FRAMEWORK FOR AND

OPPORTUNITIES FOR SUSTAINABLE PRIVATE SECTOR PARTICIPATION IN

SOLID MINERALS IN EKITI STATE

By: Ranti Omole

Director,

Ekiti State, South-West Nigeria,- created 1st of October 1996 by General Sanni Abacha out of Ondo –State.

Geographically, the state is only on upland zone, rising over 250 meters above sea level. It lies on an area underlain by metamorphic rocks, such rocks out-crops exist at Aramoko, Efon-Alaaye, Ikere, Igbara-Odo and Okemesi.

Ekiti State - naturally endowed with numerous natural resources and potentially rich in mineral deposits which include granite, kaolin, columbite, charnockite, iron-ore, barite, aquamarine, gemstone, phosphate, limestone to mention a few.

INTRODUCTION

SOLID MINERALS IN EKITI STATETown Local Govt. Area Type of Mineral Uses

Isan-Ekiti Oye Clay, Kaolin

Abrasive, Plastics,Ceramics ware, Pharmaceuticals,

Textiles, Fertilizers, White tiles, Insulator Wares Pencils.

Ijero-Ekiti Ijero Cassiterite, Tin OreTin Plating, tin can Production, Alloys

Culisoprintins and dying

Ijero-Ekiti Ijero ColumbiteSpecial Steels, Electronic tube,filaments in rocket

and air craft manufacture

Orin-Ekiti Ido/Osi Bauxite (Alluminium Ore) Alluminium Production

Ijero-Ekiti Ijero Foundry SandFoundry, Ceramic manufacture

of glass ware, ceramic

Ikere Ekiti Ikere Charconite GraniteStone cutting and Polishing

road aggregate

Emure-Ekiti Emure/Ise/Orun Charconite GraniteStone cutting and Polishing

road aggregate

Ado-Ekiti Ado-Ekiti Charconite GraniteStone cutting and Polishing

road aggregate

Aramoko-Ekiti Ekiti West Charconite GraniteStone cutting and Polishing

road aggregate

CURRENT STATE OF EXPLOITATION IN EKITI STATE

The current state of mining activity in Ekiti is the same bedeviling the entire mining industry in the country.

State of Mining in Ekiti State. Artisanal , Small Scale and Illegal miners Organisations with Legal Exploration Licences Defunct Ire Brick company/ abandoned exploitation of clay .Small scale granite quarriesUnallocated mineral deposit blocks.

TRIPARTITE RELATIONSHIPSTAKEHOLDERS ROLES EXPECTATIONS

GOVERNMENT Conducive biz environment, facilitate site entry, conflict resolution

Employment, community dev. , taxable income – return on equity.

INVESTORS Investment, employment, income, CSR, long term relationship

Undisturbed operations, returns on investment, govt. protection security of assets

INDIGENES -Peaceful exploitation, security of investment, friendly community

Employment, income, ancillary businesses, community development

THE FOUR MAIN STRATEGIC PILLARS OF GOOD GOVERNMENTAL POLICY

Stabilizemacroeconomic/

fiscal regimes

Sustainable management ofmining taxation revenues

Promote opportunities foradding value to mineral

production in the country

Avoid black markets

Alleviate poverty through small-scale mining

Regional/local economic development: Coordinate efforts with government institutions, miners and community-based

organizations towards sustainable contributions from small-scale mining

Improve businessclimate for legal

small-scale mining

Enabling environment:legal/regulatory adaptations, incentives

for legal operation and legalization,organization and institution building

Establish extension servicesand promote service deliverytowards ASM community and

mineral-based industries

Ensure sustainability

Environmental and occupationalhealth management to mitigate

risks to the poor

Good governance of mineralresources of mineral resources

(respect and implement mining code)

IntegratedManagement

of ASM

The four main strategic pillars of good governmental policy

Have Solid Minerals Development Agency backed by Law. Increase global awareness about solid minerals in Ekiti State -Ekiti State

Solid Minerals Map on the web . –Nigerian Geological Survey Agency or www.cartographic.com – 2006 Geological & Mineral Map of Ekiti.

Take stock of existing exploitation of minerals in the state by artisanal, small scale and illegal miners , with aim to register, organise, control and normalise the mining activities with the Mining Cadastre Office in Abuja and resolution of overlaps with existing Licences and Leases.

Take stock of existing Exploration Licences , Quarry and Small Scale Mining Leases in the state – stage of development programs, dormant and lapsed licences by liaising with Ministry, NGSA and Mining Cadastre Office, with the aim to take stock , dialogue , encourage and provide enabling environment to fast track their work programs.

