Showing posts with label Mines and Steel. Show all posts
Showing posts with label Mines and Steel. Show all posts

Thursday, 24 April 2014

FG Remains Committed To Oil Sector Deregulation – Alison-Madueke

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Despite strong resistance against plans to deregulate the downstream oil and gas sector, minister of petroleum resources, Mrs Diezani Alison-Madueke, has said the federal government’s commitment to deregulating the sector “remains unwavering.”
She made the declaration yesterday in Abuja  during her ministerial address on the topic “State of the Industry: Achievements and Steps to the Next Level,” at the on-going 2014 Nigeria Oil and Gas (NOG) Conference and Exhibition.This is  even as the director, department of petroleum resources, George Osahon, also disclosed that the country’s crude oil reserves and production were drastically dropping, a situation he said calls for great concern given the country’s dependence on oil revenue.
The minister in her presentation said: “In terms of downstream deregulation, now that the power sector reforms are well underway, the Nigerian  government’s commitment to restructuring the oil and gas sector remains unwavering.
“In this regard, downstream deregulation remains an important part of the reform framework going forward, that seeks to restore financial sustainability and investor confidence in this sector of the national economy now and into the future.
“We are aware that government had sought to deregulate the sector, and continued regulation we are aware as well have several negative effects.
It is physically unsustainable, it discourages investment and principally it benefits the rich not the masses in the society that we intend to reach in the first place.”
She emphasised that deregulation remains the only way in which capital investment can be encouraged and new employment opportunities created for both foreign and local operators adding that in a democratic polity there has to be a balance amongst different policies of government and the needs and desires of the people of Nigeria.
The minister further stressed that as the country moves towards liberalising the sector and encouraging private investors, new regulations and guidelines along with strong regulators are obviously needed.

Oil Theft: Shell Declares Force Majeure On Forcados Blend

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The Shell Petroleum Development Company (SPDC) Joint Venture yesterday, declared force majeure on lifting of Forcados blend effective 09:00hrs, Nigerian time.
A statement by the company disclosed that the declaration of force majeure was due to ongoing repairs on the 48-inch crude export line at Forcados Terminal in the Western Niger Delta.
Shell spokesperson, Precious Okolobo, who signed the statement, said the subsea line was shut when a leak was discovered on March 4, 2014, leading to suspension of SPDC and third party crude oil exports through the terminal.
“Helicopter over flights showed a slight sheen around the export line. A joint investigation conducted by representatives of communities, SPDC, regulators and security agencies determined that the leak was caused by third party interference; unknown persons had installed a crude theft point on the line in water depth of about eight metres,” the statement said.
It added that SPDC has mobilised equipment and materials to the site, and is working to repair and reopen the line as soon as possible.

Any Protection For Children In Mining?

