The Federal Government is set to commence bidding process for prospective investors to explore the vast bitumen deposit in the country.
Minister of Solid Minerals Development, Dr Kayode Fayemi, who disclosed this during a working visit to bitumen bearing communities in Agbabu area, Ondo State, said the bidding round for licence would be for serious investors with proven work and financial plans.
Fayemi said the licence issuing process would be completed before the end of the year.
He, however, assured the communities of government’s readiness to protect their interest through the right policy and regulations.
Nigeria has the second largest deposit of bitumen in the world, spanning approximately 120 kilometres.
Fayemi, in company of top officials of the ministry, checked samples of bitumen in Agbabu, Ilubirin and Lado.
He later had interactive sessions with leaders of the communities, where he assured them of government’s support.
“We want your mineral to work for you, and we are fully ready to assist your communities to ensure that you get the best from the process.”, Fayemi told the community leaders.
The minister said the Federal Government would partner with the states, investors and the communities to ensure that the enabling environment is created.
He assured them that within the next six months, massive work would commence on the bitumen project.
Explaining some of the policies that would be put in place, Fayemi said that emphasis would be placed on exploration and exploitation of the mineral.
Lamenting that about 80 per cent of asphaltic materials used for road construction in the country was still being imported in spite of the vast bitumen deposit, Fayemi said government would focus on ensuring that serious investors who have proven work and financial plans are given licences.
“Priority will be given to investors that would build processing plants. The processing plants will boost local production, which will in turn will help us meet local demands and create job opportunities for our youths.”, the Minister said.
The Minister stated that the major focus of the ministry is to ensure that the contribution of the solid minerals to the Gross Domestic Product (GDP) records a significant improvement from 0.3% to at least 10% in the near future.
Noting that the Mining sector has witnessed extensive reforms since 1999, which essentially crystallized around the Nigerian Minerals and Mining Act of 2007, Fayemi said the country is again on the path to providing a transparent and workable regulatory and policy environment for a private sector- led mining.
Aside the regulatory frame work which are geared towards protecting local and foreign investments, Fayemi said that a lot of incentives have been put in place to encourage serious minded investors.
“The serious investors will get tax holidays and would be encouraged to bring in mining equipment duty free “, he said.
Local investors, according to the Minister, would be supported through access to funding as well as equipment leasing.
He, however, urged prospective investors to be prepared to play according to set rules and standards “ the ministry would surely subject activities of the investors to proper monitoring in order to ensure compliance with laid down procedures and guidelines.”, the Minister added.
The spokesman for Agbabu community, High Chief Toyin Enate, while welcoming the minister, lauded the President Muhammadu Buhari administration for its commitment to the bitumen project.
He said the minister’s decision to encourage state government to engage in mining was a positive step towards the realisation of the government’s diversification plan.
Meanwhile, Governor Olusegun Mimiko has hailed Federal Government’s plans to allow state governments engage in mining activities.
The governor said the decision to allow states participate in mineral mining is a demonstration of the commitment of the federal government to diversify the economy and stimulate economic growth.
Mimiko stated this while receiving Fayemi in his office in Akure.
The minister, who briefed the governor on his inspection of bitumen deposit in the state, also presented him copies of the Mining Roadmap designed by the ministry.
Mimiko said the decision to allow state government engage in mining has created some excitement, and has proved that the federal government is committed to the diversification plan.
He said Ondo State was set to take advantage of the development by exploring its vast bitumen deposit, a development that has led to a partnership with a foreign investment company.
He said the federal government’s decision showed it is conscious of the sensibility of the states.
“The vibration from your ministry since you came in as Minister has been quite positive. You are conscious of our sensibilities. We will collaborate with the federal government all the way,” said Mimiko.
He revealed that the state government has acquired 90 per cent equity stake in the Bitumen Investment Company and is ready to utilise its mining licences for bitumen exploration.
Fayemi, while presenting the Mining Roadmap to Mimiko, said he marvelled at the depth of bitumen deposit in the state.
The minister said the federal government was much more interested in collaboration and partnership. “And that means, we stand ready as a government to create the enabling environment.
He said there was need to improve the technology of extraction as well as environmental factor.
