CURRENT REALITY Mining is no longer carried out at the Onyeama, Iva Valley, Ogbete and Okpara mines but the Federal Government’s signing of a $3.7 billion Memorandum of Understanding (MoU) with a Chinese firm, HTG-Pacific Energy Consortium, to generate power from coal in Enugu has unsettled the local communities, most of whom are in the dark as regards the project and its likely impact on their environment. Nigeria’s goal is to revitalise the coal mining industry and expand power generation by attracting companies to develop these large coal resources and construct coal-fired generating plants that will connect to the country’s electrical distribution grid.

The sale of two properties of the NCC – its headquarters at Okpara Avenue and Colliery Hospital- to the Enugu state government by the Bureau of Public Enterprises (BPE) under the Federal Government’s Privatization Programme took place in 2013; privatization of landed properties in the state remained a thorny issue among the community folks and former miners.

The ERA/FoEN team learnt that in November 2013 the Enugu State government took possession of the two properties. The coalfields also have to be sold by BPE before the new owners can go into partnership or have a working agreement with Enugu Electricity Distribution Company (EEDC) to generate an estimated 1,000 megawatts from coal.

Miners who worked at Iva Valley whose jobs were abruptly halted and only have the Colliery Quarters as their abode also learnt that the state government wanted them out of the quarters. Under the monetization policy of the federal government, the original allottees of the quarters are permitted to bid for the houses. They were however not given that opportunity and got a rude shock instead as the government began evicting them.

As at the time of ERA/FoEN visit in February 2014 forceful eviction of locals and demolition of their quarters in Iva Valley Colliery Quarters and other coal mine communities was ongoing. The way the state government embarked on the evictions fueled the suspicion that the coal fields and beyond may have also been sold and the government plans to go ahead with the commencement of coal mining without the consent of the locals.

The domestic coal market is latently large. Besides the potential for power generation, Nigeria currently imports coals of various grades and qualities. There is also the potential for coal exports to countries such as China, Israel, Japan, Ghana, United States, Europe and India.

The Enugu Coal District covers 270,000 hectares of the coal basin.

It has supported the largest amount of commercial mining in the past. In addition to two underground mines, there are a total of 36 drill holes drilled in the area.

Previous studies have estimated the demonstrated coal resource to be 49 million averaging 2.2 metres thick. An additional 111 million non-reportable of in place coal are inferred to exist west of the old mine workings. [1]