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Children are said to be the future of a nation and are supposed to be loved and protected. Unfortunatly, poverty and lack of a political will to protect the Nigerian child leave many of them roaming the streets and labouring under harsh conditions. Ruth Tene Natsa, takes a look at the Child Rights Act (CRA) and how it can help protect children.
Nigeria adopted the Child Rights Act (CRA) in 2003 to domesticate the convention on the rights of children.
11 years down the line, only 16 of 36 states have domesticated the law to protect the rights of children.
The CRA defines a child as a person who has not attained the age of 18. The Act, while adopting the fundamental human rights as stipulated in the 1999 Constitution in addition, has 16 rights  recommended to protect the lives of children.
These include rights to a name, survival and protection, dignity, parental care, protection and maintainance, freedom and universal primary education, freedom from discrimination, right to health and food among others.
Unfortunately, poverty, laziness by parents and even the absence of a political will by states to domesticate the CRA in their various states made it neccessary for children to engage in all kinds of jobs to support their parents. It was created to protect the child from all forms of abuse from the family and the society at large. However, it is obvious that this has not taken any effect in the country as many instances of child labour abound.
A young child, Abdul, said, “I have to work because my mother is poor. I go to school in the morning and when i return, i come to the quarry site to crush rocks. If i am lucky, i get between N300 and N1,500 a day.”
Another young child, Joe, is a child miner at Kwagiri village, Kaduna state. He told LEADERSHIP that he has been a rock crusher for two years and is happy doing it as he can support his  mother and have some money in his pocket.
“I go to a government day secondary school, and after school hours, I come to the quarry site to crush small rocks in exchange for some money,” Joe said.
Kwagiri quarry is not the only site that allows children in. Various mines abound where children are seen in their droves crushing stones, hawking food, and in some cases kept as paid mistresses or prostitutes by old miners through the supervision of quarry madams.
Another victim of child mining is Halima who hawks food to workers in the mine even during school days. She told LEADERSHIP that she had to work to earn some money to support her father’s farming income and her mother’s petty business.
“I go to school at least three times a week but i like to come to  the quarry because i get money to meet some of my small needs,” she revealed.
These cases are not much different from many other incidences of children labour and it is not only in mining that children are used as labourers. This also happens even in agriculture.
On a visit to Olam Rice farm in Nassarawa State, LEADERSHIP caught up with 13 year-old Gambo who through a translator said had never been in school. Asked how much he is paid for loading trailers in the farm, he said he earns between N500 and N1,000 daily and between N7,000 weekly. He will love to go to school, but his parents are both illiterate and can not afford it, he stated.
Helpful as this may seem, it is a terrible state of affairs where children take the responsibility of fending for their families or are expected to support them. they become the breadwinners instead of being protected against the deplorable society.No wonder there is an increase in child rape, child trafficking, slavery and cases of child abductions.
To curb this menace of child abuse, it is absolutely neccessary that states that have not domesticated the CRA be encouraged to do so. Children should not be sent hawking and crushing rocks when their mates are in school learning the basics of life through education. The FG should impose it on the states to ensure that the rights of Nigerian children are protected.
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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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Poor Funding, Bane of Steel Industry

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A major challenge to the development of the nation’s steel sector is the near neglect  of the Ajaokuta Steel Complex and the under utilisation of the nation’s National Steel Raw Materials Exploration Agency (NSRMEA) due to poor funding. Ruth Tene Natsa takes a look at the implications of this neglect. 
The call for the privatisation of the Ajaokuta Steel complex as a panacea to its long neglect has received various reactions from stakeholders.
Stakeholders are of the view that the development of the steel sector will not only ensure employment for the teeming unemployed youths, but will also be the solution to the nation’s huge demand for iron/steel materials needed for construction and developmental purposes, while contributing greatly to the gross domestic product(GDP) of the economy.
While that may be so, numerous challenges continue to hinder the development of the steel sector. This include poor funding, lack of equipment, lack of expertise, absence of a steel law and a total lack of political will by the government of the day to ensure the development of the steel sector. This is most evident in the long neglect of the Ajaokuta Steel Complex and the poor funding of the steel and mining sectors in general.
Speaking in an exclusive telephone interview with LEADERSHIP recently, the minister of mines and steel development, Mr Musa Mohammed Sada, said, “there is a big problem because we, the regulators, have no law empowering us to make efficient impact towards ensuring quality steel production in the nation.” He added that “the present dispensation was working towards ensuring that proper regulations are created to protect the Nigerian steel sector.
“Laws are critical because as it stands, there is nobody empowered to analyse the quality or content of steel made in Nigeria. Steel is produced from part scrap, but in some cases, we have observed that factories produce from 100 per cent scraps and there is nothing we can do about it because of the absence of a law.”
The minister revealed that the ministry had visited several steel factories in the past but maintains that the absence of a steel law hindered proper sanctioning of erring factories. He added that the matter was being presented before the Federal Executive Council (FEC) after which it will be presented to the National Assembly to ensure that a steel law was enacted to preserve the sector
The privatisation of the sector in the 70s led to its near collapse while the call for the privatisation of the Ajaokuta Steel Complex to ensure its completion continues to lead to several arguments among stakeholders.
“What I want the executive arm of government to know is that no private investor would invest $513 million or N83 billion to complete the Ajaokuta steel plant and equally invest in completing the remaining required external infrastructure because the risks are too high with changing government policies,” the chairman, House Committee on Steel Development, Sadiq Asema Mohammed, said. “We know that the steel sector is private driven all over the world like in Russia, India, South Korea, among others and in all of these countries their steel industries were first and foremost developed by their respective governments before the private sector took over. Even now in Europe and the United States of America (USA) where their steel sector has matured, their governments still keep a tight rein and interest in their steel industry.
“If we sell the National Iron Ore Mining Company (NIOMCO), our best iron ore mine, to whoever, where lies our national interest? in whose interest are we privatising the NIOMCO or Ajaokuta Steel Company Limited?”
Also an interview with the director-general of the National Steel Raw Materials Exploration Agency (NSRMEA), Mr Alex Ohikere, revealed that major challenges to the activities of the agency lay in the area of equipment.
“Because of the kind of activities we carry out, sound equipment are needed.  A few years ago, all the rigs in our possession were obsolete and we used to spend a lot of money almost on a daily basis for maintenance. But luckily in 2010/2011, government intervened and funded the supply of two new crawler-mounted drilling rigs with accessories and also funded the supply of a low-bed because the rigs need to be moved from Kaduna to where the drilling activities are ongoing. The rigs must be carried on a low-bed so one can see the number of vehicles involved in the activities we do,” Ohikere said.
The DG added, “We also need water for core drilling. So in a typical field work, we need the rig, low-bed, water tanker, and of course field vehicles; so it is capital intensive. Apart from the procurement, we try to repair/refurbish some of the obsolete plants and equipment. It’s a known fact that rigs do not die, however, they are very expensive to maintain.”
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Saturday, 5 April 2014

