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Fed Govt losing $280bn from iron ore annually – Mining Engineers

The National Chairman, Nigerian Institution of Metallurgical, Mining and Materials Engineers Mr Ayo Adeyemo, has said Nigeria is losing $280 billion it ought to be making from the country’s iron ore reserves annually.

He also said government could generate $12 billion from the country’s lead reserve annually.

Adeyemo, who said this in Abuja at his investiture as the 10th national chairman of the institution, added that this was aside other minerals like coal, gold, tantalite and cassiterite.

He said the estimated deposits of iron ore stood at three billion tons, coal at three billion tons while lead and zinc stood 10 million tons.

This, he added, was according to the 2018 report of geology and mineral resources of Nigeria.

He added that the Ajaokuta Steel Mill on completion would be able to generate 15,000 direct jobs and 500,000 indirect jobs in the upstream and downstream sector.

Adeyemo, however, noted that the only problem preventing the country from earning good revenue from the mining sector was lack of political will and corruption.

“Despite the growth of about 240 per cent observed in the GDP contribution of these minerals between 2011, when it was N52.5 billion ($170 million) and 2017, the contribution of mining to the overall National GDP reduced from 0.14 per cent to 0.11 per cent.

“This is far too low compared to the earning potentials of minerals available in Nigeria,” he said.

He maintained that the mining sector was one that any government must focus on, adding that America, Canada and other developed countries depend solely on mining.

He further added that it was a good thing that the present administration was creating awareness on mining, but added that much work still needed to be done to take the sector to the next level.

Adeyemo added that the institution would continue to liaise with all ministries that regulate its activities to achieve its mandate.(NAN)

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