Why All Eyes Are On The Solid Minerals Sector

• As Minister, DELE ALAKE Is Turning Things Around

 

Unknown to many people there is a lot happening in the Solid Mineral sector right now. Over the last one year, that sector has witnessed a lot of transformation, courtesy of the Minister of Solid Minerals Development, Dr. Oladele Alake.

Since he stepped in he has done a lot. On a daily basis he has been moving round the country to tackle the challenges he met in that sector.

Below are the impactful achievements that the Renewed Hope Manifesto of President Bola Ahmed Tinubu, and our great party, the All Progressives Congress has recorded in the Solid Minerals Sector which Dele Alake superintends over as the Minister of Solid Minerals Development.

 

ROLE AND MANDATE

The Role and mandates of the Ministry are as follows:

• Ensure the orderly and sustainable development of Nigeria’s mineral resources
• Develop the minerals sector to contribute to the industrialisation of Nigeria
• Create an enabling environment for private investment, both foreign and domestic by providing adequate infrastructure for mining activities and identify areas where government intervention is desirable in achieving policy goals and proper perspective in mineral resources development.
• Accelerate the development of technical and professional manpower required in the Minerals sector.
• Generate revenue for Government through collection of fees, royalties, taxes.
• Provide information and knowledge for enhancing investment in the sector working with security institutions to ensure safety and security in the sector through strict monitoring of movement and usages of explosives.

 

PRESIDENTIAL PRIORITY

In operationalising the Manifesto, the Presidency identified 8 (Eight) Key priorities. These were issued by the Office of the Secretary to the Government of the Federation on January 15, 2024. With its vision on the diversification of the economy as the guiding principle, the Ministry of Solid Minerals Development was identified as a critical machinery for achieving Priority Number 4:  To Unlock energy and natural resources for Sustainable Development.

 

THE SEVEN POINT AGENDA AND DELIVERABLES

You may recall that in June, 2023, Mr. President appointed me as his Special Adviser on Special Duties, Communications and Strategy. The appointment provided a historic opportunity to participate in the strategic conversations on how best and how fast our new administration could redeem the promises of Renewed Hope that the Nigerian people voted for. We were guided by our experience in Lagos State where Mr. President was the Executive Governor for Eight years, between 1999 and 2007, and ran a mass-oriented, grassroots-based popular democracy marked by the vigour to create wealth and the rigour to spread state welfare to the poor and underprivileged.

It was in the course of those discourses that it became clear that the task of unlocking the wealth underground that the Solid Minerals Sector held had to be assigned to a trustworthy goal-getter and person of integrity who could sanitise the sector and transform its hidden potentials to become a sustainable base for wealth creation.

I thank Mr. President for reposing such a great trust in me by saddling me with the assignment and assure the Nation, that, with our hands on the excavators, crushers and drillers, we are mobilising the men, the intelligence, the strategy and the material to leave a worthy legacy that future generations will admire.

Such a commitment required the development of a critical path, a roadmap, a strategic trajectory for the resurgence of the sector to resume its role in capital formation and wealth generation.

In September, 2023, following a comprehensive review of the state of the industry and the implementation of the existing roadmap, we announced the Seven Point Agenda. The components are (

(i)Establish the Nigerian Solid Minerals Corporation (ii)Joint Venture Partnership with Mining Multinationals (iii)Gathering the Big Data (iv) Promoting International Investment (v) Securing the Investment Environment with Mines Surveillance Police and Technology (vi) Formalisation of Artisanal Miners into Co-operatives (vii) Socio-Economic Development of Mining Communities

Following the adoption of the Seven Point Agenda by the Federal Executive Council and recognition of its therapeutic impact on the national economy by the office of the Secretary to the Government of the Federation, these components have been broken into 18 deliverables which form the Contract between the Ministry of Solid Minerals and the Presidency.I hereby present the progress report of the Agenda encapsulating the deliverables.

 

(1) ESTABLISHMENT OF THE NIGERIAN SOLID MINERALS CORPORATION

The Ministry initiated the necessary legislative framework for the establishment of the Nigerian Solid Minerals Development Corporation through the proposal seeking budgetary provision for approval in the 2024 budget. The Ministry is grateful to the Committees on Solid Minerals Development in the Senate and the House of Representatives and other committees of the National Assembly whose passionate commitment to our collective vision made the approval possible.

Furthermore, in February, this year, the House Committee on Solid Minerals Development chaired by Hon. Gaza Gbefwi organised a policy dialogue on the draft bill to set up the NSMDC. This three-day robust discourse shed more light on the vision and mission of the NSMDC as a private-sector driven corporation that will be structured to have not more than 25 percent government shares, 25 percent shares to be held by the public and 50 percent of the shares by private investors.

