Federal Government has approved N30 billion support fund for local miners as part of efforts to improve the mining sector.
Dr Kayode Fayemi, the Minister of Mines and Steel Development, said this on Thursday at a stakeholder’s meeting of Association of Miners Processors of Barite (AMAPOB) and Tse Torkula Community in Guma local Government area of Benue State.
Fayemi said that the money was from the Natural Resources Fund of the federation.
He said that Nigerian Constitution provided for 1.6 per cent of the total Natural Resources Revenue to be used for the development of agriculture and solid minerals sectors.
Fayemi said that the previous governments were deducting the funds, but there were no records to show for their application.
“Mr President has approved N30 billion Support Fund as government support for local miners in the country.
“Constitutionally, 1.6 per cent of the Natural Resources Revenue generated was to be deducted for the development of agriculture and solid minerals sectors.
“It is very unfortunate that previous governments were deducting the money from the natural resources revenue, but there were no records for the funds’ applications”.
The minister said that there were already plans on the ground on how the support fund would be applied.
He said that the country needed serious infrastructure such as roads and electricity, among others, for effective mining.
Fayemi said that although the country had large quantity of barytes to sustain the oil and gas companies, there were still a lot to be done to end the current “loss loss situation been experienced by the Federal Government and miners”.
He said that the President Mohammadu Buhari’s “Economic Recovery Plan” had a strong target of substituting importation of barytes for the benefit of the government and the miners.
Mr Abubakar Bwari, the Minister for State for Mines and Steel Development, said that they saw bright prospects for the country when they visited some mining sites.
Bwari said that the Federal Government was committed to the improvement of the mining sector in the country.
Participants at the meeting said that capital flight was responsible for the low patronage of local barytes by the oil and gas companies.
Earlier in his welcome address, Mr Bernard Unenge, the Benue Commissioner for Lands, Survey, and Solid Minerals, pledged on behalf of the state government to partner with the Federal Government in the mining sector.
Unenge said that the state was the home of solid minerals.
Mr Mike Mku, the Vice President, Association of Miners Processors of Barite (AMAPOB). said that his members lacked equipment, infrastructure and market to sell their products since the oil companies were currently importing barytes.
He appealed to government to take advantage of local content by partnering with them for effective output in the mining sector. (NAN)