FGN mulls banning direct buying of minerals from mines

FGN mulls banning direct buying of minerals from mines

Story from Abah ADAH, Abuja

The Federal Government of Nigeria (FGN) may ban the purchase of minerals directly from mining sites across the country.

The hint was dropped on Thursday by the Minister of State for Mines and Steel Development, Senator Gbemisola Saraki, in her special address at the Nigerian Society of Mining Engineers’ 21st Annual General Meeting (AGM) and International Conference in Abuja.

The theme of this year’s Conference, Sustainable Mining in Nigeria: Prospects and Challenges”.

Highlighting some critical initiatives being pursued for the promotion of mining activities in Nigeria in line with the expectations of the present administration from the sector, the Minister noted that one of the major challenges facing the effective viable operation of the registered MBCs (merchants) was that mineral traders (Local/Foreign) are allowed to purchase mineral products directly from the mine gate.

“We are currently considering the proposal for a ban on direct mineral purchase from the mine to promote patronage for the registered MBCs. We solicit inputs of the society in this regard as we finalise the concept,” Senator Saraki said.

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She also hinted that the ministry had observed the serious challenge in the transportation of bulk solid mineral products within the country and exit seaports and is making efforts to ameliorate the challenge.

“The ministry is already finalising discussions with a Deep Seaport concessionaire for the designation of the port as a solid minerals port in Nigeria. The discussion is also to engage with the Federal Ministry of Transportation for the development of rail links within the mineral corridor for bulk haulage of mine products. This will reduce the cost of mine haulage and improve the viability of many mine projects within the corridor, the Minister said.

Other initiatives equally receiving critical attention, according to her, include, but are not limited to: Bitumen Block Auction, Barite Mining and Processing, Sustainable Mining in Nigeria, and addressing the Challenge of Illegal Mining Activities.

She said the ministry’s confidence in the realisation the government’s vision and goal for the sector is “predicated on Nigeria’s position as one of the largest economies in Africa with a GDP of $514.05 USD, a population of over 213Million people, over 57% economically active population, endowed with over 44 different minerals resources in commercial quantities amongst many other fundamentals.

“The federal government’s strategic policy direction on mining focuses on the following key priority areas: Streamlining application processes and significantly increasing private sector investment in mining, ensuring orderly and efficient mining of the 7 priority minerals in the mining roadmap (Coal, Bitumen, Limestone, Iron Ore, Barites, Gold and Lead/Zinc Ore and now Lithium), strengthening collaboration with state governments and relevant security agencies to ensure sustainable security and safety of mining areas, introducing incentives to improve the investment climate for mining activities, stamping out illegal mining and formalising artisanal and small-scale mining activities across the country, and collaboration with the private sector to create a large number of well-paying jobs for Nigerian youths”.

She enjoined all stakeholders to ensure that mining in Nigeria is made a sustainable business venture, even as she solicited inputs from the Nigeria Society of Mining Engineers towards fashioning an actionable framework for the realisation of sustainable mining initiatives in Nigeria.

Speaking, the President of the Nigerian Mining and Geosciences Society (NMGS), Surv. Alabo C.D. Charles said the NMGS would continue to support the Nigerian Society of Mining Engineers (NSME) as it drives mining innovations under the umbrella of NMGS, urging all professionals to put their hands on the plough to ensure sustainable development of the all-important sector in the interest of the collective and inclusive prosperity in the country.

He said, “Our professionals should be poised to expand their roles and lead in finding sustainable solutions for modem socio-economic challenges through robust mineral resources development programmes. Minerals and Mining incentives covering financial, fiscal, and regulatory should be continuously employed by governments at all levels to stimulate the sector.

“With mining in Africa on the rise and with more and more interest from international companies and investors, there is a need to further identify and understand business practices which can bring shared benefits for companies, the communities, and our Nation.”