Title:- Community benefits from Extractive Industry

Project: The Komu Experience

Being a Paper presented at a Workshop on Local and

Regional Governance-Effective Capacity- Building

Programs(Organised by the International Finance

Corporation, Washington, USA)

June 17, 2006

Hon Jacob Ipadeola Adeniji (J.P)MD/CEO, TOPMOST RESOURCES LIMITED

NIGERIA (FORMER CHAIRMAN ITESIWAJU LOCAL GOVERNMENT OF OYO STATE, NIGERIA.

INTRODUCTIONCHALLENGES FACING THE EXTRACTIVE INDUSTRY

•Benefit enhancement to the Community.

•Coping with Influx of itinerant Miners

•Controversies over land acquisition and operation.

•Increase pressure on existing facilities and services.

•EMERGENCE OF MINING IN KOMU

•Influx of large numbers of mining explorers, labourers as well as army of various tribes

•Initial ignorance of the indigenes

SOCIOLOGICAL IMPACT• Opening up of Komu community.

• Population explosion and unplanned expansion of the area (e.g ECOWAS Immigrant and other ethnic groups within and outside Nigeria.

• Dislocation of the Cultural lifestyle of the indigenes.

• Inter-tribal marriages are now common in the locality.

• Younger ones now abandon farming for mining.

• However, the elites of the area also have opportunity to incorporate their mining outfits e.g. TOPMOST RESOURCES LTD.

• Notice traces of social ills and bad vices alien to our community.

LAND DEGRADATION

* Devastation of the land.

* Environmental Pollution and its other attendant health hazards.

ECONOMIC IMPACT• Window of opportunities for businesses and economic

empowerment e.g. Food sellers, Transportation and other Petty trades.

• Emergency of mining operation provide non-mining employments.

• International trades.

HOW CAN THE COMMUNITY BENEFIT FROM EXTRACTIVE INDUSTRY BE BETTER ENHANCED AND MANAGED?

My personal experience.

* Initiation of a Tripartite arrangement for interaction of the stakeholders.

* Rehabilitation and grading of roads.

* Sinking of deep wells.

* Provision of health services.

SUBMISSIONS AND SUGGESTIONSFederal Government Reforms.

• Introduction of Mining Cadastre system.

• Small-scale and artisanal mining system.

• Conflict resolution/reduction programme between host communities and operating companies (e.g. consultation and involvement of the communities in planning of benefits enhancement etc).

• Setting up of a committee to monitor mining operation in the area as well as manage the accruable revenues from the industry for the development of the area.

• There is need for government to provide soft loans for the local miners to procure essential machines and equipment e.g. analysing, cutting and polishing machines).

• Provision of adequate security in the area.

• To maintain peace and tranquility in the area, government should not attempt to take away the rights and authorities of the owner communities (the Niger-Delta example).

• Land restoration programme on closed or abandoned mines.• There is a necessity for government to extend the derivation formula to the

Local Government as in the Oil producing area.

CONCLUSION

Prospects/Opportunities (Komu Mining Area in Perspective).

Viable mining opportunities available in Komu.

Komu now is the Hottest Spot for mining of various coloured Gemstones, Tantalite and other Precious Stones in West African Sub-Region.

Hospitable people and investors-friendly environment.

Interested investors are welcome in form of partnership or as an individual core investor.