Communiqué
The communiqué issued at the end of the 1st West Africa Mining Investment Conference organized by the Ministry of Mines and Steel Development, Nigerian Geological Survey Agency (NGSA), and sponsored by First Bank of Nigeria Plc, Bank of Industry, Uramin Inc, Gateway Mining amongst others. The conference was held at the Ladi Kwali Centre, Abuja Sheraton Hotel and Towers between December 11th and 14th 2007. The theme of the conference was 'Matching Mineral Investment Opportunities to Capital Sources'. The conference facilitator was Promethean Advisers.
The conference programme included keynote addresses, panel discussions and focus groups. After deliberations by the participants, the following key points were adopted:
- The Conference endorsed the statement of the President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria Alhaji Umaru Musa Yar'Adua GCFR on the importance of solid mineral development to the implementation of the seven-point agenda of his administration and opportunity for showcasing the enormous potential that exists in West Africa.
- Nigeria's Mineral and Mining Act 2007 has created an investor friendly environment with guidelines and a framework, which allows easy access to the mining sector by investors.
- The conference is timely as it reflects the yearnings of our people for the political and economic integration of the sub-region in particular and the African continent in general.
- The West African sub-region has enormous mineral deposits ranging from industrial to metallic and precious metals that are very important to the strategic development of the region.
- There has been a recent change in perception by the rest of the world about Africa. Africa is now a preferred destination for investments in the mining industry. Globalization has given the region tremendous investment opportunities due to proper valuation of mineral resources in an established market forum.
- The sub-region needs to develop a clear strategy for improving the capacity and competence of the indigenous miners and also create an enabling environment for the industry to thrive.
- The success of a mining project greatly depends on a cordial relationship with the host community. There should be emphasis on effective communication between the companies and the host community. There is a need for adopting and implementing community development agreements which are now de rigueur in reformed mining jurisdictions.
- The central government must play a key proactive role in the development of the mining sector. There is need for cooperation among central, state and local governments in developing the sector. This development should be a partnership between the governments and commercial entities regardless of the kind of commodity.
- The perceived major inhibitors to mining infrastructure are: the presence of bottlenecks that inhibit growth in the mining sector and the absence of adequate financing and technical support.
- The possibilities of Public/Private Partnership (PPP) in the minerals sector can promote a very viable strategic opportunity that will fast-track the sustainable development of mechanized mining in the West African sub-region.
- Some financial institutions have set aside funds in order to aid the development of the sector. This new development was welcomed by the participants at the conference, and other financial institutions were encouraged to emulate this approach.
- There was a $20 billion increase in the Carbon Market within a year (2005-2006) and the market is expected to double that in 2007. Most countries in West Africa who signed the Kyoto treaty should put in place systems and structures to take advantage of the Carbon Market.
- There is a need for strategic look at regional requirements for commodities in the future. The West African sub-region needs to consider the absence of local value addition to mineral resources prior to export. A strategic political framework of regional integration and development of mineral resources is required.
- Globally the mining industry currently suffers from shortage of relevant skills and personnel. The shortage is not only in the core area of mining engineering and geology but also in the support services e.g. financial experts, fund managers, lawyers, GIS specialists e.t.c. The West African sub-region is not immune to this challenge. West African leaders need to put in place institutions and systems to address this shortage. Regional institutions should collaborate to develop a region-wide network for capacity building.
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