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2009 MINISTERIAL PRESS BRIEFING BY THE
HONOURABLE MINISTER OF MINES AND STEEL DEVELOPMENT
MRS. DIEZANI ALISON-MADUEKE ON THURSDAY 8TH
OCTOBER, 2009 AT THE SHEHU MUSA YAR’ADUA INTERNATIONAL
CONFERENCE CENTRE, ABUJA
The
Honourable Minister of Information and
Communications,
The Honourable Minister of State, Information and
Communications,
The Distinguished Chairman & Members of the Senate
Committee on Steel,
The Distinguished Chairman & Members of Senate Committee on
Solid Minerals,
The Honourable Chairman & Members of House Committee on
Solid Minerals,
The Permanent Secretary, Mines and Steel Development,
The Permanent Secretary, Information and Communications,
Directors here present,
Members of Staff,
Members of the Press,
Invited Guests,
Ladies and Gentlemen,
It gives me great pleasure to welcome you all to the 2009
Ministerial Press Briefing of the Ministry of Mines and
Steel Development. The purpose of this briefing is to
render an account of our stewardship of the Ministry.
Accordingly, my presentation, today, will provide
information on our policy thrust, our institutional
structure and reform measures that underpin them. I will
also provide information on the achievements made to date
and the challenges we have faced in the process. But before
I do so, I would like to acknowledge the presence in our
midst today of our indefatigable Minister of Information and
Communications, Professor (Mrs.) Dora Akunyili.
2.
Distinguished Ladies and Gentlemen, it is a fact that the
minerals and metals sector of the economy has suffered a
considerable set-back in the post independence years, as a
direct result of our dependence on revenues from oil.
Furthermore, the marginalization of this sector was
compounded by the indigenization policy, which resulted in
the large-scale withdrawal of foreign investors. The
results were a significant downturn in production and mining
becoming an activity that fell largely into the hands of
artisans and small-scale indigenous miners. These and other
factors have led to a steep decline in mining production, to
the extent that the sector currently accounts for less than
1% of the Nation’s Gross Domestic Product (GDP).
I would suggest that this paltry contribution of the sector
is inconsistent with the economic potential associated with
the enormous mineral endowment of the country. Geological
surveys and studies have determined that Nigeria is endowed
with over 34 Mineral types, most of which can be found in
commercial quantities in over 500 locations in the country.
These locations span the country. The mineral types include
Gold, Iron Ore, Bitumen, Phosphates, Cossiterite, Columbite,
Wolframite, Marble, Coal, Limestone, Clays, Barytes,
Lead-Zinc, Granite, Monazite, etc.
3.
Thus, one can readily conclude that the minerals and metal
have a significant role to play, in our quest to diversify
the nation’s economy. In recognition of this potential, the
Government, in its drive for accelerated economic growth,
has incorporated related policy as part of its 7-Point
Agenda and Vision 20:2020 as a catalyst in fostering wealth
creation, employment generation, poverty reduction and
transformation of rural communities.
4. Vision and Mission of the Ministry
The Ministry is very mindful of the critical role it is
expected to play in providing the enabling environment
necessary for the sector to flourish. Accordingly, its
vision for industry is “To transform Nigeria’s Solid
Minerals and Metals Sector into a Strategic Catalyst for
domestic growth and achieve global relevance”. Our
Mission Statement is consistent with this vision as conveyed
by the following, “Exploitation of the Nation’s mineral
endowments in an environmentally sustainable manner and the
establishment of a vibrant metals industry for wealth
creation, poverty reduction, promotion of the rural economy
and significant contribution to the G.D.P of Nigeria.”
The Ministry is working assiduously towards the achieving
the above stated vision and mission, which is in line with
Mr. President’s 7-Point Agenda and Vision 20: 20-20.
5. Reform Measures
Since January 2009 to date, the Ministry has continued its
reform programs in the areas of policy, institutional and
legal. These programs have been carried out in order to
revitalize the sector. The continuing policy reformation
continues the change of the role of the Ministry from that
of Operator-Owner to Administration-Regulator. This
evolution is significant, in that it ensures private sector
participation in the mining sector, while policies, laws and
regulations are appropriately enforced. It also provides a
level playing field for all stakeholders to contribute
meaningfully to the development of the sector under a stable
and effective legal and regulatory environment.
