Nigerian Mineral Law

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NIGERIAN MINERAL GLG 405

LAW
INTRODUCTION
Like every other sector there are laws and regulations guiding the Nigerian solid
mineral sector.
Individuals can not just start mining minerals with out permits/licenses even if they
own the land in which those mineral deposits are found.
So whom is responsible for issuing such permits/licences ?
MINING CADASTRE OFFICE
(MCO)
The Nigeria Mining Cadastre Office has exclusive responsibility to administer
mineral titles in Nigeria. Some of its key responsibilities includes;
1. Consider applications for mineral titles and permits, issue, suspend and upon
written approval of the Minister, revoke any mineral title.
2. Receive and dispose of applications for the transfer, renewal, modification,
relinquishment of mineral titles or extension of areas.
3. Maintain a chronological record of all applications for mineral titles in a Priority
Register which is to be specifically used to ascertain the priority and registration of
applications for exclusive rights or vacant areas.
TYPES OF MINERAL TITLES
Reconnaissance Permit
Exploration Licence
Small Scale Mining Lease
Mining Lease
Quarry Lease
Water Use Permit
RECONNAISSANCE PERMIT

Issued within thirty days of application and after payment of fees


The permit enables the holder to carry out reconnaissance on non-exclusive basis
The permit does not permit you to engage in drilling, excavation or other sub-surface
techniques.
Most conduct activities in a environmental and socially responsible manner
The permit is issued for one year and it is not transferable, but renewable annually
EXPLORATION LICENCE
Issued within thirty days of application and after payment of fees
A licence will not be granted over any land that is subject of an existing Exploration
Licence, Mining Lease, Small Scale Mining Lease, Quarry Lease or closed to
prospecting/mining activity (e.g. forest reserves, military areas, government
development areas, national heritage area etc)
The duration of an Exploration Licence is three (3) years
The area of land covered by an Exploration Licence shall not exceed 200Km square.
SMALL SCALE MINING LEASE
Issued within forty five days of application and after payment of fees
A SSML shall not be granted in respect of any area within an exploration licence
area, mining lease area or quarry lease area to any person except the holder of an
exploration licence, quarry lease or mining lease covering the area.
The duration of a SSML is five (5) years and is renewable for further periods of five
years
The area of land for a SSML shall not exceed 3Km square. When the level of
operations of a SSML exceeds any of the criteria established in definition of SSML,
the holder shall convert such a lease into mining lease
MINING LEASE
Issued within forty five days of application and after payment of fees
The duration of a Mining Lease is 25 years, renewable every 20 years.
The lease area shall be determined in relation to the ore body as defined in the
feasibility study, in addition to an area reasonably required for the working of the
deposit, not exceeding 50Km
The lease confers upon the holder the right to carry out mineral exploitation within
the mining lease area.
QUARRY LEASE
Issued within forty five days of application and after payment of fees.
All operations for the extraction of construction materials are to be carried out under
a Quarry Lease.
The duration of a Quarry Lease shall not exceed five (5) years and may be renewed
every five years
The area of land shall not exceed 5Km .
WATER USE PERMIT
The area of land in respect of which any water use permit (WUP) is granted shall not
exceed the area reasonably required for the purpose of the permit as defined in the
regulation. A WUP will remain in force as long as the mining lease, SSML, or quarry
lease for which the water use permit was granted remains valid.
REQUIREMENTS FOR
APPLICATION
Mining Leases
(a) Pre grant conditions
Duly completed application forms * Prospecting plan/reserve estimation * Valid
exploration licence * Evidence of financial capability * Evidence of technical competence
* Consent from land owners/land occupiers. * Attestation of non conviction of criminal
offences under the Act. * Evidence of payment of appropriate fees and rents. * Certified
true copy of certificate of incorporation. * Mineral/s to be exploited (section 64).
(b) Pre-Development conditions (Post-grant)
* EIA-Environmental Impact Assessment - (section 119) * CDA-Community
Development Agreement - (section 116) * Compensation -(section 107) * Closure
plans/Rehabilitation plan - (section 61)* Reports from state bodies
Water Use Permit
(a) Pre-grant conditions
* Duly completed application forms * Copy of mining title granted * Description of
area and water use plan * Agreement with all persons likely to be adversely affected
by the grant of the permit* Receipt of payment of the application fee.
SUMMARY
S/NO TYPE OF LICENCE MAXIMUM SIZE DURATION

