By George George Idowu
The Federal Government of Nigeria, through the Ministry of Solid Minerals Development, has unveiled new rates for mining licences and permits in a bid to enhance the sector’s contribution to economic growth and improve the ease of doing business.
At a press conference on Saturday, the Minister of Solid Minerals Development, Dr. Dele Alake emphasized the federal government’s commitment to increasing revenue from solid minerals to improve service delivery and bolster mining’s economic impact.
According to the minister, the aim of the increase in mining licences was to maximize royalties from critical minerals like lithium and gold to boost national revenue adding that the new rates regime takes effect.
He said that the revised rates are part of ongoing reforms and were introduced after consultation with industry stakeholders to discourage speculation and address funding limitations.
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Under the new regime, investors applying for a Mining Lease licence will now pay N3 million, while Small Scale Mining Lease (SSML) applicants will pay N300,000 for the first two cadastral units.
An Exploration Licence (EL) will cost N600,000 for the first 100 cadastral units, a Quarry lease will be N300,000, and a reconnaissance permit will be N300,000.
The new regulations affect 268 items in the industry, including an annual service fee of N31,500 for the first time, N260,000 for a Small Scale Mining License (SSML), N500,000 for a Quarry Lease, and N1,250,000 for firms operating with a Mining Lease.
Renewal rates for licences are set at 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.
Additionally, the new rates impact services such as mineral title applications, transfers, enlargements, surrenders, and consolidations handled by the Mining Cadastral Office (MCO).
He said: “For example, lithium ore (Lepidolite) with a market value of N600,000 per tonne will attract an N18,000 royalty per tonne, while lithium (Kunzite) with a market value of N3 million per tonne will have a N90,000 royalty per tonne. Lithium ore (Spodumene) with a market value of N316,667 per tonne will attract a N9,500 royalty per tonne,” he added.
