BASIC STEPS AND FEES FOR NIGERIAN MINING

The basic steps and different fees payable as you navigate the mining sector in Nigeria has been revised.

In the case of basic steps, first you have to establish the solid mineral you are interested in and which  of the country it can be found.

Then you apply for reconnaissance permit to study the area and once satisfied, you then go for exploration license over the specific and well surveyed area.

If the exploration proves commercially positive, you can then upgrade to mining or quarrying lease as appropriate or go for small scale mining license.

The fees payable, according to the Federal Solid Minerals ministry are N50,000 for reconnaissance permit; N100,000 for exploration; N50,000 for small scale mining ; N100,000 for quarrying lease and N500,000 for mining lease plus water use permit of N50,000.

There are also annual service fees of N2000 to N5000 for exploration; N20,000 for small scale mining; N50,000 and N150,000 for quarrying and mining leases respectively and N30,000 for water permit.

Also clearly established are processing fees for renewal applications; late renewal penalty, enlargement, transfer/assignment, surrender application; endorsement and consolidation plus for certified copies of documents.

For now, some states are already getting involved to avoid mistakes made by oil producing States and so, paying for licenses and exploration permits for minerals within their territory.

The Cross River state, for example, according to CrossRiver Watch, has acquired reconnaissance permit and exploration license for granite, limestone, clay and shale within its territory.

Much the same way, the Premium times on November 8, last year reported that the Adamawa Mining company ltd has acquired 12 exploration licenses and signed a $5bn 3 year deal with a Swiss company, BTP Swiss Sovereign Asset explore minerals in the state.

Also, Dangote Cement has been talked into establishing a cement factory in Guyuk Local government to explosits relevant deposits while an MOU is also in place with Orca Energy UK for exploration and eventual mining of gold, diamond and other gems from Rivers Faro and Benue.

In addition, Adamawa state is to establish a state of the art solid minerals testing laboratory and jewellery plant.

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