The Solid Mineral Sector in Nigeria has more potential in terms of wealth and income generation than the Oil Sector. But lack of information on the existence of these minerals and the processes through which one can become an operator have left the Sector untapped. Contrary to public perception, the procedure through which one can obtain Mining Licenses in Nigeria has been liberalized and made easy; unlike during the Military era when you must belong to the elite to be able to operate in that Sector. Any Nigerian or Foreign investor can obtain these licenses easily through the procedures discussed bellow. The processes on face value might look complex, but in practice, they are easy to follow. Government fees are not much and you can hire the services of guides to direct you with little fee.
The Licences covered in this discussion are:
i. Reconnaissance Permit

ii· Exploration Licence

iii· Small Scale Mining Lease

iv· Mining Lease

v· Quarry Lease

vi· Water Use Permit


GUIDELINES ON MINERAL TITLES APPLICATION BY THE NIGERIAN MINING CADASTRAL OFFICE

1. Introduction:

The Nigeria Mining Cadastre Office was established in 2007 with the responsibility of Administration and Management of Mineral Titles in Nigeria in accordance with section 5 (1) of the Nigerian Minerals and Mining Act, 2007. The Mining Cadastre Office shall in addition to any other functions prescribed by or under the Nigerian Minerals and Mining Act, 2007, perform the following:

i. Consider applications for mineral titles and permits, issue, suspend and upon written approval of the Minister, revoke any mineral title.

ii. Receive and dispose of applications for the transfer, renewal, modification, relinquishment of mineral titles or extension of areas.

iii. Maintain a chronological record of all applications for mineral titles in a Priority Register which is to be specifically used to ascertain the priority and registration of applications for exclusive rights or free areas.

iv. Maintain a general register which is to be used for all other types of applications where registration of the priority is not required.

v. Undertake such other activities reasonably necessary for the purpose of carrying out its duties and responsibilities under the provisions of the Nigerian Minerals and Mining Act. 2007 and the Nigerian Minerals and Mining Regulations, 2011.


2. TYPES OF MINERAL TITLES:

In line with section 46 of the Nigerian Minerals and Mining Act, 2007 and the Nigerian Minerals and Mining Regulations, 2011, the right to search for, or exploit minerals in Nigeria, is governed by one of the following mineral titles:

· Reconnaissance Permit

· Exploration Licence

· Small Scale Mining Lease

· Mining Lease

· Quarry Lease

· Water Use Permit

2.1 Reconnaissance Permit:

(Section 47, 57 and 58 of Nigerian Minerals and Mining Act, 2007 and the Nigerian Minerals and Mining Regulations, 2011. The Mining Cadastre Office shall within 30 days of the receipt of application from any qualified applicant and upon the payment of the prescribed fees, grant and issue a Reconnaissance Permit to search for minerals.

The permit enables the holder to carry out reconnaissance on a non-exclusive basis. The holder of a Reconnaissance Permit is not to engage in drilling, excavation or other sub-surface techniques, and must conduct activities in an environmentally and socially responsible manner and compensate for any damage to crops or property in the course of prospecting. The permit is issued for one year and it is not transferable, but renewable annually.

2.2 Exploration Licence:

(Section 48 and 59 of Nigerian Minerals and Mining Act, 2007 and the Nigeria Minerals and Mining Regulations, 2011. The Nigeria Mining Cadastre Office, on receipt of a valid application, is obliged by law to grant and issue an Exploration Licence within 30days.

A licence will not be granted over any land that is subject of an existing Exploration Licence, Mining Lease, Small Scale Mining Lease, Quarry Lease or closed to prospecting/mining activity (e.g. forest reserves, military areas, government development areas, national heritage area etc). The duration of an Exploration Licence is three (3) years, and renewable for a further period of 2 terms two years each, provided that the title holder has complied with minimum work commitment/programme and all other legal requirements. The area of land covered by an Exploration Licence shall not exceed 200Km2 i.e.1000 CUs.

2.3 Mining Lease:

(Section 50, 65 and 66 of the Nigeria Minerals and Mining Act, 2007 and the Nigerian Minerals and Mining Regulations, 2011. The Mining Cadastre Office, on receipt of a valid application, shall grant and issue a Mining Lease within 45 days of the application. The duration of a Mining Lease is 25 years, renewable every 24 years, provided that the holder has complied with minimum work programme and all other legal and regulatory requirements. The lease area shall be determined in relation to the ore body as defined in the feasibility study, in addition to an area reasonably required for the working of the deposit, not exceeding 50Km2 i.e. 250 CUs).

2.4 Quarry Lease:

(Section 51 and 77 of the Nigerian Minerals and Mining Act, 2007 and the Nigerian Minerals and Mining Regulations, 2011. The Mining Cadastre Office, on receipt of a valid application, shall grant and issue to the applicant a Quarry Lease within 45 days. The duration of a Quarry Lease shall not exceed five (5) years and may be renewed every five years as required, provided the renewal application is made within three (3) months before the expiration of the lease.

The area of land shall not exceed 5Km2. (25CUs).

