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January 16, 2006
FG withdraws bitumen blocks, opens new bids
The Federal Government is to withdraw the two bitumen blocks awarded two years ago over what it perceived as low level of activities on the concessioned areas.
Michael Faloseyi, Abuja
The Federal Ministry of Justice is expected to offer legal advice on the cancellation before the actual withdrawal of the concession is announced by the Federal Ministry of Solid Minerals Development.
However, the government has set in motion the process to re-award the concession through an open bid exercise that would hold before the end of the first quarter of 2006.
Minister of Solid Minerals Development, Mrs, Obiagele Ezekwesili, said this at a two- day retreat that rounded off the restructuring exercise that led to the disengagement of about 1,300 staff of the ministry and its parastatals.
Justifying the withdrawal of the concessions, she said that not much progress had been made to realise the economic value of the bitumen blocks and that the processes were not transparent enough.
Consequently, new criteria and processes for an open bid to be held before the end of first quarter, are being prepared, according to her.
She said that eight multinational companies have indicated interest to participate in the bid.
She listed those companies as: Manesfield of United Kingdom; China Oil and Gas Development Company; Elf Petroleum Nigeria Limited; Trinidad and Tobago Lake Asphalt; Ventura of Venezuela; AAA Group of Korea; Eurochem of Indonesia and PW Group of Ireland.
Similarly, she said the award of concessions for coal explorations might hold at about the time as the Bureau of Public Enterprise winds down the Nigerian Coal Corporation and the Nigerian Mining Corporation.
The minister said that the movable assets of the two parastatals of the ministry of Solid Minerals Development would be disposed off by the BPE.
She said that the world痴 foremost coal mining company, Enel of Italy, has also expressed interest in Nigerian as soon as the laws guiding mining and exploration of solid minerals in Nigeria are streamlined.
Ezekwesili said that the policy review of the Nigerian mining industry was on going and that the amendment 1999 Mining and Exploration Act might be passed by the National Assembly within the first quarter pf 2006
The new policy and law, according to him, will seek to protect investors・interest, outlawed illegal mining and optimise government revenue profile in the industry.
The PUNCH, Monday, January 16, 2006
Posted by Publisher at January 16, 2006 10:32 AM
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