The Minister of Solid Minerals Development, Mr Dele Alake, has cautioned mining companies that fail to comply with Community Development Agreements (CDAs) that they could lose their mining licences as the Federal Government strengthens enforcement measures across the sector.
Speaking on Friday in Abuja during the opening of the ministry’s two day ministerial retreat, the minister stated that companies that have not signed or fulfilled their obligations under the agreements would soon face strict sanctions.
The retreat was themed, “Accelerating Solid Minerals Sector Transformation Delivering on Ministerial Mandate Through the Seven Priority Areas.”
According to the minister, he has instructed the Permanent Secretary to compile a list of defaulting mining firms, adding that decisive action would soon be taken against offenders.
“I directed the Permanent Secretary to provide a list of companies that have failed to sign or implement their Community Development Agreements. That has been done, and we will soon take firm action against those companies,” the minister said.
He explained that Community Development Agreements are a legal requirement designed to ensure that communities hosting mining operations benefit directly from the exploitation of mineral resources.
Alake also challenged staff of the ministry and its agencies to build on the progress already achieved under the ministry’s Seven Priority Areas by introducing innovative ideas capable of further transforming the sector.
He noted that significant milestones had been recorded in areas such as sector reforms, investment promotion, mining security, digital transformation, revenue generation, and institutional development.
However, he stressed that future efforts should focus on delivering measurable results and sustainable economic growth, describing the solid minerals sector as a key component of President Bola Tinubu’s economic diversification strategy.
The minister reaffirmed the Federal Government’s commitment to promoting local mineral processing rather than exporting raw mineral resources.
He cited the recent inauguration of a lithium processing facility in Nasarawa State, with a processing capacity of 6,000 metric tonnes per day, as evidence of the government’s drive to increase value addition within the industry.
(The Whistler)