2.5 Small Scale Mining Lease

(Section 49 of Nigeria Minerals and Mining Act, 2007 and the Nigerian Minerals and Mining Regulations, 2011. The Mining Cadastre Office, on receipt of a valid application, shall grant and issue a Small Scale Mining Lease (SSML) within 45 days. An SSML shall not be granted in respect of any area with an exploration licence, mining lease or quarry lease to any person except the holder of an exploration licence, quarry lease or mining lease covering the area. The duration of an SSML is five (5) years and is renewable for further periods of five years provided that the minimum work obligations have been fulfilled. The area of land for an SSML shall not exceed 3Km2. When the level of operations of a Small Scale Mining Lease exceeds any of the criteria established in definition of SSML, the holder shall convert such a lease into a mining lease by submitting a written application to the MCO.

2.6 Water Use Permit:

(Section 52 of the Nigeria Minerals and Mining Act, 2007 and the Nigerian Minerals and Mining Regulations, 2011. The area of land in respect of which any water use permit (WUP) is granted shall not exceed the area reasonably required for the purpose of the permit as defined in the regulation. A WUP will remain in force as long as the mining lease, SSML, or quarry lease for which the water use permit was granted remains valid. The Permit is issued only for mineral title purposes.

3.0 REQUIREMENTS FOR APPLICATION FOR MINERAL TITLES

The requirements for application for various mineral titles are as stated below:

3.1 Mining Lease

(a) Pre - grant conditions:

· Duly completed application forms

· Pre-Feasibility Report (with COMEG seal and signature)

· Prospecting plan / reserve estimation

· Extant Exploration licence

· Evidence of financial capability

· Evidence of technical competence

· Irrevocable consent from land owner(s)/land occupier(s).

· Attestation of non conviction of criminal offences under the Act.

· Evidence of payment of processing fee

· Certified true copy of certificate of incorporation.

· Mineral(s) to be exploited (section 64)

· Area specified to be surveyed in accordance with provisions of Survey Co-ordination Act (section 79). (Survey plan to be submitted)

· Notice to land owner(s) (private or state land) with a response on rate to be paid, (section 102).

(b) Pre-Development conditions (post-grant)

· Environmental Impact Assessment (EIA) - (section 119)

· Community Development Agreement (CDA) - (section 116) A copy to be Submitted to MCO and all relevant departments in the Ministry

· Compensation -(section 107)

· Mine Closure plan/Rehabilitation plan - (section 61)

· Reports from state bodies/ MIREMCO

3.2 Quarry Lease/Small Scale Mining Lease:

(a) Pre-grant conditions

· Duly completed application forms

· Pre-Feasibility Report (with COMEG seal & signature)

· Evidence of Financial capabilities - (section 54 of the NMMA)

· Evidence Technical competence Person(s) (Section 54 of the NMMA, 2007)

· Irrevocable Consent from land owner(s)/land Occupier(s)-(section 100 of the NMMA, 2007)

· Attestation of no conviction of criminal offence under the Act (section 53 of the NMMA, 2007)

· Certified True Copy of Certificate of Incorporation

· Evidence of payment of processing fees

· Indicate Minerals to be Exploited

· Area specified to be surveyed in accordance with Coordination Act (section 79 of the NMMA, 2007) (Survey plan to be submitted)

· Notice to land owner(s) (private or state land) with a response on rate to be paid (section 102 of the NMMA).

· Indicate Mineral(s) to be exploited (section 64 of the NMMA, 2007)

(b) Pre-Development conditions (Post - Grant)

· Environmental Impact Assessment (EIA)- (section 119)

· Community Development Agreement (CDA)-(section 116)

· Compensation-(section 107)

· Submit Mine closure plan/rehabilitation plan - (section 61)

· Reports from state bodies/MIREMCO




3.3 Exploration Licence:

(a) Pre-grant conditions:

· Duly completed application forms

· Minimum work programme (Detailed) (with COMEG stamp signature)

· Evidence of financial capability (section 54 of the NMMA, 2007)

· Evidence of technical competence person (section 54 of the NMMA, 2007)

· Irrevocable Consent from land owners/ land occupiers- (section 100 of the NMMA, 2007).

· Attestation of non conviction of criminal offences under the Act.

· Certified true copy of certificate of incorporation.

· Evidence of payment of processing fees and rents

· Indicate Minerals to be explored (section 64 of the NMMA, 2007)

(b) Pre-Development conditions (Post grant)

· Environmental Impact Assessment (EIA) (section 119 of the NMMA, 2007)

· Compensation

· Closure plan/rehabilitation plan

· Reports from state bodies/MIREMCO


3.4 Reconnaissance Permit:

(a) Pre-grant conditions

· Duly completed application forms

· Description of the work area and the activities to be carried out

· Attestation of non conviction of criminal offences under the Act

· Receipt of payment of the processing fee

· Evidence of technical competence (section 54 of the NMMA, 2007)

· Evidence of financial capability (section 54 of the NMMA, 2007)



NB1. All Fees and Payments must be by Certified Bank Draft(s) to the Mining Cadastre Office (MCO) and non refundable.

2. The Assignment/Transfer fees shall not be less than the processing fee.
3. The fees are subject to review
4. The procedures look complex on face value, but in practice, they are simple to follow if you have a knowledgeable guide.

For assistance on how to obtain any of the licenses listed above, visit: http://gemstonenews247..com.ng/p/consultancy-services.html

SOURCE:
http://gemstonenews247..com.ng/

kudosamass:
quote/

Can you pls expatiate on what the small scale mining license and water use permit mean and entail. Then generally to go into mineral mining, Like how many millions are we talking about for prospective investor in the mining industry let say starting with SSML.