Nigeria Content Online

The Federal
Government says it is committed to the development of more gold mines,
as part of efforts to broaden the country’s economic base and diversify
revenue sources away from oil.

Mohammed Sada, the
minister of mines and steel development, who disclosed this yesterday
in Abuja at the 2010 ministerial briefing, said a lot of progress has
been recorded with the ongoing reforms aimed at creating the desired
economic impact and contribution to the country’s gross dometic product
(GDP).

The minister, who
spoke on the theme, ‘Revitalising the Nigerian minerals and metal
sectors’, said government is working seriously towards establishing
more mines in the country.

The mines are
expected to help the country produce about 650,000 ounces of gold per
annum, considering the ongoing high level of exploration for the
mineral at various locations in the country.

“In the next two or
three years, the country is going to have more gold mines. Currently,
government is assisting in the establishment of the first major gold
mine in the country in Osun State.

“But, we have to
focus attention on the reforms and ensure that operators avoid those
things that would drive away potential investors in the industry,” he
said.

Effective regulation

As a prelude to the
effective regulation of operations in the sector, the minister said
about 10,000 cumulative applications have been processed for various
mineral titles between 2008 and 2010, out of which 6,000 have already
been approved and granted, while the ministry has supervised the
successful reclamation of two abandoned mine sites in Badawa, Kano
State, and Nsukwe, Abia State.

Besides, he said a
comprehensive mining inspectorate template has been created for proper
supervision of mining activities in the country, while a fully
automated cadastral office has been established to ensure that adequate
information about the various mineral resources available in the
country are put online at the disposal of potential foreign and local
investors.

As part of effort
to help the government diversify solutions to the perennial power
supply problems, the minister said the ministry is working with the
presidential task force on power to ensure that coal is considered a
veritable alternative source to the existing sources of power
generation and supply.

Strategy for poverty reduction

Describing Nigeria
as a country known globally for tin, columbite, and tantalite
production and export, as well as coal exploited as local energy source
and for export, the minister said the development of the nation’s
minerals has been adopted as a strategy for poverty reduction and rural
wealth generation.

In line with this
strategy, he said government has disbursed and managed a World
Bank-assisted micro grant to 86 mining co-operatives and communities,
valued at about $3million (about N450million), saying government is
targeting about 250 beneficiaries before the end of the project.

He identified lack
of reliable geological infrastructure for data generation and
dissemination as one of the problems the industry is facing, assuring
that under the reform dispensation, government has divested interest in
mining business, and concentrate on being administrator/regulator, to
allow the private sector to drive mining operations in the country.

“In view of the critical importance of steel, the steel department
is currently undertaking a critical study on ways to revamp the steel
sector, so that it can play its role in the nation’s
industrialisation,” he said, adding that government should help
mobilise the necessary funding required for the acquisition of
geosciences data, sustained mineral exploration, and institutional and
human capital development.