FG Approves 13% Derivation For Solid Minerals Producing States - Fayemi

The Minister of Mines and Steel Development, Dr. Kayode Fayemi, has assured states on 13 per cent derivation for mineral revenue following the approval by the Federal Executive Council.'We have got approval for the implementation of the constitutionally guaranteed 13 percent derivation for mineral revenue to states, similar to the derivation that oil-producing states currently enjoy from the federation accounts,' he said.He stated this yesterday at a two-day capacity building workshop on Special Purpose Vehicles, SPVs for beneficial participation of state governments in mining, jointly organised by the Federal Ministry of Mines and Steel Development and the Sokoto State Ministry of Solid Minerals and Natural Resources Development.Fayemi said the ministry had begun some reforms in line with the recommendations of the 'Roadmap for the Growth and Development of the Nigerian Mining Sector' which he noted emphasised the need for collaboration between the federal government and the states as well as build stronger co-operative processes and structures.'We have reviewed our approach to licensing with regards to state ownership. While in principle we cannot give state governments licenses as separate legal entities, companies in which the states have an ownership interest can bid for and receive licenses,' he stated.The minister said they were working with governments and relevant ministries to formalise and manage artisans miners while also working with defence and security agencies to curb illegal mining in the country.He added that the ministry had commenced the modalities for capacity building in community-based organisations and other community representatives, helping them participate in key decisions in mining operations and processes.Fayemi revealed that the conference was in furtherance of the road map and that it would highlight some of the key issues using the SPV in lieu of current regulatory factors and changing dynamics in the mining sector.In an address, Sokoto State Governor Aminu Tambuwal described mines and steel as the cornerstone of any industrial development.He disclosed efforts of Sokoto government towards diversification of the state's economy through exploration, mapping and identification of the locations of major solid minerals in the state.The commissioner for Ministry of Solid Minerals and Natural Resources, Sokoto, Barrister Muhammad Bello Goronyo, disclosed that the state government had provided enabling environment and all necessary incentives for investors willing to operate in the state.The occasion also witnessed the hand over of the Federal Mineral Buying centre in Sokoto to the state government.http://www.dailytrust.com.ng/news/business/fg-approves-13-derivation-for-solid-minerals-producing-states--fayemi/177180.html#lalasticlala
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