Private coy commits $5m to Nigeria’s gold mining

A privately-owned company, Messrs Northern Numero Resources Limited, NNR, has expressed commitment to invest $5million in gold mining in Kebbi State to boost the transformation agenda of the present administration in the mining sector.
To achieve this, the federal government and the company at the weekend in Abuja signed a contract agreement for the development of mining lease (ML21) located in Yauri, Kebbi State to foster Nigeria’s efforts in advancing its mining policy and regulatory environment.
Speaking at the signing ceremony, Minister of Mines and Steel Development, Architect Mohammed Musa Sada, said the amount would be used in procuring small scale gold mining and processing plant, which would later be expanded.
Sada explained that the ML21 is one of the mineral titles of the Nigerian Mining Corporation, which had carried out some exploration activities over the area including core drilling among others before its closure in 2005.
He, however, expressed delight at the NNR’s decision to develop the title, saying “the company has also committed to give 10 per cent carried interests to the federal government and five per cent carried interests to the local community”.
“This is in addition to royalties, taxes, amongst others that the company is expected to pay in line with the provisions of the Nigerian Minerals and Mining Act, 2007 and its regulation, 2011 as well as the community development agreement that the company is expected to sign with the host community as a way of transferring social and economic benefits to the host community.
“NNR has also committed itself to extracting gold using environmentally friendly mining techniques”, he explained.
Sada noted that the company’s commitment would transform the economic activity of its host community in Yauri as well as formally put the country into global map of gold producers in the nearest future.
The minister urged other investors to emulate the initiative of NNR by giving their host communities a sense of belonging in their operations.
In his remarks, chairman of the company’s board, Dr. Stephens Davis noted that “President’s Goodluck Jonathan’s initiative to push the solid minerals sector forward has given new impetus to exploration companies and brought Nigeria to the attention of global mining sector”.
Davis added that the development of mining projects in the country’s mineral rich north provides a new opportunity to add to the region’s economic base and its infrastructure, pointing out that mining projects in countries like Australia have been instrumental in building major infrastructure, including railways, ports and towns.
“The Kebbi State project is moving forward with bulk sampling commencing this month in preparation or full scale mining operations next dry season made possible by the local support of the state governor, Alhaji Saidu Dakingari”, he said.
Also speaking, deputy governor of Kebbi State, Alhaji Ibrahim Khalil Aliyu who represented the governor, assured the company of government’s support, disclosing that apart from gold, there are other mineral deposits in the state.