No more mining licences without plans for local refining, Dele Alake tells firms

Dele Alake, minister of solid minerals development, has said that there will be no more mining licences for investors without plans for local value addition.

Alake spoke when members of the house representatives committee on solid minerals visited the ministry on Tuesday, according to a statement, signed by Segun Tomori, his special assistant.

The minister applauded the lawmakers for their support in repositioning the mining sector, stressing that changing the economic fortunes of Nigeria is a joint task by both the executive and legislature.

He assured the legislators of the significant contribution of sub-nationals to mining development, adding that the states’ chairmen of mineral resources and environmental management committee (MIREMCO) and five members of the committee are nominated by state governments.

“The importance of this committee cannot be overstated because whether we like it or not, we are at the cusp of history and it does beckon on us individually and collectively whether as executive or legislature to change the paradigm of Nigeria’s economic fortunes because we have to diversify our economy away from the mono-cultural dependency on oil,” Alake said.

“Again, that underscores the significance of this committee because of the importance of the ministry in that regard. That is why I view your visit here today with all sense of proprietary, responsibility, and appreciation of the oversight functions that you are saddled with.

“We welcome you and believe that from the type of comradeship that I have personally enjoyed with the committee and the leadership, I have no doubt in my mind, that what the executive of this ministry needs to forge ahead to achieve its stated objectives in terms of logistics support, legislative framework crafting is assured.

“It gives me great confidence that when you have members of a committee that understand the issues at stake, understand the problems that the ministry faces and knows how to give the necessary back-up, then we in the executive will have no excuse for failure. We can only forge ahead.”

Highlighting the renewed interest of the international community in Nigeria’s mineral resources, Alake said his seven-point agenda has put the mining sector “on the global front burner” since he assumed office.

He said with the pact that led to the formation of the Africa Minerals Strategy Group (AMSG), there is now unity of purpose on the African continent on the issue of local value addition.

“With the support of the permanent secretary, management, and the house committee, we have been able to project the sector globally and the result of our efforts culminated in my election as the chairman of the Africa Minerals Strategy Group (AMSG) on the sidelines of the Future Minerals Forum (FMF) in Riyadh, Saudi Arabia based on our 7-point agenda which was applauded by all and sundry,” he said.

“This is a group that consists of all African countries’ ministers of solid minerals/mineral resources.

“We are no longer going to allow anybody or license any company that want to go into the mineral sector without giving us a plan for local value addition like processing, refining and this has a multiplier effect on the economy.

“It instantly generates employment rather than a few people carting away lithium, gold, and the likes to other countries to sell. These minerals must now be processed in Nigeria, creating more value and beneficiation for local communities where they are sourced.”

 

On security, the minister disclosed that the federal government has set up a new security outfit to secure the nation’s natural resources that will incorporate the existing structure of the Nigeria Security and Civil Defence Corps (NSCDC) with the infusion of technology and specialised training.

Alake said there would be a command in every state.

“We have come up with what we believe can stem insecurity around natural resources like solid minerals, forests, and marine economy,” he said.

“We decided to use the existing structure of the NSCDC because of the cumbersome process of establishing a new security architecture. In terms of deterrence, the new NSCDC corps will be useful.

“What a whole battalion can do, one single drone can do it, so the new security outfit will be largely technologically driven, and they will be under the overall command of the ministry of solid minerals development (MSMD).

“They are to secure our mine sites, help in stemming theft, illegal mining, and carting away of our solid minerals. The command structure of the new outfit will be inaugurated in the coming days.”

In his remarks, Gaza Gbefwi, chairman of the committee, said the house committee paid a visit to the ministry to ensure he is doing what it is supposed to do for the citizens to get maximum beneficiation from the mining sector.

He expressed appreciation to the minister for cooperating with the legislature in its oversight function of checks and balances.

Gbefwi said the committee would support reforms with requisite legislation that will enable the minister to propel the sector into an enviable position, with a significant contribution to the nation’s economy.