How Nigeria plans to end illegal mining

The Nigerian government has approved N2.5 billion to procure satellite surveillance gadgets to combat illegal mining activities in the country.

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The Minister of Solid Minerals Development, Dele Alake, said the project is expected to take off within a maximum timeline of one month.

Speaking to State House correspondents after Monday’s Federal Executive Council meeting, the minister revealed that the project’s benefits are numerous, including combating unregulated mining activities, unlicensed mining operators, and underreporting of production at mining sites.

“We are procuring satellite equipment, satellite gadgets that will be installed in strategic places all over the country that would enable us to have a visual effect, real-time of the operations that are ongoing in sites all over the country.

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“There will be a centre like a screen in the operation centre, the mines martial centre, and in my office as well.

“At a glance, at the click of a button, you can surf any mine site and see the operations there; the volume of the mineral extracted, the number of trucks going out, and, of course, the security situation in the environment,” the Minister said.

Loss of revenue

Mr Alake estimated that the country has lost trillions of Naira to illegal mining activities , but assured that the satellite project is also expected to generate significant revenue for the government.

The minister noted that the revenue lost to illegal gold mining is “humongous” adding that illegal miners take advantage of Nigeria’s vast territory, which is almost impossible to control in its entirety. He said the solution is to “introduce technological gadgets that can enable us to see what’s going on, even in the remotest parts of the country.”

In addition to the satellite project, Mr Alake said the government is also setting up the Nigerian Mining Corporation, which will be substantially controlled by the private sector.

The corporation’s equity structure will be divided into 50% for the private sector, 25% for the government, and 25% for individuals.

“The President has also graciously approved the appointment of the CEO of that company. And his name is Martins Imoniti. He was headhunted from Australia. Australia is one of the biggest mining countries in the world, and from Western Australia, particularly, he has been in the finance sector of mining in Australia.

“So all the big players in the region and the mining in the world are at his tips, and we had to headhunt him to come and take off the Nigerian minerals corporation. So it’s going on very, very well. In fact, the Ministry of Finance Incorporated (MORFI) is going to midwife it,” he said.

State government interference

Mr Alake also addressed the issue of state interference in mining activities.

He said the federal government has the exclusive authority to regulate mining activities, however, the government is willing to accommodate the states and has encouraged them to form special purpose vehicles to apply for mining licenses.

“I’ve had a meeting with the governors at their Secretariat here, organised by the chairman of the governor’s forum, the governor of Kwara. 32 of them were present there, and I had a very robust exchange with them.

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“We want to accommodate everybody. So i announced to the governors that. Look, you have this land, you have the minerals situated in your various states. Now, what stops you as a state from forming an SPV, a special purpose vehicle, like a company, to apply for a mining license of a site in your own state, and I will approve to get them involved, give them a sense of belonging,” he said.

Mr Alake said the government has also taken steps to address illegal mining activities.

He said both local and foreign illegal miners have been arrested and prosecuted.

“The mine marshals had in the last couple of months apprehended over 320 illegal operators. Out of this, about 150 are undergoing prosecution as we speak and about nine have been convicted fully, while about four foreigners have also been convicted fully. So the work is going on pari passu with the technology that we want to introduce,” he said.