While arresting, detaining operators and destroying “illegal refineries” in the Niger Delta region, Nigeria’s Government is set to buy gold from illegal miners in the North and South-west parts of the country.
The Minister of Mines and Steel Development, Kayode Fayemi, announced the new gold purchase deal on Thursday.
Mr. Kayode, who spoke at the ministry’s End of Year Ministerial Briefing in Abuja, said the scheme is being carried out in partnership with state governments and the private sector.
The plan, which the minister said will commence early next year, is aimed at increasing revenue accruable from the country’s abundant gold deposit.
It will include equipping of the artisanal miners, provision of extension services and off-take of all gold produced by participants in the scheme.
He said Kebbi and Osun states have been chosen as pilots for the scheme, adding the deal would facilitate employment, reduce poverty and increase revenue to the Federation Account.
The Minister who lamented that the vast majority of the country’s gold is transacted underground without any record of financial accrual to the government said the gold purchase scheme would attract international buyers.
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This development, according to him, would defeat the prevailing underground gold market.
Already, Mr. Fayemi said he has set up an Investment Promotion and Mineral Trade Department, while a Special Purpose Vehicle (SPA) to manage the gold purchase scheme after being licensed by the government has been instituted.
The minister also stated that the ministry had secured the delivery of 26,000 line kilometre of electromagnetic data, having made the outstanding payment to the consultant handling it.
He said the ministry would also undertake extensive electromagnetic Airborne Geological Survey of promising parts of the country in 2018.
“We are also working towards the completion of the equipping of the NGRL, as well as the completion of our National Mineral Database, and will, in collaboration with the China Geological Surveys conduct an extensive geochemical mapping programme across the country,” Mr. Fayemi said.
“The foregoing would avail sufficient data for interpretation and analysis to allow for strategic planning and targeting of potential areas for further exploration work, and ground verification of the data from the ‘AGS’.
“We consider this a very important part of our work in 2018, to deliver a comprehensive bankable data of our mineral endowments across the country,” Mr. Fayemi added.
Speaking further, he said: “We have collaborated with the state governments to ensure the reactivation of State Minerals Resources and Environmental Management Committees (MIREMCOs) as provided for by Section 19 of Nigerian Minerals and Mining Act.
“Accordingly, we provided mobilization funds for 10 State MIRENCOs, and also procured operational vehicles for the affected states. Our efforts in this regard are in the spirit of cooperative federalism in the sector, in order to deepen the participatory governance of the mining sector.
The Minister said with more funding and technical support for miners in the coming years, the sector would actualise its agenda of job and wealth creation.
The Minister also said that the ministry has completed the characterisation of kaolin in Ekiti State.
This involved carrying out mineral and chemical analysis to determine the composition of the kaolin as well as the quality.
While these initiatives have been ongoing, the government has clamped down on operators of artisanal refineries in the oil-rich Niger Delta region, which provides about 90 percent of the country’s revenue.
Security operatives celebrate arrests, killing of youth resisting arrest and the destruction of thousands of local refineries in many parts of the Niger Delta region.
As far back as 2011, the Joint Task Force (JTF) tagged “Operation Restore Hope,” said it destroyed no fewer than 1,000 illegal refineries and arrested some of the operators.
The then Commanding Officer, Ibrahim Jafaru, said his troops, backed by MI-35 helicopter gunship, invaded the camps built by the youth and destroyed the refineries.
As the military and other security agencies are unleashed on Niger Delta youth for stealing critical national resource, young people in other parts of the country, especially in the North continue to extract and sell the nation’s minerals without let or hindrance.
On March 7, the JTF, code-named Operation Delta Safe, said it destroyed 80 illegal refineries in Bayelsa, Delta and Rivers states.
Its spokesman, Abubakar Abdullah, said the troops who patrolled Obhoyohan and Ngiri Creeks and environs in Nembe Local Government Area or Bayelsa State destroyed seven illegal refineries.
He said the illegal refineries had over 150,000 litres of stolen crude oil while three suspects were arrested in connection with the refineries and that they are currently undergoing investigation.
In Delta, Mr. Abdullah, an Army major, said troops around Sara Abileye Swamp in Warri South West Local Government Area discovered a network of six illegal refineries made up of four storage tanks, two dug out pits filled with products suspected to be stolen crude oil, among other findings.
In Rivers, he said the troops destroyed other 10 illegal refineries around Bolo in Bonny Local Government Area in addition to 25 others earlier raided at Creek 6 and Ijokiri in same council area.