The reforms provide for the promotion of private enterprise
and competitiveness, as well as the strengthening and
deepening of institutional and human capacity building
across every aspect of the sector. These reforms are in
tune with global best practices in the industry. The
reforms also support the government’s recognition of the
strategic leverage which the sector holds in providing the
much needed linkages to other sectors and its capacity to
support and stimulate growth in all aspects of the nation’s
economy.
6. Organizational Structure of The Ministry
The Ministry is structured into departments, units and
agencies, which implement the day-to-day requirements of its
policy in the mines and steel sectors.
The
Departments
(i) Mines Inspectorate
(ii) Mining Cadastre
(iii) Steel and Non Ferrous Metals
(iv) Metallurgical Inspectorate and Raw material Development
(v) Artisanal and Small-Scale Mining
(vi) Mines Environmental Compliance
(vii) Planning, Policy Analysis and Monitoring
(viii) Finance and Human Resources
The
Units
(i) Legal Unit
(ii) Press and Public Relations Unit
(iii) Federal Audit Unit
(iv) Internal Audit
(v) Servicom
(vi) Stock Verification Unit
(vii) Anti-Corruption Unit
The
Agencies under the supervision of the Ministry
(i) Nigerian Geological Survey Agency, Abuja
(ii) National Metallurgical Development Centre, Jos
(iii) National Steel Raw Materials Exploration Agency,
Kaduna
(iv) National Institute for Mining and Geosciences, Jos
(v) Ajaokuta Steel Company
(vi) National Iron Ore Mining Company, Itakpe
(vii) Council for Mining Engineers and Geoscientists of
Nigeria
(viii) Metallurgical Training Institute, Onitsha
7.
Investment Solicitation Drive
Given the highly capital intensive nature of this sector, as
well as the technology and skills requirements, the
Ministry has ramped up activities and efforts to encourage
foreign direct investment in the sector. The importance of
private capital investment is made demonstrably clear by the
example of other countries, such as Botswana, Ghana and the
Democratic Republic of Congo, whose economies receive
significant contributions as a result of foreign direct
investment. Of interest, and to further highlight the appeal
of Nigeria as a very attractive mining destination, I note
that some of the other major mining countries are
beleaguered by civil strife and yet are making significant
contributions to their economies through investment in their
mining sectors.
In our bid to encourage foreign investment we have adopted a
series of incentives drawn from the Nigerian Minerals and
Mining Act of 2007 which we believe will give the nation an
edge in attracting investors. Concurrently, the Ministry
remains abreast of issues in the global minerals and metals
industry, by its presence and representation in various
international fora. In this regard, we have worked hard,
over the last 8 months to showcase the investment
opportunities that are available in the Nigerian minerals
and mining sector and to solicit direct investments in the
sector. During the course of this year alone, the Ministry
has participated in the following international investment
fora:
(i) Mining Indaba Conference in Cape Town, South Africa – 10th-12th
February 2009.
(ii) Prospectors and Developers Association of Canada
(PDAC) in Toronto between 1st- 4th
March, 2009.
(iii) Stating the case for investment in Nigeria, Honorary
International Investment Council, London 22nd
April, 2009.
(iv)World Mining Investment Congress, London 2nd-4th
June, 2009.
(v) Honorary International Investment Council, London 25th-26th
June, 2009.
(vi) Africa Down Under Conference, Perth, Australia 2nd-4th
September, 2009.
(vii) The Ministry held a Bitumen road show on 26th
June, 2009 in London, to sensitize investors relative to the
process associated with the bidding of Bitumen blocks.
Following our participation in these investment fora,
several companies from the United States of America, South
Africa, Australia, China, India and Canada have shown keen
interest and we have receiving a heightened volume of
applications for mineral titles. Many companies have also
sought partnership with local miners and established
operations.
On September 28th, 2009, the London Stock
Exchange, for the first time, ever, hosted a conference for
the Ministry to showcase the opportunities in Nigeria’s
mining sector to a cross section of its member companies.
8. Generation and Transmission of Data
An important aspect of the Ministry’s activities is the
acquisition, interpretation and dissemination of geosciences
data. This is a key step in the determination, exploration
and development of mineral resources. In this pursuit, the
Nigerian Geological Survey Agency (NGSA) has consistently
generated quality and reliable data through geological
mapping, appraisal, drilling, surveying sampling, testing
and analysis of data.
As necessary to provide comprehensive geological data, our
goal in this regard, is to achieve maximum geological and
geophysical mapping coverage of the entire country by the
year 2020. The objective of these activities are an
essential pre-condition for generating the required
information for foreign investors, and thereby ensuring that
the sector becomes a favoured mining destination for
international investors.
