The Federal Government of Nigeria has presented the modalities for the disbursement of the World Bank US$10 Million Grant Fund for the development of Artisanal and Small Scale Mining in the country. 

The Minister of Mines and Steel Development, Chief Sarafa Tunji Isola made the disclosure while declaring open a two day National Workshop on the development of Artisanal and Small Scale Mining in Nigeria. 

The Workshop which was organized by the Sustainable Management of Mineral Resources Project (SMMRP), took place in Jos, Plateau State from July 10 – 11, 2008. the SMMRP is funded by the World Bank/IDA, with the Ministry of Mines and Steel Development as the Implementing Agency. Chief Sarafa Tunji Isola who was represented by the Minister of State, Alhaji Ahmed Mohammed Gusau said that the grant would be used for acquisition of mining equipment; training and support services to scale up mining operations and provision of social and infrastructural facilities in mining communities. 

The modalities for the disbursement of the US$10 Million Grant Fund for the Artisanal and Small Scale Mining sector was presented at the workshop by Mr. Bioye Akinfolarin, a consultant to the SMMRP. 

Mr. Akinfolarin explained that the beneficiaries of the Grant such as Artisanal and Small Scale miners and the mining communities are expected to take the initiative for the grant use while the office of the Sustainable Management of Mineral Resources Project facilitates the disbursement. 

According to the Consultant, workshops will be organized to sensitize stakeholders prior to the launch of the Grant Programme. 

Grants shall be accessible to artisanal and small scale mining groups to enhance their individual and collective productivity, and growth through acquisition of equipment, services and training. 

A National Coordinator and State Coordinator will be appointed to implement the grant under Sustainable  Management of Mineral Resources Project. This structure is expected to facilitate the disbursement and monitoring process. 

State Coordinators are to harmonize the various tasks and be the linkmen between stakeholders and the Ministry of Mines and Steel Development. The State Coordinators shall provide guidance and support to the applicants. 

An application for grant by artisanal and small scale mining group or mining community will be submitted to the office of the State Coordinator. The State Implementation Committee will review and recommend such applications for approval to the Project Consultative Committee through the National Coordinator. 

The State Implementation Committee shall comprise (i) State Coordinator (ii) Artisanal and Small Scale Mining Officer (iii) Mines Environmental Officer (iv) Mines Officer (v) Non Governmental Organization appointed by the Sustainable Management of Mineral Resources Project. Applications for grant are to be processed promptly by the State Implementation Committee, which shall sit at least once every month. 

Disbursement for procurements will be made by the office of the SMMRP in accordance with the World Bank procurement guidelines. Each Grant shall not exceed US$50, 000. 

For mining communities that desire social infrastructure, a prospective community will contribute a minimum of 10% of the total cost of the project before the grant can be accessed. 

For artisanal and small scale miners, the minimum contribution towards the total cost of the project shall be 50 %. In either case, the contributions could be in cash or kind. 

For the initial ten projects approved by the Project Consultative Committee, the lot shall be referred to the World Bank for review. 

A sub-project grant agreement that sets out the respective obligations of the parties and the terms and conditions of the Grant shall be signed by the beneficiary before grant can be disbursed. 

Regular reporting and monitoring will be done to ensure effective implementation of the grant subprojects. 

While thanking all stakeholders and participants for the success of the National Workshop, the Project Controller of the Sustainable Management of Mineral Resources Project, Mr. Linus Adie assured that the grant would be disbursed to beneficiaries in a transparent manner.

Mr. Adie also explained that physical cash will not be disbursed to beneficiaries of the Grant.