As the federal government continues to direct huge investment towards improving the mining sector, regulatory agencies in the system say they are committed to ensuring commensurate return to the government by putting efforts in place to bridge the data gap and incentivize the system.
Featuring as a panelist in a discussion segment on Tuesday shortly after the 2022 Nigeria Mining Week was formally declared open by President Muhammadu Buhari, the Director General of Nigeria Geological Survey Agency, NGSA Dr Abdulrazaq Garba said the agency is committed to gathering information of high resolution to achieve more exploration targets. This he said will be of significant assistance to investors.
He was however quick to tell the anchor person, Johnson Ayeni, an editorial assistant of The Rock Post magazine that the data being generated is not given out to investors free of charge, especially if the data is for exploration or targeted exploration.
“Whoever tells you that all geoscience data generated by geological survey are given for free might not be totally correct. The provision of geoscience data for investors depends on level.
“Generic information, maybe indigenous data may be made available to individuals for free. But data for exploration is not for free.
“If you take for example, why is it that in most mining acts, companies that do generate their information, before they are asked to render it to the necessary authorities, like the geological survey office, it will take some years; maybe five, six or seven year.
“For a country like ours that is just starting, yes we have some data set like the regional maps, structural maps and so on, we can provide these ones for free.
“But targeted exploration, where significant amount of money has been spent on drilling, dredging and so on, worldwide it is not given for free” he said.
Dr. Garba said there are different layers to geoscience information and the agency is clear on the ones that can be made available at no cost, citing global best practices as well as high cost of obtaining some data as reasons they can’t be given for free of charge.
“We have bulletins, occasional papers which we sell, these are data. So all data cannot just be said to be free of charge, it is not possible” he stated.
Responding on what value the newly unveiled Electronic Mining Cadastre, EMC+ has in the mining sector, the Director General of Mining Cadastre Office, Mr. Obadiah Simon Nkom said automation of mineral title application was an innovation that came after his office carefully studied the laws and mode of practice of top mining destinations in the world.
According to him, it has become necessary for the Nigeria to initiate policies that will make it align with global practices especially in entrenching transparency in license acquisition.
Nkom noted that there are basic benefits associated with this innovation. “It brings together all components that are needed, including ease of doing business which we are talking about. Somebody might decide to come to Nigeria because of ease of doing business, particularly in obtaining mining licenses.
“It transforms the system, so many others things you just have to come. You don’t have to travel all the way from Canada, Australia or anywhere for processing of your license.
“This system makes it more transparent, effective and efficient. It has the likelihood of attracting investors and when this occurs, we can now have other benefits, particularly in relation to revenue generation” he said.
The Chief Executive Officer, CEO Titan Minerals Nigeria, Fadi Ghazali while responding to question on NEITI’s position that Nigeria has not earned revenue in the mining sector as much as it has invested underlined that exploration generally is a risky business and highly capital intensive.
He appealed to government to de-risk the sector and ensure that investors put their money in the right place.
“The first thing that needs to be done is to generate credible geoscientific data that will help give investors a direction in channeling their funds to the right place.
“If you eventually put your money on ground, it may be very hard to recoup your investment back. That is why you must take the right steps and ensure you get to the potential exploration of that terrain, generate viable and reliable data” he said.
Ghazali urged potential investors to exercise patience during the exploration process and not to hastily engage in mining mineral resources without adequate information on its quality and quantity, attributing it to why a lot of persons in the sector fail.
He urged investors not to use the artisanal miners as a yardstick but obtain reliable information before mobilizing tractors to the fields of mining.
“There is a general trend in the country in which some companies try to go and mine, maybe by mobilizing excavators or small mechanized system, thinking that they can extract value.
“But by the time they go into that particular investment and losing money, this is when they will realize they have taken the wrong steps” he said.
He appealed to government to fund more projects targeted at reducing the risk in the sector and provide investors with more information.
In his comment, the Research Policy Development Strategist of MinDIVER, Al-Amin Ebhola said there is need for a paradigm shift to engaging in more bankable exploration, expressing regret that some companies, especially juniors engage in low quality exploration which do not usually attract investment.
He urged that they rather embark on more deeper exploratory activities and remit their information to the NGSA in line with global practice, a development he said will assist in enhancing the country’s geoscience information.
