Ministry Launches New Guidelines for Community Development Agreement in Mining Sector

The Ministry of Solid Minerals Development has recently announced updated guidelines for the production of the Community Development Agreement (CDA). This important announcement was made in Abuja with the goal of ensuring the transfer of socio-economic benefits to mining host communities.

During the launch event, Dele Alake, the Minister of Solid Minerals Development, emphasised the potential positive and negative impacts of mining projects on communities. He highlighted the need to address the concerns and expectations of both mining companies and host communities. Alake also stressed the importance of fostering sustainable and mutually rewarding relationships in the mining sector.

The Community Development Agreement (CDA) serves as a legal document containing obligations by the Mineral Title Holder (MTH) to the host community and vice versa. It is a statutory provision enshrined in the Nigerian Minerals and Mining Act (NMMA), 2007, and is essential for promoting harmonious relationships and securing social licenses for mining operations.

Alake pointed out that the concept of CDA is instrumental in preventing social crises in the mining sector, similar to those experienced in the Niger Delta region’s oil industry. He emphasised the necessity of implementing CDAs to avoid undermining the government’s efforts to diversify the economy.

The Ministry has already witnessed increased compliance levels in the implementation of CDA covenants through field monitoring, enlightenment, education, and sensitisation exercises. As a result, about 252 companies have signed CDAs with their host communities, leading to the provision of essential amenities and services such as boreholes, electricity, schools, health centres, road constructions, and scholarships.

Notwithstanding the progress made, there are still some companies yet to comply with the provision of the CDA, and the ministry is committed to enforcing the necessary regulations. In view of this, the Ministry has developed new guidelines to address the gaps and shortcomings identified in the existing CDA documents.

The overriding objective of the revised guidelines is to create awareness of the importance of Community Development Agreements for sustainable mineral resources development in Nigeria. This initiative aligns with the government’s commitment to promoting responsible and mutually beneficial practices in the mining sector.

In conclusion, the launch of the revised guidelines for the Community Development Agreement signifies a significant step towards enhancing transparency and accountability in the mining industry. The Ministry’s efforts to promote sustainable relationships between mining companies and host communities are pivotal for achieving long-term socio-economic benefits and fostering a conducive business environment.