Sustainability: Alake urges Chief Executives to champion establishment of Mining Development Banks

*Dr. Oladele Alake, Minister for Solid Minerals Development, charges Chief Executive Officers of mining companies to lead the way in establishing mining development banks to guarantee the needed long-term credit for sustainable development of the sector of the economy

Isola Moses | ConsumerConnect

Dr. Oladele Alake, Honourable Minister for Solid Minerals Development, has urged the Chief Executive Officers (CEOs) of mining companies to lead the way in establishing Mining Development Banks to guarantee the needed long-term credit for sustainable development of the mining sector of the economy.

Alake stated this while speaking at the CEO Roundtable on the sidelines of the 2024 Nigeria Mining Week, in Abuja, FCT.

The Minister also encouraged the Chief Executives of such companies to spearhead the creation of mining banks with the aim of making them private-sector driven to wean the industry off government interference and ensure its longevity and effectiveness.

He assured the CEOs that the federal government is actively dismantling bottlenecks to enhance the ease of doing business within the sector to foster viable investments.

Dr. Alake sued for continued cooperation from mining executives in support of the ongoing reforms, noting that these reforms are vital to creating a sustainable and resilient framework for the long-term development of the mining industry.

Addressing concerns regarding state-level interference in mining operations, the Minister also reiterated the Federal Government’s stance that sub-national entities do not have the constitutional authority to make policy decisions on mining, as the sector falls under the exclusive legislative list.

Segun Tomori, Special Assistant to the Minister on Media, Friday, November 22, 2024, in a statement quoted Alake to have said: “We have held extensive discussions with state governments to address concerns around interference and explore ways of involving them constructively.

“As part of these efforts, we have made provisions for states to apply for mining licenses and operate as Limited Liability Companies.

“This approach ensures their participation in the mining of local resources, which was a major concern. Several states have already adopted this initiative, and we have approved licenses for those that have completed the application process.”

Looking ahead, the statement noted Alake as well disclosed the Ministry’s plans to provide a more conducive environment for investment, including the development of a mining infrastructure corridor.

He equally stressed that inter-ministerial collaboration is underway to kickstart the project and ensure its successful implementation.

The Minister, therefore, appealed for the continued support of the CEOs on ongoing reforms, particularly the review of the rates regime of the mining sector, assuring them that the ministry is carefully considering the concerns raised, Tomori stated.