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Nigeria: Govt to Roll Out Policy On Mining Royalties

In its bid to increase revenue generation from mining, the Federal Government will soon come up with a new policy that will ensure mining companies pay the accurate royalties from their sales.

The Minister of State for Mines and Steel Development, Dr. Uchechukwu Sampson Ogah, stated this during his tour of two mining companies: Venus Mining Company and Corner Stone Quarry in Dutse, Bwari Area Council of the Federal Capital Territory (FCT) on Monday.

A statement from the ministry disclosed that the new policy would require mining companies to submit the printout of their weigh bridges to the ministry so that exact royalties based on their sales record could be accurately calculated and paid to government, and that the payment of due royalties to government would provide the needed funds for infrastructural development.

Dr. Ogah enjoined the management of the companies to ensure they had functional licences and adhered to mining regulations; and assured them that the ministry’s doors were always open to offer guidance.

Earlier, the Consultant to the companies, Muhammed Lawal, revealed that Venus Mining Company, a stone aggregate quarry, had the capacity to produce about 40 thousand tonnes monthly, and noted that it could produce about 60 thousand tonnes when the crusher was functioning optimally.

Also, the Managing Director of Corner Stone Quarry, Mr. Yilmaz Tavan, said the quarry began operations in 2016 but had to stop for two years to reposition and re-strategies for better output. Mr. Tavan added that as part of its re positioning effort, the company would take delivery of three new machines from Turkey soon.