Since its establishment, the NGSA has been reviewing and
updating the geological maps of the entire country to
produce data necessary for stimulating investments in the
mining sector. This has led to the production of geological
and mineral maps of every state and the FCT in digital
format. In 2009, we produced a total of 102 sheets and of
1,324 sheets covering six geo-political zones of the
Country. Plans are underway to continue the production of
at least six maps in each geo-political zone of the country
by 2010.
The NGSA has begun exploration of further mineral targets
through the regional chemical mapping exercise and the U-Pb
dating of four lithologic rock types from the basement
complex of Nigeria. This will enable us narrow the search
to the main target minerals for potential investors. These
activities have been done with particular reference to
exploration of Magnesite in Adamawa State, Ilonende in
Bauchi State, Marble in Cross River State and Lead-Zinc in
Zamfara State.
Other projects executed during the period under review
include the geo-chemical mapping of Lafiyagi – Pategi and
Isanlu area, Shaki, Igboho and Igbeti, as well as the
British/NGSA geo-chemical mapping of two global reference
network cells.
Furthermore, the Ministry has continued to embark on
airborne geophysical surveys since 2003, which are aimed at
unravelling areas of possible mineralization. The 1st
phase of aero magnetic and radio metric surveys, which has
recently been concluded, covered 44% of the country.
However, data collection and processing have been done,
while interpretation is still in progress. The 2nd
phase of the project covering 56% of the Country, is
underway. Ground follow-up surveys to evaluate the results
of the airborne surveys have been successfully carried in
the following areas: Borno, Adamawa, Taraba, Benue, Kano,
Ebonyi, Cross River, Ogun, Niger, etc.
The National Gravity Network Programme which is designed to
map out mineral resources on the basis of their densities is
also being carried out. So far, four (4) States have been
covered, namely; Osun, Ebonyi, Enugu and Benue States.
9. MINING CADASTRE DEPARTMENT
The
Ministry’s on-going effort to reform and open up the mining
sector to domestic and international investors is also
predicated on the need to establish an autonomous Mining
Cadastre Agency, free from interference of any kind. This
new Mining Cadastre Office will be based on a licensing
system for mining in Nigeria, that is:
(i) Transparent and rules based;
(ii) Has security of tenure of titles and Rights;
(iii) Encourages competition for Mining Titles and Rights on
a “first come – first serve” basis;
(iv) Application of the principle of use it or lose it in
mining title/rights administration; and
(v) Use of time limits for granting titles, and
transferability of Mining Rights.
In
this endeavor, the Mining Cadastre Department has an
important role in developing and strengthening these and
other mechanisms that give confidence to investors and
providing the information necessary to attract them.
Already, a draft Mining Cadastre Agency bill is ready for
the consideration of the Federal Executive Council, while
the review of the draft mining regulations has just been
concluded by the Federal Ministry of Justice. The Department
of Mining Cadastre is also working assiduously in
collaboration with the World Bank assisted project to
acquire a central cadastre office headquarters in Abuja, and
zonal offices in Ibadan and Jos. Similarly, the new mining
cadastre system will involve full computerization of all
cadastre operations through the SIGTIM process. This is
coupled with the education and training of staff in modern
cadastral procedures.
In
the process leading to the establishment of the new
cadastral system, the department is currently involved in
the revalidation of mineral titles. Indeed, the committee
set up in March 2009 has evaluated a total of 2,330 mining
titles and 512 licences and permits have been recommended to
my office for approval and have been duly authorised. As of
the 31st August. 2009, a total of 8,179
applications/titles have been registered, while over 2.508
mineral applications have been granted. Of that number,
2,062 licenses were issued. We believe that this new
process will go a long way in clearing up the opaque,
disorganized mining rights and permits registration systems
of the past.
The
department is one of the important revenue generation organs
of the Ministry. Its sources of revenue earnings are from:
(a) Application processing fees.
(b) Annual Service fees.
(c) Information fees; and
(d) Other fees such as transfer assignments, etc.
Indeed, it is noteworthy that since its establishment, in
the period of 2005 to December 2008, the Mining Cadastre
Department has generated revenues totaling N347,424,600.49.
We are confident that the on-going reforms of the sector
will facilitate an even greater increase in revenue.
