Govt revokes fresh 924 dormant mining licences

• LCCI decries low performance of minerals sector
To sanitise the mining sector, the Federal Government has revoked 924 dormant licences, six months after revoking 1,663 titles.

The latest revocation includes 528 exploration licences, 20 mining licences, 101 quarry licences and 273 small-scale mining licences (SSMLs).

Minister of Solid Minerals Development, Dr. Dele Alake, at a press briefing yesterday in Abuja, declared that in line with constitutional provisions, adequate notice was given to the affected parties through the official gazette No. 227 published on December 27, 2023.

He explained that the affected licensees have an opportunity to make restitution by paying fines within 30 days to qualify for consideration, adding: “The fines are set at N10 million for revoked Mining Licences, N7.5 million for small-scale mining licences (SSMLs) and N5 million for exploration licences (ELs).”

Alake explained: “The notice gave all concerned parties 30 days to regularise their status, including clarifications on what caused the licence to be dormant. Thus, although a total of 963 licensees were published and notified of the threat of revocation, no fewer than 39 either moved to the site immediately or convinced the authorities of the challenges hindering their operations.”

He said the action followed due process and fair consideration, while it underscored the commitment of the Federal Government to implement the standard policy of “Use it or Lose it” as enshrined in mining guidelines.

IN a related development,  the  Lagos Chamber of Commerce and Industry (LCCI) has decried the poor outing of the solid mineral sector, stating that the mining industry has recorded back-to-back low performances in the last two quarters.

According to the National Bureau of Statistics (NBS), the mining and quarrying sector contributed just 4.47 per cent to the Gross Domestic Product (GDP) in the fourth quarter of 2023, lower than the contributions recorded in the fourth quarter of 2022 at 4.51 per cent and lower than the previous quarter at 8.32 per cent.

Its Director-General, Dr. Chinyere Almona, regretted that despite its immense potential, the mining sector remains hampered by many obstacles, including inadequate infrastructure, regulatory inconsistencies, limited access to financing and security concerns.

These challenges, she said, have collectively contributed to stifling growth, discouraging investments and impeding the sector’s ability to fulfill its role as a catalyst for industrialisation.

LCCI said in the National Development Plan 2021-2025, Nigeria planned to have laid a solid foundation for the sector to catalyse growth and industrialisation in an environmentally sustainable manner.

Almona regretted that the sector is not a major engine of economic growth and receives little investment, producing less than 0.5 per cent of GDP with a limited value chain to the economy.

She urged the government to review its strategy to attract mineral exploration investments, reignite mining project development, accelerate new mineral discoveries and encourage optimal utilisation of Nigerian mineral resources in line with the Environmental, Social and Corporate Governance (ESG) principles for sustainable growth.