The Requirement for Miners to Sign Host Community Development Agreements or Lose their Licences
During the BusinessDay Solid Minerals Conference in Abuja, Dele Alake, the Minister of Solid Minerals Development, stressed the imperative need for the consent of host communities in order to obtain mining licenses in Nigeria. He issued a warning that failure to adhere to this requirement may result in the forfeiture of licenses by miners.
Alake emphasized the significance of the Community Development Agreement (CDA) initiative, aimed at promoting the welfare of host communities by ensuring that mining companies carry out development and social responsibility initiatives for the betterment of these communities. He urged holders of mining licenses to engage in negotiations with their respective communities and sign agreements to ensure that the communities derive benefits from the wealth generated through mining activities.
Expressing disappointment in the low number of companies who have signed CDAs with their communities over the past year, Alake vowed to rigorously enforce the guidelines in the upcoming year.
The Minister also disclosed the government’s plans to establish a private-sector-driven Nigerian Solid Minerals Corporation, citing the ongoing process of creating legislation for the institution. He confirmed that the Solid Minerals Committee of the House of Representatives is set to hold a policy dialogue on the proposed law to establish the corporation in February 2024.
Additionally, the ministry aims for the Federal Government to hold no more than 25 per cent of the institution’s shares, with Nigerian citizens and private investors holding the rest, as part of efforts to promote a private sector-led approach.
Alake also provided updates on the government’s campaign against illegal mining and the increasing number of registered artisanal miners’ cooperatives across the country. He also highlighted the Ministry’s efforts to refine the Nigerian Mining and Minerals Act 2007.
Frank Aigbogun, the publisher of BusinessDay Media Limited, expressed optimism about Nigeria’s solid minerals sector, and urged for strong political will to combat illegal mining. He emphasized the significance of creating an environment conducive to attracting investors into the sector.
Furthermore, representatives from the Nigerian Meteorological Agency (NiMet) discussed the impact of weather conditions on mining activities and highlighted the need for effective planning.
Stakeholders raised concerns about the threats of insecurity and poor regulation in the mining sector, and called for the creation of an enabling environment to attract investments. They emphasized the need for community engagement, environmental protection, and professional development within the sector.
The conference provided valuable insights into the challenges and opportunities within Nigeria’s mining sector, demonstrating a commitment towards fostering sustainable development and attracting international investment.