The
department is also involved in the revision of the geodetic
network and the completion of cartographic coverage to
facilitate a more accurate determination and charting of
mineral titles. This programme is being implemented in
cooperation with the World Bank assisted programme.
10. ARTISANAL AND SMALL-SCALE MINING
Over 90% of the nation’s mineral production is currently
carried out by Artisanal and Small-scale Miners (ASM). It
is estimated that the ASM sub-sector provides livelihood to
over 500,000 informal miners in the country. Indeed, if it
is effectively formalized and integrated into the economy,
indications are that we could employ upwards of 13 to 20
million people, especially, in the mining of Gold, Baryte,
Gypsum, Casseterite, Copper, Zircom Limestone, Kaolin and
tantalite among others.
ASMs, therefore, play a vital role in the Government’s
strategy of poverty alleviation, employment generation and
generally improving rural livelihoods. In order to control,
strengthen and exponentially improve the economic
deliverables of this strategy, the Artisanal and Small Scale
Mining Department has embarked on an active drive to
encourage the formation of mining cooperatives and
associations. To this end, over 600 applications have been
received for registration as mining cooperatives, quarry
associations and small scale miners. Of these, 234 have
been registered. Similarly, this year has witnessed the
verification and registration of an additional 17 private
mineral buying centres, which would serve as an interface
between mining cooperatives, licensed miners, local users
and export markets.
The ASM Department has, during the period under review,
directed considerable efforts at financially empowering
small-scale miners by the provision of micro credit through
micro finance institutions. The 1st batch of
selected ASM operators and mining host communities has
already been granted these micro credits. This has been
complimented by a sustained effort to provide extension
services in the form of technical assistance and support
services to miners in numerous mining communities.
Significant achievements this year, in the Department, has
been in the area of capacity building for ASM operators.
Because of the importance of this strategy in the
empowerment of our rural miners, the department has, in
collaboration with the World Bank assisted project,
conducted numerous courses. The courses include geographic
information systems, mining finance and accounts, cutting
and polishing of gemstones and the development of dimension
stones, a project which, in particular, has been found to be
most rewarding.
11. MINES ENVIRONMENTAL COMPLIANCE
The enforcement of environmental compliance in the mineral
resource development of the country is one of the essential
objectives of our Ministry. In particular, we are pledged
to the enforcement of the environmental obligations under
the Minerals and Mining Act and, indeed, the adherence to
global best practices in mining as a tool for the promotion
of sustainable growth in the industry.
This commitment derives from the recognition that mining has
its attendant environmental consequences such as
deforestation, land degradation, soil erosion, acid rain,
mine drainage and contaminating of water, etc., all of which
have a negative effect on man and his habitat.
In this endeavor, the Mines Environmental Compliance
Department (MEC) is charged with the responsibility of
developing realistic transparent and sustainable
environmental monitoring and evaluation methods, especially,
as they relate to compliance with social, health and safety
standards. The department also reviews all plans, studies
and reports required to be prepared by holders of mineral
titles in respect of their environmental obligations.
The department continues to work in close collaboration with
the various state Mineral Resources and Environmental
Management Committees (MIREMCO). This is in recognition
that all mineral resources are vested in the Federal
Government, and there is a need to foster close cooperation
between the Federal Government and all other tiers of
Government in the development of the nation’s mining sector.
MIREMCO, therefore, is key to the effective management of
conflict between operators and host communities, as well as
to ensure environmental best practices in the mining sector.
Furthermore, the Mines Environmental Compliance Department
has established a new laboratory at the headquarters and six
geo-political zones, in order to ensure effective monitoring
of compliance through laboratory analyses. This is
complemented with a vigorous environmental awareness
programme and training to enhance the capacity of MEC Staff
in mines environmental analysis and procedures.
A significant highlight of its activities in the year under
review has been the creation of an inventory of abandoned
mines, with an appropriate action plan for their
reclamation. So far, about 1,263 abandoned mines sites have
been identified and ranked for prioritization.
12. MINES INSPECTORATE
The Mines Inspectorate Department which is responsible for
the enforcement of laws and regulations governing minerals
exploitation, exploration, use and exportation also carries
out surveillance and monitoring of mining and quarrying
activities.
