Federal Government of Nigeria and the Northern Numero Resources (NNR) Limited have both signed a historic agreement, for the mining of gold in Yauri, Kebbi State.
The agreement has given NNR, a Nigeria-Australia based company, the mining rights to acquire and develop Mining Lease Number ML021, which formerly belonged to the moribund Nigerian Mining Corporation (NMC).
The Minister of Mines and Steel Development, Arc Musa Mohammed Sada, who this shortly before the signing ceremony at the weekend, in Auja, added that NNR would invest an initial five million (US) dollars in the project to procure Small Scale Gold Mining and Processing Plant, for future expansion.
The minister, who described the agreement as somewhat ‘tripartite’, also disclosed that NNR had decided to offer 10 percent Carried Interest to Nigerian government and five percent Carried Interest to the local government.
He added that the company was also expected to pay royalties, taxes, among others, to the relevant authorities, in accordance to with the provisions of the country’s Minerals and Mining Act 2007, its Regulations 2011 and the Community Development Agreement, which NNR would have to sign with the host community.
Earlier, in his opening remark, the Director-General, Mining Cadastral Office, Engr. Mohammed Amate, pointd out that NNR had been involved in the business of exploration, development and mining of metallic/ metal based minerals commodities, adding that the company had also been working on some parts of the country, including Oyo, Kogi, Kebbi and Kwara States of Nigera.
Amate further explained that after NNR had first submitted its proposal in May, 2013, and other relevant details, such as a comprehensive and detailed explo ration cum mining programme and work plan, the company was deemed to have met the necessary requirements for the re-assigning the Mining Lease No ML21 to it, “as provided for in the Nigerian Minerals and Mining Act, 2007 and Regulations, 2011.”
While the minister signed the agreement on behalf of the federal government, the chairman of NNR, Dr. Stephen Davis, signed for his company.
Davis, meanwhile, had said that the project was progressing with bulk sampling commencing this March, 2013, in preparation for full mining operations next dry season.
He added that a new company, Harvest Mining Ltd, had been set up with the federal government and the Kebbi State Government as shareholder with NNR to develop the Kebbi gold project.