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On behalf of
the Government and the people of the Federal Republic of
Nigeria, I welcome the African Ministers in charge of mining
in the continent and delegates to the Mid-Term Review
Meeting of African Mining Partnership holding in Abuja from
August 23 to 25, 2007.
The Mid-Term
Review Meeting of African Mining Partnership has come at an
auspicious time when countries in the African continent are
looking inward to map out strategies towards their
socio-economic development.
Here in Nigeria
a new Minerals and Mining Act has been enacted, the Mining
Cadastre Agency is operational and the Nigerian Geological
Survey Agency has been strengthened to provide reliable
geological information for investment decisions.
The theme of
this conference, "Optimizing Africa's Mineral Potentials for
Peace and Prosperity" is very apt judged by our present
circumstances, needs and visions. First, is the continental
concern to search and provide appropriate framework for
maximum exploration and exploitation of our minerals for the
benefit of our people. Besides, the theme also addresses
the paradox called the Dutch Disease which is associated
with mining in Africa and the third world in general.
Exploitation of minerals has paradoxically played a
substantial role in violent conflicts, environmental and
health abuse. Several parts of Africa are currently
embroiled in civil wars which are generally directly linked
of financed by illicitly derived minerals or oil. It is
paradoxical that the endowment of natural resources on our
continent has become a source of deprivation, strife and
poverty. The effect becomes more pronounced when
governments are dependant mainly on mineral resources.
In this mirage
of negative outcomes of developing minerals, good governance
of the sector is a panacea for maximizing the social and
economic benefits of mining. In cooperation with regional
bodies and other international initiatives, Nigeria intends
to make mining sustainable for the benefit of all
stakeholders. This
why I must salute the founding fathers of the African Mining
Partnership for their foresight in synergizing their
respective efforts in developing Africa's rich mineral
resources in a sustainable manner for the benefit of our
people. I hereby wish to pledge Nigeria's commitment to the
realization of this partnership. At this meeting, decisions
will be taken on ways to harmonize developmental efforts in
mining within the African continent in line with the Mining
Policy and programmes of the African Union.
It is common knowledge that
African mineral resources are exported to Europe, Asia and
other developed countries unprocessed. We must begin to
fashion out ways and means of adding value to the African
mineral resources by processing and establishing mineral
based industries in Africa in the spirit of forward
integration. Mining, which is generally capital intensive
also requires entrepreneurship skills by the operators with
long gestation periods before yielding the expected
dividends. In light of the above, the government of the
Federal Republic of Nigeria has decided to regulate whilst
allowing the private sector to be the engine of growth as
operators in the mining sector. The focus of the present
administration in Nigeria is the improvement of Nigeria's
economy by stimulating the growth of economy through non-oil
products. This administration acknowledges that the solid
minerals sector of the economy has the potential to
contribute immensely to the economic development of the
nation. This government will therefore develop our mineral
resources to create wealth, employment and reduce poverty to
achieve our potentials and recognition as a mining
country. As a continent, the bedrock of our collective
economy is also greatly influenced by our mineral
resources. To get optimum benefit therefore, we have to
unite in formulating policies that enhance our
socio-economic development, environmental protection and
good governance. In light of this, I call on the African
Mining Partnership to develop an African Mining Policy that
will enhance our pursuit for sustainable development of our
mineral resources.
Distinguished participants,
I wish to remind you that as a continent with vast mineral
resources, there is the need for coherent financing if
mining projects in Africa. We cannot abdicate the
responsibility of funding of our mining projects to only our
inter-continental friends and investors. I therefore call
on ADB and other multilateral institutions in the continent
to effectively support the African Mining Policy initiative
and also fund our large, medium or small scale mining
operations.
As we go into deliberations
today, I urge us to unite and work as a team towards
guaranteed and enhanced prices for our mining products
especially the ASM products and evolve sustainable
strategies to address the health, social, environmental and
economic impact of mining. I therefore, wish to seize this
opportunity to remind ourselves of the duty we owe the
communities and the artisan miners in locations where the
minerals are found. Studies have confirmed the erosion of
livelihood systems, disease and decline in human capital as
a result of pressure on infrastructure arising in surges
into mining areas. We must work towards restoring the
confidence of the communities in fair derivation of the
benefits in mining, recreate the social and economic
structures and encourage alternative livelihood.
Fortunately, the operating mining firms are becoming aware
of their responsibilities towards the communities they
impact. While government encourages the continuous
engagement of these firms with the communities, it could be
worth it to legislate on well articulated corporate social
responsibility norms and standards for mining companies
operating in African countries. This way, corporate
responsibility will cease to be a voluntary act by the
operating firms. The communities will have fore knowledge
of their benefits and will be involved in the social
responsibility plan of the firms.
For the vast majority of
African States, informal mining represents the only cash
generating activity in the rural areas. This activity is
carried out with minimal adherence to environmental and
safety standards. This class of miners must be empowered
and integrated into the formal economies of our nation.
Appropriate policies and assistance must be provided to
accelerate the growth of artisan and small scale mining for
sustainable development of the rural areas. A peaceful
relationship between this class of miners, usually
characterized by tension and mistrust, must be encouraged.
It is in the interest of large scale miners to engage the
small scale miners in constructive accommodation, including
going into partnership through technology and joint venture
capital. The small scale miners also gain from working
with the large scale miners through the provision of
technical services and sale of Ore. It is therefore our
duty to ensure that this symbiotic relationship continues to
exist.
My fellow Ministers of Mines
in Africa, distinguished delegates, ladies and gentlemen, I
wish all of us fruitful deliberations at this year's African
Mining Partnership (AMP) Mid-Term Review Meeting holding in
Abuja, Nigeria. I hope that the decisions at this meeting
will turn around the fortune of mining countries in Africa
for good. Once again, I say welcome to Nigeria, the heart
of Africa.
Thanks
for your attention.
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