Business a.m.
The federal government, through the Ministry of Solid Minerals Development, has published a new set of fees and charges for the mining sector, with the goal of simplifying the process of doing business and reinforcing ongoing reforms.
Dele Alake, the minister of solid minerals development, who made the disclosure, stressed the federal government’s resolve to harness more revenue from solid minerals through the introduction of a new set of rates.Â
According to Alake, the latest review reflects the government’s dedication to improving service delivery and boosting the mining sector’s contribution to the country’s economic growth.
The minister explained further that the regulations introduced in consultation with industry stakeholders, were to discourage speculation and address the paucity of funds limiting the federal government’s capacity to improve ease of doing business in the sector.
Under the new regime, investors applying for a mining Lease licence will pay N3 million, while Small Scale Mining Lease (SSML) applicants will pay N300,000 for the first two cadastral units. The cost to obtain an Exploration Licence (EL)Â stands at N600,000 for the first 100 cadastral units, a quarry lease now attracts N300,000, while a reconnaissance permit is N300,000.
In an overhaul of the mining sector’s fee structure, the federal government introduced new annual service fees, with the first-time fee set at N31,500. The small scale mining licence now carries a fee of N260,000, quarry lease fees have been set at N500,000, and firms operating with a mining lease are required to pay an annual fee of N1,250,000.
Following the renewal of licences, the rates for the respective categories would be N42,000 for an Exploration Licence; N420,000 for a small-scale mining lease, N1,500,000 for a mining lease, and N1,100,000 for a quarry lease.
Other services affected by the new regulations include mineral title applications of the Mining Cadastral Office (MCO), alongside the transfer, enlargement, surrender, and consolidation of mineral titles.
According to Alake, the new regulations seek to maximise royalties from critical minerals like lithium and gold to boost the nation’s revenue base and contribute significantly to economic development.
The federal government also revised the royalty rates for lithium ore, with each type attracting different royalty fees based on its current market value. Lithium ore (Lepidolite) at the current market value of N600,000 per tonne attracts an N18,000 royalty per tonne; lithium (Kunzite) with a current market value of N3 million per tonne attracts a N90,000 royalty per tonne, while lithium ore (Spodumene) with a current market value of N316,667 per tonne attracts a N9,500 royalty per tonne.
Apart from the royalty rates, the government also revised the service fees for the Mining Cadastral Office and the Nigeria Geological Survey Agency (NGSA).Â
Alake confirmed that a comprehensive list of the new rates would be made available on the ministry’s website. He also mentioned that the revised rate structure became effective immediately upon its announcement.
