Solid minerals minister Kayode Fayemi enters into agreement with Australians on mining

SOLID minerals minister Dr Kayode Fayemi has entered into agreements with the Australian mining sector to understudy the way the industry is run in the country with a view to developing it into a major Nigerian foreign exchange earner.

 

Appointed to the portfolio by President Muhammadu Buhari with a mandate to expand the solid minerals sector into a major industrial player, Dr Fayemi's brief was to end the country's dependence on crude oil. He has since begun discussions with the Australians, who are one of the dominant players in the global solid minerals sector.

 

According to Dr Fayemi, under the arrangements entered into, the Nigerian government will learn how Australia has been able to achieve synergy between communities, states and the government. It will also look at how the Australians resolve the recurrent conflicts between communities and miners and settling the royalties due to states.

 

Speaking in Abuja while receiving the Australian ambassador to Nigeria Jonathan Richardson, Dr Fayemi said that the increasing interest of the government is geared towards understanding the Australian mining sector. Mining accounts for about 6% of Australia's gross domestic product and it is a major producer of iron ore, nickel, bauxite, gold, uranium, diamonds, coal and opal.

 

Dr Fayemi added: “We need to learn how you have been able to particularly drive the Australian mining industry. The president is really very focused in this sector, not that we have choices anyway with the prices for petrol dollar dwindling, so we have to look at alternatives for raising revenue for the country.

 

"For the president, agriculture and solid minerals appears to be the most realistic or fastest way to begin to raise additional revenue for the economy. The increasing interest of our government has made me get in touch and connect with what you are doing in your mining sector as everything I have heard in the last 10 days of being in this position points in the direction of Australia."

 

A number of large multinational mining companies including BHP Billiton, Newcrest, Rio Tinto, Alcoa, Chalco, Shenhua, Alcan and Xstrata operate in Australia. There are also a lot of small mining and mineral exploration companies listed on the Australian Stock Exchange, with the sector employing about 129,000 Australians.