FG inaugurates gold processing plant in Kogi, projects end to capital flight

The federal government, on Tuesday, inaugurated the gold processing plant in Kogi.

Speaking at the event, Olamilekan Adegbite, minister of mines and steel, said the inauguration marks the end of huge capital flights via informal gold trading at the detriment of the economy.

In 2021, the federal government flagged off the construction of the gold processing cluster, located in Mopa, Mopa-Muro LGA of Kogi state.

According to Adegbite, the project was designed based on the cluster concept which has become a global trend in industrial development to promote shared amenities, agglomeration of similar producers, customers; based on geographical proximity or access to complementary expertise to promote efficiency and increase specialisation and production.

He said the plant will create and generate sustainable competitive advantages in key areas of the sector.

“Development of downstream gold mining industries; increasing the level of competitive inputs (such as services, machinery and equipment),” the minister said.

“Also by increasing the level of employment in all business activities related to the gold mining cluster; increasing the rate and exports of value-added products and services and attracting foreign investments, generating new startup companies.

“There would be an increase in trade performance and generation of higher corporate profits as well as improved mineral production output and ease of mining sector regulation and administration. Creation of more jobs through the emergence of service industries because of increased cluster activities.”

PLANT TO FORMALISE ARTISANAL MINING SECTOR

Speaking further, the minister said the gold processing plant in Mopa, for the north-central zone, is one of the cluster projects in the six geopolitical zones to harness over three million artisanal and small-scale miners (ASM) in the country.

He said these landmark projects are to create an enabling environment to support the mining industry through the “formalisation of the ASM sub-sector as a major driver of the key growth parameters to engender the development of the mining sector since over 90 percent of the mining activities in the country could safely be said to be ASM driven”.

“The concept of the gold processing plant was a crafted policy to spur job creation and capacity development of gold mining operators in Kogi and environs, through the economic growth and sustainability plan of the federal government,” Adegbite said.

“This project houses several federal government initiatives geared towards formalising the ASM activities, curbing the exploitation of artisanal and small-scale gold miners as well as development of the capacities of our teaming youths to actively participate in downstream gold value chain.

“The government is creating an ecosystem to minimise the high rate of illegal mining and smuggling, increase government’s revenue from the resource, create jobs, and improve environmental and social stewardship.”

The minister also appreciated Yahaya Bello, governor of Kogi, and his team for making the inauguration a reality.

Adegbite commended international organisations such as the World Bank, United Nations Industrial Development Organisation, United Nations Development Programme, Global Environment Facility; and also acknowledged the support of the government of Canada, Australia, and others in addressing ASM issues in Nigeria.