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FG seeks support of financial institutions for miners

Kayode Fayemi

Dr. Kayode Fayemi

’Femi Asu

The Minister of Mines and Steel Development, Dr. Kayode Fayemi, has said financial institutions in the country need to support the government in bringing the nation’s mining sector out of the doldrums.

Fayemi stated this at a sensitisastion/consultation session in Lagos organised by the Mining Implementation Strategy Team of the Federal Ministry of Mines and Steel Development and the Mining Thematic Group of the NESG Manufacturing and Mining Policy Commission.

He said, “We need to focus on rebuilding our mining and minerals sector because it has been comatose for quite a long time. We are trying as much as possible to straighten things out; there are things that haven’t been done right. There are errors that we have found coming in on the mineral licensing administration side of things.

“But you will also have noticed that we published more regularly now notices of revocation, and the ‘Use or lose’ clause in the Mining and Minerals Act 2007 is being effectively enforced.”

According to the minister, an area that is seen as a bit of a challenge is access to finance and the government needs to pay attention to it, particularly as it concerns artisanal and small-scale miners.

He said the programmes had been put in place to support small and medium-scale miners with bankable projects that could be brought to fruition.

Fayemi said, “We are beginning to also address that access to finance with limited support but from low level of support to N5bn that we have put in the Bank of Industry for the artisanal and small-scale category. This government is serious about taking mining out of the doldrums, and we are serious about listening to the players.

“We need our financial institutions to become more aware, the way they have done in the agric sector; and we are working with them to really get them trained and to set up basic mining desks and recruit geologists, mining engineers, people who have knowledge of the industry. But you know the way banks operate.”

The minister said the government had embarked on another range of exploration activity, especially in the seven priority minerals that the ministry had identified: limestone, coal, bitumen, iron ore, lead, zinc, barites and gold.

He stressed the need to improve the nation’s export and trade processes, saying, “I think it is important to work out the most effective way to ensure that those who are in the industry derive maximum benefit and government does not lose revenue as well.

On the need for value addition, Fayemi said, “Because this is a large economy and beyond just taking the minerals out, there is a lot we can do here with the minerals.”

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