The Ebonyi State government on Wednesday sealed four mining companies for noncompliance with the dictates of the Community Development Agreement (CDA) in the state.
Findings revealed that the CDA is designed to ensure that mining companies contribute to the development of the communities where they operate.
The Commissioner for Solid Minerals and Natural Resources, Hon. Chidi Onyia, who led a joint task force operation to close the companies, said the miners were given ample time to comply with the agreement but failed.
“The companies were given enough time, since July last year, to meet the CDA requirements but chose to ignore the rules,” he said.
The closed companies include Anli Mining and Investment Ltd; China Solid Rock 1 and 2, located in Ngodo Amachi in the Afikpo Local Government Area; and Shenglong Mining, located in Eziulo in the Ishielu Council of the state.
It was further revealed that no fewer than ten local workers were laid off at China Solid Rock 2, operated by Chinese nationals in the Afikpo area. This development violates the principles of the agreement and mining regulations.
According to the Commissioner, the sites will remain shut until the companies comply with the state government’s directives.
He said, “Ebonyi people are being treated like they have no value. The Mining Act clearly states that every miner must prepare a CDA to benefit and uplift the community where they operate. But most mining companies in Ebonyi State have ignored this. This is against the dictates of the state, and we won’t take it anymore.
“The land belongs to the people. And even though these companies have leases from the Federal Government, they must ensure the communities benefit from their operations.”
He also criticised the operators of Shenglong Mining, describing their CDA as fraudulent.
According to him, “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 queried.
The Commissioner, however, assured that the state government will continue to monitor mining activities to ensure all companies follow the law, warning that any company found breaking the rules will be shut down.
Reacting, the General Manager of Anli Mining and Investment Ltd., Mr. George Li, said he would work with the state government to resolve the issue.
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