While we are co-operating with the legislative committees, the Ministry has commenced the process of incorporation with the target of bringing the corporation on stream by the fourth quarter of 2024.

The vision of an efficiently-run institution which we are applying to the formation of the SMDC is already manifest in the supervision of two key agencies of the Ministry: the Mining Cadastral Office, MCO and the Solid Minerals Development Fund.

 

MINING CADASTRAL OFFICE

The MCO, mandated to administer the issuance of mining licences, has been repositioned in the last 12 months to improve service delivery and increase revenue generation. The eMC+, the application software has been modified to cope with challenges. The modifications include completion of e-Recording and Archiving of Mineral Title documents; Completion of Acquisition, Geo-referencing and Geocoding of Topographic Maps of Nigeria for integration into the Mining Cadastre Digital Database and the Completion of Production of Thematic Mapping of Mineral Title Restricted (Protected) Areas for integration into Nigeria Mining Cadastre Digital Database.

The efforts to sanitise its operations led to two revocation exercises. The revocation 1,619 titles that defaulted in payment of their Annual Service Fees and 912 dormant (inactive) mineral titles.

These measures have led to increased confidence in the system and more applications. Within the period under review, the Office received 10,534 applications out of which 4,651 applications were received unassisted Online submissions while, 5,883 was MCO Online assisted submissions.

Also, a total of 3,177 companies submitted Mineral Title applications for both new Titles and modification of existing Titles. Of these companies; 3,084 were local companies while 93 were companies with international affiliations. In the month of April 2024, not less than 559 new applications were received via the eMC+. The MCO issued 40 new Exploration licences, 71 new Small Scale Mining Licences and Four new Mining Leases.

These figures show significant increase in investment into the sector. These licensees have gone to start and commenced operations. In the last one year, not less than 258 new operational Mining and Quarrying Companies employing over 9,030 people have commenced operations. Compared with 134 new operational Mining/Quarrying Companies with 4,690 employment generation in the corresponding period 2022/2023, 126 more companies have joined and are providing jobs for 4,340 more persons.

The quantum leap  in applications and operations  have led to more revenue, surpassing the figures recorded in the previous years by 59.6 per cent. According to the figures, revenue generated in the period under review is N6,203,536,161.00 over N3,886,953,950.00 generated in the corresponding period from May, 2022 – April 2023.

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.  This comprises  collections from Royalty and Fees. This shows an achievement of the sum of N6,746,317,807.09 as surplus surpassing the target.

The Ministry 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. 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.

 

(2) SOLID MINERALS DEVELOPMENT FUND AND JOINT VENTURES

The Ministry through Solid Minerals Development Fund (SMDF) partnered with GeoScanGmbh to Advance the Exploration and Development of Nigerian Critical Minerals Resources using Innovative Proprietary Technology. It has also entered an agreement with African Finance Corporation to raise Project Development Facility to fund companies facing the challenge of raising capital to execute their early-stage exploration projects. No fewer than 20 candidates have been shortlisted and are undergoing the training to prepare to manage their portfolio efficiently.

Another initiative of SMDF is its partnership with the global exploration agency, XCalibur. Both are working together to advance Nigeria’s geological data capabilities. The SMDF is the face of the Ministry as the partner of choice for international mining companies. It mobilises capital for critical and strategic mining projects, attracts foreign direct investment and fast-tracks the delivery of  Final Investment Decisions.

 

(3) GATHERING

OF BIG DATA

The most critical precondition for the real take-off of the sector is the gathering of precise geological data. An investor is not just interested in the location of a particular mineral. Without robust, precise, and accurate data internationally authenticated by the geoscience community and transparently published for easy verification and adoption, international investment will be a pipe dream. The Ministry proposed a N70 billion Exploration Project to scale this hurdle. Although it was not accommodated in the current budget, we shall continue to make a strong case for this project as the elixir to the pains of mineral exploitation in Nigeria. Hopefully, discussions with Geo Scan, XCalibur and other international partners might prove useful to the dream.

The Nigerian Geological Survey Agency, NGSA, despite limited funds. continues to engage in research to unravel the mineralogy of the Nigerian landscape. In the year under review, it performed the following feats:

(i) Geo-Information and Archiving of Data (ii) Digitization, and archiving of NGSA legacy data for Geodata Centre (Aerial photographs, maps, Bulletins) Phase 2 (iii)        Production of digital geotourism map and database of the south west geo- political Zone of Nigeria.