Preserving The Environment Against Mining Hazards


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Preserving The Environment Against Mining Hazards

One of the negative effects of illegal mining is the undeniable destruction of the environment as a result of non- or poor remediation. As the rainy season begins again, Ruth Tene Natsa writes on the need for miners, and stakeholders, to ensure that remediation is carried out on the surfaces where mining activities occur out so as to protect and preserve the environment 
Remediation is the process of restoring both land and environment to its natural state after mining activities that have exposed the top soil through digging.
Non-remediation of mined environments portends high risks of flooding, exposure to dangerous minerals such as lead and even physical danger for both humans and animals.
Nigeria is a country blessed beyond measures with an abundance of solid minerals in virtually all the 774 local government areas.
The several coal reserves which it has in abundance and the recent discovery of gold in several states of the federation, among many others, make Nigeria a mining nation. Unfortunately with the negligent and lackadaisical attitude of the federal government to the development of the sector, while paying lip service to its reforms, illegal miners continue to have a field day in the mining sector. This is even as government claims it lacks the wherewithal to fully monitor the activities of these miners who continue to employ unsafe mining techniques.
In an exclusive interview with LEADERSHIP, the immediate past president of the Nigerian Mining and Geosciences Society (NMGS), Akinola George, said the non-remediation of mining environments is not only hazardous to the environment but dangerous to the life. Recounting a survey by the World Bank in the 36 states of the federation, including the FCT in 2011/2012, George recalled that “the survey revealed that of 1,218 abandoned mines, over 40 were very hazardous, 221 were moderately hazardous, while 957 were mildly hazardous.”
The geoscientists were worried that aside being dangerous to the environment, the animal deposits and various poisonous expositions posed cancer risks to the humans around. They, therefore, urged the government to not only remediate but to ensure the immediate reformations of such mines.
Although  the federal government, through the Ministry of Mines and Steel Development,  have made efforts to organise the illegal miners into cooperatives, their activities continue to be regrettably dangerous to farmlands, the environment, animals and most importantly the residents of their host communities who are continually exposed to contaminated lands. Holes dug and left uncovered during mining could serve as traps for animals and unsuspecting humans who could fall into them without warning and heavy rains could wash off the soil, making it unsafe for farming activities.
Illegal mining and non-remediation has so many implications, both directly and indirectly, with the flooding experience witnessed in several parts of the nation in 2012. There is no doubt that if the land had been properly maintained and the drainages were in order, the calamity may have been averted.
The lead poisoning incidence in Zamfara  State was another direct consequence of non-remediation. The lead was washed into other uncontaminated environments, thereby  defiling  them and exposing whole communities to the menace where over 400 children died and others were brain damaged.
Meanwhile, in a bid to ensure that mining and quarry sites operate within the constituted laws guiding the sector, the minister of mines and steel development, Mr Musa Mohammed Sada, has threatened to shut down quarrying operations in companies that fail to comply with acceptable standards.
While leading a delegation on inspection of quarrying sites in Abuja, he threatened to shut down activities in Hongyum Quarry limited and called for the revocation of license to Perfect Stone quarry in the FCT.
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