The Challenge of Banking Support for Mining Businesses: Insights from Minister Alake
Dr Oladele Alake, the Minister of Solid Minerals Development, has brought attention to the challenges faced by banks in providing support to mining businesses due to the lack of reliable data provided by these companies. This viewpoint was expressed during the 59th Annual Internal Conference and Exhibition (AICE) of the Nigeria Mining and Geosciences Society (NMGS). Dr Alake emphasized the pressing need for improved data quality to facilitate the growth of the mining sector.
Dr Alake underscored the significance of enhancing the Nigerian Geological Survey Agency (NGSA) as a credible source of information in order to gain the trust of investors and financiers both locally and internationally. He urged engineers and geologists to contribute their new findings to the NGSA, thus updating the agency’s intelligence on rock formations, which play a pivotal role in the mining industry.
The Minister further noted that the reluctance of mining professionals to share their data with the NGSA has resulted in investors being dissatisfied with the limited information available for making critical investment decisions. This has led them to seek additional data from foreign exploration companies, resulting in increased costs and delays in the investment process. Dr Alake called for a more collaborative approach among stakeholders to collectively build the wealth of the mining sector.
Governor Caleb Muftwang of Plateau State echoed similar sentiments, emphasizing the untapped potential of the country’s mineral resources and the need for improved regulation in the sector. He drew attention to the prevalence of illegal mining activities, which have resulted in criminality and secrecy within the industry. The Governor advocated for greater transparency and governance in the mineral sector, stressing the importance of mitigating the risks associated with mining activities.
Furthermore, Governor Muftwang highlighted the need for synergy between mining and environmental exploration, emphasizing the importance of harmonizing the two sectors for sustainable development. He also called for increased safety measures within the mining industry, particularly in light of recent incidents where lives were lost in mining pits.
In conclusion, the statements made by Minister Alake and Governor Muftwang underscore the critical need for improved data quality, transparency, and governance within the mining sector. Addressing these challenges is essential for enhancing the sector’s growth potential and ensuring the safety and well-being of all individuals involved in mining activities. By working together to address these issues, stakeholders can contribute to the sustainable development of Nigeria’s mineral resources.
