FG to partner states on minerals' development

ONE of the new drives we have been trying to put forward is that of partnership.The best way to adequately control the exploitation of mineral resources for the socio-economic benefit of the country is by partnering with all tiers of government.'These were the words of the Minister of Mines and Steel, Musa Mohammed Sada, during the visit of Cross River State Governor, Liyel Imoke to solicit the support of the ministry in the development of mineral resources in his state.The minister assured the governor that the Federal Government has taken proactive measures at encouraging local production in the minerals and metal sector in its attempt to ensure economic rate of returns in the development of the nation's solid mineral resource.He explained that the sector being presently dominated by foreign operators, provides low percentage of benefits in terms of royalties, tax and amenities to the government, noting that 'the money is in the equity of the business and foreign operators bring in the capital and take out their capital and we may just be left with nothing.'This trend, he said, made it imperative for the Federal Government to collaborate with states to encourage local operators, which in turn would ensure economic rate of returns to develop other sectors of Nigeria's economy.Sada also disclosed that the government is doing all in its power, to ensure the local production of barites to satisfy the requirements of the country's oil and gas industry.He noted that geological study had revealed that there is a high deposit of barites and limestone in Cross River State, a development, he said, would put the state at par with other mineral producing areas.He added: 'We are already discussing with some of the companies that exploit minerals for supply to the oil and gas industry to assess the possibility of establishing their operations in some of these locations to be able to exploit locally.'He disclosed that the Nigerian Minerals and Mining Act of 2007 provides for the establishment of the state Mineral Resources and Environmental Management Committee (MIREMCO) in each state of the federation to be headed by a prominent indigene of each state.This, he said, would avail the communities the opportunity to contribute to the orderly development of the nation's mineral resources in their domain and also fast track the orderly and sustainable development of the solid mineral endowments of Nigeria.He pointed out that the ministry had worked out a clear community development agreement with host communities, which clearly spelt out the social and economic contributions that the mineral titleholders are expected to make to their hosts.Imoke informed the minister that Cross River State, being the only non-oil producing state in the Niger Delta area, needs to harness its mineral deposits, to bolster the state's economy.He further disclosed that the state had about thirty (30) quarry companies in one local government area of the state where there are huge deposits of limestone and barites requested the ministry backing as mineral matters rest entirely on the government at the central.He hinted that a number of private mining firms had already indicated interest in the development of those mineral resources.He expressed his desire for Cross River state to be on top of the list of destination for the development of solid minerals in the country adding that 'an enabling environment would be created for potential investors in the state.
Click here to read full news..