Former Minister for Lands and Natural Resources, Hon. Samuel Abu Jinapor, has asserted that large-scale mining companies must evolve beyond their traditional roles as extractors to become the primary anchors for domestic value chains.
Speaking on the strategic shift required for national development, the former minister noted that the modern industry is increasingly “technology-driven, statistically intensive, and innovation–led.”
To capitalize on this, he argued that governments and industry giants must collaborate to integrate local enterprises, particularly those led by women and youth, into the sophisticated technical services that define the 21st-century extractive landscape.
The push for a more inclusive sector comes at a time when “access to appropriately structured capital” remains a critical bottleneck for local participants.
Hon. Jinapor emphasized that the survival of the industry depends on a fundamental realignment where mining companies proactively develop supply chains rather than merely fulfilling “local content rules” as a matter of compliance.
By serving as anchors, these corporations can stimulate growth in mining tech, mineral processing, and logistics, ensuring that the wealth generated from the soil translates into “efficiency and resilience” for the broader national economy.
“Mining companies are not just operators; they are anchors around which value chains can be built. Beyond complying with local content rules, the scope of proactive supply development, local enterprises, and other aspects of the value chain must be expanded. Supporting mining tech, startups, and innovation hubs is one practical way in which the industry can also expand participation while also improving efficiency and resilience.”
Hon. Samuel Abu Jinapor
Bridging the Skills and Financial Divide
The former Minister underscored that without a deliberate alignment between educational institutions and the industry, the participation of women and youth will remain marginal.
He observed that the “long-term nature of mining products” necessitates financial instruments that are equally patient and robust. “Financial products must reflect the risks involved,” Hon. Jinapor stated, advocating for the use of “blended finance, guarantees, and risk-sharing instruments” to de-risk investments.
He noted that for SMEs to truly thrive, institutional support from commercial banks and public-private partnerships is non-negotiable, especially for enterprises spearheaded by “young professionals and entrepreneurs” who are ready to enter the downstream manufacturing and environmental management sectors.
Technological Innovation as a Catalyst for Inclusion
Modern mining is no longer a “narrow or closed sector,” but a vast ecosystem ranging from high-end engineering to complex logistics. Hon. Jinapor highlighted that the industry’s shift toward being “innovation-led” provides a unique entry point for tech-savvy youth.
By fostering innovation hubs and mining-specific startups, the sector can move away from the “dig and ship” colonial model toward high-value addition.
He urged all stakeholders to view mining as a comprehensive value chain, stating that “opportunities exist across services, technology, and downstream manufacturing,” which are essential for sustainable economic transformation.
The Strategic Role of Anchors in Local Development
As anchors, mining companies provide the reliable demand necessary for local businesses to scale and become “bankable” entities. This “anchor” role involves more than just procurement; it includes mentorship and the integration of local firms into the global standards of the extractive industry.
By stabilizing the market for local suppliers, mining firms facilitate a “secular economy” were mineral wealth fuels industrialization.
The former minister concluded that the responsibility is collective, noting that while the government provides the regulatory framework, the “proactive development” of local capacity remains the central responsibility of the industry players themselves.
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