Unearthing Hidden Treasures: Launch and Official Declaration of 2007 as the Minerals and Mines Year (MAMY) 

Address by His Excellency, Chief Olusegun Obasanjo GCFR, President, Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, 

January 16, 2007; Sheraton Hotel and Towers, Abuja.

It gives me great pleasure to commemorate this administration's strategic investment in minerals development with the recognition of the year 2007 as the Minerals and Mines Year (MAMY).

You are all welcome to the launching and official declaration of 2007 as the Minerals and Mines Year. We trust that persons and communities across the nation will join in this resounding celebration.  

2007 as Year of Minerals and Mines: Historic Landmark

MAMY is the epitome of our serious commitment to harness Nigeria's extensive mineral resources. Our rich mineral endowment holds much promise for our development agenda. Historically, our dominant dependence on oil undermined the development of the minerals sector. Our strategic decision to earmark minerals development as a strategic agenda has yielded enormous fruits in the short time that we have redoubled initiatives to invigorate the sector. The difference is clear to all Nigerians. Accordingly, we are confident that the succeeding administration would appreciate the signal importance of sustaining our prioritization of the sector. Now that we have laid extensive ground-work to support vibrant mining, we eagerly count down to the prospective date in the near future when the fruit of our labour will discernibly translate into substantial revenue generation; after all, "the taste of the pudding is in the eating." 

Our concerted efforts will count for naught if public awareness does not significantly improve about the vast opportunities that abound in the minerals sector. We have engaged in aggressive promotional and marketing activities to attract foreign direct investments. MAMY is a platform to formalize information, education and communication outreaches to ensure meaningful local engagement and participation. With the previous dormancy of minerals development, only select constituencies in Nigeria have some sense, let alone command viable intelligence, about our minerals potential. Yet, one would be hard-pressed to think of vital aspects of industrial development that do not require the utilisation of mineral resources. Many are aware of the commodities boom in the last three years driven largely by growth and economic prosperity of India and China. Most metal commodities such as Gold, Copper, Zinc, Lead, and Tantalum have enjoyed price rise of between 25-200 percent during this period. With such lucrative returns, the optimal use of earth resources may well be considered a measurable indicator for development.  

The study and development of minerals and mining have strong relevance for agriculture vis-à-vis fertilisers and soil improvement nutrients. Minerals equally impact and have implications for infrastructure, industry, science and technology, health, environment, commerce gender, etc. While these focal points are served under respective portfolios, the minerals sector offers a fulcrum for close cooperation by diverse governmental and complementary agencies. It is to this to this rich cross-sector of actors that we entrust the urgent agenda to evolve a minerals sector that is at worse competitive and participatory. Our democracy dividend is all the more enriched when we go beyond revenue generation for poverty reduction and are able to integrate our manifold experiences into the building of a nation of pride in every sense of the word. 

Reform of the Sector: Doing it Right from the Start

Most people in the audience will agree that until very recently, Nigeria was not on the radar screen of international companies seeking to invest in minerals and mining. Nevertheless, it is these companies that we must attract for their wealth of experience, net worth, financing prospects, technological capabilities, and other competencies. Luckily, we have ample objective evidence from successful mining destinations to inform the conscientious rejuvenation of our own mining industry. 

The reform initiatives of the present administration have had far-reaching implications for the minerals sector. Beginning with the clear articulation of a National Policy to direct the development of the sector, we have invested heavily to generate and make readily accessible geo-scientific data necessary to stimulate significant investment. We expect the promulgation of the Minerals Act any day now. This act provides the solid foundation and reinforces the enabling environment that we have gone to lengths to create in order to build the confidence of investors. Through the establishment of the Mining Cadastral Office, we are in the process of implementing a world-class permitting system that would drastically reduce the incidence of title conflicts in our jurisdiction. We have put in place sound measures to address key infrastructural challenges and we remain determined to progressively improve on these. The broad distribution of mineral resources across the entire Federation in almost every local government presents us with a golden opportunity to build on lessons from oil exploration by giving centrality to social considerations and environmental governance. 

In support of the private sector as the engine of economic growth, the government undertook to relieve itself of ownership and operation of mineral assets. The privatization program which we spear-headed last year brought in good proceeds that affirmed our decision to promote Nigeria as an irresistible mining destination. The companies that were successful bidders can rest assured of the full weight of the support of the government to advance our common agenda. By the same token, we count on these companies to lead the way by establishing practices and precedents that stand both close scrutiny and the test of time. As a late comer and the new kid on the block, we can now ride on the instructive insights of those who went ahead of us. We will not countenance activities that fall short of global best practices for minerals resources management. We have made generous concessions in our legislative and regulatory framework to ensure that the companies enjoy the level of profit that defines the heart of their bottom-line. However, let the record show that gone are the days of narrowly construed bottom-line on these shores. We are for multiple bottom-lines. Impeccable environmental stewardship, for example, is a laudable bottom-line. 

Human Capital Development

Today marks the commencement of teaching under the auspices of the Nigerian Institute for Mining and Geosciences. This is no mean feat and we are highly indebted to all who worked hard to ensure the realization of this pivotal legacy. It has taken more than 16 years and numerous studies and recommendations for us to come this, far. The first class offered by the Institute will begin today at the Ministry of Mines and Steel. The Institute will eventually conduct classes in Jos which is where the permanent site it. However, as a 21st Century entity endowed with a Centre of Excellence for cutting edge research and development, the Institute is poised to become a house-hold name by virtue of its distant learning modules. Besides the satellite Colliery Campus in Enugu and the Metallurgy School in Onitsha, the Institute will champion critically acclaimed Leadership and Managerial Training series. In fact, it is my understanding that the maiden cohort of students will be exposed to a potentially life transforming curriculum on leadership development later today. The emphasis on leadership is most commendable, given the urgent need to build the capacity of a crop of stakeholders who are in a position to assume leadership for the emerging sector. 

Communities and Mining

Mining occurs on or below the ground around communities. We know from experience that diverse mining activities have caused considerable adverse impact on the environment and natural resources, including the destruction of habitats and physical landscape. The success of a mining project greatly depends on a cordial relationship with the host communities. Today communities are concerned about socially responsible resource governance. We share the exact same values and echo the sentiments of the communities. We could not exaggerate the extent to which it is good business as well as common sense for companies planning new mining ventures to understand and respond to community concerns and needs. This year we will be spending about 2Billion Naira to rehabilitate abandoned mine sites. Against this backdrop, it stands to reason that we are not about to certify the development of mines without acceptable pre-mining closure plans. Mining companies are the least-cost-avoiders for mines rehabilitation and reclamation; as such we demand evidence of their due diligence in that respect. Good corporate citizenship for mining companies does not end with environmental impact management. Communities are entitled to reasonable benefits derived from the natural resources they host. We are as much committed to ensuring that these communities enjoy these benefits as we are to ensuring that the communities do not engage in captive strategies that ultimately disserve all concerned.

We are at the threshold of a major turn around in the fortune of Nigeria with respect to solid minerals. We now need to deepen our understanding and knowledge of the earth around us. I enjoin the entire nation (school children, youth, the mature, and the aged) to embrace the opportunities and join arms with us in making this nation the best that it can be. I now declare year 2007 as the Minerals and Mines Year. God bless Nigeria. Thank you all.  

His Excellency, Chief Olusegun Obasanjo
GCFR, President, Commander -in-Chief of the Armed Forces of the Federal Republic of Nigeria