Mining activities in Nigeria are regulated by the Nigeria Mining Cadastre Office (NMCO), which oversees the issuance of mineral titles and licenses.
If you are considering venturing into the mining sector in Nigeria, it is essential to understand the process, costs, and requirements involved in obtaining a mining license.
Overview of the Process:
The process of obtaining a mining license in Nigeria involves several steps, including application submission, processing, and granting of the license.
The NMCO, specifically its Concession and Registry departments, plays a pivotal role in facilitating this process.
The Concession department handles new mineral title applications, processing them, and either granting or refusing the application.
They are also responsible for conducting fieldwork, delineating mineral title boundaries, and issuing licenses.
On the other hand, the Registry department manages record-keeping, modification processing, and other administrative tasks related to mineral titles.
Active Mineral Licenses:
It is noteworthy to mention that as of the latest data, there are various active mineral licenses in Nigeria, indicating the significant interest and participation in the mining sector:
| License Type | Number | Percentage |
| Exploration License (EL) | 3974 | 47.45% |
| Small Scale Mining Lease (SSML) | 2851 | 34.04% |
| Mining Lease (ML) | 354 | 4.23% |
| Quarry Lease (QLS) | 1196 | 14.28% |
| Water Use Permit (WUP) | 1 | 0.01% |
Electronic Mining Cadastre System (eMC+):
The Nigeria Mining Cadastre Office has fully implemented the new electronic Mining Cadastre System (eMC+), a cutting-edge management system designed to administer mineral titles in a responsible, efficient, and transparent manner.
This online system streamlines the entire lifecycle of mineral titles, enhancing ease of doing business and promoting economic growth in the Nigerian mining sector.
Before You Commence Your Application:
Before initiating the application process, it is crucial to ensure you have all the necessary requirements in place.
The NMCO advises prospective applicants to check the list of requirements beforehand.
In case you lack certain documents or information, you can start your application and save it until you fulfill all requirements and upload all necessary documents before submission.
Requirements for Obtaining a Mining License:
Before initiating the application process, it is crucial to ensure you have all the necessary requirements in place.
These requirements include:
- Completed Application Forms.
- Attestation of Non-Conviction of Criminal Offences.
- Copies of Certificate of Incorporation (for corporate bodies) or National ID/Driver’s License (for individuals).
- Processing Fee: The fee varies depending on the type of license, starting from N 300,000.00 to N3,000,000.
- Pre-feasibility Study (for Leases only).
- Minimum Work Programme (for Exploration Licenses).
- Evidence of Financial Capability.
- Evidence of Technical Competence.
- Consent Letter from landowners/occupiers.
- Indication of Mineral(s) to quarry or mine.
- Site Plan (for Leases only).
- Current Tax Clearance.
Cost Summary:
Here is a breakdown of the processing fees for different types of licenses:
| License Type | Processing Fee |
|---|---|
| Exploration License (EL) | N600,000 |
| Reconnaissance Permit | N300,000 |
| Small Scale Mining Lease (SSML) | N300,000 |
| Mining Lease (ML) | N3,000,000 |
| Quarry Lease (QL) | N600,000 |
| Water Use Permit (WUP) | N300,000 |
Duration of Processing:
It typically takes a maximum of 30 working days to process applications for permits and licenses and 45 working days for leases.
Legal Assistance Costs:
For clients seeking legal assistance to handle the entire documentation process, fees range from 1.5 million Naira to 5 million Naira.
These costs cover comprehensive legal support to ensure a smooth and efficient process.
Conclusion:
Obtaining a mining license in Nigeria involves navigating through a structured process overseen by the Nigeria Mining Cadastre Office.
By understanding the requirements and costs involved, prospective miners can streamline their application process and embark on their mining ventures efficiently.
For further information or assistance, please contact the Nigeria Mining Cadastre Office or consult with a legal expert specialising in mining regulations.
