Sanctions Loom for Mining Firms that Fail to Comply with Development Agreements
The Minister of Solid Minerals Development, Dr Dele Alake, has issued a firm warning to mining firms, indicating that they will be subject to sanctions if they fail to comply with the revised Community Development Agreements (CDA). This proclamation was conveyed in a statement released by his Special Assistant on Media, Mr Segun Tomori, in Abuja.
The Community Development Agreement (CDA) is a legal mandate that guarantees the equitable distribution of socio-economic benefits to mining host communities. It encompasses responsibilities by the Mineral Title Holder (MTH) to their host community and vice versa.
Dr Alake underscored that the era of disregarding the CDA has concluded, and measures will be implemented to enforce compliance and penalize violators. Furthermore, the finalization of the Nigerian Solid Minerals Corporation and the formulation of a guiding law by the National Assembly are in progress.
Moreover, the Minister stressed the government’s dedication to creating a conducive environment for business operations in the sector. This entails the digitalization of the mining application process through the Electronic Mining Cadastral System.
In addition to addressing compliance concerns, the government is exploring financing options for an integrated minerals exploration project. This initiative aims to provide comprehensive coverage of all mineral categories across Nigeria, including opportunities for deep sea mining.
To tackle the insecurity surrounding mining sites and natural resources, President Bola Tinubu has established an inter-ministerial committee to develop a blueprint for securing Nigeria’s natural resources. This committee recently convened an expanded meeting with security agencies to devise a comprehensive security architecture for mineral sites, the marine economy, and forests.
The Minister also referenced the government’s efforts to amend the Nigerian Mining and Minerals Act 2007 to better accommodate changes and align with national priorities. Additionally, he discussed the proposal to institute a share structure for the Nigerian Solid Minerals Corporation, where the Federal Government will hold no more than 25% of the shares, Nigerian citizens will hold 25%, and private investors will each hold a maximum of 10% of the shares of the N1 billion share capital.
These actions underscore the government’s commitment to ensuring compliance with the revised Community Development Agreements and fostering a secure and conducive environment for the mining sector. The warning to mining firms serves as a reminder that the government is earnest about ensuring that all stakeholders fulfill their obligations towards the development of mining host communities.
