FG generates N5.2bn in 5 years from royalties in mining

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ABUJA – generated N5.2 billion between 2009 and 2013 from royalties in mining,  Mr Dauda Awojobi, Acting Director of Mines Inspectorate, Federal Ministry of Mines and Steel Development, has said.

Awojobi made the disclosure in Abuja on Sunday in an with the News Agency of Nigeria (NAN).

He said that N736. 92 million was generated in 2009; N889, 46 million was generated in 2010, while N970. 78 million was generated in 2011.

He added that N1.12 billion was generated in 2012, while N1. 45 billion was generated in 2013.

“In 2009, we generated N736.92 million compared to N1.45 billion generated in 2013. This is significant as the increment is in geometrical progression,’’ he said.
Awojobi said the revenue accrued from more than 44 minerals that were mined across the country.

He said 153.9 million tonnes of minerals were mined in five years.

“Generally, we have a royalty template whereby royalties are calculated based on three per cent to five per cent of the value of the minerals.

“It is as a result of this increase in production that we are able to make significant progress through royalties generated between 2009 and 2013,’’ he said.
The acting director listed the minerals mined during the period under to include: gold, coal, iron ore, clay, limestone, lead/zinc, kaolin, gypsum, baryte, columbite, copper, garnet, manganese, phosphate, talc and tantalite.

Others included: aquamarine, basalt, coltan, dolorite, domomite, feldspar, granite, laterite, marble, shale, sapphire, talc, tin ore (cassiterite), topaz, quartz, wolframite, tourmaline, zircon, silica and sand, among others.

Awojobi said the ministry had a databank on the minimum work programme approved for each mineral title.

He said that operators were expected to state the timeline of the activities to be carried within a particular period.

He said that the minimum work programme would not only be used to monitor the activities of the operators but would also be used to monitor their progress.

He said that permits for mining minerals issued by the ministry were either for export, analysis or for commercial purposes.

He said the ministry was also planning to establish a databank on the statistics of accident recorded from mineral exploration.

According to him the databank will enable the ministry to monitor accidents in particular mining titles, the causality figures and the number of injured persons.

“We will be able to know the magnitude of the accidents and the causes. We want to be proactive in this area because the mining environment ought to be safe and healthy,’’ he said.

The acting director said the ministry was also collaborating with the National Bureau of Statistics to ascertain the contribution of the mining sector to the country’s Gross Domestic Product (GDP). (NAN)