The World Bank has al-layed fears that the $120 million loan it granted the Ministry of Mines and Steel Development to develop the Nigerian mining industry was misused.

The World Bank’s Task Team Leader, Mr. Andrews Craig, said fears that the funds were mismanaged were unfounded as evidence showed that performance of the Nigerian project was exemplary.

Although the Chairman, Nigeria Miners Association, Mr. Sunday Ekozi, had doubted that the money was properly utilised, Craig who assessed the World Bank’s assisted projects in Jos and Kaduna, expressed satisfaction with the performance.

His words: "The performance of this project is exemplary. It is an example of how the bank can cooperate with the government and the Ministry of Mines and Steel Development to achieve good results.

"We have seen the work done in Kaduna, the rehabilitation of the Geological Survey. We have seen in Jos the work on the mines inspection, and our new facilities bythe Mines Ministry in Jos.

"We have seen a very exciting project which the Nigeria Institute of Mining and Geosciences has done in the last four years, and I have seen a lot of progress and we are going to make it more progressive as we go forward."

While commenting on the performance of the Artisanal and Small Scale miners who were given the grant in the second quarter of this year, Mr. Craig noted that beside money, the grant would have a multiplier effect on the families of members of the cooperative society.

He explained that the grant has started increasing productivity of minerals, increasing the income of the miners and creating a market for the community. He however noted that it is too early to expect too much from the miners since they received the grant just recently.

"We have gone to see the women cooperative that was crushing gravels and the grant was quite recent and it will be too early for us to have positive results.

"But as the staff explained to me, it is not just the money that is the benefit, it causes increase in productivity, increase in their own income, people have to transport the material, people have to buy food in the site, all this is significant. Craig said.

"We know we don’t have a full result but we have to be encouraged by what we have seen so far."

Craig also noted that the ministry has been negotiating loans for the medium scale miners in the country for the last seven months, adding that there has been challenge in terms of capital mobilisation due to high interest rate.

"Since we talked about this, the Ministry of Finance has requested for additional financing for the project and the World Bank is taking it into consideration. We have been discussing with the Minister about additional financing and the funds will be provided for what we call the medium scheme.

"There has been trouble in terms of mobilising capital for investments and the capital now is of very high interest rate. And so we will be working with the commercial banking sector to put that programme in place."

Speaking, the Project Coordinator, Sustainable Management of Minerals Resource Project (SMMRP) Mr. Linus, advised critics of the project to see things for themselves at the various fields where these projects are being executed.

 He explained that the $10 million that the critics bother about is only part of the project as the fund is being largely spent on rehabilitation of the Nigeria Geological Survey Agency in Kaduna , the establishment of the Nigeria Institute of Mining and Geosciences, Jos, different capacity building programme and others.

 According to Adie, "Let them come to the field and see what is happening. We believe that we are working very hard and therefore they should come to the field. The point is that out of $US120million only $10million is for this small scale.

"So every time they talk about $120million credit they relate it to just the grant. It is not the grant but I know it is a sub project. We are doing the schools, we are doing mining lots a lot…"

Adie said the Irrigwe Women Multipurpose Society, Jos that benefited from the grant had done their best within the short period they assessed the grant.

He pointed out that procuring the equipment from China or elsewhere takes time, adding that installation also needs time.

"I am satisfied because procurement in itself, you go and procure machinery and install the machinery before production so I am satisfied. I am surprised to tell you the truth. I am in the industry for the thirty years experience in the industry you can imagine somebody go to the bank to collect money and he is given the facility and he starts importing these material from China. It takes a lot of time," said Adie.

The Project Coordinator went on to explain that in the long run the activities of the small scale miners could culminate in 200% increase in their income.

Source: The Nation