WELCOME ADDRESS BY THE PRESIDENT OF NIGERIAN SOCIETY OF MINING ENGINEERS (NSME), ENGINEER BENJAMIN OKWUDILI NWUDE, FNSME, FNSE, FAUTOEI, AT THE OPENING CEREMONY OF THE 15^TH ANNUAL GENERAL MEETING/CONFERENCE OF THE SOCIETYUE HOLDING FROM NOVEMBER 2-6, 2015 AT HILL STATION HOTEL, JOS, PLATEAU STATE

PROTOCOL

It is my singular pleasure and honour to welcome you all to this unique occasion of the opening ceremony of the 15^th Annual General Meeting/ Conference tagged “JOS 2015” of Nigerian Society of Mining Engineers with the theme “RESURGENCE OF NIGERIAN MINING INDUSTRY: A KEY TO REVIVAL OF NIGERIAN ECONOMY”.

The theme of this Conference was carefully chosen based on our strong belief that mining is a vital key to future prosperity and industrial diversification of the national economy and the campaign promise of Mr. President, Muhammadu Buhari, GCFR to develop the solid minerals subsector and make it a major income earner for the economy.

The choice of Jos for this important conference could not have been any better considering the abundant mineral resources of Plateau State coupled with the hospitality of good people of Plateau State and the peaceful environment of the State under the dynamic leadership of Your Excellency, Rt. Hon. Simon Bako Lalong, the Executive Governor of Plateau State.

Plateau State is strategically important to our Society. Apart from being a mining State, our great Society was founded in Jos 26 years ago. Also, Plateau State hosts Nigerian Mining Corporation, Nigerian Institute of Mining and Geosciences, National Metallurgical Development and Research Centre, North-central Zonal Headquarter of Mines Inspectorate Department, Mining department, University of Jos, Mining department, Plateau State Polytechnic and many mining and quarrying companies.

This conference has attracted many participants and speakers from government, industry and academia who will speak on the theme and sub-theme of the conference. It is expected that technical presentations featuring new horizons and new challenges facing the mining industry would be received. There will be business session allowing members to discuss the affairs of the Society, and annual banquet enabling members to socialize and network. The conference will afford many companies opportunity to exhibit their products and services.

Our Society

Nigerian Society of Mining Engineers (NSME) is a volunteer professional organization founded in 1989 and incorporated in 1990 to advance the technical knowledge of its members and to cater for the scientific and technical needs of the Nigerian minerals industry. Our Society has its secretariat along Barkin Ladi Road in Bukuru, Plateau State with over 1000 members comprising Fellows, Honorary Fellows, Corporate members, Graduate members, Affiliate members, and Student members. The objectives of our society include but not limited to:

1. Bringing together all mining and mineral processing engineers in Nigeria as members of the Society;
2. Promotion of advancement of mining and mineral processing engineering through professional meetings; dissemination of technical information through publication, presentation of papers and open discussions;

• Promotion of high standards in the mining and mineral processing profession; and

1. Presentation to any Government the views of the Society on any legislative enactment or proposed legislation or any other subject(s) of concern or interest to the Society in Nigeria.

Nigerian Mining Industry

There should be no doubt that the mining industry has the potential to become once again the principal engine of economic growth of our country. As the world population and demand for improved standard of living increase, the need for ample supplies of mineral commodities increases too. The mineral commodities are industrial multipliers and critical to the economic re-engineering of Nigeria. The Nigeria must harness its mineral resources with the same vigour and pragmatism with which it has developed its oil industry for economic development and growth, if it wants to break the spiral of decay and poverty in the midst of plenty. The development of solid minerals requires a strong political will and patriotism to succeed. Nigeria has put in place a new mining code and economic policy aimed at repositioning itself as a country with mining opportunities in order to attract foreign investment to minerals sector and improve its hard currency earnings. However, there are still a number of issues that need to be addressed by Government in order to fully realize its laudable dreams. These include:

1. Lack of Appropriate Data on Mineral Deposits

Lack of appropriate data on minerals in the country is directly tied to under-investment in exploration. Exploration is the most critical phase to develop the mineral potential of Nigeria. The Government agencies charged with responsibility of mineral exploration should be adequately funded and equipped to undertake any effective exploration and make appropriate data/information on mineral deposits readily available to prospective investors. Government must not relent in its effort in funding exploration until the appropriate data on minerals are obtained. In addition to this, the Government should continue to encourage investment from private investors in order to achieve a significant upturn in exploration.

