Cadaster Office restores investors’ confidence – DG

The Mining Cadaster Office (MCO) a Federal Government Agency charged with the statutory responsibility of the administration of mining titles. The director general, Engineer Mohammed K. Amate is argues in this chat that the MCO as a standardized agency for mineral title administration has helped to boost investor’s confidence in Nigeria’s mining sector. He spoke with FRANCIS ADINOYI KADIRI

What is the role of Mining Cadaster Office as an agency under the ministry of mines?
The mining cadastral office is charged with the responsibility of issuing mining licenses all over the country. Before the establishment of the Mining Cadaster Office (MCO), a department within the federal ministry of mines and steel development was responsible for issuing out mineral titles.
Under that arrangement, the issuance of mineral titles was marred by irregularities. In order to give it the well-deserved transparency and international acceptance, government in collaboration with the World Bank, carried out reforms in the mining sector.
The Mining Cadaster Office is one of the outcomes of the reforms. It is charged with the responsibility of management and administration of mining titles and leases in a transparent and efficient manner.

What exactly are the changes that came with the establishment of the MCO?
Before now, it used to take upward of two to three years to get one license. Now, as a result of the computerization and standardization embodied by the reform, you can get your mining license within 40 days.  This has built a lot of confidence in both indigenous and foreign investors.
Getting a license at the predetermined time is very important, and so it helps investors to avoid delays and also plan for their investment.

The transparency in administering titles is also crucial to the development of the sector. Investors are sure that they will get titles to the areas/lands they seek to mine without having to know anybody as long as they comply with the laid down procedures already established by law. They come, follow the processes and they get the licenses. This has really encouraged investors and has continued to boost the potentials of the sector as a fertile ground for investments.
But the condition for every license granted: the beneficiary must either use it, or stand to lose it, if it is not properly utilized. This principle is to ensure that the sector is active; a strategy for ensuring its orderly development.
Before mineral titles are granted, the applicant or prospective investor presents a minimum work program. If in the course of time, we realize that the investor is failing to meet up with his work program, we will revoke the license.

What is the shift in terms of responses of investors to the sector as a result of the standardization of the MCO?
Enormous! As a result of the transparency in administration as the way and manner we issue licenses according to international best practices, there has been tremendous increase in influx of foreign investors to the sector.
We have investors from the following countries: Australia, United Kingdom, Canada, China and even more. They are currently operating in Nigeria’s solid mineral sector as a result of the various reforms, the MCO inclusive. They are engaged in extensive exploration programs in Nigeria, now.
Mining has a tradition all over the world: anywhere in the world where mining became successful, there are usually the first explorers called ‘pathfinders.’ The pathfinders are the junior mining companies who come in to discover the minerals before the big conglomerates like the Rio Tinto, BHP, AngloGold and the rest.
The pathfinders expose it to the big mining companies who come for further deep exploration. In mining, we always say “be the first to be the second,” because the first are always the junior mining companies.

What are the major challenges you have faced in the task of transparently administering mining licenses?
When we introduced the cadaster system, there were problems. Initially, we moved from the manual system to auto card system, and we realized that there were so many errors especially the overlap of previously issued titles.
We engaged renowned cadaster consultants, GAF, from Germany to install a new computerized system. They solved the problem using a system called SIGTIM, a transparent style which allows one to easily know the areas covered by a previously issued title.

What countries have the higher numbers of companies operating in Nigeria’s solid mineral sector?
Australia is patronizing us. As we speak, there is an Australian based mining company in Osun which has carried out exploration program on gold, and have delineated a sizable deposit and very soon they will commence operations. There is another Australian company in Kogi state called Kogi Mines involved in exploration of iron ore. They declared over half a billion tons of iron ore within 10% of their tenement area. They are vigorously carrying out further explorations and have good hope of commencing mining process before end of the year.
There is another company called Northern Numero Resources which is also an Australian company carrying out explorations for iron ore in Kogi state, and for Gold in Kebbi state. They also hope to commence operations before end of 2014. There are also a number of Chinese companies involved in mining of lead zinc and quarrying. There are many more foreign companies here doing mining business.

Would you say that there is competition between foreign investors and indigenous investors operating in the quarrying business?
No, I would not call it competition; I think there is synergy between them. As a matter of fact, mining requires a lot of expertise and technicality. Nigerians are doing great but we are still developing and so we still need technical support and assistance from advanced mining countries like Canada and Australia. I call it synergy and cooperation with foreign investors and partners.

Describe the synergy going on between foreign investors and local companies in Nigeria?
Local investors will get the technical expertise from foreign investors because foreign investors have the technical expertise and access to mining finance. As you know, Nigerian banks have only recently started to consider giving loans to mining finance, whereas, mining finance has been on for many years in the advanced countries.
So there is synergy, not competition and this is not only in terms of finance, but more in terms of technical expertise. The foreign companies have access to finance and mining equipments which are very expensive.

Countries like Australia and Canada are renowned for mining. In fact, mining is the mainstay of Western Australia.

How successful is the minister’s global campaign for foreign investments in the mining sector in Nigeria?
I have said earlier that there are Australian companies already working here while some are doing exploration for minerals, a prelude to mining of minerals. It is the government’s campaign that attracted those foreign companies to the Nigerian solid minerals sector, and many more will come. Our showcasing the sector at international mining conferences like the Indaba in South Africa and Africa Down Under in Perth, Western Australia has really yielded positive results
At the Indaba, the international community made a lot of inquiries about Nigeria’s tin deposits, an indication that the global mining community looks forward to coming to Nigeria for exploration for tin, then mining. We are actually expecting them in two weeks.

Do you foresee Nigeria hosting a global mining conference?
We are already discussing that with partners and stakeholders. We want to start it as a West African mining conference to be organised for West African countries. The responses have been very encouraging. The minister met some of his colleagues and the idea is in motion for actualisation.

What minerals are of greater delights to foreign investors?
Iron ore will always be wanted because no country can industrialize without iron and steel. That is why you find that there is always interest in iron ore.
Another one is copper, one of the best conductors of electricity. And you know electricity is a development that has come to stay. Lead zinc is also in high demand. So, I will say iron ore, copper, lead zinc and precious metals like gold will always be in great demand.