Cost of Mining License in Nigeria (2021)

No one would rule out the fact that the mining business isn’t a remunerative venture. Also, with Nigeria having lots of solid minerals in huge amounts, there is a certainty that a lot of investors will be interested in the money-spinning industry. In order to start the mining process, the most basic requirement is having a mining license. If you are interested in knowing how much it cost to obtain lease from the government, then this write-up will investigate into the cost of procuring a mining permit in Nigeria. We will likewise consider the prerequisites and how to obtain the mining license.

cost of mining license in Nigeria

The mining sector is a critical one, and this has made the federal government to give exceptional consideration to this industry. To guarantee compliance with principles, the government requires organizations, mining companies or people hoping to plunge into the mining industry to have gained the required mining permit. This article will give a green light on the associated fees and how to obtain the permit in the country.

COST OF MINING LICENSE IN NIGERIA (2021)

In Nigeria, there are different types of mining licenses, issued depending on the nature of the mining you intend on doing. For the most part, these licenses are very important for someone or an organization who intend on entering into the mining business. While there is a fixed charge for the permit, the general sum you’d pay relies upon different services the investor or mining company will be doing.

Looking at the cost of mining license, it can be seen that the amount that will be charged for obtaining the mining license costs more than ₦30,000 and it depends upon the nature of the work that will be done by the mining company.

Nonetheless, different charges, including the registration fees, the consultancy expenses, and other related expenses make this specific amount a way higher. On the whole, the cost will rely upon the company’s negotiation with the expert.

Breakdown of Mining license application fees:

Services Mining Lease Small Mining Lease
Application Processing fee ₦50,000 ₦10,000
Annual Service Fee ₦25,000 ₦10,000
Renewal Fee ₦250,000 ₦30,000
Late Renewal ₦100,000 ₦100,000

REQUIREMENTS FOR OBTAINING MINING LICENSE IN NIGERIA (2021)

Now that you have known the cost of mining license, there is some requirements you must meet before being considered for permit issuance. Certainly, before a company or individual is allowed a mining permit in Nigeria, there are a couple of prerequisites they must meet. Here are the basic and important requirements you should have in order to go about the process:

  • Certificate of Incorporation of the Company – Your mining company should have a certificate of incorporation which should the attached in the documentation. You ought to likewise have other related associate reports as they would be needed for the application.
  • Application letter – Even after filling the application form, you can’t write off the application letter. This letter is important as it will express the part of the mining area you are hoping to go into and the sort of minerals included.
  • Evidence of technically competent person – Your company or organization should be made up of technically competent persons. Thus, while you are applying for the permit, you will be needed to show the people you will be working with. They should be experts that are fully qualified to work in the mining field. These category of people could be a Geologists, for example, with COMEG accreditation.
  • Tax clearance certificate of the company – The applicant will likewise be relied upon to submit proof of tax clearance, which shows the organization pays taxes up to date. They will also be required to present this tax clearance certificate.
  • Attestation of non-conviction for a criminal offence by a Legal Practitioner – There is additionally a need to get a lawyer’s attestation of non-conviction for a criminal offence.
  • Banker’s Reference Letter – A reference letter from the organization’s bank will likewise be needed as a requirement for the mining license application process. Thus, the applicant ought to have a signed reference letter from their banker, prepared before the application for the mining permit.
  • Evidence of Payment – This is also one of the core prerequisite and it comes when the application for the actual permit has started. You are needed to pay a certain amount contingent upon how much the consultant assisting with the process has charged.
  • Pre-Feasibility Report with COMEG seal and signature
  • Prospecting plan / reserve estimation
  • Extant Exploration license
  • Evidence of financial capability
  • Evidence of technical competence
  • Irrevocable consent from land owners or occupiers.
  • Certified true copy of certificate of incorporation.
  • Minerals to be exploited
  • Survey plan of specified area to be submitted
  • Notice to land owners (private or state land) with a response on rate to be paid.

When these documents are set up, you will now have a smooth application process. In this way, you will be able to register and obtain your mining license. That’s it on the requirements for obtaining a mining license, how about we look at how to apply and get this license.

HOW TO APPLY AND OBTAIN A MINING LICENSE IN NIGERIA

Here is a simplified process on how to apply and obtain a mining license in the country:

  1. First, the applicant is to obtain the application form which is contingent upon l the category of lease he is applying for. This should be done through the Mining Cadastre Offices or download same from their website.
  2. The following step should be to to fill the Application form providing necessary information. This should be submitted in 3 copies along with the required documents and make pay the required processing fees to the Mining Cadestra Office.
  3. When the submission is done and application receipt issued, the Office shall notify land owner or occupiers in order to obtain an irrevocable consent.
  4. Upon evaluation and recommendation, ten organization or person applying for the license will be issued a lease, license or permit. Moreover, the applicant is expected to pay the Annual Service Fee within two weeks of being granted the lease, license or permit.

CONCLUSION

Nigerian Infopedia have been able to outline the cost of mining license in Nigeria. We additionally shed green light on the requirements needed and how to swiftly apply and obtain the license.

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