Society and industry have many competing investment so funds for mineral development must be used as efficiently as possible. This is the reason why exploration needs to be planned like any other large industrial investment.

2. Inadequate mining-related infrastructure

Governments both Federal and State should intensify their efforts in establishing necessary infrastructure and transportation facilities to optimize hard-pressed capital spending on investment. A sufficient economical incentive should be provided to spur the local and international project developers and financers, to invest in development of mining-related infrastructure in Nigeria.

3. Lack of indigenous technology and equipment

The local small scale mining companies are finding it hard to make headway because of lack of indigenous technology and equipment coupled with high cost of capital in the country. They require lower interest rates, lower import duties and better credit conditions to acquire the correct technology and equipment to make significant progress in the sector. Mining has a very unique set of risks not replicated in any other business activity and is capital intensive with long gestation period. That is why mining projects are not attractive to bankers. Government can assist the local small scale mining companies to secure loanable funds from the Solid Minerals Development Fund at single digit interest rates and/or to secure equipment financing or leasing. Local small scale mining companies can look out for alluvial deposits of low capital investment and short exploitation periods. However, a mining project with good geology, management, mine plans, and marketing can find financing, bearing mind that mining is an international business.

4. High cost of electric energy

Government should intensify its efforts in encouraging the private sector participation in providing adequate and low-cost electric energy which means coal-fired generation to make mining in Nigeria globally competitive. It is clear that the demand for electricity and coal is strong and that the technology to burn it efficiently and in an environmentally acceptable way exists, so private investors should be encouraged to invest in constructing coal-fired electricity generating plants to guarantee cheap and reliable power for mining projects. It is important to mention that the most expensive electricity is no electricity.

5. Low domestic market for solid minerals

The low domestic market for solid minerals in the country has led to a lack of willingness on the part of potential investors to commit themselves to the development of solid minerals. Government should therefore, complete the Ajaokuta Steel Plant and encourage the private investors to invest in the construction of thermal power plants to create adequate domestic market for the country’s solid minerals. Government should also encourage the processing of the country’s minerals to semi or finished products before selling to meet the local and international market requirements and generate to more revenue.

6. Security challenges

Nigerians should co-operate and support the Federal Government’s intensified effort to overcome the present security challenges facing our nation which have slowed down activities in the mining sector.

7. Artisanal Mining

Artisanal and small-scale mining can present significant challenges for mining companies. Government should give special attention to artisanal miners by encouraging them to form cooperatives, monitoring their activities security-wise, providing extension services with the intention of guiding them to maintain the safety and security of their operations, and incentive-based marketing system to reduce illegal export of the country’s minerals. In addition to this, the Government should facilitate the actualization of the Phase II World Bank Assisted Programme for the mining sector targeted at growing the Artisanal and Small Mining Operation into Mid-Tier.

8. Shortage of experienced and skilled workforce

Technology and capital are very important but the desired improvement in mineral production has to come from the people. It is the people that can think and innovate. Training and retraining of workforce is imperative, if the mining industry wants to remain alive and contribute positively to development of our nation as well as retain a technological edge. In this regard, mining educational institutions should be adequately funded and equipped to provide the mining industry with the adequate manpower it needs.

9. Lack of Research and Development

The mining industry is capital intensive, so value-driven research and development activity and collaboration between government, academia and industry should be encouraged in the minerals sector for long range success.

