Nigerian government sanctions 313 mining companies for breaching environmental laws, revoking five licences outrightly

THE federal government has sanctioned about 313 mining companies operating in the country over non-fulfilment of environmental obligations.

Salim Salaam, director, mines environmental compliance department, ministry of mines and steel development, said the mining operators were issued sanction letters on March 20, for failing to conduct Environmental Impact Assessment, EIA, Environmental Protection and Rehabilitation Programme, EPRP, and the Community Development Agreement, CDA.

He said five of the mining companies affected were given stop work order, adding that the ministry had warned them severally but they refused to comply with the environmental obligations.

The five companies’ licenses were out rightly revoked over total failure to comply with the ministry’s environmental obligations in spite of incessant notices issued by the ministry. One out of the five companies is a foreign mining company located in Bauchi, three in Cross River and One in Oyo state. All their licenses have been revoked completely.

Salaam noted that 20 mining companies were issued warning letters as consideration to comply with the mining act to avoid revocation. The ministry has decided not to renew licences of the remaining 284 mining companies, except Kayode Fayemi, minister, mines and steel development, gives them another chance to fulfil all environmental requirements.

Some of the defaulters did not conduct Environmental Impact Assessment, EIA, before commencing operations. This can be dangerous to the host communities’ health and cause environmental degradations.

The EIA is a study being conducted by mining operators to ascertain in advance the impact of the project on the environment and on the lives of the host communities.

Salaam explained that some conducted EIA but refused to fulfil the CDA of the host communities and the EPRP. “Mining operators are mandated to conduct EPRP, according to Section 119 of the Nigerian Mining Act. The CDA is also mandatory under Section 116 of the act for mining operators to sign an agreement with host communities on what to do to improve their livelihoods. The idea of conducting EIA is to proffer mitigation measures against mining impacts before commencing operation.”

According to him, the problems experienced in the Niger Delta region with oil and gas companies were as a result of CDA, as the communities were complaining that oil companies were conducting exploration and extraction but refused to meet their needs. He said the CDA was provided as a measure in the mining act for mining operators to fulfil their obligations socially and economically to their host communities to avoid problems. The ministry has sanctioned no fewer than 20 mining companies over non compliance with its laws and regulations.

In another development, the minister said the federal government is working on an equipment-leasing scheme for the Nigeria Miners Association, NMA, to ensure that its members scale up their mining operations. The equipment-leasing arrangement is in addition to financial support in the form of access to financing through some commercial banks and the Bank of Industry, which the ministry is partnering with.

Fayemi, who addressed stakeholders in the minerals and mining sector at the town hall meetings held in Lagos and Abeokuta, Ogun State capital, last weekend, also assured that miners would also benefit from the N30 billion intervention fund approved by the federal government.

Stressing that mining remained a capital intensive project; the minister said the Nigerian mining sector is currently dominated by artisanal miners, adding that it was important for government to support them to increase their capacity and productivity. He noted that while many of the artisanal miners rely on crude implement for their operations, availability of modern equipment would make their operations more profitable.

“Government is committed to the scheme. Our miners cannot achieve much as long as they rely on shovel and digger for their work. We also know that modern equipment are quite costly. So, government would make arrangements with financial institutions and some operators to make the equipment available for leasing.”

The minister also urged state governments to commence a comprehensive registration of artisanal miners operating in their respective states for proper monitoring. He also tasked the miners on the need to organise themselves into cooperative groups and apply for operating licenses from government, in addition to other forms of support.

—  Apr 3, 2017 @ 01:00 GMT

|