Mining sector under threat over stalled access to $100m loan

Some contractors among the 10 exploration and consulting companies that won mining contracts in the country are facing stiff funding challenges due to inability to access $100 million intervention fund approved by government.

A reliable source in one of the firms that won the mining bid, who spoke on the condition of anonymity, disclosed that stringent conditions were laid down to enable them get the loans.

It was reliably gathered from the Ministry of Mining and Steel Development in Abuja that apart from the normal ministry’s budget allocation, government had also earmarked the $100 million for exploration activities in the sector in line with its aggressive development agenda.

Investigations gathered by New Telegraph showed that the terms and conditions for accessing the credit facility were putting on hold the prompt release of the funds to enable them move to site.

The source revealed that embarking on the mining projects was capital intensive and seeking alternative funding for it was the only solution.

New Telegraph, January 18, 2019

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