By Ali Abare, A Special Assistant On Media To The Governor
It’s on record that Nasarawa State is on the brink of a mineral revolution, thanks to Governor Abdullahi Sule’s visionary leadership. The state’s mining sector reforms have attracted global attention, especially with the “Lithium Rush” drawing investors from far and wide.
For the first time in the history of the state otherwise known as the Home of Solid Minerals, Nasarawa State is witnessing the influx of global players in the mining industry coming in droves to establish their presence in the state’s mining sector. The Avatar New Energy Materials Co. Limited, a Chinese firm, recently commissioned the largest lithium processing plant in Africa located in Endo, Nasarawa Local Government Area. The company has already announced plans to establish a second, bigger plant in the state.
Several other global players are indicating their interest to invest in Nasarawa State. All these were made only possible because of the ongoing reforms vigorously pursued by the Governor Sule administration.
The turning point in the state’s mining industry is the passage of the Executive Order No.2, 2022, which mandates mining companies to add value to mineral resources being explored before exporting such outside the state.
According to the Nasarawa State Commissioner for Environment and Natural Resources, Hon. Yakubu Kwanta, the Executive Order No. 2, 2022 outlines new verification processes to mining companies operating in the state.
According to the Commissioner, the Order, is also aimed at ensuring adequate security for mining communities.
Most significantly, because of the prevalence of illegal mining, the Executive Order No. 2 also mandated that institutional and technical support be provided to artisanal miners in various communities.
Other aspects of the Order include that, all mining companies and their host communities are to submit two copies of previous agreements they had to the ministry for vetting before January 30.
Also that mining entities arriving in the state with the authority of the Federal Government to carry out mining must report to the ministry to verify their legal status, citizenship and background before settlement in the communities.
Again, all mining entities arriving and doing business in the state must report to the Ministry for Environment and Natural Resources for the purpose of documentation and identification of their operational status for peace and security.
The Order equally mandates that all mining entities doing business in the state must ensure that they pay all mining and other related taxes, levies, fees, and charges promptly to the Central Billing System domiciled with the Nasarawa State Internal Revenue Service.
Through the passage of the Order, the Nasarawa State Government barred communities from bequeathing Rights of Occupancy of lands to entities intending to carry out mining activities, with all holders of mining licences in the state thereby restricted to the powers conferred on them by the Minerals and Mining Act, 2007 and the Land Use Act, 1978.
The passage of this all-important Order is breaking the age-long jinx not only in the state’s mining sector but across the country, especially with the new policy drive by the Ministry of Solid Minerals Development mandating mining companies to include verifiable plans for value addition before being licensed.
In fact, this sweeping reform is already yielding results, with Nasarawa State earning its first ever mining bonus as part of the agreement reached with the Avatar New Energy Materials Co Ltd on the establishment of its second lithium factory in the state.
Governor Sule, while presiding over the quarterly Nasarawa Enabling Business Environment Council (NEBEC), announced that part of the agreement entered with Avatar is that the company will not only pay a signature bonus into the state government account, it would also undertakes to pay a percentage for every ton of lithium to be mined at the new site to the coffers of Nasarawa State.
The Governor explained that this was only made possible because the Nasarawa State Government has interest in part of the land where Avatar will establish its second lithium factory.
“In part of that area where the factory will be established, the Nasarawa State government has an interest. They are concluding right now with the Commissioner for Environment about the signature bonus that would be paid to the account of the state government. Once they conclude, for the first time in the history of the state, we will receive a signature bonus as a result of mining.
“In addition to that, we came up with an agreement about how much the state will continue to get for every ton of lithium. That is a part of our agreement. The exciting thing about that aspect is that, even after I am gone, the benefits of our structure are going to be there. The next administration will continue to utilize that percentage of what is going to come to the state,” he stated.
Indeed, the Governor’s collaborations with the Federal Government and private sector, particularly in the utilization of lithium for various industries, are crucial for the economic growth and development of Nasarawa State.
It is therefore imperative that Governor Sule remains steadfast in his commitment to the mining sector reforms and continues to lead Nasarawa State towards becoming a hub for solid minerals in Nigeria.
At a time when Hon. Dele Alake, Minister for Solid Minerals Development is joining several others to shower accolades on Governor Sule for his vision for the mining sector, indigenous mining companies should be wary of constituting themselves into a distraction to a leader giving his best to serve his people.
It would be recalled that the Minister for Solid Minerals Development commended Governor Sule on his commitment to completing of one of Nigeria’s largest lithium factories in the state.
Alake made the commendation during the visit by Governor Sule to the headquarters of the ministry in Abuja, where he pointed out that the investment of the state in the construction of the lithium factory and efforts to secure the mining environment in Nasarawa underscores the commitment of the State Government to mining sector development.
“I want to commend the governor for taking the bull by the horn and providing adequate security for mining sites. That is why we have a preponderance of peace around mining operations in Nasarawa.
“I commend that to other state governments as well. Also worthy of commendation is the immense support the state has provided for the construction of the lithium processing factory, which is nearing completion. It will be one of the largest lithium processing factories in Nigeria,” the Minister stated.
It is therefore worrisome that at a time Governor Sule’s pragmatic initiatives are being acknowledged, some indigenous mining companies, such as the Timadix Geomin Consult Limited, that may not necessarily have what it takes as far as complete compliance to the conditions stipulated under the Executive Order No.2, are taking to the media in protest.
A cursory investigation would reveal that Timadix Geomin Consult Limited may after all be seeking attention only, especially against the backdrop that Governor Sule has all the while being wooing indigenes of Nasarawa State to participate in lithium mining and not to leave it totally in the hands of foreigners.
Recall that recently, the Governor has cause to woo indigenous companies to take up the challenge brought about by the Lithium Rush, by investing in lithium processing locally.
Governor Sule made the call while commissioning a 40 tonnes per day lithium processing plant built by a private firm, Asgard Mining and Processing Plant in Roguwa, Karu Local Government Area.
According to the Governor, indigenes of the state should emulate the owners of Asgard Mining and Processing Plant by setting up factories that would process lithium.
“We need several of these kinds of factories in Nasarawa State, and the state can accommodate another one hundred of such facilities. We can only do that if people begin to see the import of people from other states coming into our state to invest,” he stated.
Governor Sule explained that the project is not expensive such that an investor with ten to fifteen million naira can be able to invest and operate a lithium processing factory.
“With all sense of humility, this is not an expensive project. This is not a 15 or 20m USD project. It’s a project that our people can afford to do and in order for our people to add value to society. Instead of taking 10m or 15m and keeping it somewhere, you can invest it into this kind of project so that at the end of the day, it add value to the community and the community will gain from it,” he said.
For a Governor going out of his way to woo indigenous companies to take up lithium mining, it is therefore a misnomer and a needless distraction for Timadix to allege government’s interference in its operations.
It is clear from the press conference organized by the Commissioner for Environment and Natural Resources, Hon. Kwanta, that Timadix may have failed to fulfill the regulations under the Executive Order No.2 and as such resorted to arm twisting the government.
Certainly, Governor Sule must not be deterred by distractions in the mining sector and should continue to drive forward the reforms that are transforming Nasarawa State into a leading player in the mining industry.
His leadership and vision are crucial for the state’s economic prosperity and sustainable development.
Peoplesmind