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Mining can compete with oil money, only if these issues are solved

Mining

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For decades, Nigeria has relied on the revenue generated from oil. Since the discovery of oil in Oloibiri in the 1950s, the attention of the country has shifted from mining and agriculture.

Nigeria is a country blessed with and known for its vast mineral deposits. However, these mineral deposits are untapped, and their potential is not fully utilized.

Nigeria has 40 known types of solid minerals that are spread across the different states of the federation, with some found in multiple states.

There’s an abundance of gold, talc, tantalite, iron ore, basalt, lead or zinc, bitumen, and coal in the country. For resources like iron ore, there are over 3 billion metric tons of deposits; lead and zinc have an estimated 10 million metric tons of deposits across the country.

However, aside from the untapped resources, there is also the problem of illegal mining.

Mining is an age-old practice that dates back to colonial rule in the country, before the amalgamation of the southern and northern protectorates.

Illegal mining is an issue not just in Nigeria but across the world. While most countries have taken proactive steps to combat it, there seems to be nothing done in Nigeria.

It is an act of mining that is done or carried out without the appropriate license and also against environmental and social regulations that are permissible according to global standards.

Illegal mining has robbed the country of billions in revenue, and it is much more prevalent in states like Osun and Zamfara.

The activities of illegal mining are carried out on a larger scale by groups of individuals or companies, which include foreign nationals, or on a smaller scale, which can also be referred to as artisanal mining.

The nature of Nigeria as a country with larger land areas in the rural areas has made the activities of illegal miners thrive as the mines are either unmapped and/or unregulated.

The inhabitants of these areas are exploited and prone to diseases.

A myriad of effects

For years, Nigeria has been left to rue the impact of illegal mining in the country. From environmental to social factors, these activities often lead to adverse effects, and the illegal miners often get away due to a lack of regulation, low reporting, little or no presence of security operatives, and corruption.

Economic sabotage

One of the adverse effects of illegal mining is the amount the country loses on an annual basis. Nigeria currently deals with the effects of oil theft, with thousands of barrels stolen daily, and this costs the country millions of dollars every month.

Gold is one of the most illegally mined resources in the country, especially in Osun and Zamfara states. As of May 23, 2023, gold cost $1957.86 per ounce.

Nigeria has an abundance of gold deposits, but they are mostly sold at ridiculous prices by illegal miners.

According to the Nigeria Extractive Industry Transparent Initiative (NEITI), Nigeria loses about $9 billion to illegal mining and the sale of gold each year.

Gold is also found in states like Kebbi, Kaduna, Kogi, Kwara, Kano, and Bauchi.

In a similar vein, Nigeria has an abundance of bitumen, which the country does not explore to its full benefit.

With citizens complaining of bad roads, bitumen is an important resource in the construction of roads, and exploration will mostly solve these problems with the will of the government.

Bitumen can be found in states like Ogun, Lagos, Edo, and Delta, with a large deposit in Ondo State. Nigeria has 42 billion metric tons of bitumen deposits, which the country does not explore to its full benefit.

With citizens complaining of bad roads, bitumen is an important resource in the construction of roads, and exploration will mostly solve these problems with the will of the government.

Bitumen can be found in states like Ogun, Lagos, Edo, and Delta, with a large deposit in Ondo State. Nigeria has 42 billion metric tons of bitumen deposits.

According to reports, the government spent $13 million on bitumen importation in 2020. For a resource found in the country, the importation of bitumen is embarrassing.

Gold and bitumen are just two of the resources that are illegally mined and explored in the country. Like oil theft, the proceeds do not go to the government but to individuals engaged in these activities.

The contribution of the mining sector to GDP is currently low compared to our West African neighbours and other African countries.

Environmental and health challenges

For anyone to have a mining license, certain environmental guidelines must be followed and strictly adhered to. The laws help protect the workers, the people living in the communities, and their environment.

Like oil spills, soot, and explosions from illegal refinery sites, illegal mining has serious environmental and health challenges. In 2010, between March and June, there was a report of lead poisoning in Zamfara State, which led to the deaths of hundreds of children.

Findings revealed that there were also thousands with dangerous levels of lead poisoning in their blood. It was traced to the illegal mining going on around them, which some of the people engaged in.

The environmental and health effects of illegal mining are unquantifiable. For environmental reasons, individuals are displaced from their homes, and many farmlands are destroyed.

Such areas are also prone to erosion, degradation of the soil, and poor soil fertility. Toxic chemicals are released into the air and water, leading to serious health challenges for the inhabitants.

Fueling communal clashes and local banditry

The presence of small-scale illegal miners has led to a lot of clashes in certain areas, like the northeast. These miners, often in small groups, attack one another over who owns the land or which community the site belongs to.

This has further increased communal clashes and killings. Also related is the rise of local banditry.

Some of the people displaced by security operatives move into other social vices to get money, which often results in kidnapping and stealing.

The way out

The activities of illegal mining have gone unnoticed in the country. Over the years, the government has banned illegal mining and issued stern warnings, but little has been done.

The country has a Ministry of Mines and Steel Development, which was set up to encourage the development of the country’s solid mineral resources.

One of the practical steps to take is to create an investor-friendly environment for mining. An investor-friendly environment will solve attendant issues as more investors will come into the sector while adhering to the laws of the land.

Also, the government should look into policies that will help guide the sector. Policies such as the identification of potential areas will give the government an idea of sites and also cover a detailed report on the areas. Also, there have been reports of locals involved in illegal mining activities.

The government has to protect them, ensure licensed operators adhere to laid-down rules, and provide them with amenities.

A strong security system is needed. In conjunction with existing security in the country, the government could see to the establishment of a security outfit that will serve the purpose of supervising mines while ensuring they adhere strictly to the rules.

Also, the activities of small-scale miners cannot be ruled out; adequate attention should be paid to them to ensure they do not go out of line.

The mining sector, when properly set up, has the potential to boost the country’s economy, diversify it, and create job opportunities.

In conclusion, Nigeria is blessed with an abundance of natural resources that have the potential to drive the country’s economy.

The government must ensure that as it strives for the sustainability and proper management of these resources, tackling issues like illegal mining will lead to long-term growth and development.

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