The department has recorded a total of four hundred
twenty-one million two hundred forty-five thousand two
hundred thirty-seven naira and seventy kobo (N421,245,237.70)
as revenue as of the month of July, 2009, making it the
highest revenue generating department of the Ministry. In
addition to this achievement, the department has, also,
granted eight (8) permits for export of mineral samples for
analysis while four (4) additional requests for export
clearances permits are under consideration. The department
has within this period under review, trained about 65% of
its personnel, both locally and internationally, with the
aim of providing officers the necessary skills to make them
effective in the discharge of their duties in the field.
13. SEVEN STRATEGIC MINERALS
Studies have led to the identification of numerous mineral
resources and in particular the adoption of seven strategic
minerals that are considered critical to the
industrialization of the nation. These seven strategic
minerals namely, Bitumen, Gold, Coal, Limestone, Lead/Zinc,
Tantalite, and Barytes, have been discovered in sufficient
and commercially sustainable quantities. They are found
across the six geo-political zones of the country. Their
exploration and exploitation could contribute greatly to the
sustainability and management of human and infrastructural
resources in the following areas:
·
Power Generation;
·
Food Security;
·
Wealth Creation/Job
Opportunity;
·
Transportation;
·
Security of Life and
Property’s
·
War against illegal
miners.
In view of the current adverse economic situation
confronting the nation and the world at large it has become
imperative to place special emphasis on the seven strategic
minerals out of over thirty-four, for now. Gold, Coal, Iron
Ore and Bitumen feature prominently amongst these minerals.
14. COAL
It has been established that the nation has reserves
estimated at 2,734 million metric tones and inferred
reserves of 391.42 million metric tones located across the
various states in Nigeria. Coal remains the most important
fuel for power generation worldwide and will remain so for
decades to come. Industrialised nations of Europe, Asia and
North America effectively utilise coal for their electricity
generating facilities. Government has endorsed coal in the
country’s energy mix, as part of its determination to meet
the short term and long term energy requirements.
15. BITUMEN
Estimates of bitumen are an oil equivalent of twenty-seven
billion barrels, while estimated reserves have been put at
43 billion barrels of oil equivalent bitumen, in an area
covering Edo, Ondo, Ogun and Lagos States. Nigeria’s
bitumen resources are considered to be in the league of
major bitumen deposits in the world. Already, investors
with the required technical and financial capability have
shown interest in the exploration of Nigeria bitumen. The
Ministry put out for bidding, in June of this year, two
blocks of bitumen located in the South Western part of the
country. Bid documents had been opened and are currently
being evaluated for award.
16. GOLD
Due to its historic role as a fiscal instrument and a store
of value in periods of economic instability, such as that
which the world is currently experiencing, Gold has remained
the most attractive mineral for mining investors and
exploration globally. The Nigerian gold field stretches
from Katsina and Zamfara States in the North through the
middle belt, South Western and South Eastern belts, with
estimated deposit of over 500,000 ounces. Currently, we
have a number of junior explorers in the country, whose
exploratory results, so far, show very high grades, ranging
from 30 to 50 grams per ton. Consequently, the Ministry is
showcasing the nation’s gold endowment at various targeted
international investment fora.
17. METALS SECTOR
The
development of a vibrant metals industry is fundamental to
the economic growth and development of the nation. This
strategic position is due to its unique potential to
catalyze productivity across all aspects of the nation’s
industrial value chain. Steel, for instance, is capable of
not only increasing exploration and mining of iron-ore,
coal, limestone and manganese, to mention just a few, but
along with aluminum is invaluable in the Construction,
Manufacturing, Agricultural, Power, Transport and the Oil
and Gas sectors of the economy.
The
metals sector is therefore a key driver of industrialization
and technology growth as, indeed, in the acquisition of
highly technical skills. Thus, the nation’s quest for
greater self-reliance, economic diversification and its
vision to join the league of industrialized nations may be
realized without a functional metals industry.
It
was in recognition of the important role which the metals
sector plays in advancing the national economy, that heavy
investments were made by Government in the sector over the
last two or more decades. However, for various reasons, the
sector continued to under–perform, leading to the necessary
privatization of pertinent aspects of the sector.
