Mining: Govt Generates Over N2bn In 6 Months – Fayemi

Mining: Govt Generates Over N2bn In 6 Months – Fayemi

The Minister of Mines and Steel Development, Dr Kayode Fayemi, on Thursday, announced that over N2 billion had already been generated from operations in the mining and minerals sector, as at July, 2017, which surpassed the entire revenue of N2bn generated for the whole of 2016.

Fayemi made this known in his keynote address at the maiden edition of the National Council on Mining and Mineral Resources Development (NCMMRD), held in Abuja.

He stated that the aspiration of his ministry was to build a world class minerals and mining ecosystem designed to serve a targeted domestic and export market for minerals and ores.

He said, “We seek to rebuild market confidence in our minerals and mining sector and win over domestic users of industrial minerals in order to achieve import substitution.”

The minister said his ministry has covered a major milestone in the implementation of the Roadmap for mining and minerals sector, and at the same time set in motion a chain of positive outcomes, saying he remain focused on working with stakeholders to deliver on all other provisions of the Roadmap.

Fayemi noted that with the successful hosting of the inaugural edition of the NCMMRD, the government expected a robust institutional and governance framework that provided adequate oversight and guidance, as well as stronger participation and shared responsibility from the states and communities.

Other expectations by government, he said, include “a wider spectrum of vibrant participants across the entire value chain and a solid archive; database of geo-sciences research and data that actively encourages investor participation; a thriving enabling environment that provides the key support infrastructure and services that enables the industry to flourish.”

According to the minister, “We are working to attract a diverse portfolio of participants, from artisanal miners, to junior explorers, to mining majors, into the industry. Our goal is to build a sector that is competitive and supportive of our overall job creation and wealth generation aspirations for Nigerians.

“It is however encouraging noting that our efforts have begun yielding desired results. For example, one highlight of the Roadmap is to achieve, through stakeholders’ engagement, an increasing amount of Mining contribution to GDP, and the delivery of shared prosperity to all stakeholders in all aspects of the Mining Value Chain (Exploration, Mining, Beneficiation and Trade).

“Already, we achieved a 300% increase in revenue (royalties and fees) between 2015 and 2016, and as at July of this year, the sector had already surpassed the entire revenue of N2 billion generated for the whole of 2016.

“We are working to improve the engagement of states with the minerals and mining sector, particularly around financial participation and revenue sharing. The NCMMRD is a major step in this direction.

“The NCMMRD supports the aspirations and objectives of the roadmap, and is designed to be a well-structured platform where stakeholders in the sector can converge periodically to develop policy advisory, validation, and other interventions, to effectively guide Government in achieving the full implementation of the Roadmap and the achievement of the targets contained therein”, he added.

Dr. Fayemi reiterated that the stakeholders have diligently deliberated on a number of thematic areas, assuring that contributions and decisions shall be treated with the utmost importance worthy of the time and effort that has gone into it.

In his remarks at the event, the Minister of Federal Capital Territory (FCT), Mallam Mohammad Musa Bello advised the Mines and Steel Ministry to forge close collaboration with the State Governments and host communities to maximize the benefit of mining.

He therefore said, as Nigeria was reaping the gains of the sector, the government should not ignore the health and environmental implications of mining, hence the reasons to put all machineries in place to address such challenges.

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