The Ebonyi State Government has sealed four mining companies for failing to follow the Community Development Agreement (CDA).
Daily Newshub gathered that the agreement is meant to ensure that mining companies help to develop the communities where they operate.
The Commissioner for Solid Minerals and Natural Resources, Hon. Chidi Onyia, led the operation to seal the companies.
He explained that the companies were given enough time, since July last year, to meet the CDA requirements but chose to ignore the rules.
The affected companies are Anli Mining and Investment Ltd, China Solid Rock 1 and 2 in Ngodo Amachi, Afikpo LGA, and Shenglong Mining in Ezuilo, Ishielu LGA.
It was also discovered that over 10 local workers were laid off at the China Solid Rock 2 site, which further breaks mining regulations.
Hon. Onyia said the sites would remain closed until the companies agree to follow the government’s directives.
“Ebonyi people are being treated like they have no value. The mining act clearly states that every miner must prepare a CDA that benefits the community, but most mining companies in Ebonyi have ignored this.
“The land belongs to the people, and even though these companies have leases from the Federal Government, they must ensure the community benefits from their operations,” he said.
At the Shenglong Mining site, Onyia criticized the company’s development agreement as fraudulent, stating, “The agreement Shenglong provided is fraudulent. There are clear procedures and templates for developing a CDA. How can a company of this size justify that the community’s only benefit is one million naira annually? We have companies here in Ebonyi that are constructing tarred roads for their host communities. Why is Shenglong different?” he asked.
However, the commissioner assured that the government will continue monitoring mining activities to ensure all companies follow the law.
“Any company found breaking the rules will be sealed as well,” Onyia warned.
The General Manager of Anli Mining and Investment Ltd, George Li, promised to work with the government to resolve the issues.