Nigerian govt to revoke mining licences
The Nigerian government said Tuesday it will revoke the licences of mining companies over failure to sign Community Development Agreements (CDA).
The Minister of Solid Minerals Development, Dele Alake, disclosed this while speaking at the BusinessDay Media Solid Minerals Conference, held in Abuja.
“This year I am using this opportunity to sound a note of warning. Any company that fails to sign their community development agreement stands the risk of having its licences revoked,” Mr Alake said.
The Ministry of Solid Minerals Development had in November 2023 launched revised guidelines for the production of the Community Development Agreement.
According to the ministry, the CDA is a statutory provision that ensures the transfer of socio-economic benefits to mining host communities. It is a legal document that contains obligations by the Mineral Title Holder (MTH) to host communities and vice versa.
Speaking on Tuesday, Mr Alake said only 18 companies signed CDAs with their communities last year.
“Last year, I launched the revised requirements for community development agreements. It was the appropriate forum to appeal to holders of mining licenses to ensure that they negotiate with the communities in their mining areas and sign the agreements which ensure that the communities benefit from the wealth created from their commonwealth.
“I wish to note, with dismay, that only eighteen (18) companies signed CDAs with their communities last year. We hope to enforce the implementation of the revised guidelines in the new year and those found wanting will face stiff penalties,” he added.
Licences
The minister said in 2023, the ministry granted no fewer than 499 licences to applicants involved in the business of purchase and sales of minerals.
“Last year, no fewer than 499 licenses were granted to applicants involved in the business of purchase and sales of minerals,” he said.
Predictably, he said applications for the purchase and sale of lithium topped the list with 146 licences, followed by gold 91, tin 46 and coal, 32.
“Other minerals for which licences were granted include Tantalite, Iron Ore, Kaolin, Feldspar, Beryl, baryte, Columbite, Mica and Aquamarine,” he added.
He explained that the ministry has continued to facilitate the processing of applications for permits to refine minerals and to process and purchase.
“Without a modicum of doubt, Nigeria is very rich in minerals. If this was the only requirement for foreign direct investment, we would sit arms akimbo and wait for the investors to come. It is not. We are competing with other countries across the continents for investors,” he said.
The minister said the struggle to attract foreign investors starts with the creation of a supportive investment climate in the country by adopting international best practices which translate to the ease of doing business.
In this regard, he said various assets have been mobilised to encourage investment.
“Efforts are also being made to improve the Nigerian Mining and Minerals Act 2007 to accommodate the changes over the years and make it more amenable to national priorities,” he said.
Artisanal miners
Mr Alake further explained that the campaign against illegal mining and call on artisanal miners to form co-operatives and get government recognition, support and a legal basis to mine is yielding fruits.
“To date, there are 2,329 registered artisanal miners co-operatives in the country. In 2023, 123 co-operatives were registered. It is significant that 77 of 123 opted for registration following my appeal to them to join hands with the federal government,” he said.
He noted that the ministry provides extension services to these co-operatives by improving their bookkeeping skills and drilling techniques.
READ ALSO: NEITI to unveil 2022/2023 oil, gas, solid minerals reports September – Official
“I wish to further urge artisanal miners to come together and register as co-operatives. To ease the operations of this sub-sector, the ministry has licensed 986 buying centres across the 36 states of the federation.
“Plateau, for obvious reasons of its long mining history, has 315 centres followed by Federal Capital Territory, 224 and Lagos, 108,” he said.
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The Nigerian government said Tuesday it will revoke the licences of mining companies over failure to sign Community Development Agreements (CDA).
The Minister of Solid Minerals Development, Dele Alake, disclosed this while speaking at the BusinessDay Media Solid Minerals Conference, held in Abuja.
“This year I am using this opportunity to sound a note of warning. Any company that fails to sign their community development agreement stands the risk of having its licences revoked,” Mr Alake said.
The Ministry of Solid Minerals Development had in November 2023 launched revised guidelines for the production of the Community Development Agreement.
According to the ministry, the CDA is a statutory provision that ensures the transfer of socio-economic benefits to mining host communities. It is a legal document that contains obligations by the Mineral Title Holder (MTH) to host communities and vice versa.
Speaking on Tuesday, Mr Alake said only 18 companies signed CDAs with their communities last year.
“Last year, I launched the revised requirements for community development agreements. It was the appropriate forum to appeal to holders of mining licenses to ensure that they negotiate with the communities in their mining areas and sign the agreements which ensure that the communities benefit from the wealth created from their commonwealth.
“I wish to note, with dismay, that only eighteen (18) companies signed CDAs with their communities last year. We hope to enforce the implementation of the revised guidelines in the new year and those found wanting will face stiff penalties,” he added.
Licences
The minister said in 2023, the ministry granted no fewer than 499 licences to applicants involved in the business of purchase and sales of minerals.
“Last year, no fewer than 499 licenses were granted to applicants involved in the business of purchase and sales of minerals,” he said.
Predictably, he said applications for the purchase and sale of lithium topped the list with 146 licences, followed by gold 91, tin 46 and coal, 32.
“Other minerals for which licences were granted include Tantalite, Iron Ore, Kaolin, Feldspar, Beryl, baryte, Columbite, Mica and Aquamarine,” he added.
He explained that the ministry has continued to facilitate the processing of applications for permits to refine minerals and to process and purchase.
“Without a modicum of doubt, Nigeria is very rich in minerals. If this was the only requirement for foreign direct investment, we would sit arms akimbo and wait for the investors to come. It is not. We are competing with other countries across the continents for investors,” he said.
The minister said the struggle to attract foreign investors starts with the creation of a supportive investment climate in the country by adopting international best practices which translate to the ease of doing business.
In this regard, he said various assets have been mobilised to encourage investment.
“Efforts are also being made to improve the Nigerian Mining and Minerals Act 2007 to accommodate the changes over the years and make it more amenable to national priorities,” he said.
Artisanal miners
Mr Alake further explained that the campaign against illegal mining and call on artisanal miners to form co-operatives and get government recognition, support and a legal basis to mine is yielding fruits.
“To date, there are 2,329 registered artisanal miners co-operatives in the country. In 2023, 123 co-operatives were registered. It is significant that 77 of 123 opted for registration following my appeal to them to join hands with the federal government,” he said.
He noted that the ministry provides extension services to these co-operatives by improving their bookkeeping skills and drilling techniques.
READ ALSO: NEITI to unveil 2022/2023 oil, gas, solid minerals reports September – Official
“I wish to further urge artisanal miners to come together and register as co-operatives. To ease the operations of this sub-sector, the ministry has licensed 986 buying centres across the 36 states of the federation.
“Plateau, for obvious reasons of its long mining history, has 315 centres followed by Federal Capital Territory, 224 and Lagos, 108,” he said.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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