Identify unallocated mineral deposit blocks with the aim of encouraging investors to apply and develop some of the solid minerals blocks.

STRATEGIES / ACTION PLANS.

Organization of illegal miners into cooperative societies/associations/ identifiable manageable units -access incentives/training programs /funding - State, FGN , NGOs , DFIDs, etc. >200 SSM Leases already granted e.g. Sokoto Women Miners Cooperative – Gypsum, Irrigwe Women Cooperative Mining Society –Jos, Facilitate, engage, encourage and provide enabling investment environment for the existing exploration license owners to start preliminary survey and commercial exploitation activities in Ekiti State.Stimulate and promote investments and exploration activities through various integrated programmes

Ekiti Investment Development Company Ltd Ekiti Chambers of Commerce (Solid Minerals Section) Ekiti Economic Development Summit Interface with various Ekiti Socio/Economic Associations Worldwide

Identify and focus on 3 solid minerals that will be immediate attention of the government programs – Granite , Gemstones , Clay etc and ensure value added processing process apart from exploitation.State/Investment unit to run integrated pilot schemes either as venture capital , PPI , or collaborative financing schemes, etc.

Research /experiences in Brazil, Ghana, Namibia, etc have shown that small-scale mining projects are key to both rural and economic development of a nation. Therefore Ekiti State must lay key emphasis on developing these groups along with Large Scale Miners/Investors.

To organise and regulate . Key issues to look at.Delineate and define mineral potentials suitable for ASM exploitation.Establish and resource a department to focus on ASM activities.Encourage formation of ASM association and societies and assist in obtaining Mining Title Leases from the Mining Cadastre Office. Encourage collaborative partnerships between EL/Large miners and ASMs. Assist in accessing various funds to promote and develop their activities.Extension services /Training / Collaboration with Technical Colleges /Polytechnics and Universities in the State .

ARTISANAL SMALL SCALE MINING - KEY TO SUSTAINABLE ECONOMIC DEVELOPMENT

Ensure ASM operations are environmentally and technically sound.There should be no conflict between small miners and local communities and no degradation of traditional values.Exploitation should concentrate on products with high recovery values and systematically develop these deposits.There should be continuous operation over a longer period of time. Business management trainings and extension supports.Assist to develop effective marketing system for the ASMDefine relevant and consistent HSE practicesEstablish appropriate and realistic environment protection practices.  

In conclusion , given the great importance of the workforce (employment)of ASM in the rural context, the potential for a beneficial contribution of ASM to sustainable development of the state in conjunction with other agro allied and small scale industries will be very high.

SOLD MINERAL EXAMPLE - CLAY

Below are some of the clay related products available:BricksSlatesVasesPaving, industrial and domestic tiles Industrial and domestic roofing tiles Hand-made clay roof tiles, etc.

CLAY

Equipment Leasing to jump start / Venture Capital / Business Promotion by EIC/ECC

Medium / Large scale- burnt brick

- ceramic

Patronage of burnt brick / brick products for construction of houses/

schools/settlements e.t.c

PotteriesBetter life for rural women

programmes

Market development, awareness and export to neighbouring states of products

and skills

Graduands - Bricklaying - Clay tilting

- Brick product

Technical Colleges – Clay making Bricklaying

SSI ECI / Association / Society – bricklaying business

BRICK MAKING MACHINE FROM HYDRAFORM AFRICA PTY LTD

FIGURE 4: Typical house and floor tiles made of fired Clay bricks

FIGURE 5: Hand-made roof tiles and flower vases made of Clay

In order to create steady and sustainable development in both the small and large scale mining sector, in a way that contributes to rural development and integrated into the formal economy, Ekiti State government needs to develop a consistent policy to support and promote the mining sector.The State Government Policy should meet these objectives: Demand-oriented extension services (legal, organizational, economic and technical) for the sector.Incentive and financial support schemes for legal ASM operations (including equipment leases, assistance in accessing various funds, technical assistances, training, marketing support – buyers credits, etc.) The integration of all relevant government institutions into the sector policy implementation (finance ministry, mining ministry, social issue authorities, provincial and local administration).

CONCLUSION

A transparent and appropriate legal framework.Strict control of compliance with the legal framework and sanctions against infractions.Support and provision of conducive investment environment for large scale private sector miners and protection of investment .

IRE EKITI A SOJU WA O.THANK YOU.