Intervention funds underway for local miners

A boost is coming the way of local miners as the Federal Government has concluded plans to give intervention funds to the sector.

Giving this hint on Monday, the Minister of Solid Minerals Development, Dr Kayode Fayemi in a statement by his Special Assistant Media, Yinka Oyebode, said the ministry was already working with the Central Bank of Nigeria (CBN), the Bankers Committee and the Bank of Industry to achieve this.

“‎The intervention fund is part of the incentives government is being put in place to increase local production.”

He said the ministry is committed to exploiting the nation’s mineral endowments in an environmentally sustainable manner and establish a vibrant minerals and metal industry for wealth creation, poverty reduction, promotion of economic growth and significant contribution to the country’s GDP.

Fayemi decried a situation where the country currently imports an estimated $3.3 billion of processed steel and associated derivatives representing 80 per cent of the $4.2 billion total metal products imported per year.

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He said despite the country’s relatively robust iron ore reserves, there are only 30 steel rolling mills in the country with combined installed capacity of 6.5MT/annum. Only 18 are operational, producing about 2.8 MT/annum using 100 per cent scrap metal.

According to him, the government would realise its plan for a major turnaround in the sector, through a strategic support for the local and foreign investors as well as creating enabling environments, through the right policy, for mining activities.

The Minister lauded a few banks that have set up solid minerals desks and urged others to look in that direction as well.

According to the statement, Fayemi disclosed this during a working visit to bitumen bearing communities in Agbabu area, Ondo State.

He said the bidding round for licence would be for serious investors with proven work and financial

plans.

“The serious investors will get tax holidays and would be encouraged to bring in mining equipment duty free”, he said.

 

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