1 Reconnaissance Permit (RP)   1 years (Renewable yearly)

2 Exploration Licence (EP) 200Km2 /2000Ha/952CUs 3 years (Renewable twice for 2 years each)

3 Small Scale Mining Lease (SSML) 3Km2 /300Ha/14CUs 5 years (Renewable for further periods of 5 years)

4 Mining Lease (ML) 50Km2 /5000Ha/238CUs 25 Years (Renewable every 20 years)

5 Quarry Lease (QLS) 5Km2 /500Ha/23CUs 5 years (Renewable for further periods of 5 years)

6 Water Use Permit (WUP)   Same with duration of lease


CADASTRAL UNITS (CU)
Applications for exclusive licence and leases must be submitted in conformity with
the allowed geometric shapes of polygons, and must be regular and parallel to
coordinates system used in national topographic maps. The polygons should have a
minimum dimension which is called a CADASTRAL UNIT
A license polygon should always be made up of a certain number of Cadastral Units
(CU) or squares.
For Nigeria, the cadastral topographic maps of 1:50,000 scale are divided by a grid
of 15 seconds by 15 seconds (15” x 15”), using the Geographic Coordinate System
(latitude/longitude: degree/minute /seconds).
CADASTRAL UNIT (CU)
The average area of one CU (square) of 15” x 15” is roughly 21 Hectares. That
means a polygon of one minute by one minute (1'x1') will have 16 CUs (squares)
with area of about 336 Hectares (or about 3 Km square).
Applicants are required to submit their applications for licenses together with
coordinates of either the corners of the entire polygons or CUs applied for or of the
centre of the CUs. The coordinates will therefore have an incremental rate of 15
seconds (15”) on both the x and y axes of the polygons. The CUs must be adjoining
by the sides not the edges (i.e. placed side by side to each other). The polygons
cannot also be “floating” or placed anywhere
EXAMPLE OF CADASTRAL
UNITS
CLASS ACTIVITY
FEES(NAIRA)
1. APPLICATION PROCESSING FEE
a) Reconnaissance Permit 10,000
b) Exploration Licence 20,000
c) Small Scale Mining Lease 10,000
d) Mining Lease 50,000
e) Quarry Lease 20,000
f) Water Use Permit 10,000
FEES(NAIRA)
2. ANNUAL SERVICE FEE (PER CADASTRE UNIT)
a) Reconnaissance Permit FREE
b) Exploration Licence 2,000
c) Small Scale Mining Lease 10,000
d) Mining Lease 25,000
e) Quarry Lease 20,000
f) Water Use Permit 10,000
FEES(NAIRA)
3. PROCESSING OF RENEWAL APPLICATION
a) Reconnaissance Permit 10,000
b) Exploration Licence 30,000
c) Small Scale Mining Lease 30,000
d) Mining Lease 250,000
e) Quarry Lease 50,000
f) Water Use Permit 20,000
FEES(NAIRA)
4. PENALTY FOR LATE RENEWAL APPLICATION
a) Reconnaissance Permit 10,000
b) Exploration Licence 100,000
c) Small Scale Mining Lease 100,000
d) Mining Lease 100,000
e) Quarry Lease 100,000
FEES(NAIRA)
5. APPLICATION FOR ENLARGEMENT (PROCESSING)
a) Exploration Licence 40,000
b) Small Scale Mining Lease 40,000
c) Mining Lease 40,000
d) Quarry Lease 40,000
FEES(NAIRA)
6. APPLICATION FOR RELINQUISHMENT
a) Small Scale Mining Lease 10,000
b) Mining Lease 10,000
c) Quarry Lease 10,000
d) Exploration Licence 10,000
FEES(NAIRA)
7. APPLICATION FOR TRANSFER
a) Exploration Licence 100,000
b) Small Scale Mining Lease 50,000
c) Mining Lease 250,000
d) Quarry Lease 100,000
FEES(NAIRA)
8. APPLICATION TO ENDORSE ADDITIONAL MINERAL
a) Exploration Licence N20,000
b) Small Scale Mining Lease N10,000
b) Mining Lease N50,000
c) Quarry Lease N10,000
APPLICATION FORM
EXAMPLE OF A GRANT
EXAMPLE OF A REVOCATION
PRESIDENTIAL ARTISANAL
GOLD MINING DEVELOPMENT GLG 405

INITIATIVE (PAGMI)
INTRODUCTION
The Presidential Artisanal Gold Mining Development Initiative (“PAGMI”) is a
comprehensive artisanal and small-scale gold mining development programme,
launched in 2019 to foster the formalization and integration of artisanal gold mining
activities into Nigeria’s legal, economic, and institutional framework.

PAGMI has been designed to integrate social, environmental, health and safety,
economic, commercial, and technical considerations, into its implementation.
WHY PAGMI?
Using data from UN Comtrade, It was estimated that between 2012–2018, 97 tonnes
of gold valued at over $3 billion was illegally smuggled out of Nigeria.
In addition to the economic sabotage, illegal artisanal mining has fuelled security
instability and mercury and lead poisoning incidents across gold mining
communities.
From 2010 to 2016, there were more than 7,000 incidences of lead poisoning,
resulting in 700 deaths related to gold mining activities in Zamfara and Kebbi alone.
OBJECTIVE
The provision of access to markets for the artisanal miners through a National Gold
Purchase Program and the deployment of enhanced mining methods at artisanal and
small-scale mining sites.
PAGMI aims to deploy safer and more efficient mining and processing technologies
across artisanal mining locations across the country.
PAGMI will buy all the gold produced by artisanal/small-scale miners and
aggregated by licensed buying centers and aggregators for supply to the Central
Bank of Nigeria.
TARGETED GOALS
Jobs
Identity Management
Revenues
Standards
Security
CLASS ACTIVITY
What are your thoughts about PAGMI?
How do you think the initiative can be improved ?
END OF CLASS

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