INTRODUCTION
Nigeria is richly endowed with a variety of solid minerals of various categories varying from precious metals to stones and also industrial minerals. Much of these minerals are yet to be exploited. Statistically, the level of exploitation of these minerals is very low in relation to the extent of deposits found in the country. Recent policy reforms have brought the solid minerals sector to the fore. The emphasis is on encouraging massive foreign investor’s participation in the sector.
There are tremendous opportunities for investment in the solid mineral sector in Nigeria. Solid minerals are found in commercial quantities in the country for possible investment and exploitation. For instance, there are over 40 million tonnes deposits of talc identified in Niger, Osun, Kogi, Ogun and Kaduna States. Again, there is over 3 billion metric tonnes of iron ore deposits found in Kogi, Enugu and Niger States as well as the Federal Capital Territory. Iron Ore is being mined at Itakpe in Kogi State.
Furthermore, an estimated 10 million tonnes of lead/zinc veins are spread over 8 States of Nigeria. Bentonite and Baryte are the main constituents of the mud used in drilling of all types of oil wells. The Nigerian baryte has specific gravity of about 4.3 million. Over 7.5 million tonnes of baryte have been identified in Taraba and Bauchi States. Large bentonite reserves of 700 million tonnes are available in many States of the Federation ready for massive development and exploitation.
In addition, there are proven reserves of both alluvial and primary deposits of gold in commercial quantities spread across several parts in the northwest and southwest of Nigeria. There are also a number of smaller occurrences beyond these major areas. The occurrences of Bitumen deposits in Nigeria are indicated at about 42 billion tonnes almost twice the amount of existing reserves of crude petroleum. When fully developed, the bitumen industry will no doubt meet local requirements for road construction and also become a foreign exchange earner for the country.
Besides, Nigerian coal is one of the most bituminous in the world owing to its low sulfur and ash content. It is environment friendly. There are nearly 3 billion tonnes of indicated reserves in 17 identified coalfields and over 600 million tonnes of proven reserves. In the same vein, limestone occurrences are reported in almost all the 36 States of the Federation with extensive deposits in Sokoto, Gombe, Benue, Kogi, Oyo, Ogun and Cross River States. Other Solid Minerals that can be found in Nigeria include; Tin, Gemstones, Kaolin, Tantalite, and Gypsum.
1.1 Nigeria Solid Mineral Industry
Nigeria has often been described as a country endowed with ‘abundant’ or ‘vast’ solid mineral
resources, including but not limited to precious, ferrous and base metals, energy minerals and a
variety of industrial (non-metallic) minerals and rocks. Over 40 different types of solid minerals
have been reported from approximately 450 locations, spread widely across thecountry.However, many of these occurrences can justifiably be described as ‘mineral showings’ with little or no
economic potential. The major solid minerals of economic value in Nigeria can be classified and
listed into three main groups as follows:
1) Metallic minerals: – iron ore, gold, tin, niobium- tantalum, lead-zinc, manganese, copper,
tungsten, titanium, nickel, zirconium and chromium (molybdenum, silver, tungsten
2)Non-metallic minerals(and rocks): – barite, gypsum, phosphate, talc, salt, bentonite, clays,
kaolin, zircon, marble, mica, tourmaline, beryl, kaolin, glass sand, gemstones. Industrial rocks are limestone, shale, granite, dolerite, sand and laterite.
Energy minerals: – coal, bitumen/tar sand and uranium.
Mining of solid minerals in Nigeria is a long-standing activity, starting from the late 19 the
century. In the first half of the 20 century, mining of cassiterite and columbite in the Jos Plateau
involved some medium to large-scale open-pit and hydraulic placer operations which continued until the late 50s. In the southeast, some small scale open-cast mining of lead-zinc-barite veins and underground coal mines were common.
Currently, mining activity is limited mostly to small-scale (involving some mechanization) and artisanal (mostly manual) operations for gold, gemstones and tin-tantalite. There is no major or large-scale mining operation in Nigeria.
Quarrying and related open-pit extraction of industrial minerals and rocks are a major feature of the mining landscape in Nigeria.