(iv) Regional mapping on 1:100,000 scale of the following sheets:  Baro (205), Gulu (206),  KotonKarfe (227),  Aiyegunle (226),    Yashikera (157) Okuta (v) Geochronological sampling/mapping of Age dating and mineralization potential of the Kalangai-Zungeru-Ifewara Fault zone, SW Nigeria Phase 2

(vi) Mettalic Mineral Exploration Data Gathering :  .Jebba (Sheet 181), Niger and Kwara states ;

(vii) Geochemical Mapping of Lafiagi sheet 203 in Kwara state

(viii)   Geological enhancement and development of Lithium, Tantalum, Niobium, Nickel, Chromium and Cobalt  (ix) Pegmatites mapping for Lithium mineralization in Bauchi, Gombe, Taraba and Adamawa state (x) Assessment of Kaolin around Kaoje in Kebbi and Kutegi, Niger StateTo Kee

To keep its researchers in shape, the NGSA, in this period under review organised the following training programmes: (i) Capacity Building on Hydrogeochemical Mapping (ii) Training Course in Sedimentological Techniques for Data Collection, Analysis and Presentation

(iii) Basic training on documentation and archiving of aerial photographs in NGSA Kaduna for Geodata Centre.(iv)            Training programme on effective corporate communications strategies and geoscience information document management tools (v)   Workshop on advanced data collection analysis and interpretation for policy making (vi) International training on ICP-MS operations systems optimization and instrument calibration routines. (vii)            Training on Laboratory safety, hazards, disposal of hazardous substances and risk management. (viii)            Training on the application of laboratory information management systems (LIM (ix)         Capacity Building on Monitoring and Evaluation (x) Capacity Building on techniques and tools of project management Equipment is critical to data gathering and analysis. Since the inception of this Administration, the NGSA acquired the following equipment. These include:

(i) Procurement of Laser Induced Breakdown Spectroscopy (Libs) Analyzer. (ii) Provision of additional all-in-one solar security light and maintenance /repairs of the existing ones at NGSA HQ and Earthquake Monitoring Centre, Katanpe. (iii) Installation of Thermo Scientific iCAPQnova Series Triple Quadrupole Inductively Coupled Plasma Mass Spectrometer (ICP-MS) at NGSA HQ. And (iv)     Installation of Thermo Scientific TRACE 1600 Series Gas Chromatograph at National Geosciences Research Laboratories (NGRL), Kaduna

 

(4) PROMOTING INTERNATIONAL INVESTMENT

The Investment Promotion and Mineral Trade Department has spearheaded a series of initiatives to catalyse investment, promoting sustainable development, and enhancing international cooperation within Nigeria’s mining sector. The department’s achievements during the period from May 2023 to May 2024 include:

(i) Hosting the Africa Natural Resource and Energy Investment Summit (AFNIS) 2023.

(ii) Nigeria Mining Week 2023: (iii)   Technical Cooperation with Australia at the Africa Down Under Conference in September 2023, Perth – Australia. (iv)      Engagement of prospective investors and partners, including British Deputy Prime Minister Oliver Dowden, the Commonwealth Secretariat and the United States Assistant-Secretary for Trade Jefferey Pyattat the Mines and Money Conference in London: (v) Establishment of Africa Minerals Strategy Group (AMSG) and Election of Nigeria as the pioneer Chairperson of the Group at the Future Minerals Forum in Riyadh-Saudi Arabia, January 2024 (vi)          Engagement of stakeholders and adoption of the AMSG at the Indaba Conference in February 2024, Cape Town- South Africa (vii) Launch of Nigeria Mineral Resources Decision Support System (NMDSS): the Nigeria Mineral Resources Decision Support System (NMRDSS), a cutting-edge marketing strategy designed to enhance the ease of doing business in the solid minerals sector. This innovative platform leverages data-driven insights and streamlined processes to attract investments, facilitate informed decision-making, and drive sustainable growth within the industry.

(viii) Groundbreaking Ceremony for the Lithium Processing Plant Projects in Abuja in the Federal capital Territory and Nasarawa State.

(ix) The Policy of Value Addition canvassed by Nigeria at local and international fora is gaining traction as more companies are expressing interest in the pit to processing value chain by setting up mineral processing centres. Similarly, the AMSG has adopted Value Addition as a policy for execution.

