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FG Yet To Award Coal Mining Licences—Fayemi

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coal mining licence nigeria

By Dipo Olowookere

Minister of Mines and Steel Development, Dr Kayode Fayemi, said that licences for mining of coal for power generation had not been awarded since the emergence of the current administration.

Mr Fayomi said this at a stakeholders and press meeting on pre-Sustainability in the Extractive Industries (SITEI) at the ministry on Wednesday in Abuja.

The Minister was represented at the event by his Technical Adviser/Chief of Staff, Mr Egghead Odewale.

He said the Federal Government had stated that coal mining licences would be issued only to companies interested in generating electricity from coal.

Mr Fayemi said the ministry would collaborate with the Ministry of Power, Works and Housing, to ensure that coal contributed in power generation in the country.

He said:” One of the processes for the issuance is applicants must have power generating licence before they can be granted licences for coal-mining in the country.

“We have dedicated that coal deposits in the country would only be awarded for power and licences for mining of coal deposits would only be awarded to those who want to generate electricity.

“Since the inception of this administration, no licences for coal has been awarded which is not for the purpose of power generation, so if you acquire a licence for mining coal you have to also have that for power.

On the licensing process, he explained that once application was filed and it did not have any legal or existing issues to the holder of the licence, it would be awarded.

He added that it must however be for power generation.

Dr Ogbonnaya Orji, Director of Communication, Nigeria Extractive Industry Transparency Initiative (NEITI), pledged the organisation’s support to the SITEI programmes and operations.

Orji said one of the challenges NEITI had faced was in disseminating reports that focused on the issues in harnessing the opportunities and potentials in oil, gas and mining sector.

“We have had very limited channels and platform to disseminate this information so when we come across very credible organisations like SITEI, we leverage and partner with them.

“We use their channels, their stakeholders and events that they organise such as the series of conferences they organise to reach out to those we cannot ordinarily reach.

He said NEITI would focus its partnership with the ministry to see how Nigeria could channel its energy and attention to the solid mineral sector that had been ignored over the years.

Earlier, Executive Director, CRS-in-Action and Convener SITEI, said this year’s SITIE, Ms Bekeme Masade was focused on revitalising the Nigerian economy beyond oil, prospects for a thriving export driven extractive sector.

She explained that at a time like this when Nigeria was in doldrums over the lack of funding in oil and gas, it was the prime time to look into the mining sector and resource governance.

“So this year, SITEI, we are looking at resource redistribution and the strengthening of institutions.

“Last year through our research we have said that there was a 3.5 billion dollar opportunity in this sector, so what are we doing to make that happen and how can we strengthen the institutions?

“So we are looking forward to SITEI 2016 releasing a set of principles that will guide the sector.

Prof. Okey Onyejekwe, Special Adviser to the Minister, said the ministry would partner with other actors in the sector to ensure an effective monitoring and evaluation strategy.

He also said the ministry would attempt to create a robust communication strategic framework that would allow regular engagement of key stakeholders in the mineral implementation framework.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Economy

Investors Gain N1.09bn as NASD Share Price Rises 9.1%

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NASD Exchange

By Adedapo Adesanya

The unlisted securities market closed the last trading session of the week on a positive note after it appreciated by 0.18 per cent on the back of growth in the share price of NASD Plc.

Business Post reports that the NASD Over-the-Counter (OTC) Securities Exchange returned to the bulls’ territory on Friday after it closed flat on Thursday.

NASD Plc was the major driver of the return of the bourse to the green region as its value went up during the session by N2.45 or 9.1 per cent to close at N26.99 per unit in contrast to N24.54 per unit it closed at the previous session.

As a result of this, the NASD unlisted security index (NSI) moved up by 1.32 points to 745.44 points from 744.12 points, while the market capitalisation gained N1.09 billion to wrap the day at N615.86 billion in contrast to the previous day’s N614.77 billion.

On the activity chart, there was an improvement as the trading volume surged by 34,985.6 per cent because of the 2.3 million units of shares exchanged by market participants compared with the 6,688 units transacted at the previous session.

In the same vein, the trading value rose by 17,680.6 per cent to N63.4 million from the previous day’s N356,563.60, while the number of deals witnessed a 100 per cent rise as investors carried out 12 deals compared to the six deals executed at the previous session.

