With 31 additional mining cooperative societies and communities getting micro grants under the World Bank-sponsored project, Obinna Ezeobi writes that lives are expected to change for many rural dweller.

It is a rarity for an official of the World Bank to commend government agencies or officials of any country.

With its insistence on corporate governance and prudent management of the resources of nations, the World Bank is often heard criticising governments rather than praising them.

But last week at the presentation of cheques to the second batch of micro grants beneficiaries in Abuja, the Country Director of the World Bank Office in Nigeria, Mr. Onno Ruhl, was effusive with praises for the Ministry of Mines and Steel Development and the Project Management Unit of the Sustainable Management of Mineral Resources Project.

His eulogies were stirred by the performance of PMU on the SMMRP, which the World Bank instituted in the ministry in 2005.

The project, which is backed by a $120m facility, has many components, including the development of an independent cadastre system, the acquisition of geophysical and geochemical data, the strengthening of the sector‘s regulatory frameworks, capacity building of officials and enhancement of artisanal and small-scale miners.

While most components were started off quite early and have recorded some appreciable progress, the handing out of grants to small-scale and artisanal miners was delayed.

Interestingly, this component had $10m specifically reserved for it and was the subject of interest of several stakeholders.

Nevertheless in July 2009, seven mining cooperative societies and three mining communities selected as the first beneficiaries were given cheques of various sums.

On Thursday last week, another set of 23 mining cooperative societies and eight communities were also presented with cheques of various amounts.

Some of the beneficiaries include Sokoto Women Miners Association, Kaolin Miners Cooperative, Gidan-Dutse, Sokoto, Malali Quarry Workers Union, Kaduna, Zacko Cooperative Multi-Purpose Cooperative Society Minna, Ebira Concrete Input Supplies Multi-Purpose Cooperative Society Okene and Odonuin Marble Industry, Ekinrin-Adde, Ijumu LGA, Kogi State .

Other beneficiaries are Mbatoo Multi-Purpose Cooperative Society, Mbatoo, Gboko, Benue State , Mbakwha Multi-Purpose Cooperative Society, Lessel, Benue State, Orgba Multi-Purpose Cooperative Society, Orgba, Benue State, and Dimension Stone Workers Cooperative Society, Bauchi.

Speaking at the event, the Minister of Mines and Steel Development, Mrs. Diezani Alison-Madueke, explained that the micro grants were aimed at facilitating the development of artisanal and small scale miners in the country by assisting them to acquire equipment, services and knowledge necessary for increased and sustainable mining production.

According to her, the government realised the need to remove the constraints associated with artisanal and small-scale miners, which is primarily access to capital. Hence, it embarked on a programme of providing alternative sources of business finance.

She said, ”The objectives of this micro grant are to provide assistance for the miners to acquire mining tools/equipment, training and to reduce the prevalence of poverty among the related communities, with a resultant improvement of social infrastructure.

”The recipients of the grants are required to make counterpart in-kind and/or cash contributions.

”With this scheme, the government expects to boost the production and income earning capacity of small-scale miners engaged in diverse mineral resources such as gemstones, metallic minerals and non-metallic minerals.”

The minister stressed that artisanal and small-scale miners contributed immensely to job creation in Nigeria‘s rural communities, adding that the sector had the capacity of making significant contributions to Nigeria‘s Gross Domestic Product.

According to her, over 500,000 households depend on informal mining for their sustenance.

She further explained that government was also in discussion with various commercial banks in terms of designing loan programmes that were specific to miners.

Alison-Madueke assured that the grant approval process had been designed with checks and balances to ensure transparency and guard against the grant being directed to wrong purposes or recipients.

In his speech, the Country Director of the World Bank Office in Nigeria, Mr. Onno Ruhl, explained that the grants were an important component of the project.

He said, ”It is important to understand that mining is not only about large investments. It is also significantly about people locally making out a living of mining and lifting themselves out of poverty in doing so.

”That is why we are happy that through the project we are supporting the Ministry of Mines and Steel by making available grants to these very people because we know from our other projects that in Nigeria that the best way to help Nigeria is by allowing Nigerians to help themselves because they do not need any help when they have the resources.

“That allows them to do the jobs and make a living. Nigeria is a very dynamic country.

“That is the spirit we are trying to engender with the grants. Hopefully, overtime there will also be grants for larger operations because we have to cover the whole spectrum.”

He also expressed satisfaction that the beneficiaries were picked from all geopolitical zones of the country, which confirmed that mining activities were not confined to any particular part of the country.

Ruhl also stated that the beneficiaries were under obligation to put their grants into good use and achieve visible results in their lives and that of their communities.

He further explained that President Umaru Yar‘ Adua‘s Seven-Point-Agenda and Vision 2020 were about freeing Nigeria from being dependent on oil, adding that the mining sector was well positioned in that regard.

He said, ”The only way Nigeria can take its rightful place in the committee of nations is by diversifying its economy away from oil. The mining sector is one of those sectors alongside other sectors like services, industry, telecommunications and entertainment that can make this happen.

”Few people understand how important the mining sector can be.

“The sector has been ignored and neglected as people trying to make a living on the margins.

”Under the leadership of the minister and support of some partners like us, we hope to change that.

“The minister is implementing a very aggressive agenda that will lead to a very excellent geological data being available about Nigeria so that large investments can come in.”

On the performance of the first set of beneficiaries, Diezani Alison-Madueke reported that they were making good progress.

She added, ”Two artisanal and small scale mining activities have been fully implemented while the remaining five are at various stages of implementation.”

Alison-Madueke also explained that government had designed a mining sector reform agenda, which was supported by various programmes and initiatives for converting activities of the artisanal and small-scale mining aspect of the industry into a positive source for poverty alleviation, income generation and wealth creation, while mitigating the related environmental and social issues.

”One of the initiatives has been the creation of the Artisanal and Small-Scale Mining Department within the ministry, which to-date has registered over 500 mining cooperatives,” she added.

According to the original plan of the SMMRP, it was expected to wind up at the end of 2009.

But impressed by the success so far recorded and prospects, the World Bank agreed to extend the life of the project by 23 months to enable the implementation of additional activities relating to the development of artisanal and small-scale mining.

Perhaps, before then, there will be ample examples of local miners whose lives would have been changed because they benefitted from the World Bank‘s mining grants.