Quarrying accounts for about 90% of the sector’s production which involves the removal of bulky materials of low unit value, such as limestone, shale, granite, sand and laterite. Mining of metallic minerals is sporadic over large areas of the country involving small and artisanal operations of panning, pitting or excavation of low bulk but high value minerals, such as gold, lead-zinc, tin, columbite and manganese. The mining environments include but not limited to eluvial/alluvial placers, mechanized and hand dug pitting and excavation through both legal and illegal (unlicensed) activities. There is an ongoing effort to organize the artisanal and small-scale miners into cooperatives.
2.0 CONCESSIONS IN NIGERIA
The process of mining any solid mineral in Nigeria starts with obtaining the required license from the Mining Cadastre Office (MCO), which is a parastatal under the Ministry of Mines and Steel Development saddled with the responsibility of handling the acquisition of concessions in the mining sector.
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.
2.1 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 titles;
• Reconnaissance permit
• Exploration License
• Small Scale Mining Lease
• Mining Lease
• Quarry Lease
• Water Use/Permit
2.2 Reconnaissance Permit
The Mining Cadastre Office issued a Reconnaissance permit to a qualified applicant upon payment of the prescribed fees. The permit enables the holder carry out reconnaissance on a non – exclusive basis. The holder of a reconnaissance permit is not to engage in drilling, excavation or other subsurface techniques. The holder 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.
2.3 Exploration License
The Nigeria Mining cadastre office on receipt of a valid application is to grant an Exploration License within 30 days of receiving an application.
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 , (example, forest reserve, military areas, government development areas, national heritage area and so on).
The duration of an Exploration License is three years and renewable for a further period of two terms two years each, provided that the title holder has complied with minimum work programme and all other legal requirements. The area of land covered by an Exploration license shall not exceed 200km2 that is 1000 cadastre units (CU).
2.4 Mining lease
The Mining Cadastre Office on the receipt of a valid application grants a Mining lease to an applicant 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 requirements.
2.5 Quarry Lease
The quarry lease is issued by the Mining Cadastre Office on receipt of a valid application. 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 months before the expiration of the lease. The area of land shall not exceed 5km2 (25 CUs).
2.6 Small Scale Mining Lease
The Mining Cadastre Office grants a Small Scale Mining Lease (SSML), to a qualified applicant who meets all the required criteria. An SSML shall not be granted in respect of any area within an exploration license, mining lease or quarry lease to any person except the holder of an exploration license, mining lease or quarry lease covering the area.
The duration of an SSML is five (5) years and is renewable for further periods of five yers provide d that the minimum work obligations have been fulfilled. The area of land for an SSML shall not exceed 3km2. When the level operations of a SSMl exceeds any of the criteria established in the definition of SSML, the holder shall convert such a lease into a mining lease by submitting a written application to the Mining Cadastre Office.
2.7 Water Use Permit
The area of land in 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 water use permit will remain in force as long as the mining lease, Small Scale Mining lease or Quarry lease for which the water use permit was granted remains valid. The permit is issued only for mineral title purpose.
3.0 REQUIREMENTS FOR APPLICATION OF MINERAL TITLES
The requirements for application for various mineral titles are as stated below;
3.1 Exploration License
(a) Pre-grant conditions
Duly completed application forms.
Minimum work Programme ( with COMEG seal)
Evidence of financial capability (section 54 of the NMMA) with sufficient working capital by way of:
i. Verifiable bank statement of account.
ii. Verifiable Bank reference letter
Evidence of technical competence (section 54 of the NMMA) supported by:
Curriculum Vitae and certificates of a Mining Engineer or Geoscientist registered with COMEG.
Irrevocable consent from land owner(s)/ land occupier(s) with sworn affidavit in support of the consent by the applicant from a competent court, attesting that the consent was duly obtained from the land owner(s)/ land occupiers(s). (section 100 of the NMA).
Attestation of non- conviction of criminal offences under the act.
Certified true copy of certificate of Incorporation including forms CAC2 and CAC7, Articles and memorandum of association.
Evidence of payment of processing fee through remita payment platform.
(b) Pre-Development conditions (Postgrant)
Environmental Impact Assessment (EIA) (section 119 of the NMMA, 2007)
Compensation
Closure plan/ Rehabilitation plan
Reports from state bodies/ MIREMCO.
