Alake unveils transformation agenda for solid minerals, targets FDI

In its efforts to diversifying the Nigerian economy, the Ministry of Solid Minerals id targeting to add at least 50% to the nation’s Gross Domestic Product (GDP).

Also, the Solid Minerals Ministry is poised to attract Foreign Direct Investment  (FDI) to the country through several initiatives.

Minister of Solid Minerals, Mr. Dele Alake, declared that mining is a big business and Nigeria must strive hard to harvest the trillion dollars worth of minerals under the ground across the country.

Alake, who spoke during the unveiling of the ‘Agenda for the Transformation of the Solid Minerals for International Competitiveness and Domestic Prosperity’, in Abuja on Sunday, September 3, said that the ministry will focus on a seven-point agenda.

The agenda include: the creation of the Nigerian Solid Minerals Corporation, Joint Ventures with Mining Multinationals, Big Data on specific seven priority minerals and their deposits, 30-day grace for illegal miners to join artisanal cooperatives, Mines Surveillance Task Force and Mine Police, Comprehensive review of all mining licenses and the creation of six Mineral Processing Centres to focus on Value-Added products.

“President Bola Tinubu has taken firm, courageous decisions that have reset the logic of the Nigerian economy. The removal of subsidy and the adoption of a single exchange rate are among the fundamental transformational policies of this administration. This radical approach to making the economy resilient in the long term is the guiding principle of the management of the Ministry.

“The Ministry has to take the bull by the horns if the country must reap the harvest of the trillion dollars worth of minerals under the ground across the country. To achieve this laudable objective, there has to be a paradigm shift in the strategy by re-positioning the sector in terms of the human and capital factors that can drive its transformation,” Alake said.

On the creation of the Nigerian Solid Minerals Corporation, the minister said “mining is big business. Nigeria must assert its presence in this environment by replicating its strategic positioning in the petroleum sector by setting up a corporate body that plays in this field. Consequently, the Ministry shall work towards the incorporation of the Nigerian Solid Minerals Corporation.”

According to the Minister, the corporate body will have subsidiaries doing business in the seven priority areas that require immediate intervention and focus which include: Gold, Coal, Limestone, Bitumen, Lead, Iron-ore and Baryte. Existing enterprises, such as the National Iron-Ore Company, and ongoing arrangements, such as the Bitumen Concessioning Programme, will be reviewed to fit into this new system.

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“The proposed corporation will seek and secure partnership investment agreements with big multinational companies worldwide to leverage on the attractive investment-friendly regime operating in the country to secure massive Foreign Direct Investment for the mining sector. The positioning of the national corporation as a guarantor and protector of the partnership agreements is expected to assure partners of our seriousness and fidelity.

“Similarly, the Solid Minerals Corporation will provide robust support for Nigerian businessmen seeking funding abroad and help to authenticate their investment proposals to speed up the commitment of their partners to invest. Domestically, the Solid Minerals Corporation will engage the Nigerian financial system, which has demonstrated palpable reluctance to support mineral prospecting and mining because of the long-term gestation of value generation by developing a Fund to facilitate investments in mining at interest rates that will be mutually agreed,” the minister said.

The minister said the country will leverage on the abundant precious minerals including gold, manganese, bitumen, lithium, iron ore, lead, zinc, limestone, uranium, columbite, barite, kaolin, gemstones, coal, topaz and copper that are in massive proportions to attract investors into country.

Nigeria has an estimated reserves include Gold (1 million ounces); Limestone (568 metric tonnes), Lead/Zinc, (Baryte (15 million metric tonnes), Bitumen (N1.1 billion barrels), Iron Ore (3 billion Metric Tonnes) and Coal, (N396 million).

The Star