SEVEN DAYS FREE TRAINING ON HOW TO START GEMSTONE MINING IN NIGERIA

DAY TWO

In today's lesson, we shall be looking at two aspects of gemstone mining in Nigeria. Part one is about the mining models available to intending gemstone miners, while part two is about the legal requirements. As stated in lesson one, this training is designed for Small Scale miners and beginners. So the mining models and legal requirements will capture these categories of operators. If you missed lesson one, don't worry I will post the link to it at the end of today's lesson.

Part ONE
GEMSTONE MINING MODELS:
The business models for gemstone mining designed for this training are: (a) Partnership Model, and (b) Small Scale Miner Model.

a. Partnership model is a four-party partnership among landowners, license holders, miners, and sponsorer/ financier. The landowners are the community or persons who own the land. The license holder is the company who has a government mining license to mine the land. The miners are the workers/laborers who do the actual mining work. The sponsorer or financier is you, who provide the financial and logistical requirements to carry out the mining operation. In this model, the financier do not necessarily need to obtain a Mining License to go into this project because the work will be done based on the license already obtained by the license holder 9the company). So the contribution of the financier is the money to be spent on the work. The general practice is that gems recovered from this operation are shared into two equal parts. One part goes to the landowners and license holders, while the other part goes to the financier and the miners. That means the financier does not pay salary to the miners, rather, everyone gets paid when the work starts to yield dividends. In this way, everyone is motivated to work hard based on self-interest. The responsibility of the financier is to provide tools, accommodation, food, and other logistics for the boys. This model is common in Northern Nigeria and some parts of South West states where gemstone mining is beginning to gain traction.
The partnership model is good for small-scale miners and those with low budgets to start their gemstone mining journey. There are always available partners to partner with in this model. This is because there are many companies that have licenses that cover many mining areas but are not actually doing the mining work. They are always willing to partner with anyone ready to work at their sites.

b. Small Scale Miner Model is designed for beginners who have the money to acquire their own sites and obtain Small Scale Mining Permit from the Ministry of Mines And Steel Development. In this case, the miner buys his own site, rent the land, or partner with the landowners for the mining operation. It is always advisable to partner with the landowners or rent the land because of the cost, and also for the community to provide security knowing that they are partners. The miner/business owner then hires his workers and sets up the operation. In practice here, miners/workers are not paid salaries. They get paid when the mine produces gems based on pre-agreed percentages. But one can decide to pay his/her workers. In a situation where the landowners are partners, they get between 5% to 20% of produced gems depending on the bargaining abilities of the investor.
One other way of carrying out the small-scale miner model without obtaining a mining lease, which many people do not know, is to obtain a permit called Small Scale Mining Permit from the department of Artisanal and Small Scale Mining, Ministry of Mines and Steel Development. This permit allows you to mine an area as long as you can prove that you have an understanding with the landowners. You can continue to use this permit, renewable every two years until you are financially strong enough to obtain Mining Lease.

PART TWO
LEGAL REQUIREMENTS
Gemstone mining, like every other type of solid mineral mining in Nigeria, is regulated by law. It is governed by the Nigerian Minerals And Mining Act 2007. There are different types of mining permits in Nigeria. These are Exploration License, Large Scale Mining Lease, Small Scale Mining Lease, and Small Scale Miner’s Permit. However, you may not be required to go into obtaining all these licenses or permits required by the Law at this stage if you are engaged in the partnership model as you will be working with the license of the license holder partner. But as a small-scale miner, you need either Small Scale Mining Lease or Small Scale Miner’s Permit to be able to legally mine gemstones in Nigeria. I am going to post below this lesson the complete guidelines on Mineral Titles Applications in Nigeria. It is recommended however, that intending miner should endeavor to register a Company. The cost is not much.

END OF LESSON TWO
In tomorrow's lesson, we are going to look at How to Acquire Gemstone Mining Sites in Nigeria.
For questions and inquiries, see my signature below for my contact.

For those who missed lesson one, see the link: https://www.nairaland.com/6664503/how-start-gemstone-mining-nigeria

GUIDELINES ON MINERAL TITLES APPLICATIONS IN NIGERIA
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 License
• 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 License
(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 License within 30days.
A license will not be granted over any land that is subject of an existing Exploration License, 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 License 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 License 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 license, mining lease or quarry lease to any person except the holder of an exploration license, 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 license
• 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 License
(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)

For questions and inquiries, see my signature below for my contact

Thanks op. Following