Since President Bola Tinubu took office on May 29, 2023, significant efforts have been made to enhance Nigeria’s mining sector as part of his wider strategy to diversify the economy. Acknowledging Nigeria’s wealth in critical minerals vital for global energy transition, Tinubu’s administration faces the challenge that despite possessing 44 commercially viable minerals, the sector has historically underperformed in contributing to GDP.

Minister of Solid Minerals Development, Dele Alake, declared a state of emergency upon his appointment. He linked illegal mining operations to funding for banditry, hampering revenue potential. In response, the government implemented a combination of law enforcement and cooperative incentives. A dedicated security unit known as the Mining Marshals was created to ensure protection and legality in mining activities, resulting in the arrest of over 300 illegal miners. Additionally, 250 cooperatives were initiated to formalise artisanal miners’ operations.

Key policies introduced include the Value Addition Policy, designed to require mining companies to present value-adding initiatives before obtaining licences. This is supported by the inauguration of a state-of-the-art laboratory for geochemical analysis, intended to improve exploration initiatives. Recent developments include a lithium processing laboratory and a tin processing plant, signalling progress in mineral processing capabilities.

July 2024 saw the introduction of increased rates and charges for mining activities, aimed at enhancing the sector’s economic contribution and improving infrastructure. The revocation of 924 dormant mining licences aims to clean the industry and boost foreign investment. While NAITI reports GDP contributions increased from N1.66 trillion in 2022 to N1.76 trillion in 2023, there is consensus that further improvements depend on addressing state interference and over-regulation.

The government’s decision to lift the mining exploration ban in Zamfara is also seen as a step towards revenue recovery. Stakeholders advocate for mandatory local content usage in oil and gas industries to enhance national revenue further. Upcoming mining conferences underline the need for technological advancements and collaborative efforts to reinforce the sector’s growth.

While optimism surrounds Tinubu’s reforms, stakeholders emphasise the importance of consistent and actionable policies in achieving sustainable progress. The minister mentioned plans for further reforms in 2025 to build on 2024’s achievements.

Nigeria’s mining sector, endowed with 44 commercially viable minerals, has historically played a minimal role in national GDP despite its potential. President Bola Tinubu’s administration has initiated efforts to revitalise the sector, focusing on addressing illegal mining’s impact on security and economic performance. This sector transformation aims to pivot Nigeria’s economy away from a mono-cultural reliance on oil, leveraging solid minerals for sustainable growth and stability.

The revitalisation of Nigeria’s mining sector under President Tinubu aims to elevate its economic contribution by addressing illegal activities and promoting value addition. Key strategies involve both coercive measures to enforce legality and initiatives to formalise artisanal operations. Despite initial progress reflected in GDP growth, overcoming structural challenges and ensuring effective policy implementation will be crucial for long-term success and development in the sector.

Original Source: nannews.ng

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In 2024, Nigeria faced a series of tragic mine collapses, resulting in numerous injuries and fatalities. Notable incidents occurred at Galkogo in Niger state, Gashaka-Gumti National Park spanning Adamawa and Taraba states, and in Plateau, where dozens of miners were buried or lost their lives. These disasters largely stem from artisanal and illegal mining, marked by inadequate safety measures, outdated equipment, and a lack of professional oversight. Dele Alake, Minister of Solid Minerals, highlighted the urgent need for improved regulations and enforcement within the industry to prevent further tragedies. The government aims to enhance the sector’s contribution to GDP while tackling illegal mining.

Experts advocate enforcing mining standards and enhancing regulatory capacity. The government is urged to bolster safety compliance and invest in training for miners. Local authorities are called to increase surveillance against illegal activities. Additionally, addressing Nigeria’s poverty rates is crucial, as economic desperation fuels unsafe mining practices. Overall, a collaborative effort is necessary to revitalise the mining sector, ensuring safety while expanding its economic potential and reducing fatalities from collapses.

Several major mining incidents in Nigeria in 2024 highlighted the dangers posed by artisanal and illegal mining practices. These occurrences point to a systemic failure in safety enforcement, professional training, and equipment standards in the mining sector. The current administration seeks to reform and revitalise this sector to increase its contribution to Nigeria’s economy, amidst challenges like high poverty rates and illegal mining operations that exacerbate workers’ risks.