In
view of the preceding information, significant reform
measures were introduced in order to resuscitate the
sector. To this end, the Ministry’s responsibilities are as
follows:
(i)
Act as a motivator/moderator, by providing the enabling
environment which would stimulate private sector investment;
(ii)
Ensure that a private sector led metals industry operates
optimally, by producing competitive high quality products
for both local and international consumption;
(iii) Ensure a robust and functional integrated steel
industry that will guarantee the creation of employment
opportunities, poverty reduction and wealth creation and
begin to act as a core fulcrum of national economic growth;
(iv)
Ensure that the private sector led metals industry functions
effectively, thereby, achieving increased industrial
capacity utilization and generating revenue for the country;
(v)
Endeavor to make the sector an internationally competitive
and attractive destination for capital for the development
of the nation’s metal resources;
(vi)
Encourage growth in metals production and consumption by
creating deep and functional linkages between the minerals
and metals sectors, as well as other strategic sectors of
the economy, such as oil and gas, transportation,
agriculture, manufacturing, construction etc.;
(vii) Enhance environmental sustainability as a fundamental
principle in the development of the metals sector;
(viii) Enhance institutional effectiveness, human capacity
and bankable research in every aspect of the metals sector;
(ix)
Ensure total adherence to all legal and regulatory
requirements in the metals sector, and
(x) Encourage beneficiation activities aimed at adding value
to the metals.
18. METALLURGICAL
INSPECTORATE AND RAW MATERIALS DEVELOPMENT
The
Metallurgical Inspectorate and Raw Materials Development
Department (MI&RMD) was established to regulate the
operation of the metallurgical industries by ensuring that
metallurgical raw materials and products being produced in
the country meet national and international quality
standards and comply with environmental regulations.
Consistent with the previously provided information, the
metals sector is a huge and economically viable sector of
the country, as it supports and stimulates the growth of
other sectors. This means that the sector is very vital to
the realization of the Nigeria’s dream of becoming one of
the top 20 industrialized nations by 20:2020. The
department also ensures the continuous combined exploration
work and testing of locally available raw mineral materials
for the metallurgical industry, in conjunction with the
Parastatals under it (such as National Steel Raw Materials
Exploration Agency (NSRMEA), Kaduna, National Metallurgical
Development Centre (NMDC), Jos and National Iron Ore Mining
Company (NIOMCO), Itakpe, for the benefits of existing and
potential operators in the industry.
The
department had worked in collaboration with relevant
institutions and had carried out investigations into the
causes and effects of collapsed buildings in Abuja and
Lagos, respectively, and had equally worked in conjunction
with the committee set up by the Ministry to carry out the
technical audit of Ajaokuta and NIOMCO, which is expected to
be completed before the end of the year. The department is
also responsible for supervising the completion of the Super
Concentrate plant at NIOMCO, Itakpe. The project has been
approved by Federal Executive Council and processes for
implementation are well under way.
We
are confident that when the draft Metallurgical Bill and the
regulatory manual become a reality, the metallurgical
industry will be better positioned to fully realize its
potential and also generate even greater revenue for the
economy.
19. STEEL
AND NON-FERROUS METALS
The
Steel and Non-ferrous Metals Department is one of the
important technical departments in the Ministry that is
charged with responsibility of coordinating, monitoring and
regulating activities in the metals sector. In addition to
these responsibilities, the department has taken a leading
role in foreign investment solicitation for the metals
sector, as an active part in ensuring that the privatized
steel and aluminum companies remain productive.
The
restoration of productivity at Alscon in Ikot Abasi after
ten (10) years of closure is one of the department’s success
stories. Today, Alscon has an exemplary industrial
relations atmosphere with an uninterrupted flow of gas to
the plant, a situation which is primed to guarantee
continued foreign exchange earnings for the nation.
The
department is currently engaged in future arrangements that
will enable the enhanced repositioning and completion of
Ajaokuta Steel Company Limited, including the provision of
the required infrastructure for the operation of the
project. It is also currently in liaison with the Bureau of
Public Enterprises for the commencement of operations of the
Inland Rolling Mills at Jos and Oshogbo.
20. NATIONAL
STEEL RAW MATERIALS EXPLORATION AGENCY, KADUNA
The
main responsibility of this agency is minerals exploration,
with the provision of cost effective geo-scientific services
and data to the metals industry.
The achievements of the
agency during the period under review include:
(a) The extraction, through
geophysical technique and geological mapping, of the
Madaka Manganese Deposit, Niger State. Analyzed samples
showed a very high tenor.
(b)
Geological mapping of Agbado Okudu Iron Ore deposit in
Kogi State, which a 1:5000 scale map was
produced, a fifteen kilometer access route to site was
opened up, ande 4 valleys and depressions were filled.
(c )
Detailed geological mapping of Janga-Ribi River Dep
areas of Nassarawa State and exploration of pitting (15nos)
have been carried out and 2nos core drilling boreholes have
also been executed in the Eastern part of Lafia/Obi Coal
Field.
