Nigeria has resumed mining in Zamfara State after a five-year suspension due to improved security. The mining sector, known for its rich deposits of gold, lithium, and copper, is seen as vital for diversifying the economy. The government aims to attract investment through reforms and international agreements for capacity building.
The Nigerian government has announced the resumption of mining activities in Zamfara State, which had been suspended for five years due to security concerns stemming from rampant bandit attacks. The mining minister, Dele Alake, stated that enhancements in security have significantly decreased the threat level, thus allowing for the lifting of the ban. Zamfara is known for its abundant resources, including gold, lithium, and copper, and the government aims to revitalize the mining sector to increase its contribution to national revenue.
Illegal mining was rampant during the suspension, with the state’s mineral wealth being exploited without oversight. Nigeria, Africa’s largest oil producer, is keen to diversify its economy away from oil dependency and believes that bolstering the mining sector, which currently accounts for less than 1% of its GDP, is crucial. To attract investors, the government has introduced reforms such as revoking unused licenses, allowing a 75% share for investors in a new national mining company, and enforcing regulations against illegal mining operations.
Additionally, Nigeria has recently engaged in international partnerships to enhance its mining capabilities, signing a training and development agreement with France. Alake emphasized the need for technical, financial, and capacity-building support, noting that similar agreements have been made with Germany and Australia. By fostering such collaborations, Nigeria seeks to improve its mining sector’s infrastructure and expertise.
Zamfara State, located in northwestern Nigeria, is rich in various minerals, including gold, lithium, and copper. Its mining activities were halted in 2019 due to increasing violence from bandit groups that disrupted operations and threatened the safety of workers and investors. The government’s efforts to restore security are pivotal for the resumption of mining and the state’s economic recovery. Furthermore, Nigeria’s reliance on oil has prompted a renewed focus on developing its mining industry as a vital economic sector.
In conclusion, Nigeria’s decision to resume mining in Zamfara State marks a significant step towards enhancing security and revitalizing a critical sector of its economy. The government’s reforms aimed at attracting investment and the establishment of international partnerships demonstrate a commitment to diversifying economic sources. As the mining sector is poised to increase its contribution to national revenue, the collaborative efforts with foreign entities are essential for building the necessary capacity and technical expertise.
Original Source: www.mining.com
