The Minister of Solid Minerals Development, Dr Dele Alake, has described the capital market as critical to facilitating a sustainable mining sector.
Alake said this at a webinar on “Unlocking Nigeria’s Solid Minerals Potential through the Capital Market” on Wednesday.
The webinar was organized by the Solid Minerals Development Fund, SMDF, in partnership with the Nigerian Association of Securities Dealers, NASD, OTC Securities Exchange
Alake was represented by Amira Waziri, his Senior Advisor on Mining and Policy. He said that through the capital market, long-term financing for exploration and project development could be mobilized.
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“Through the capital market, we can support junior mining companies to list, raise funds and scale operations.
“It will help to facilitate securitization and monetization of geological assets, and channel institutional capital into infrastructure and processing hubs,” he said.
He said that the webinar was timely and marked the beginning of a broader national conversation on using structured capital to unlock mineral wealth.
“We look forward to collaborating with Nigeria Solid Minerals Company SMDF and other stakeholders to develop bespoke instruments, listings and frameworks that will make this vision a reality,” he said.
The minister said that the ministry remained committed to inclusive and strategic stakeholders’ engagement.
He said that the ministry was open to ideas, partnerships and joint efforts aimed at advancing the collective good of the mining industry.
According to him, the ideas include continuous dialogue with host communities to ensure local participation and benefits.
He said that stronger collaboration with financial institutions, Development Finance Institutions and capital market operators, alongside alignment with environmental and social best practices, would ensure sustainability of the mining sector.
Alake said that Nigeria was on the verge of a mining renaissance.
He said that while the nation possessed vast mineral resources and the political will, it still needed capital, technology and partnerships to fully realize this potential.
“As we explore the possibilities before us today, let us keep in mind that this sector is not just about extracting minerals.
“It is about building an economy that is inclusive, resilient and globally competitive,” he said.
In his presentation on “Licensing Processes and Requirements of a Mining Asset”, Mr. Obadiah Nkom, the Director-General of the Mining Cadaster Office, MCO, advised investors to start with reconnaissance permit.
Nkom described the permit as the smartest and lowest-cost entry into Nigeria’s mineral wealth.
“For communities, understand reconnaissance as the beginning of shared prosperity, not exploitation, “he said.
He said that the reconnaissance permit was non-exclusive, valid for one year and renewable annually, whereas other mineral title licenses were exclusive.
According to him, MCO as a key regulator of the mining sector, will continue digitizing its processes and enforcing standards in the sector.
Also, an expert, Paul Lalovich, said that tokenization involved converting mineral assets, rights, or commodities into blockchain-based tokens to raise funds and make ownership more accessible.
Lalovich said that tokenization had the potential to bring trillions in value chain and was already transforming the way assets were managed and traded.
His presentation was titled, “Real World Asset to Tokenization as a Means to Unlock Early-Stage Exploration Funding”.
He said that there was a rising demand in investing in tokenized assets as investors believed in its long-term value.
In her remarks, the SMDF Executive Secretary, Hajiya Fatima Shinkafi, said that the conversations at the webinar were aimed at shedding light on critical elements of the mining asset development cycle.
Shinkafi was represented by her Executive Assistant, Omotayo Omitokun. She said that the insights were vital as SMDF collectively works to deepen capital market participation in Nigeria’s mining sector and unlock the true value of the country’s mineral resources.
NAN