3.2 Mining Lease
(a) Pre-grant conditions
Duly completed application forms.
Feasibility Report ( with COMEG seal)
Prospecting plan/ reserve estimation
Extant Exploration License.
Evidence of financial capability (section 54 of the NMMA) with sufficient working capital by way of:
iii. Verifiable bank statement of account.
iv. Verifiable Bank reference letter
Evidence of technical competence (section 54 of the NMMA) supported by:
Curriculum Vitae and certificates of a Mining Engineer or Geoscientist registered with COMEG.
Irrevocable consent from land owner(s)/ land occupier(s) with sworn affidavit in support of the consent by the applicant from a competent court, attesting that the consent was duly obtained from the land owner(s)/ land occupiers(s). (section 100 of the NMA).
Attestation of non- conviction of criminal offences under the act.
Certified true copy of certificate of Incorporation including forms CAC2 and CAC7, Articles and memorandum of association.
Mineral (s) to be exploited ( section 64)
Area specified to be surveyed in accordance with provisions of Survey coordination act (section 79). Also survey plan will be submitted.
Evidence of payment of processing fee through remita payment platform.
(b) Pre-Development conditions (Postgrant)
Environmental Impact Assessment (EIA) (section 119 of the NMMA, 2007)
Community Development Agreement (CDA) – (section 116).
A copy to be submitted to the MCO and all relevant departments in the ministry.
Compensation
Mine closure plan/ Rehabilitation plan
Reports from state bodies/ MIREMCO.
3.3 Quarry Lease/ Small Scale Mining Lease
(a) Pre-grant conditions
Duly completed application forms.
Pre – Feasibility Report ( with COMEG seal)
Evidence of financial capability (section 54 of the NMMA) with sufficient working capital by way of:
v. Verifiable bank statement of account.
vi. Verifiable Bank reference letter
Evidence of technical competence (section 54 of the NMMA) supported by:
Curriculum Vitae and certificates of a Mining Engineer or Geoscientist registered with COMEG.
Irrevocable consent from land owner(s)/ land occupier(s) with sworn affidavit in support of the consent by the applicant from a competent court, attesting that the consent was duly obtained from the land owner(s)/ land occupiers(s). (section 100 of the NMA).
Attestation of non- conviction of criminal offences under the act.
Certified true copy of certificate of Incorporation including forms CAC2 and CAC7, Articles and memorandum of association.
Mineral (s) to be exploited ( section 64)
Area specified to be surveyed in accordance with provisions of Survey coordination act (section 79). Also survey plan will be submitted.
Evidence of payment of processing fee through remita payment platform.
(b) Pre-Development conditions (Postgrant)
Environmental Impact Assessment (EIA) (section 119 of the NMMA, 2007)
Community Development Agreement (CDA) – (section 116).
A copy is to be submitted to the MCO and all relevant departments in the ministry.
Compensation
Mine 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.
Evidence of financial capability (section 54 of the NMMA) with sufficient working capital by way of:
vii. Verifiable bank statement of account.
viii. Verifiable Bank reference letter
Evidence of technical competence (section 54 of the NMMA) supported by:
Curriculum Vitae and certificates of a Mining Engineer or Geoscientist registered with COMEG.
Attestation of non- conviction of criminal offences under the act.
Certified true copy of certificate of Incorporation including forms CAC2 and CAC7, Articles and memorandum of association.
Evidence of payment of processing fee through remita payment platform.
4.0 LICENSE APPLICATION PROCEDURES
Application forms can be obtained from the Mining Cadastre office or downloaded from the agency’s website: www.miningcadastre.gov.ng.
The processes for the submission of application include:
Submit duly 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 provisions 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 duly signed and a copy is given to the applicant as acknowledgement of the application.
Upon submission and receipt of an application for a mineral title, the applicant
shall notify land owner(s) or occupier(s) in order to obtain an irrevocable consent to be submitted back to MCO within 2 weeks.
If a license is granted, the applicant shall be informed and be given 2 weeks within which to pay the annual service fee, a pre-requisite among other obligation before collection of the license or lease.