(d)
Tar Sand and Bitumen deposits, were identified in Awgu area
of Enugu State, following recent geological studies by the
Agency. More detailed mapping and excavations are presently
being carried out in the area, to gather information on the
deposits.
21.
CAPACITY BUILDING, RESEARCH AND DEVELOPMENT
Pursuant to achieving its training, research and development
needs, the Ministry established key institutions to achieve
these goals. These institutions are responsible for the
training of professionals, as well as conducting researches
in specialized areas of the mines and steel sectors of the
industry. One of these key institutions is the Nigerian
Institute of Mining and Geosciences, Jos. This institution
was established with a clear mandate to become an
“International centre of excellence” and a “Unique
Postgraduate Institution” for professional training and
research in mining and geosciences. It is designed to train
three (3) categories of students, comprising of those who:
(i) Possess a B.Sc or HND in mining engineering, minerals
engineering and mineral exploration;
(ii)
Carry out postgraduate research in mining and geosciences;
and
(iii) Take short duration courses on specific areas of the
mining industry as a means of upgrading their professional
capabilities and knowledge in mining and geosciences.
In
the same vein, the National Metallurgical training
Institute, Onitsha, has a mandate to minimize the need to
send Nigerians overseas for professional training in
metallurgy and to organize and run training courses for low
and middle level manpower.
With
an annual training capacity projection of 400 students, the
institution has attained 75% of its training programme and
hopes to attain 100% by year 2010. It is noteworthy that
about 60% of the institution’s graduates are self employed
and another 40% employed by organizations in the oil, gas,
steel and other related industries In Nigeria. The training
programmes of the institution have also been expanded to
include Information Communications Technology.
In
the area of research and development, the National
Metallurgical Development Centre, Jos plays an important
role in building capacity for the metallurgical and solid
mineral sectors.
As part of its primary assignment, the centre has commenced
research activities into the Ajebanoko Iron Ore Deposit in
Igarra-Kabba-Jakura Meta – sedimentary region of Kogi State,
as well as embarked on Tin. The centre has also,
successfully, conducted research which proved the
suitability of a locally produced vegetable as a core binder
in the production of cores for sand casting in foundry
operations. In addition to its research and development
efforts, the centre also provides support services to small
scale miners. The Government set up the Council of Nigerian
Mining Engineers and Geoscientists (COMEG) to ensure the
maintenance of high quality standards, relative to Mining
Engineers. The council has, as its major responsibility,
maintenance of a register of all relevant professionals
including Mining Engineers, Petroleum Engineers,
Metallurgists, Geoscientists and other related fields who
practice the mining profession in the country.
Since its inception, COMEG has registered a total of 1,074
individuals and 21 companies.
24. Sustainable
Management of Mineral Resources Project (SMMRP)
The
Federal Government obtained a credit from the International
Development Association (IDA) of the World Bank to fund the
Sustainable Management of Mineral Resources Project (SMMRP).
The main objectives of the project are to increase the
Government’s technical capacity to manage Nigeria’s mineral
resources, with a view to providing the enabling environment
for large scale development of the sector by local and
foreign investors.
The
project is also to establish a basis for poverty reduction
and rural economic renewal through the development of
non-farm income generating opportunities, mainly by
promoting artisanal and small-scale mining. The project has
continued to make excellent progress toward the achievement
of these developments often in collaboration with the
various organs of the Ministry. The following is a
discussion of the various aspects of the project:
a) Private
Sector Development
The
SMMRP sponsored Messrs. PGW of Canada and Fugro Airborne
Survey Contractors to carry out airborne geophysical survey
of the Country. It also sponsored the geo-chemical mapping
of the selected areas of the country, under the auspices of
the Nigerian Geological Survey Agency, with the technical
support of the British Geological Survey (BGS).
b)
Promotion of Artisanal and Small Scale Mining
Short courses were conducted for artisanal miners mining
communities in Jos, Plateau State and ASM officers of the
Ministry underwent in-depth training, both at home and
abroad. Similarly, a handbook containing a comprehensive
tool kit, to guide operators on exploration and
beneficiation techniques, is currently being produced.
c)
Disbursement and Grants
Disbursement of grants, under the US$10million grants
program, was made to the first ten artisanal miners in July
of this year. Fifty fresh applications from the six
geopolitical zones of the Country are currently being
processed for award of grants to an additional 20 artisanal
miners monthly. Under this scheme, mining cooperatives are
also given grants of a maximum US$50,000, to enable them
purchase simple mining tools and equipment.
d) Capacity Building
The
project facilitated the upgrading of the old school of mines
in Jos into the present Nigerian Institute of Mining and
Geosciences (NIMG), by the provision of physical
infrastructure at its three campuses, in addition to the
recruitment of staff and a development of curriculum for the
institute. The project also organized training for over 200
members of staff of the Ministry, NGSA, and Mines
Inspectorate, within and outside the Country.
