Politics

FG harps on mining license transparency

The federal government has said that the development of mining sector is based on the transparency of the mining licence.

Speaking on the sidelines of 8th edition of Nigeria Mining Week, the Director General of the Nigeria Mining Cadastre Office (NMCO), Obadiah Nkom said when Nigeria gets it right in mining title administration it will boost the economy and will also entice more investments locally and globally.

He said: “If licensing is not transparent enough, then there is no way it will be able actually attract the needed investment, particularly in the sector. And as long as we get it wrong in the mining, title administration, then it becomes a big problem”

“But as it relates to mining licenses, nation’s Transparency Initiative, we work very closely with them because once title administration, like I said, is not transparent then there’s no way people will be able to come and invest, At the same time. There is the concept of people having licenses or not actually using it”

While speaking further Nkom disclosed that the government has established laws on license withdrawals

“There are two ways you can lose a license, first of all, non payment of one or service fees. And the second one is dormant activities in addition to other obligations which is spelt out clearly in the app. That is why one of our key principles in the mining cadastre “Is use it on you lose it” because at the end of the day, if you don’t use the license, you lose it”

“The most important thing at the end of the day is that we need to be able to open up the minds of people who are holding licenses and lack the technical capability or they had plans when I say luck is a precondition for granting a license or you may have your own plans.

“After six months or one year, you’ll find out that they needed financial funding, whatever support you couldn’t get it. So at the end of the day, it affects your activity and you have no option but to be able to now actually”.

He emphasised the mining Cadastre office is operating the EMC plus an online for transparency.

“What I see in the mining industry is what you see even in your phones or even back in Canada or anywhere in the world. And as such, once you are able to now have that system in place, which is one of its kind is going to boost investments in the sector,” he said.

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