HOW TO OBTAIN MINING LICENSES IN NIGERIA



GUIDELINES ON MINERAL TITLES APPLICATION BY THE NIGERIAN MINING CADASTRAL OFFICEs
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
(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.
(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).
(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).
(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.
(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.
The requirements for application for various mineral titles are as stated below:
(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)


SUMMARY OF INFORMATION ON MINERAL TITLES

S/NO.
TYPE OF LICENCE
MAXIMUM SIZE
MAXIMUM NUMBER OF CADASTRAL UNITS (CUs)
DURATION
PROCESSING TIME
1.
Reconnaissance Permit (RP)
Non-exclusive
Non-exclusive
1 year (renewable annually)
Not later than 30 DAYS of filling application
2.
Exploration Licence
200km2
1000 (20,000Ha)
3 years (renewable twice for 2 year term each)
Not later than 30 DAYS of filling applicable
3.
Small Scale Mining Lease (SSML)
3km2
15 (300 Ha)
5 years renewable every 5 years
Not later than 45 DAYS of filling applicable
4.
Mining Lease (ML)
50km2
250 (5,000Ha)
25 years (renewable every 24 years)
Not later than 45 DAYS of filling application
5.
Quarry Lease (QLS)
5km2
25 (500 Ha)
5 years (renewable every 5 years)
Not later than 45 DAYS of filling application





In accordance with the Nigerian Minerals & Mining Regulations, 2011 (NMMR) applications for Exclusive Licence and leases must be submitted in conformity with the allowed geometric shapes of polygons, and must be regular and parallel to coordinates system used in national topographic maps. The polygons should have a minimum dimension which is called a CADASTRAL UNIT (CU), also simply referred to as SQUARE. A licence polygon should always be made up of a certain number of Cadastral Units (CUs) or squares. Consequently, the dimensions of the sides of any polygon corresponding to the licence area will always be multiples of the size of the Cadastral Unit. The CUs must be adjoining by the sides not the edges (i.e. placed side by side to each other). The polygons cannot also be “floating” or placed anywhere. They must be located coherently with predefined and standardized grid. For Nigeria, the cadastral topographic maps of 1:50,000 scale are divided by a grid of 15 seconds by 15 seconds (15” x 15”), using the Geographic Coordinate System (latitude/longitude: degree/ minute /seconds).
The average area of one CU (square) of 15" x 15" is roughly 20 Hectares. That means a polygon of one minute by one minute (l'xl1) will have 16 CUs (squares) with area of about 300 Hectares (or 3 Km2).
The coordinate values limiting the licence polygons can be obtained by direct readings from the cadastral maps (topo-sheets of 1:50,000 scale), or by readings from the field using the Global Positioning System (GPS) with the correct settings (i.e. Longitude/Latitude, WGS 84 – Minna Datum).
Applicants are required to submit their applications for licences together with coordinates (which is a major criteria) of either the corners of the entire polygons or CUs applied for or of the centre of the CUs. The coordinates will therefore have an incremental rate of 15 seconds (15”) on both the x and y axis of the polygons. There is also the need to submit survey plans for lease applications. The Mining Cadastre Office will generate the license plans upon acceptance of the application.

Application forms can be obtained from the Mining Cadastre Offices or downloaded from the agency’s website: www.miningcadastre.gov.ng.
·                    Submit completed application form (in 3 copies) along with the necessary documents (as specified in the application form) and processing fees to the MCO in line with the provision of the Nigeria Minerals and Mining Act, 2007
·                    Submitted application shall be assigned with an identifying code and registered with date, hour and minute in the priority register dully signed and a copy to be given to the applicant as acknowledgment of the application.
·                   Upon the submission and receipt of an application. For a mineral title, MCO shall notify land owner(s) /occupier(s) in order to obtain an irrevocable consent to be submitted  back to MCO within 7 days
·                   Incomplete or wrongly completed application shall be rejected without refund of processing fee.
·                   Where application requires minor amendments (not coordinates), the applicant shall be duly informed to effect the necessary corrections within a period of 5 working days; and if no response within the specified period, the application shall be rejected without any refund.
·                   After, the MCO shall input spatial and non- spatial data of the application into its system.
·                   The application is further evaluated and recommended
·                   If granted a license/permit, the applicant shall be informed and be given 2 weeks within which to pay the Annual Service Fee (see fee table) a pre-requisite among other obligation before collection the license/permit or lease. If the applicant fails to pay the Annual Service Fees within fourteen (14) days after collection of the notification of grant, the grant shall automatically be withdrawn.

