In this post, we detailed what Mining license is in Nigeria, the eligibility to mine and how much (fees/ cost) is a mining license?, Types of mining licenses and requirements.
Nigeria is set to grant new mining licences exclusively to companies that provide a plan for local mineral processing, Reuters reported. This marks a significant shift from the country’s long-standing policy of exporting unprocessed raw materials.
A government spokesperson said that the government aims to maximise the value derived from Nigeria’s solid mineral deposits. Despite being Africa’s leading energy producer, Nigeria has historically gained minimal value from its abundant mineral resources. The mining sector’s contribution to the nation’s gross domestic product remains below 1%, attributed to inadequate incentives and neglect.
Mining Business in Nigeria
For a company to start mining, you need to have a registered business/ company in Nigeria to mine. Contact Aziza Nigeria for support in obtaining corporate Mining license in Nigeria.
In Nigeria, mining business has three key stakeholders that must be engaged. This starts with securing e a Mining licenses/ permits from The Nigeria Mining Cadastre Office (NMCO), engage the state and communities/ landlord of the land where the mining activities will take place.
Mining sector is one of the lucrative sectors of the Nigeria economy. Nigeria is endowed with several types s of mineral resources. Every investor or company willing to engage in the Nigerian mining sector requires a government approval or license to proceed. Mining license in Nigeria is usually relevant for companies seeking to engage in the mining sector, with or without a mining lease.
There are two major types of mining licenses in Nigeria that are relevant and important for every company engaging in mining sector, depending on their type of activities in the sector. These licenses are Possess or Purchase License and Mineral Buying Centre license. Also important for companies that choose to export the mineral resources is the Mineral Export Permit.
Read: Oil and Gas Permits/ Licenses to Know
The Mining Cadastre Office within the Ministry of Mines and Steel Development (MMSD) are responsible for the issuance of mining licenses and permit. All the mining licenses and permit serve different purposes and their conditions for issuance come with different requirements. It is important to separately highlight and discuss the various licenses.
What is Mining?
The industry or activity of removing substances such as coal or metal from the ground by digging or the industry or activity of removing coal and other substances from the earth.
Types of mining licenses in Nigeria
There are two major types of mining licenses in Nigeria that are relevant and important for every company engaging in mining sector, depending on their type of activities in the sector. These licenses are Possess/ Purchase License and Mineral Buying Centre license. It is also important for companies that choose to export the mineral resources is the Mineral Export Permit. The Mining Cadastre Office within the Ministry of Mines and Steel Development (MMSD) are responsible for the issuance of mining licenses and permit.
All the mining licenses and permit serve different purposes and their conditions for issuance come with different requirements. Here, we highlight and discuss the various mining licenses / permits and their requirements in Nigeria.
Read: Nigeria Mining Cadastre Office (NMCO)
Possess Or Purchase License:
Possess & Purchase License is issued to companies that are not willing to commence the mining process immediately, but rather purchase from mining companies, either for processing or immediate export.
The Possess & Purchase License is also issued by the Ministry of Mines Steel Development. It is renewable annually.
Possess Or Purchase Mining License requirements:
– CAC Incorporation Documents
– Tax Clearance Certificate an
– Attestation of Non-conviction from a Legal Practitioner
– Bank Reference Letter
– Consent of a Mining Permit Holder among others.
Mineral Buying Center License:
Mineral Buying Centre License is also similar to that of Possess & Purchase License, save for it includes additional requirements such as Warehouse and Environmental Impact Assessment Report. The License permits a company to buy and store lithium in a particular location.
Mineral Export Permit:
Mineral Export Permit is the license or permit that enables any individual or company to export mineral resources out of Nigeria. Export Permit must be obtained each time any resources are to be exported out of Nigeria.
The key requirements for Mineral Export Permit:
- CAC Incorporation Documents
- Tax Clearance Certificate
- Bank Reference Letter
- License to Possess or Purchase mineral resources
- Application letter stating the quantity, type and destination of the mineral resources to be exported
- Export Certificate from the Nigeria Export Promotion Council
- Evidence of payment of royalties to the Federal Government.
- Payment of prescribed fees.
Read: Local Content/ NCDMB (NOGIC) Certificate
Mining License/ Permits in Nigeria Requirements
You have to submit this information for your mining license to be duly processed.
- Duly completed application forms
- Pre-Feasibility Report (with COMEG seal & signature)
- Evidence of Financial capabilities
- Evidence of Technical competence Person(s),
- Work plan
- Irrevocable Consent from land owner(s)/land Occupier(s),
- Attestation of no conviction of criminal offence under the Act (section 53 of the NMMA, 2007)
- Certified True Copy of Certificate of Incorporation
- Evidence of payment of processing fees
- Indicate particular Minerals to be Exploited
- Area specified to be surveyed in accordance with Coordination (Survey plan to be submitted)
Pre-exploration conditions:
Before you start your mining exploration, you have to comply with the following:
- Evidence of Environmental Impact Assessment – through Mines Environmental Compliance Department of the ministry.
- Evidence of Community Development Agreement
- Then, Evidence of host community Compensation for lands, cash crops etc.
- Submit Mine closure plan/rehabilitation plan ahead of closure time
Your required to also attach the following:
- Your personal data
- Your company registration certificate
- Evidence of agreement with the host communities
- Location of your site
- Type of mineral to mine
Read: Business/ Company Registration in Nigeria
CONCLUTION
Finally, the Nigerian government is committed to developing the mining industry in the country and is keen to ensure that the industry is conducted in a safe and responsible manner. The issuance of permits to companies to begin mining operations or trading of mineral resources is an important step in this process and is likely to lead to increased investment in the industry.
For Mining license/ permit support in Nigeria, contact Aziza Nigeria. Remember, you can start your business/ company registration in Nigeria with us and to obtain other relivant corporate compliances like Tax certificate and other licenses/ permits to to operate in Nigeria.