- Arc. Olamilekan Adegbite, HMM&SD
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The Federal Government has clarified on why it commissioned the Gold Processing Plant in Mopa, Kogi State, North Central Nigeria, predicaing the location for its centrality on the Schist Belt which trends from the northwest through western Kogi State to southwest of Nigeria.
–Dignitaries at the plant commissioning
Emphasising this on Tuesday, May 9, at the commissioning of the processing plant at Mopa-Muro LGA of Kogi State, the Minister of Mines and Steel Development, Arc. Olamilekan Adegbite, said: “The Nigeria Schist Belt is known to host rich deposits of gold. With the location of the gold processing plant in Mopa, artisanal and small-scale gold operators within the Schist Belt states can easily have access to the plant for their gold processing and refining. The informal trading of unprocessed gold leads to capital flights and job losses. It is in a bid to develop the downstream sector mining industry to improve product pricing, create jobs, improve revenue generation and attract foreign markets to Nigeria.
–Gold bars
“However, ladies and gentlemen, you may recall that at the inception of this administration, the President did not mince words in his desire to encourage diversification of the national economic base. It is in line with the President’s resolve to anchor his economic diversification agenda on two key sectors of Mining and Agriculture, that the Ministry of Mines and Steel Development had designed six strategic ASM Cluster Projects in the six geopolitical zones as a means to harness the potentials of the over three (3) million ASM operators in the country.The Gold Processing Plant in Mopa for the North Central Zone is one of these projects.
“These landmark projects are to create an enabling environment to support the Mining Industry through the formalization of the ASM Sub-sector as a major driver of the key growth parameters to engender the development of the Mining Sector since over 90% of the Mining activities in the country could safely be said to be ASM driven.”
Continuing, he said: “This event has again provided an opportunity to highlight the efforts of the administration of His Excellency, President Muhammadu Buhari to open some of the potentials available in the Mining Sector to serve as alternative revenue source. The concept of the Gold Processing Plant was a crafted policy to spur job creation and capacity development of gold mining operators in Kogi State and environs, through the Economic Growth and Sustainability Plan of the Federal Government.
“This project,” he emphasised, “houses several Federal Government initiatives geared towards formalizing the ASM activities, curbing the exploitation of artisanal and small-scale gold miners as well as development of the capacities of our teaming youths to actively participate in downstream gold value chain.
“It will interest you to note that this project is designed based on the cluster concept which has become a global trend in industrial development to promote shared amenities, agglomeration of similar producers, customers, etc. based on geographical proximity or access to complementary expertise to promote efficiency and increase specialization and production. The plant will create and generate sustainable competitive advantages in the following key areas:
- Development of downstream gold mining industries;
- Increasing the level of competitive inputs (such as services, machinery and equipment);
- Increasing the level of employment in all business activities related to the goldmining cluster;
- Increasing the rate and exports of value-added products and services and attracting foreign investments;
- Generating new start-up companies;
- Increasing trade performance and generating higher corporate profits; and
- Improving mineral production output and ease of mining sector regulation and administration;
- Creation of more jobs through emergence of service industries because of increase cluster activities.”
According to him, some of the notable envisaged outcomes from the International Gemstone Market include but not limited to the followings:
- Creation of over 20,000 jobs along the gold mining value chain in North Central Zone cluster;
- Improved revenue generation from ASM subsector for both operators and government;
- Increased number of ASM operators that are inventoried, formalized, and receiving technical assistance;
- Emergence of subsidiary and service-oriented companies which will boost further economic activities;
- Improved infrastructure for benefits of the miners and other surrounding economic actors amongst others.
Going forward, he said: “It is instructive to know that Gold Processing Plant is designed with facilities to beneficiate, test, certify, document, effect necessary payments for royalties and processing fees required to support direct international businesses. The facility houses state-of-the-art gold processing machineries and equipment, over 30 stalls,administrative block, training section, MMSD office,stable power supply, etc.
“It may also interest you to know, that the Ministry of Mines and Steel under my leadership and Sen. Gbemisola Saraki, as a matter of Strategy, prioritized the ASM to stem incessant illegalities that have fraught the subsector in Nigeria by initiating and supporting biometric data capturing of all registered artisanal and small-scale miners across the country under the formalization and mainstreaming of ASM operators. We are presently creating an ecosystem to minimize the high rate of illegal mining and smuggling, increase Government’s revenue from the resource, create jobs, and improve environmental and social stewardship.
–Sen Gbemi Saraki, Minister of State, M&SD
“I will not end this address, ladies and gentlemen, without recognizing the worthy efforts of notable development partners without whose contributions, this laudable achievement would not have been possible. In this regard, we want to specially appreciate His Excellency, President Muhammadu Buhari, GCFR, who approved the release of funds for the implementation of this project, and the Vice President, His Excellency, Prof. Yemi Osinbajo, who coordinated the Economic Sustainability Plan (ESP) aimed at cushioning the economic effects of the COVID-19 pandemic, under whose purview, the ASM Cluster Project was conceived and approved.
“The support of Kogi State Government towards the realization of this project cannot be overemphasized. His Excellency, Alh. Yahaya Bello, provided the land upon which this Landmark Project was built. Your Excellency, your worthy support gave us the impetus to create more opportunities for investment in the Nigeria gold mining subsector. May I also use the opportunity to specially recognize our host traditional ruler, His Royal Highness, the Elulu of Mopa. Sir, your profound cooperation and support are greatly appreciated.”
He also acknowledged the support of international organizations such as the World Bank, United Nations Industrial Development Organization, United Nations Development Programme, Global Environment Facility, amongst others. /SHARE THIS
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