7.0     FEES
A.      APPLICATION PROCESSING FEE
a)                 Reconnaissance Permit            10,000
b)                Exploration Licence                20,000
c)                 Small Scale Mining Lease        10,000
d)                Mining Lease                           50,000
e)                 Quarry Lease                           20,000
f)                  Water Use Permit                    10,000


B.      ANNUAL SERVICE FEE (PER CADASTRE UN IT)
a)                 Reconnaissance Permit FREE
b)                Exploration Licence
1 000 -------------         1st Three      1st Renewal           2nd Renewal
Years
                     1,000                    1,500                    2,000
c)                 Small Scale Mining Lease        10,000
d)                Mining Lease                           25,000
e)                 Quarry Lease                           20,000
f)                  Water Use Permit                    10,000

C.      PROCESSING OF RENEWAL APPLICATION
a)       Reconnaissance Permit            10,000
b)      Exploration Licence                30,000
c)       Small Scale Mining Lease        30,000
d)       Mining Lease                              250,000
e)       Quarry Lease                           50,000
f)       Water Use Permit                              20,000
D.    PENALTY FOR LATE RENEWAL APPLICATION
(i.e. before expiry of mineral titles)
a)                 Reconnaissance Permit            10,000
b)                Exploration Licence                 100,000
c)                 Small Scale Mining Lease        100,000
d)                Mining Lease                           100,000
e)                 Quarry Lease                           100,000


E.      APPLICATION FOR ENLARGEMENT (PROCESSING)
a)                 Exploration          Licence                  40,000
b)                 Small Scale Mining Lease        40,000
c)                 Mining Lease                           40,000
d)                 Quarry Lease                           40,000
E APPLICATION FOR RELINQUISHMENT
N : K
a)                 Small Scale Mining Lease                           10,000
b)                Mining Lease                                              10,000
c)                 Quarry  Lease                                             10,000
d)                Exploration Licence                                    10,000
G. APPLICATION FOR TRANSFER/ASSIGNMENT
a)                 Exploration Licence                          100,000
b)                Small Scale Mining Lease                 50,000
c)                 Mining Lease                                     250,000
d)                Quarry Lease                                     100,000

G.      APPLICATION FOR TRANSFER/ASSIGNMENT FEES
a)                 Small Scale Mining Lease                           100,000
b)                Mining Lease                                              50,000
c)                 Quarry  Lease                                             250,000
d)                Exploration Licence                                    100,000





H.      MINERAL TITLE TRANSFER/ASSIGNMENT FEES
a)       Exploration Licence 5% of the Assignment/ Transfer Transaction sum
(b)             Mining and Quarry Leases 5% of the Assignment/Transfer Transaction sum
(c)              Small Scale Mining Lease 5% of the Assignment/Transfer Transaction sum
I.       APPLICATION FOR SURRENDER
a)                 Exploration Licence     10,000
b)                Small Scale Mining Lease 10,000
c)                 Mining                          Lease  10,000
d)                Quarry Lease                10,000

J.      APPLICATION FOR CONSOLIDATION
a)                 Exploration Licence                          20,000
b)                Small Scale Mining Lease                  20,000
c)                 Mining Lease                                     50,000
d)                Quarry Lease                                     50,000

K.     APPLICATION TO ENDORSE ADDITIONAL MINERAL
a)       Exploration Licence                          N20,000
b)      Small Scale Mining Lease                 N10.000
c)       Mining Lease                                     N50,000
d)      Quarry Lease                                    N10,000
L.      APPLICATION FOR CERTIFIED TRUE COPY OF LOST             CERTIFICATE  N10,000

M.     SEARCH FEE/DUE DILIGENCE N50,000
N.     CADASTRE MAP INFORMATION
          APPLICATION FOR CERTIFIED TRUE COPY OF OTHER DOCUMENTS OTHER THAN MINERALTITLE DOCUMENTS N2, 000
O.     CADASTRAL MAP INFORMATION
         A4 per page                                                2,000
         A3 per page                                                3,000
         A2/A1 per page                                 4,000
A0 per page (Black & Write)             10,000
Database txf per A4 page                           1,000



NB1. All Fees and Payments must be by Certified Bank Draft(s) to the Mining Cadastre Office (MCO) and non refundable.
3.     The Assignment/Transfer fees shall not be less than the processing fee.




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