Nigerian government unveils new mining sector rate

The Nigerian government has announced a new rates system for the mining sector that aims to facilitate ease of doing business and consolidate ongoing reforms.

Segun Tomori, Special Assistant for Media to the Minister of Mineral Resources Development, Dele Alakehe revealed this in a statement on Thursday.

According to the statement, Mr Alake explained that the review underlines the Federal Government’s commitment to increasing revenues from mineral extraction in order to improve service delivery and enhance mining’s contribution to economic development.

The statement said that under the new regulations, investors applying for a Mining Lease (ML) licence will pay N3 million while applicants applying for a Small Scale Mining Lease (SSML) licence will pay N300,000 for the first two cadastral units.

He added that the cost of obtaining an Exploration License (EL) is N600,000 for the first 100 cadastral units, while a Quarry Lease (QL) currently costs N300,000 and an Appraisal Permit N300,000.

He said the new rules, introduced after consultation with industry representatives, aim to discourage speculation and address the lack of funds that limit the federal government’s ability to facilitate business in the sector.

“The new rates, which apply to 268 positions in the industry, include an annual service fee of N31,500 for the first time, N260,000 for a small-scale mining licence (SSML), N500,000 for a quarry lease and N1,250,000 for companies operating under a mining lease.

“Upon renewal of the licence, the rates for the various categories will be N42,000 for an exploration licence, 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 statement read.

The company said the new regulations will also cover other services, including applications for mineral rights at the Mining Cadastral Office (MCO), as well as the transfer, extension, surrender and consolidation of mineral rights.

According to Mr Alake, the new regulations aim to maximise royalties from the extraction of key minerals such as lithium and gold, which will increase the country’s revenue and contribute significantly to economic development.

Under the new rates regime, the statement said lithium ore (Lepidolite) with a current market value of N600,000 per tonne is subject to a royalty of N18,000 per tonne; lithium (Kunzite) with a current market value of N3 million per tonne is subject to a royalty of N90,000 per tonne while lithium ore (Spodumen) with a current market value of N316,667 per tonne is subject to a royalty of N9,500 per tonne.

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“The rate review also applies to services provided by the Mining Cadastral Office and the Nigeria Geological Survey Agency (NGSA).

“Detailed information on the new rates system will be published on the Ministry’s website. The Minister confirmed that the new rates system will come into effect immediately,” the statement reads.