Mining lease license now set at N3 million, additional royalties to be introduced under new mining rates regime
By Fatima Saka
The Federal Government, through the Ministry of Solid Minerals Development, has unveiled a fresh set of rates for the mining sector aimed at facilitating business operations and fortifying ongoing reforms.
During a press briefing recently, Dr. Dele Alake, the Minister of Solid Minerals Development, emphasized that the revision demonstrates the government’s dedication to increasing revenue from solid minerals to improve service provision and elevate the mining industry’s contribution to economic progress.
As per the updated regulations, prospective investors seeking a Mining Lease license will be required to pay N3 million, while applicants for a Small Scale Mining Lease (SSML) will need to pay N300,000 for the initial two cadastral units. The fee for obtaining an Exploration License (EL) has been set at N600,000 for the first 100 cadastral units. Furthermore, a Quarry lease now commands N300,000, and a reconnaissance permit costs N300,000.
These new guidelines, developed in collaboration with industry stakeholders, are designed to deter speculation and address the scarcity of funds, which have hindered the federal government’s ability to enhance business operations in the sector.
The revised rates impact 268 items within the industry, including an annual service charge of N31,500 for the first instance, N260,000 for a Small Scale Mining License (SSML), N500,000 for a Quarry Lease, and N1,250,000 for companies operating under a Mining Lease.
Upon license renewal, the fees for the respective categories will be N42,000 for an Exploration License, N420,000 for a Small Scale Mining Lease (SSML), N1,500,000 for a Mining Lease, and N1,100,000 for a Quarry Lease.
The new regulations also affect various services provided by the Mining Cadastral Office (MCO), including mineral title applications, as well as the transfer, enlargement, surrender, and consolidation of mineral titles.
Dr. Alake highlighted that the new regulations aim to optimize royalties from crucial minerals like lithium and gold to enhance the nation’s revenue streams and make a substantial contribution to economic growth.
In the revised rates regime, Lithium ore (Lepidolite) valued at N600,000 per tonne will incur an N18,000 royalty per tonne; lithium (Kunzite) valued at N3 million per tonne will attract a N90,000 royalty per tonne, while lithium ore (Spodumene) priced at N316,667 per tonne will result in a N9,500 royalty per tonne.
The rates revision also extends to the services provided by the Mining Cadastral Office (MCO) and the Nigeria Geological Survey Agency (NGSA). Detailed information regarding the new rates regime will be published on the Ministry’s official website, www.msmd.gov.ng.
The Minister confirmed that the new rates regime will be implemented with immediate effect.