At the close of trades, Food Concepts Plc was the most traded stock by volume (year-to-date) with 11.4 billion units of its shares worth N14.4 billion, Lighthouse Financial Service Plc followed with 1.1 billion units valued at N546.2 million, while Geo Fluids Plc was in third place with 1.0 billion units worth N700.1 million.

Food Concepts Plc was also the most traded stock by value on a year-to-date basis with 11.4 billion units worth N14.4 billion, trailed by Nigerian Exchange (NGX) Group Plc with 456.4 million units valued at N9.2 billion, VFD Group Plc with 10.4 million units valued at N3.5 billion.

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Economy

Naira Trades N414.73/$1 as Cryptos Bleed Heavily

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Cryptos

By Adedapo Adesanya

The Naira appreciated against the US Dollar at the Investors and Exporters (I&E) window of the foreign exchange (forex) market by 0.02 per cent or 7 kobo on Friday, December 4.

Data showed that the local currency was sold for N414.73/$1 at the investors’ window yesterday compared with the N414.80/$1 it traded on Thursday.

At the final trading session of the week, the turnover was $103.01 million as against $139.67 million achieved at the preceding session, indicating a $36.66 million or 26.62 per cent decline.

Also, the exchange rate of the Naira to the United States currency recorded a movement on Friday, though downward as the Nigerian currency depreciated by 4 kobo as it closed at N411.74/$1 versus the preceding day’s N411.70/$1.

The local currency, however, appreciated by N2.17 against the British Pound Sterling to settle at N546.26/£1 compared to N548.43/£1 it traded at the previous trading session and 57 kobo against the Euro to trade at N465.68/€1 compared to the preceding day’s N466.25/€1.

At the cryptocurrency market, investors counted a heavy loss as the new variant of the coronavirus called Omicron and hawkish comments by the US Federal Reserve that it could raise interest rates have raised serious concerns, causing cryptos to bleed heavily.

The heaviest loss was suffered by Dash (DASH), which plunged by 35.3 per cent to sell for N66,595.85. Ripple (XRP) depreciated 30.6 per cent to trade at N381.85, while Litecoin (LTC) sold for N66,595.85 after declining by 24.1 per cent.

Dogecoin (DOGE) went down by 22.7 per cent to sell at N90.29, Cardano (ADA) depreciated by 20.8 per cent to N652.82, Bitcoin (BTC) depleted by 16.9 per cent to quote at N26,800,504.20, Ethereum (ETH) equally saw a 16.9 per cent depreciation to trade at N2,100,100.39, Binance Coin (BNB) recorded a 12.9 per cent depreciation to trade at N218,577.24, Tron (TRX) went down by 12.7 per cent to trade at N48.00, while the US Dollar Tether (USDT) recorded a 0.1 per cent marginal loss to sell for N554.76.

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Economy

Crude Mixed as Market Remains Unsettled by Omicron Jitters

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Crude Oil Prices

By Adedapo Adesanya

Crude prices closed mixed on Friday, December 3 after erasing earlier big gains on growing worries that rising coronavirus cases and a new variant could reduce global oil demand.

Brent crude gained 21 cents or 0.3 per cent to trade at $69.88 per barrel while on the other hand, the United States West Texas Intermediate (WTI) crude lost 24 cents or 0.36 per cent to sell at $66.26 per barrel.

Both benchmarks declined for a sixth week in a row for the first time since November 2018.

Oil prices had witnessed one of the most troubled weeks as the market reeled from the fear brought about by the Omicron variant of the coronavirus with speculations that it could spark new lockdowns and dent fuel demand.

The World Health Organization (WHO) urged countries to vaccinate their people to fight the virus, saying travel curbs were not the answer.

Even with this, the Organisation of the Petroleum Exporting Countries and allies (OPEC+) surprised the market on Thursday when it stuck to its plans to add 400,000 barrels per day supply in January.

However, it said it will continue to monitor the market and this could make it change course if demand suffered from measures to contain the spread of the Omicron coronavirus variant.

The alliance said they could meet again before their next scheduled meeting on January 4.

Analysts noted that with the coronavirus cases rising, the US jobs report for November also didn’t help demand outlook even as the unemployment rate plunged to a 21-month low of 4.2 per cent, suggesting the country’s labour market was rapidly tightening.

US employment growth slowed considerably in November amid job losses at retailers and in local government education.

Meanwhile, in Vienna, diplomats attempting to restore the nuclear deal between Iran and world powers face substantial challenges that need urgent solutions, the top European envoy said Friday. Talks are set to resume next week.

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