Experts and stakeholders in the mining industry have identified good policies, regulation, public-private partnership, and collaboration among operators as key factors that will shape the future of gold in the West African sub-region.
The suggestions formed part of the discussions when experts and stakeholders met during a conference in Lagos, to discuss the future of the gold economy in West Africa, organised by Kian Smith Gold Refinery. The theme of the conference was “The future of African Gold – developing the West African Gold Economy.”
Abdulkadir Muazu, permanent secretary in Nigeria’s Ministry of Mines and Steel Development, said government-private partnership in the industry was a critical way of promoting and unlocking the potentials embedded in the gold mining value chain.
He added that healthy collaborations with the private sector that are supported with good policies and regulations would increase the nation’s revenue, more so as the country is aggressive about its plans to diversify the economy.
Acknowledging that mining venture takes a long maturation period which is coupled with high risk and dominated by informal miners, Muazu however, expressed optimism that if properly regulated, the sector was capable of creating employment in the value chain and lift people out of poverty.
“This action in the value chain will drive maximum benefit potentially available in core mining sector,” Muazu said.
Nere Teriba, vice chairman, Kian Smith Trade & Co., said people needed to realise that “gold is money” for Nigerians and for West Africans. He noted that for the region to benefit from the gold market rush, it was important to have a clear vision so that the region would become a trading partner in the world gold market.
While pleading with the Nigeria’s Economic and Financial Crimes Commission (EFCC) to work alongside gold stakeholders in Nigeria and other regions in West Africa for anti-money laundry solutions, Teriba said everyone needed to focus on creating a policy where industries in the gold market could “come above ground.”
“It is more important to advocate and explain to the government as to why the policies set by the government are unfavourable,” she said.
Effa Okim, head, Special Control Unit Against Money Laundering (SCUML), EFCC, while defining money laundering as washing money and making it clean through a process, said everyone should be at alert to make sure companies are not used for money laundering activities.
According him, people had used money laundering activities in the past to fund crimes and terrorist activities, adding that the commission was now very much active to monitor the movement of money in a phenomenon he called “follow the money.”
Leveraging on the world global village, Okim said his commission was in collaboration with relevant agencies and authorities around the world to arrest, extradite, prosecute and punish anyone engaged in money laundering.
“Do not think Maidugri is far; do not think New York is far away. Wherever you are, the commission will come for you,” he reiterated.
Dauda Yakuba, director of operations, Standards Organisation of Nigeria (SON), advocated the need to strengthen the gold refinery, stressing that it is the critical stage in the gold value chain which needs to play its roles accordingly.
He noted that whatever affects the gold refinery affects the entire gold value chain.
According to Yakubu, the standard regulatory body was willing to work with relevant authorities to harmonise standards that would facilitate community-traded goods for conformity assessment, across the West African region.
While noting that SON had adopted, trained and certified companies to meet up with international standards, Yakubu stressed on the need to train Artisanal and Small scale Miners (ASM) in order to strengthen the gold value chain in Nigeria and the West African region.
“We have a lot of work to do, especially in strengthening the value chain by training the ASM,” he stressed.
Ibrahim Garba, vice chancellor, Ahmadu Bello University, said West Africa was an emerging gold exploration investment hub due to its huge deposit of gold and other mineral resources that if well harnessed, would move the region to economic prosperity.
While giving the historical analysis of how early merchants in the region became wealthy through global gold market, the professor of geology said the West African region could still become richer through its gold deposits, if well harnessed.
West Africa currently loses the bulk of its mining revenue to illegal miners operating across the region, which experts at the conference estimated cost the region $2billion in 2017. Adopting these suggestions will reduce this loss, they said.
MAURICE OGU
