By Nneka Nwogwugwu
Federal Government has given incentives to mining companies in order to diversify the economy, encourage massive investments and create jobs.
The Minister of Mines and Steel Development, Arc Olamilekan Adegbite, on Thursday, made this known during a tour of the Segilola Gold Project in Iperindo, Osun State.
According to a statement signed by the Special Assistant to the Minister of Mines and Steel Development, Ayodeji Adeyemi, the minister said, “We want to make Nigeria a major gold producing hub in Africa and this is why the administration of President Buhari has given so much support to this sector to ensure that we diversify our economy away from oil.
“Indeed the Ministry of Mines and steel development has provided a number of incentives to businesses and investors to spur growth in the sector. Some of the incentives include waiver on Customs and import duties for plant, machinery, and equipment imported for mining operations
“Tax holidays of between three to five years for businesses as applicable. Free transferability of funds and permission to retain and use earned foreign exchange. Capital allowances of up to 95 per cent of qualifying capital expenditure. Deductibility of Environmental Costs (money meant for environmental remediation will be tax-free) and100 per cent ownership of mineral properties.”
The Managing Director and Chief Executive Officer of Segilola Gold Project, Segun Lawson, stated that in spite of the challenges brought about by the COVID-19 pandemic, the company’s target production start date is slated for the second quarter of 2021.
He disclosed that the company was aiming to produce an average of 80,000 ounces of gold per year for the lifetime of the mine.
