Henry Dele Alake
«We want to guarantee investors’ security»

Henry Dele Alake aims to transform and reposition the country’s mining industry with regard to human and financial factors and boost the sector with a view to diversifying the economy.

AM: As Minister of Solid Minerals, you introduced reforms to jump start the industry. What are they?

Henry Dele Alake: Summarised in our seven-part programme, they were comprehensively drafted in response to the shortcomings that were brought up during the presentation of the progress reports on the ministry’s policies, department projects, agencies and units. For example, the creation of the new Nigerian Solid Minerals Corporation aims to leverage the late company’s assets, promote added value and the beneficiaries and strengthen Nigeria’s presence in the international mining industry. It is a public-private company based on the technological and managerial culture of the continents that dominate the mining industry today. This institutional response to artisanal mining is having considerable effects because it will transform the current market structure in terms of access to capital. The second reform involves the production of big data by targeting exploration on a national scale to determine whether ores are located in resource and reserve areas, which is essential for securing investments and increasing data-driven extraction. Current practices to access the activity weigh too heavily on investors. This programme lightens that burden and allows them to use their money more smartly. Thirdly, we’re fighting illegal mining by setting up a complete, technologically advanced security architecture supported by the mine police. Illegal workers do not have mining permits, and they also extract in areas where it’s outlawed, such as national parks. Fourthly, we emphasize added value creation and processing to deter exports of raw minerals and balance the current transaction system’s lop-sidedness. We consider industrialisation a key part of the value chain. Part five involves setting up a better arrangement in favour of communities in mining areas. We recently adopted new guidelines for the community development agreements that companies must comply with to obtain a permit.

What incentives do investors need to get back into to mining?

Firstly, access to data. Secondly, a quick and transparent permit-granting process. Thirdly, mine safety. What is Nigeria’s current mining potential? Data collection to determine resources and reserves is underway and estimates may vary depending on the ore. But we’re working on a cautious estimate, which weighs in at over $700 billion.

How do you collaborate with local officials to draw companies to Nigeria?

Our country has a trilevel federal government. Local officials are trained to attract companies that can create jobs, pay taxes and create the conditions conducive to their development. To do business in Nigeria, they must register with the Corporate Affairs Commission, a federal agency.

How do you plan to prevent illegal mining in forests?

This is one of the challenges we have to overcome. We’ve gathered information about huge criminal operations run by foreign dealers and their local collaborators, who extract ore in areas where it’s forbidden by law and in places where there’s no authority. We’re moving from the investigation stage to prosecution, and I can assure you that nobody who’s convicted, native or foreign, will escape punishment.

What solutions are you considering with regard to gold and deposits in the north, in sometimes volatile areas?

The gold belt stretches continuously from the southwest to the northwest. Not just in the north. And I can assure you that we are fighting insecurity in these areas to ensure our investors’ safety.

You held the first Mining Week in Abuja at the end of October. What impact do you think it had? Will there be another one?

Mining Week is an annual event designed to draw the global mining community’s attention to the headway we’re making and the opportunities that lie ahead. It’s also a forum for comparing African and global experiences in technology, marketing and raising capital to finance operations. We’ll continue our partnership with the organizers to promote future editions. Most participants achieved their goals. New companies announced their willingness to invest, particularly in lithium mining. The feedback has been very positive.