Ebonyi Government shuts down four Mining Companies for violation of CDA agreement

Ebonyi State Government, on Wednesday, sealed four mining companies over noncompliance to the rules and regulations governing Community Development Agreement in the State. The CDA is meant to ensure that mining companies contribute their own quota towards developing communities where they operate in the State. The Commissioner for Solid Minerals and Natural Resources, Hon. Chidi Onyia, who led a joint taskforce operation to seal the affected companies, said the Miners were given ample time to get their acts together and comply to the agreement, but failed woefully. “The companies were given enough time, since July last year, to meet the CDA requirements but chose to ignore the rules,” he said.

The sealed companies are Anli Mining and Investment Ltd; China Solid Rock 1 and 2 located on Ngodo Amachi, in the Afikpo Local Government Area; and the  Shenglong Mining, at Eziulo, in the  Ishielu Council of the state. It was further learnt that no fewer than ten local workers were laid off at the China Solid Rock 2  operated by the Chinese in the Afikpo area. The lack of development negates the principles of the Agreement and Mining regulations. According to the Commissioner,  the sites would remain shut until the companies follow 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 benefits and uplift the community wherein 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 anymore.

“The land belongs to the people.  And even though these companies have leases from the Federal Government, they must ensure the communities benefits from their operations.” He berated the Shenglong Mining site operators and described its 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 followed the law, warning that any company found breaking the rules will be shutdown. 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.