Luke Binniyat
2 November 2009
The Minister of Mines and Steel Development Mrs. Diezani Alloson-Maduekwe said that speculators and unqualified companies have been holding mining titles to the detriment of the Nigerian Mining sector which she said is on the verge of a renaissance.
She said that the recently revoked 832 mining titles were done to pave way for Foreign Direct Investment (FDI), and other qualified Nigeria firms to have a chance of participating in the sector.
"On 26th November, 2007 the Ministry suspended the receipt and processing of new Mining Titles, due to the realization that the provisions of the Nigerian Minerals and Mining Act of 2007 had not been met by holders of titles, whose titles were recently issued under the 2007 Act and that the Mining Cadastre Office was not legally created", she explained.
"However", she continued, "on the 23rd April, 2008, the Ministry directed the Mining Cadastre Office to continue to receive and record applications, but to suspend all processing of same
"The Ministry then appointed a Revalidation Committee, under the Chairmanship of the Permanent Secretary, to assess all titles issued under the Nigerian Minerals and Mining Act, 2007", she said.
"This Committee was to ensure complete compliance with the requirements of the law, especially those pertaining to the following:
"Unfortunately, the Revalidation Committee found that almost all the companies vetted failed to meet with the requirements of the Act", she said.
"The Ministry, therefore, placed a series of advertisements in the print and electronic media in May and June, 2009, requesting title holders to re-submit their documents for assessment"
Madueke said that at the end of the initial time associated with the submission of documents, the Ministry received a high volume of requests from companies asking for an extension of time.
"In response to these requests, the closing time was extended by a further 2 weeks", she said.
She said that the Revalidation Committee evaluated a total of 2,330 mineral titles, out of which, 1,569 were titles that had already been issued, whilst 761 had been processed but had not been issued before the suspension of the processing of titles took place.
"At the close of the time for the submission of documents", she said, "737 operators responded, which represented approximately 47% of title holders
According to her, 489 Titles were successfully revalidated; 29 provisionally revalidated (subject to submission of dated consent letters).
The Minister said that 49 Titles which were under assignment, will be re-assigned and subjected to further processing, She said that 832 Titles were unsuccessful and were therefore not revalidated
"The above information clearly indicates that many titles were held by unqualified companies and speculative individuals", she said.
"The process has therefore, hopefully, cleaned the sector of speculators and allowed only genuine investors with the necessary competence to operate", she added.
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