 

(5) SECURING THE INVESTMENT ENVIRONMENT WITH MINES POLICE AND TECHNOLOGY

The inauguration of the Mining Marshals, introduction of various technologies to monitor activities at the mines and sensitisation through the Mass Media are three prongs in a determined and unprecedented onslaught against illegal mining.

The scourge of illegal mining violates the legal restrictions against mining in public institutions such as national parks and educational institutions, religious centres or community properties.

The Mining Marshals, 60 in each of the 36 states and the Federal Capital Territory totalling 2,220 personnel, have brought instant succour to investors who, hitherto, watched helplessly while their cadastral units were pillaged by bandits and illegal miners. Many investors are besieging the Ministry with desperate requests for intervention and we are responding with appropriate rapidity.

Efforts to improve the kit and armoury of the Mining Marshals will enable us to increase the fleet, expand the field of operations and combat effectively the rarely restricted operations of illegal miners.

The expected impact is that more miners will resume legal operations, increase mineral exploitation, pay appropriate royalty and encourage more investors to come, convinced of the security of the mining environment and the establishment of Law and order.

Also, the establishment of the Marshals has enabled the Mines Surveillance teams to concentrate on intelligence gathering to track and monitor illegal miners for apprehension and prosecution. This, indeed, is a major achievement of the Administration, as records show that no fewer than 133 persons are currently being prosecuted for illegal mining notably in Cross River, Kogi,  Oyo, Gombe, Taraba and Niger States.

 

(6) FORMALISATION OF ARTISANAL MINERS

The honourable option for illegal miners in Nigeria today is to co-operate with the government by joining co-operatives and following the good examples of others who have abandoned their evil ways and become legitimate miners. Recall that on the occasion of the declaration of the Seven Point Agenda, I gave illegal miners 30-day deadline to join co-operatives. This was later extended to 60 days. It is gratifying to note that between September 2023 and March, 2024, the Ministry registered 152 new co-operatives.

Our plan to gather more data on miners by collaborating with federal and state government agencies and serious expansion of our field services to persuade thousands of illegal miners to follow the path of the Law will enable us to multiply the current figures and develop a mass co-operative movement in the Mining Sector that sees the Government as friendly allies in the efforts to protect the environment.

Through the formalization of the ASM, the Ministry has facilitated the creation of 70,650 jobs for our youths.In the last one year, the department has facilitated the establishment of 343 mineral buying centres across the country.

 

(7) SOCIO-ECONOMIC DEVELOPMENT OF MINING COMMUNITIES

The ministry under my leadership has encouraged communities to form committees to negotiate community development agreements which address the concerns of their members on compensation before exploration, employment during exploration, quarrying, and mining and sustainable community socially responsible programmes during and after rehabilitation of mined sites. Officials of the Ministry have been mandated to prioritize this and facilitate the appropriate appropriation to maintain peace and harmony in the communities.

The ministry under my leadership has encouraged communities to form committees to negotiate and sign community development agreements which address the concerns of their members on compensation before exploration, employment during exploration, quarrying, and mining and sustainable community socially responsible programmes during and after rehabilitation of mined sites. Officials of the Ministry have been mandated to prioritize this and facilitate the appropriate appropriation to maintain peace and harmony in the communities.

The Ministry in collaboration with African Centre for Leadership, Strategy & Development (Centre LSD) on 16th November, 2023 unveiled the 2023 Revised Guidelines for the Production of Community Development Agreements (CDAs) in the Solid Minerals Sector. The Ministry has also directed that the CDA must be signed before the commencement of mineral exploitation in any community.

The availability of the CDA Guidelines to operators has led to increased number of approvals. During the period under review, 35 were approved, making it a total of 269 so far since inception. This has improved the relationship between Mining Operator and their respective Host Communities resulting in reduced conflicts and youth.

 

CONCLUSION

Gentlemen of the Press, There is a saying that the past is a story told, the future can be written in gold. This is my conclusion when I reflect on  the achievements accomplished and the vision that lies ahead all of us. Like all sectors of the economy, there has been no dull moment in grappling with the challenges posed by the various forces within the sector. At the recent retreat of the Ministry, we rededicated ourselves to the task ahead by developing the change mindset that encourages everyone to be agents of transformation. As the common saying goes, tough times never last; tough people do.

Thank you for listening.

RENEWED HOPE: ACTUALISING A BETTER NIGERIA IN THE SOLID MINERALS SECTOR

A presentation by the Honourable Minister of Solid Minerals Development, Dr. Oladele Alake at the Sectoral Updates Series to mark the First Anniversary of President Bola Ahmed Tinubu Administration at the National Press Centre, Radio House, Abuja on May 23, 2024.

 

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