Stakeholders in the solid minerals sector are calling for at least a 10 percent benefit for host communities to cushion the adverse effect of mining activities in their environment.
The stakeholders are also proposing a 10-year renewable mining lease instead of the 25 captured in section 66 of the Solid Minerals Mining Act 2007.
These are some of the recommendations of various stakeholders who participated in a public hearing on a bill titled ‘Nigeria Mineral Development Company Limited (Establishment) Bill 2023 and Minerals and Mining,’ organised by the House of Representatives Committee on Solid Minerals.
In his presentation at the hearing, chairman of the committee, Hon. Jonathan Gaza noted that the proposed legislation is necessary to transform the country’s mining sector.
In his submission, Tobias Lengs of RENEVLYN Development Initiative decried the health hazard, the environmental degradation and the negligence of miners that pose a danger to host communities.
“We suggest an upward review of the extraction net value revenue that goes to the Community Development Association. 10 percent is suggested and this should be reviewed periodically.
“The duration of a Mining Lease is 25 years and shall be renewable every 24 years as captured in Section 66 of the Solid Minerals Act.
“The 25 years mining lease arrangement is too long and leaves room for operators to get away with impunity at huge cost to the nation. A 10-year mining lease is proposed instead to compel operators to be more responsive and accountable for their actions,” Lengs said.
He further suggested that “the Community Development Agreement should be flexible to allow the host communities determine exactly what they want to use the funds for without tying it to particularised items, as their needs may change depending on situations, hence the agreement details should not be open-ended.
