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Thursday 24 April 2014

Time to Curb Chinese/Indians Invasion of Nigerian Minerals Sector

ome / Business / Mines and Steel / Time to Curb Chinese/Indians Invasion of Nigerian Minerals Sector
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The need for foreign investors and expertise in the nation’s solid minerals sector has made it necessary to open up the sector to both local and foreign investors, but the fear of invasion and a total take-over by foreigners has led to other worries. Ruth Tene Natsa speaks on the challenges this may portend.
Recently the Minister of Mines and Steel Development, Architect Musa Mohammed Sada, cried out against the domination of the nation’s minerals and metals sector by Chinese and Indians to the detriment of millions of jobless Nigerians.
The minister as a result, stressed the need for more collaboration between the ministry and its stakeholders in order to expose activities of the sector to citizens who have continued to remain ignorant to its existing opportunities.
Sada assured “It was the intent of the federal government that Nigerians become major operators in the nation’s mining operations while being placed in the map of major mining nations”
While several opportunities for job creation and poverty alleviation exist in the solid minerals and mining sector, the fear of lost investments  as a result of the long-term investment necessary for solid minerals will always militate against both local and international investors/investments.
Even though foreign investments are necessary for the development of the nation’s minerals and metal sector, the need to protect the rights of citizens is paramount, as many of such investors not only take advantage of the cheap and excess labor, but in several cases, deny citizens of the right to enjoy what benefits the law stipulates.
Sada earlier had  observed that most Chinese and Indian mining operations in Nigeria fail to meet with the minimum employment targets for Nigerians which includes having higher number of locals employed in expatriates companies; safety precautions  for workers on site; proper salary structure to protect the rights of local workers as well as proper tax clearances to ensure federal government gets its due.
The need to control the domination of the two nationalities is because they have invaded Nigerian quarries and obey the laws guiding their acceptance into the sector. LEADERSHIP findings have revealed that many Chinese and Indian quarries have a high number of expatriates employees, their  companies provide little or no safety precautions for local workers and  language barrier continue to hinder proper communications between the Indian /Chinese and Nigerian nationalities.
It is to be recalled that the federal government in a bid to ensure that mining and quarry sites operate within the constituted laws guiding the sector in 2013 threatened shutting down several quarrying operations particularly those of Hongyum Quarry Limited (a Chinese operation)and also threatened the revocation of license to Perfect Stone quarry.
The Minister ordered the “denial of explosive renewal, as a result of poor safety precautions and ordered the blacklisting of Perfect Stone quarries as they failed to provide proper answers to the queries directed at them, pending when they could provide proof of full compliance while insisting that “there was to be no renewal of the Hongyum operations after 5 years as everything about their activities proved environmentally wrong”.
Sada  said “ The purpose of letting these companies operate is for the provision of jobs for Nigerians and if these jobs are now being taken away by people from other places and those that are employing Nigerians are being challenged in terms of competition, definitely we will do something. One of the reasons we came out here is to see for ourselves what is on ground so that we know where the rules are being violated. We are not going to invent new rules, within the rules are embedded there and we intent to ensure its compliance.”
Architect Sada maintained that except companies met the required standards of the law, they were to be shut down, until they were able to meet with standards which centered on environmental compliance, royalty payments, employment of Nigerian citizens, proper preservation/storage of mining explosives, provisions of conducive working environment as well as meeting up with community development agreement in tandem with the community Social responsibility CSR among others.”
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