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Monday, June 15, 2020 / 07:37 PM / By WebTV Market Review / Header
Image Credit: EcoGraphics
...The Launch
of the Nationwide Dukia-Heritage Bank Gold & Precious Metals Buying Centre
will fast-track 10% contribution of mining sector to GDP by 2026
The Federal
Government of Nigeria has commended Heritage Bank for being part of a valuable
private sector collaboration with Dukia Gold & Precious Metals Refining Co.
Ltd and other stakeholders, saying such partnerships stands to create new
opportunities for Nigeria to grow its potential reserves of 200 million ounces
of gold.
The Vice
President, Yemi Osinbajo, disclosed this during a Zoom 'Meet & Chat" session, of the virtual platform at the launch of the nationwide Dukia-Heritage Bank Gold & Precious Metals Buying Centre,
supported by the High Commissions of Nigeria and Canada, held last week.
Prof.
Osinbajo remarked that the launch of this project between Heritage Bank and 'Dukia Gold SPV' would enable Nigeria to mine reserves properly, trade
responsibly, refine locally and boost the nation's foreign reserves.
He stated:
"The Dukia
Gold & Precious Metals Refinery Project, championed by the High Commissions
of Nigeria and Canada, has been seven years in the making and it is my pleasure
to see that the project is ready to begin operations. What we are looking at
here is an extremely valuable new source of trade, jobs and foreign exchange.
This project
will create primary employment for local artisanal miners and mining
cooperatives, and across the solid minerals value chain. Off-take agreements
between Dukia Gold and local mining communities and owners of recyclable gold
will be a useful provider of jobs in our post-covid economy.
The positive
multiplier is expected to extend even further than this as the Dukia Gold
project will also encourage the emergence of smaller-scale mining companies
who, for the first time, will now have a transparent and welcoming market for
their mined gold and precious metals. This is set to create jobs and unleash
the economic potential of mining communities."
Osinbajo
further counted the enormous benefits of the project, stating that "this
provides a sustainable way for Nigerians to exchange their gold jewelry and
other precious items for cash. This system of exchange not only helps encourage
a culture of recycling, but will also serve as a complementary source for the
raw materials needed for the Dukia Gold & Precious Metals Refining Company.
These buying centers will also enable the responsible management of some of
electronic waste."
According to
the promoters, the project would further drive the diversification of the
nation's economy through the new gold and precious metals market that will grow
the mining industry's contribution to gross domestic products to over 10% by
2026.
Records have
shown that the growth of mining production at the end of 2019 in Nigeria was
0.1% and the sector still contributes less than 0.5% of GDP compared to other
African economies who are strong in mining like Botswana (38%), Democratic
Republic of Congo (25%), South Africa (18%), Zambia (18%), Guinea (12%) and
Ghana (7%).
In his
remarks, the MD/CEO of Heritage Bank Plc, Ifie Sekibo stated that this
partnership would boost the mining industry's productive capacity and open up a
new market, through the virtual platform.
According to
Sekibo, the operationalization of this initiative aligns with the overall
Economic Transformation Agenda of the Federal Government of Nigeria especially
as it relates to the full stream diversification of the Nigerian economy, job
and wealth creation, development of the solid mineral space amongst others.
Sekibo
affirmed, "It is our believe that as the economy of Nigeria is being
recalibrated, given the impact of the global pandemic, the government's
committed aspiration to build a robust and resilient economy will be further
enhanced through the operationalization of this initiative working with all
stakeholders across States and Government Parastatals, the Central Bank,
Private Sector and other international actors towards the development of the solid
minerals sector and its appendages."
He explained
that this would enhance a regulated market that would see precious metals and
other commodities take center stage in endeavour to ensuring irreversible
economic growth and development in alliance with a modernized Exchange for
commodities trading in Nigeria.
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