TheCable

Lekan Adegbite, minister of mines and steel development, says the federal government does not have the resources to preempt all illegal minerals miners’ activities because the country is vast.

Adegbite, speaking on ARISE TV on Tuesday, said even though the country cannot forestall illegal mining operators, those caught will be dealt with according to the law.

He also said the federal government had begun to organise the so-called illegal miners into cooperatives to ensure thorough monitoring, adding that so many foreign nationals were being arrested and prosecuted for breaking the law.

“As for illegal mining, that’s a problem because Nigeria is a very vast country. I must admit to you that we do not have the resources to preempt all these illegal activities because Nigeria is vast, ” he said.

“But we react to it very well, because we have been monitoring the locals, through the states and all that, and the security guys are aiding us. We’ve arrested a lot of these nationals that you mentioned, and we have prosecuted them.

“We are working with agencies like customs, immigration. We’re working with them to tighten the noose. We are saying don’t let these illegal people come in in the first place. But wherever we are alerted to the activities, we are left with the responsibility and we have got the support of security services.

“I sincerely admit that we have some illegality all over the place because Nigeria is a vast place and I cannot come out and tell you that yes, we have the resources to preempt this because we can’t be everywhere at the same time. No, it’s not possible.”

Adegbite further disclosed that the ministry now has satellite monitoring system from which illegal activities are closely watched.

The minister said artisanal mining is a major activity in Nigeria and, therefore, not illegal; adding that the government had not made it unlawful because many of those involved use proceeds from it to feed their families.

ONGOING MAJOR PROJECTS IN THE SECTOR 

Speaking on the Ajaokuta Steel, Adegbite said things would be done differently compared to the past, as the new deal would be based on equity stakes, with the process expected to be completed in March this year.

He added that the transaction advisor in the case is guiding the federal government on the proper thing to do.

“We have people who are going to come into Ajaokuta with their equity,” he added.

“We don’t want a free ride anymore. That’s one of the lessons learnt from the past. We’ve learnt a lot of lessons because we’ve had two sessions of concessions of Ajaokuta that failed.

“This time around, we are being guided by experts, and because of the value inherent in Ajaokuta, they appreciate it. But we’re saying this time there is no free lunch.”

The minister noted that President Muhammadu Buhari is the first in the history of Nigeria to have committed money to mining in the country, up to the tune of $100 million.

“We’ve talked about diversification over the years from one administration to the other, but actually putting money where the mouth is, President Buhari did that and because mining is a very risky venture, the government needs to de-risk the sector,” he added.

“We invested money in exploration and of course, acquiring data, which is what President Buhari did, especially in 2017. This data is what is attracting people to the sector now.

“And additionally, when we came in, I noticed that we were going the petroleum route again, where we exported the crude oil and they will bring in refined products, so we started the process of engaging stakeholders.

“It took us about two years, but today it’s an official policy of the government. It was approved by the council, where without beneficiation you cannot export raw ore from Nigeria anymore.”

On monies generated from mining activities in mining, Adegbite said there has been an improvement from what the sector contributed to the country’s gross domestic product (GDP) in the last 10 years.

“Where we were doing less than N1 billion, today we are doing N10 billion. Tt’s a giant leap.” he said.

The minister added that the federal government was working with the private owner of Burutu port in Delta state to make sure that Nigeria designates the port as the mineral port in Nigeria.