25.
CHALLENGES
As
we have highlighted earlier the minerals and metals sector
holds great prospects for the accelerated economic
development of the nation. However, the sector is not devoid
of challenges that militate against its progress. Currently,
the most serious problems we have are:
a) Lack of a strong well articulated strategic
framework;
b) Lack of the requisite enabling environment;
c) Slow, albeit, steady foreign capital inflow;
d) Inadequate geosciences data for investors;
e) Conflicts between operators and host
Communities;
f) The re-operation of ASCL and NIOMCO;
g) Illegal mining activities;
h) Delayed passage of related legislation;
i) Lack of requisite infrastructural logistics,
such as rails, road, water ways, power etc.;
j) Conflicts between the Federal and State
Governments on solid minerals rights;
l) Smuggling of mineral commodities especially,
gemstones, out of the country; and
m) Of course, the perennial issue of tight
budgetary parameters.
26. WAY FORWARD
In
order to advance the sector and enable it to significantly
contribute to the diversification of the economy, as well as
mitigate the adverse effects of the primacy of oil and gas
in the economy, the Ministry is committed to the
accomplishment of the following:
i)
Articulation of a
clear strategic road map and framework – such a framework
must incorporate a program that addresses a comprehensive
generation of geosciences data, given its role as the
bedrock for any potential mining investment. While a review
of other countries with similar significant mineral
endowments but with on-going security and infrastructure
challenges, indicates continued interest from potential
mining investors, we must make all effort to address the
problem of transport infrastructure. Our ability to do so,
coupled with our mineral wealth, will definitely make
Nigeria the preferred mining investment destination. The
foreign investment drive, which we have pursued vigorously
all year, must continue at a much more accelerated pace, as
necessary, to bring the range of junior and major mining
firms into Nigeria. In particular, the benefits associated
with bringing the global mining firms into Nigeria includes
giving the country credibility as a mining destination, job
and wealth creation, specialized technology and skills
transfer, establishment of the requisite mining value chain,
etc.
ii)
Articulation of a highly competitive enabling environment –
Of course, the preceding activities must be complemented by
a vigorous and robust stratagem that focuses on policy,
institutional and legislative activities that enhances the
enabling environment for mining activities. It certainly
cannot be overemphasized that investors are principally
motivated to invest their funds in environments in which
risks are minimized. Although the Ministry has made
significant strides in implementing significant legislative
and institutional reforms such as, the passage of the
Minerals and Mining Act of 2007, the creation of a Mining
Cadastre System, completion of the mining regulations, etc.,
we still have work to do, relative to fully operationalizing
the mining regulations, setting up of an autonomous Mining
Cadastre Office, increased collaboration between the
Ministry and the States, consistent with the provisions the
2007 Minerals and Mining Act.
iii)
Furthermore, the success of implementing the strategic road
map and framework will require the support of appropriate
and efficacious institutional framework and staffing. We
must continue to train and re-train our personnel to provide
efficient services. Our processes must be streamlined to
conform with international best practices, as necessary to
enable us to compete with our other mineral endowed
neighbours.
27. CONCLUSION
Ladies and gentlemen, permit me to extend my appreciation to
the Chairmen and members of the various committees in the
Senate and House of the Representatives who have oversight
functions in minerals and metals sector. They have shown
considerable determination and zeal in ensuring that the
sector moves with efficient speed in assuming its rightful
role in the Nigerian economy. We shall spare no effort in
our common objective of revitalizing the minerals and metals
sectors.
Let
me also express our deep gratitude to the mining community,
for their persistence in the field, both physically and
literally. As we continue to grapple with the arduous
mission of regenerating the sector, we will work together
with all stakeholders, in our quest to significantly
contribute to Mr. President’s 7-point Agenda and to ensure
that we join the league of top 20 leading economies of the
world by the year 2020.
Thank you and God Bless!!!
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