Question

To whom do the minerals belong? What were the objectives and outcomes of the new national mineral policy of 1993?

Answer 1

Instructions:

• Explain the concept of ownership of minerals.
• Explain why was the new mineral policy drafted in 1993 and what were its outcomes.

Solution:

Ownership of the minerals;

• Minerals do not belong to anyone since they exist in nature within the earth.
• But the minerals located within a country’s borders are considered the government’s property. The government ensures that the minerals are used judiciously.
• At the time of independence, mines were mostly owned and operated by private entities. They were interested only in making profits and did not care for the proper development of the mines or about the safety of the workers.
• In the 1970s, the government took over all the mines. It owned and controlled the minerals’ operations, extraction, and sales of the minerals to various factories and traders.
• Apart from that, the government regulated the extent of mining, prevented over-exploitation, avoided harmful mining methods, and made the reserves of fuels and precious metals available to the public.

National Mineral policy(1993)

• Despite these outcomes, the government could not bring in new mining technologies and tools that would help them carry out the mining operations and identify new mineral deposits.
• This resulted in stagnation in mineral production.
• So, the government realised that it needed the expertise of private companies in mining, which should be subject to its regulation and control. This resulted in a new national mineral policy in 1993.
• This policy allowed private companies to lease and operate mines. The government was to be paid a royalty for allowing the companies to mine.
• This allowed the government to regulate mining, obtain an income and encourage private companies to invest money and use modern technology.
• This increased the number of mines and minerals mined and increased employment in the mining sector.