*SMDF move to de-risk mining sectors
Ministry of Mines and Steel Development, on Tuesday, said that there is need to give special attention to the minerals for development and improve mining sectors to attrack investors.
The Permanent Secretary, Ministry of Mines and Steel, Dr. Mary Ogbe, disclosed this in Abuja, during her familiarization tour to Solid Minerals Development Fund (SMDF), noted that the ministry is committed to promotion of the mineral sector in the country.
She also said that the relationship of SMDF under the Ministry is symbiotic for the common goal of mining mandate and national development.
Ogbe said: “We has been working together to bring the ministry and all these agencies together and that is how it should be, with focus of being the development of the country and moving the sector forward. And we can only do this as we collaborate, and I’m glad that this collaboration already exist.
“Definitely, you has achieved so much in mining sector, But, you will not stop in achieving until everyone in Nigeria is happy, food is coming to the table of everyone. And that is the goal of we all that God has given the opportunity and place as leaders.”
In her remarks, the Executive Secretary, Solid Minerals Development Fund (SMDF), Hajia Fatima Umaru Shinkafi, said that significant infrastructure is necessary to unlock mining full value chain potential in Nigeria.
She said that the agency is interested in de-risk mining sectors and promoting private sector led investments because mining is a business enterprise. And private sector runs it better than the government.
Shinkafi said: “We intend to link the mineral resources that we’re so richly endowed with to infrastructural development to support capacity for diversification and export as a Forex earner. The presidential gold initiative is already doing that in terms of adding foreign a crucial to the central bank’s reserves. So value addition is key, but very close to my heart and to the funds mandate is Greenfield exploration.
“We have gaps in data with the resources we have and to attract investment. We need to know more about what we have and generate data job reports and it costs money and it is very risky and banks are risk at us, banks don’t have the risk appetite to do it because it’s a gamble.
“Exploration is a risk. You might find something or you might find nothing. So we want to be that bridge or the emergent stages that mining is at in the country. We want to de risk the sector and be that bridge between investment and data so that we can attract both local because we always talk about foreign investment. We have local investors.”
She further noted that the SMDF is set to launch a Greenfield project for the first time ever at low risk single digit interest rates for private sector. She added, “We have really achieved a lot since with the support of the ministry since I assumed this office. It only collective work that would reposition this ministry to the rightful position.
“SMDF’s investments and partnerships are focused on supporting project preparation stages to significantly lower project risk and expand the pipeline to bankable mining projects. The fund has also made an impact investment to support artisanal miners.”