The crisis resulting from mine collapses in Nigeria underscores the urgent need for reform in the mining sector. By enforcing safety standards, enhancing regulatory oversight, and addressing illegal mining, it is possible to prevent future disasters. Additionally, tackling poverty and providing support to miners can improve conditions and enhance the potential contributions of the mining industry to the economy.

Original Source: nannews.ng

The post Nigeria’s Mining Crisis: Addressing Fatal Collapses and Safety Challenges first appeared on Nigerian Mining News.

The Nigeria Mining Cadastre Office (NMCO) has raised concerns over the inadequate capacity of some mining title holders, particularly those holding multiple cadastral units. This issue, highlighted by NMCO Director General Dr Obadiah Nkom during the ninth Nigeria Mining Week in Abuja, is hindering genuine investors’ entry into the mining sector. To rectify this, a new mining regime was introduced in July, focusing on competent operators and adhering to a ‘first come, first served’ principle. Nkom noted improvements, including increased investment and the cancellation of unused licenses, affirming NMCO’s role in promoting responsible mineral resource management and supporting Nigeria’s economic diversification strategy.

The challenges faced by mining title holders in Nigeria are crucial for understanding the landscape of the mining sector. The NMCO is responsible for managing mineral rights in the country, aiming to attract investment and ensure sustainable resource management. The introduction of a new mining regime indicates an effort to address the gaps in capacity and effectively allocate titles to operators who can develop them, thereby bolstering the sector’s contribution to economic growth. This situation is particularly relevant as Nigeria seeks to diversify its economy.

The NMCO’s initiatives reflect a strategic move towards enhancing the capacity and accountability of mining title holders in Nigeria. By implementing a new regime that prioritises capable operators and the productive use of mining titles, the agency aims to attract genuine investment, ensure compliance, and contribute significantly to the nation’s economic ambitions. Ongoing improvements signal a promising future for the mining industry in Nigeria.

Original Source: nannews.ng

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At the ninth Annual Nigeria Mining Week in Abuja, Nigeria’s Minister of Solid Minerals Development, Dr. Dele Alake, emphasized the need for the country to move beyond mere extraction of minerals to fully harness the sector’s potential. He highlighted that with Nigeria’s wealth of 44 minerals, including critical minerals for energy transitions, the focus must shift to local value addition and processing. Alake asserted that the government aims to transform the country’s mineral wealth into industrial strength that creates jobs and nurtures local businesses. He noted the recent inauguration of lithium processing plants in Nasarawa State and the establishment of more facilities near the Federal Capital Territory as part of this strategy. President Bola Tinubu’s administration is committed to implementing a policy that ensures mineral resources are processed locally and do not leave Nigeria in their raw form. Alake discussed plans to enhance the security of these resources while tackling illegal mining. The Mining Week serves as a venue for fostering partnerships, promoting innovation, and discussing future challenges and opportunities in mining. The overarching theme centres on building a sustainable mining sector to underpin national growth and prosperity, according to stakeholders present, including representatives from the Miners Association of Nigeria and PwC.

Nigeria’s mining sector is rich in potential, with 44 identified minerals. However, the country has primarily focused on extraction rather than processing and added value, which is crucial for economic growth. The Nigerian government is taking steps to reposition this sector to enhance its contribution to the GDP and create jobs, especially in light of global shifts towards sustainable energy solutions. The government’s new initiatives highlight a commitment to local processing and securing mineral resources.

Dr. Dele Alake’s statements at the Annual Nigeria Mining Week underline a pivotal shift in Nigeria’s mining strategy from simply extracting minerals to implementing local value addition and processing. By reinforcing security measures and promoting partnerships with various stakeholders, the government aims to enhance the mining sector’s contribution to the economy, ensuring that the benefits are realised domestically.

Original Source: nannews.ng

The post Nigeria Enhances Mining Strategy: From Extraction to Value Addition first appeared on Nigerian Mining News.