.24.

The Ministry also generated and collected the sum of Fourteen Billion Nine Hundred and Thirty – Eight Million One Hundred and Sixty – Four Thousand Three Hundred and Thirty – Five Naira Forty – Three Kobo (N14,938,164,335.43) as at the year ended 31st December, 2023 and this represents 72.1% positive variance and 172.1% performance when compared with the annual budgetary target of N8,680,197,621.00 for year 2023.

Alake in less than one year has proven to be adept at reimaging the mining sector, literarily turning it overnight to be the most sought-after for local and foreign investors.

By Georgina Humphrey, Edited By Grace Namiji