Mining: New Policy on Royalties Payment Coming, Says FG

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Kasim Sumaina in Abuja

In its bid to increase revenue generation from mining, the federal government on Tuesday said it was set to establish a new policy that would ensure mining companies pay the accurate royalties.
The Minister of State, Mines and Steel Development, Dr. Uchechukwu Ogah, stated this during his tour of two mining companies – Venus Mining Company and Corner Stone Quarry in Dutse, Bwari Area Council, Abuja.

He disclosed that the new policy would require mining companies submit the Printout of their Weigh Bridges to the ministry, so that exact royalties based on their sales record could be accurately calculated and paid to government.
He added that the payment royalties to government support funding for infrastructural development for the nation.

Ogah, enjoined the management of the companies to ensure they have functional licence and adhere to mining regulations; saying that the Ministry’s doors are always open to offer guidance.

He reiterated federal government’s commitment towards providing an enabling environment for investors to invest in the sector.

Earlier, the consultant to the companies, Muhammed Lawal, revealed that Venus Mining Company, a stone aggregate quarry, has the capacity to produce about 40 thousand tones monthly.

He, however, noted that it could produce about 60 thousand tones when the crusher was functioning optimally. He said they ensure they engage in controlled blasting in keeping with mining regulations.

Also, the Managing Director of Corner Stone Quarry, Mr. Yilmaz Tavan, said the Quarry began operations in 2016 but had to stop for two years to reposition and re-strategise for better output. He added that as part of its repositioning effort, the company would take delivery of three new machineries from Turkey, soon. Tavan disclosed that four of the Quarry’s workers were kidnapped and released recently.

He, however, urged the federal government to provide adequate security for mining sites for seamless operations and assured of the company’s dedication to operating within mining regulations and not indulge in illegal mining activities.