1. Demand for Sustainable Environmental Practice

Society is now demanding that mining operations should, in addition to contributing to wealth, be environmentally friendly and sustainable for the use of future generations. The mining operators must therefore, conduct their operations in a manner that will control, minimize, or mitigate harm to the environment including air, water, and soils by applying proven technology and appropriate operating practice, taking into account economic and environmental factors. Sustainable environmental practice should be compatible with good mining industrial practice taking into account the health and safety of the workers and the people living near the mining operations.

1. Inadequate Funding of Mining institutions

Mining institutions such as Ministry of Mines and Steel Development, the Council of Mining Engineers and Geoscientists (COMEG), etc. should be strengthened and adequately funded to better perform their functions.

NSME MEMBERS

The revival of the mining industry will bring great challenges and opportunities for our members. We must therefore take advantage of our Society’s conferences and technical publications to develop and sharpen our professional skills and knowledge to meet the changing needs of today’s mining industry. Our Society must continue to promote the true image of mining industry and let the general public and leaders of thought in the executive and legislative arms of government understand the industry and its positive contributions to people’s lives and the economy in general. It is gratifying to observe that some of our engineers are breaking new grounds in their activities. These are commendable achievements and I salute those engineers among us who have dedicated themselves to excellence in their chosen profession. However, there are much more that we can do to revive the mining industry. Those of us who run consultancy firms must integrate into each other if we must develop beyond the small family operation into big corporate bodies that can compete favourably with the foreign firms in mining sector of our country. It is only by so doing that we can influence the planning and development of mining activities in our country. To create the necessary awareness and the desired impact in the mining industry, we must come together and always make use of the opportunities available to serve our Society bearing in mind that a volunteer organization of professionals such as ours is only strong as its members’ commitment.

NIGERIAN MINING AND GEOSCIENCES SOCIETY (NMGS)

At the Annual General Meeting of the NMGS held in Lagos in March 2015, Prof. O. A. Okunlola, fnmgs was elected as the 28^th NMGS President and was installed on Saturday 13^th June, 2015 at International Conference Hall, University of Ibadan. He therefore, solicits support and cooperation of our members.

FELLOWSHIP AWARD

Your Excellencies, distinguished guests, ladies and gentlemen, I am pleased and honoured to inform you that the following distinguished persons have been conferred with the Honorary Fellowship Award by the Council of our great Society:

1. Emmanuel O. Egbogah, PhD, DIC, D.Sc., OON, Chairman, Emerald Energy Resources Limited, Former, Special Adviser to the President, Federal Republic of Nigeria, on Petroleum Matters in recognition and appreciation of his exemplary leadership qualities and unmatched contributions and achievements to humanity and development of energy sector both in Nigeria and other countries.
2. So-ngor Clifford Teme, FNMGS, and 27th President of NMGS, in recognition and appreciation of his exemplary leadership qualities and significant contributions in the field of earth sciences.
3. Ezuma Ozaemena, Executive Chairman, Eta Zuma W/A Ltd, in recognition and appreciation of his doggedness in investing in solid minerals sub-sector of the national economy and his generous financial support to our great Society.

The investiture of these awards on them will take place later at this ceremony. I have the honour and privilege to inform you that the following distinguished members of our great Society have been elected into the Class of Fellow:

1. Prof. Zacheus O. Opafunso
2. Engr. Sylvanus Ghasarah
3. Engr. Gallio Emmanuel Dagu
4. Engr. Umar Saidu Bamalli
5. Engr. Anthony Ojile

The investiture of these awards on them will take place today at the Dinner/ Award Night.

We congratulate you and wish that this award will spur you to do more for our great society in particular and the nation in general.

I wish to use this opportunity to convey my deep appreciation to all who contributed to the success of this AGM/Conference of our great Society. I also wish to express my deep appreciation to all who honoured us with their presence at this opening ceremony, and even those who for unavoidable reasons were unable to be here with us.

Once more, I welcome you all to the 15^th AGM/Conference and thank you all immensely for honouring our invitation despite your tight schedules.

Thank you for your attention and God bless you all.

Engr. Benjamin Okwudili Nwude, FNSME, FNSE, FNMGS, FAutoEI

NSME, President.  

5^th November, 2015