Mining Sector Has Been Reformed with the use of a roadmap formulated in 2016 to create a very friendly business environment for the growth and development of the mining industry in the country says the Minister for Mines and Steel Development Architect Olamilekan Adegbite.
The Minister while delivering his welcome address during the 5th Annual Nigeria Mining Week tagged titled “Seven Compelling Reasons to Invest in Nigeria’s Mining Sector, held virtually told participants that the country is endowed with over 44 different mineral types occurring in commercial quantities in over 500 locations across the 36 states and the Federal Capital Territory which according to him broadly cut across the various mineral spectrums.
While saying that seven minerals have been selected for immediate development, he also added that a forward-thinking approach has been adopted to develop the strategic minerals of the future that include minor metals such as titanium and cobalt, which are vital to futuristic industries such as telecoms and electric vehicle manufacturing.
Arc. Adegbite gave the list of the 7 minerals to be developed immediately as coal, iron ore, bitumen, gold, limestone, lead-zinc, and barite out of the 44-mineral endowment established in the country.
Barite, kaolin, gypsum, feldspar, limestone, bitumen, lignite, uranium gold, cassiterite, columbite, iron ore, lead-zinc, and copper were mentioned by the Minister as some endowments in terms of Mineral resources found in Nigeria.
He also included construction mineral types such as granite, gravel, laterite, and sand as well as precious stone varieties such as sapphire, tourmaline, emerald, topaz, amethyst, and garnet, just to mention a few.
The Minister told investors who participated in the virtual meeting that the long list of mineral endowment clearly demonstrates its wide spectrum which offers limitless opportunities for exploitation, job creation, revenue growth, and economic development for the country.
Arc. Adegbite made it clear that scaling up the capacity of the sector, transforming it into a strategic catalyst for domestic growth while also achieving a high level of global relevance remains a focal point which the ministry adhered to religiously to unlock the potential in the sector.
In July 2021, the Ministry successfully hosted a virtual meeting with the 774 local government chairmen, chaired by the Vice President, Prof. Yemi Osinbajo to ensure that in line with the Presidential mandate and resolve to diversify the economy, wean off the country’s dependence to the hydrocarbon sector, the Minister said the ministry has continued to work hard to increase the revenue generated from the sector and its contribution to the national GDP.
According to him, the event was part of the mandate to develop the sector, create opportunities for both local and foreign investors to exploit the various minerals occurring in each local government area to create jobs and empower members of the local host mining communities.
He also said the recently launched Made in Nigeria Barite in Port Harcourt, was part effort towards the development of industrial minerals adding that the initiative is expected to spur the promotion and growth of local content, which will boost the economy with a corresponding increase in revenue.
The initiative is also expected to not only put Nigeria on the radar of the global mining communities but also save the country about $300 million in annual importation costs, thereby creating employment opportunities for the teeming population.
The Ministry has commissioned an open marketplace portal that will connect all stakeholders along the barite value chain to a hub that allows for easy coordination, stocking, effective costing, and seamless sale of barite while adhering to the ease of doing business initiative of the federal government.
One pilot project per geopolitical zone has also been initiated to enhance local content along the mineral value chain in line with the ministry’s mandate to fast-track mineral processing in the country using a cluster approach.
Each cluster is expected to be equipped with modern equipment and technologies to support a network of miners, processors, skills development providers, logistics providers, etc.
An Artisanal and Small-Scale Mining (ASM) Remote Sensing Monitoring System to regulate and support ASM activities has also been adopted.
The Nigeria Integrated Exploration Programme -NIMEP, a strong geoscience base to enhance the competitiveness as a world-class mineral exploration destination that foreign investors would find attractive has been adopted and the geoscience information is expected to help in de-risking the sector.
Target minerals under the first phase of the NIMEP include gold, lead, zinc, iron ore, and rare metals, among others. Delineated areas will be partitioned into blocks and transparently concessioned to financially competent investors.
Also commenced by the Ministry is the process of retrieving Nigeria’s colonial geological data from the United Kingdom by engaging the British Geological Survey -BGS to build a national electronic geo-data archiving management system to be called the Nigerian Geo-data Center at the Nigerian Geological Survey Agency -NGSA.
According to the ministry, NGSA would provide easy access to geoscience data for prospective investors on potential areas to target for exploration and mining within and outside Nigeria.
The BGS will also integrate the historical geo-data of Nigeria into NGSA and the National Steel Raw Materials Exploration Agency (NSRMEA) into the system.
The Mining Cadastre Office -MCO has been repositioned to promote transparency in mineral title administration. The processes have been streamlined to enable investors to apply online and obtain licenses and leases within and outside Nigeria.
The establishment of MCO offices in the six geo-political zones in Jos, Enugu, Ibadan, Kaduna, Maiduguri, and Benin has been mapped out.
Revenue drive perspective, from MCO, has demonstrated marked improvement despite the challenges of the pandemic growing revenue from N2.3 billion in 2020 to N3.88 billion in 2021 as of October 31st, with two months still remaining in this year to achieve higher revenue.
The Minister said the secret of the sudden jump can only be attributed to the introduction of the “First Come, First Served” and “Use it or Lose it” approach in the licensing administration.
He also added that the approach has helped to re-organize, eliminate speculators, and led to the revocation of about 1,566 mineral titles thus activating many dormant licenses and increasing revenue inflow into the treasury.
Nigeria’s minister for Mines and Steel Development, Architect Olamilekan Adegbite, also disclosed that the institutionalized business-friendly incentives to further make the Nigerian mining sector more attractive to foreign investors include:
- Customs and import duties waiver for plant, machinery, and equipment imported for. mining operations
- Tax holidays of between three to five years as applicable.
- Free transferability of funds and permission to retain and use earned foreign exchange
- Capital allowances of up to 95% of qualifying capital expenditure
- Deductibility of Environmental Costs (money meant for environmental remediation will be tax-free)
- 100% ownership of mineral properties.
He further added that the gold sector has been made more compelling for investors by building a gold ecosystem that nurtures value across the entire value chain.
Through the ongoing Presidential Artisanal Gold Mining Initiative (PAGMI), the ministry is organizing, formalizing, and equipping artisanal and small gold miners (ASGMs) in Kaduna, Kebbi, Osun, Niger, Ebonyi, Sokoto, Gombe, and Ekiti States.
The Segilola gold project, which is the first large-scale high-grade gold project owned by the London Stock Exchange, located in Osun State, has begun the production of gold while two gold refineries, Kian Smith and Dukia Gold and Precious Metals Refining Company Limited, are currently being built to increase the value of gold in the country for the benefit of all stakeholders.
Arc. Adegbite rounded up his keynote address by urging those who are still dithering about investing in the Nigerian mining sector to take the leap and that Nigeria provides one of the highest rates of return on mining investment as the minerals, he said are closer to the surface, conferring the advantage of lower cost of production when compared to other mining jurisdictions.
