14 September 2016, Abuja – Mr Kayode Fayemi, Minister of Mines and Steel Development, said that licences for mining of coal for power generation had not been awarded since the emergence of the current administration. 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 representing by Mr. Egghead Odewale, Technical Adviser/Chief of Staff of the Minister. He said the Federal Government had stated that coal mining licences would be issued only to companies interested in generating electricity from coal.
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 sustainability in the extractive industries (SITEI) programmes and operations.