Need for Clarity in Mineral Categorization

Folalumi Alaran writes about the need to categorise nation’s mineral deposits for proper revenue generation.

Representatives of the mining industry have shed light on the challenges faced by tin mining companies in Plateau State.

In a recent workshop organized by the Special Control Unit against Money Laundering (SCUML) of the Economic and Financial Crimes Commission (EFCC) with Plateau state Ministry of Mines and Steel Development in Abuja, the participants shared opinion about the necessity of SCUML registration for various types of mining activities.

MD/CEO of Sound Core Group and a Consultant with EFCC’s SCUML office, Tony Nwakalor, emphasized that tin, a major focus of mining activities in Plateau State, does not fall under the category of precious metals or gemstones.

He called for a more informed approach to the solid mineral sector, emphasizing the importance of collaboration among stakeholders to prevent illicit financial flows and protect the economy.

According to him, “As SCUML is putting a searchlight on designated non-financial business and professions and under that as far as solid minerals sector is concerned, dealers in precious metals and gem stones are those who fall under that category. Tin is not a precious metal, and it is not a gem stone.

“Nigeria can do better in the solid mineral sector, all hands must be on deck. There’s more collaborative action required by all stakeholders such that illicit financial flow and using the sector as a means to devalue our economy will stop our economy. So we need everyone to get more informed about the sector and its potential.”

On his part, Chief Operation Officer of Laurium Mining company, Bolarinwa Olalekan, said the discrepancy in categorization became apparent when his company was invited by EFCC to provide legal documents, including SCUML registration.

He addressed the misunderstanding, highlighting that certain mining activities, like tin mining, should not be subject to SCUML registration.

He urged SCUML to provide a detailed list of minerals falling under precious metals and stones, ensuring clarity for mining companies and facilitating effective enforcement.

Olalekan also called for greater collaboration among government agencies, including EFCC, the Ministry of Mines, and the Nigeria Security and Civil Defence Corps (NSCDC), to tackle challenges faced by legal mining list holders.

He emphasized the need for EFCC’s support in providing a legal mining list, enabling them to combat illegal mining effectively.

Olalekan said, “We are here for a workshop organised by SCUML and EFCC. We were being introduced by the Ministry of Mines to come for the workshop. The workshop is for dealers in precious metals and stone. We are into tin mining it does not fall under that category. But we’ve been in a scene whereby the EFCC invited our own company to come with our legal documents and they also requested for SCUML.

“So we went into the office to present all our documents excluding SCUML. They mandated us to have the SCUML document. But we let them know that tin mining companies and some other companies too that do not fall under the categories of those mining precious metals and stones do not need to register for SCUML.

“But as we are in this workshop, a lot of presentations took place, we were able to clear the air concerning the fact they categorised the mining that falls under the precious metals and stones. Our own type of mining of tin, they were able to clear it that we do not fall under the categories of miners that do not fall under the categories of SCUML registration.

“If the SCUML units can list out the minerals that fall under precious metals and stones. If they can list it out in details and they can share it to different zones where they have their SCUML offices in EFCC, so that their staff will be aware of the minerals that fall under the categories of precious metals and stones.

“So that they will know the companies that will need to be invited for interrogation as far as SCUML is concerned. I think that will be better and will help the whole situation. Our company for instance in Plateau is facing some challenges where we are even seeking the assistance of the EFCC regarding the issue of illegal miners.

“I told them that we have a mining list where the scavengers have been going left and right to scavenge our resources, and we always call the attention of the sector that are concerned and can assist us. Like the Ministry of Mines and NSCDC, they used to come to our aid.

“So if the EFCC can support us too with the legal mining list so that our company can strive. It will be something that we would really love, we would be excited to see them supporting the legal mining list holders. Not that they will be referring to the legal mining list holders as illegal miners.

“If they can come to the site and see what we are facing, they will know the way they can actually assist us in fighting the illegal mining activities around us, not us going for interrogations that can be easily detected online.

“The mining cadastre office is online already that you can easily put any mining ID and verify if the mining list is valid or not rather than stressing us going front and back to interrogate the legal mining list holders or even charging them to court, whereas we have illegal mining activities all over the country. So we will be glad if they can come to our aid to assist us in that area.”

As the workshop ended, it became evident that a more nuanced approach is required in categorizing mining activities to ensure that regulations are appropriately applied, fostering a more conducive environment for legal mining operations in Nigeria.