Northern Numero Resources Limited (NNR) has expressed commitment to invest $5 million into gold mining in Kebbi State.
To achieve this, the Federal Government and the company at the weekend in Abuja signed a contract agreement for the development of mining lease (ML21) located in Yauri, Kebbi State to foster Nigeria’s efforts in advancing its mining policy and regulatory environment.
Speaking at the signing ceremony, Mohammed Musa Sada, minister of mines and steel development, said the amount would be used in procuring small scale gold mining and processing plant, which would later be expanded.
Sada explained that the ML21 is one of the mineral titles of the Nigerian Mining Corporation, which had carried out some exploration activities over the area including core drilling, among others, before its closure in 2005.
He, however, expressed delight at NNR’s decision to develop the title, saying, “The company has also committed to give 10 percent carried interests to the Federal Government and five percent carried interests to the local community”.
“This is in addition to royalties, taxes, amongst others, that the company is expected to pay in line with the provisions of the Nigerian Minerals and Mining Act, 2007 and its regulation, 2011 as well as the community development agreement that the company is expected to sign with the host community as a way of transferring social and economic benefits to the host community”.
In his remarks, Stephens Davis, chairman of the company’s board, noted that “President Goodluck Jonathan’s initiative to push the solid minerals sector forward has given new impetus to exploration companies and brought Nigeria to the attention of global mining sector”.