Dangote, Foreign Firms Fund Mining Project From Capital Market
The Nigeria Mining Cadastre Office (MCO) says that Dangote Group and six foreign companies are currently raising funds from the capital market to begin full-scale mining this year.
The Director-General of the office, Mr. Mohammed Amate in an interview with newsmen in Abuja listed the minerals as gold, coal, iron-ore and lead/zinc.
He said it had become imperative for the Dangote Group and foreign companies to raise funds from the capital market for the mining since the projects are capital-intensive.
Amate named the foreign companies as Kogi Mines Ltd, Segilola Nig. Ltd, Mines Geotechniques Nig. Ltd, Northern Numero Resources Ltd, West African Polaris Investment Ltd as well as Tongyi allied and Mineral Services Ltd.
He said that the companies had completed their exploration exercises and delineated the deposits, while obtaining mining leases (licences) to mine gold and other minerals in the country this year.
“Indeed, according to the reports we have received, most of the companies have commenced development and this will eventually lead to actual mining.
“No financial institution will be willing to fund any mining operation until the company carries out adequate bankable feasibility studies, under Joint Ore Reserve Committee specifications recognised internationally,” he said.
He said Kogi Mines, an Australian mining firm, would mine iron at Agbaja in Kogi, while Segilola Nig. Ltd would mine gold at the Iperindo axis of the IIesha gold schist belt in Osun.
Geotechniques Nig. Ltd and Northern Numero Resources Ltd, both Australian companies, would mine gold in Kebbi, while Dangote Group would mine coal in Kogi and Benue states.
The West African Polaris Investment Ltd, a Chinese company, would mine tin and columbite in Nasarawa state and the Tongyi allied and Mineral Services Ltd, another Chinese company, would mine lead/zinc in Wasa, Plateau state.
Amate said that the registration and payment for mineral titles online, proposed to commence in 2015, might not start as scheduled because of the delay in the release of funds.
He said that arrangements for the smooth take-off of the registration scheme had been concluded.
He said that the online registration would facilitate speedy registration of mining titles, while promoting development of the mining sector, building foreign investors’ confidence and creating more jobs.
Amate said that the rationale behind the establishment of the website was to enable potential investors across the world to register and pay for their mineral titles online without coming to the office.
“What we intend to do this year is to set up a system, where you can sit down anywhere to Google or log on to our website and see those areas that you can apply for.
“What we are doing now is to enable investors to apply online without coming to the office; they can also submit the application online and pay whatever fees online,” he said.
Amate said that the mineral titles covered exploration, mining, quarry, small-scale mining, among others.