Enugu moves to regulate mining operations
Ministry of Solid Minerals Development has announced new rates for the mining sector to enhance Ease of Doing Business (EoDB) and consolidate ongoing reforms.
Also, Enugu State government has announced its readiness to regulate mining operations to ensure environmental safety and enhance the sector’s development in the state.
At a briefing, yesterday, the Minister, Dele Alake, stated that the review underscored the Federal Government’s commitment to increase revenue from solid minerals and enhance service delivery to bolster the sector’s contribution to economic development.
Under the new regime, which Dele said takes immediate effect, investors applying for a Mining Lease (ML) licence will pay N3 million, while Small Scale Mining Lease (SSML) applicants will pay N300,000 for the first two cadastral units. The cost to obtain an Exploration Licence (EL) is N600,000 for the first 100 cadastral units. A Quarry Lease (QL) now attracts N300,000 while a Reconnaissance Permit (RP) is N300,000.
The new regulations, introduced in consultation with industry stakeholders, aim to discourage speculation and address the paucity of funds, limiting the federal government’s capacity to improve ease of doing business in the sector.
The new rates, which affect 268 items in the industry, include a yearly service fee of N31,500 for the first time, N260,000 for SSML, N500,000 for QL and N1.25 million for firms operating with ML.
Following the renewal of licences, the rates for the respective categories will be N42,000 for EL, N420,000 for SSML, N1.5 million for ML and N1.1 million for QL.
Other services affected by the new regulations include mineral title applications of the Mining Cadastral Office (MCO), alongside the transfer, enlargement, surrender and consolidation of mineral titles.
According to Alake, the new regulations seek to maximise royalties from critical minerals such as lithium and gold to boost the country’s revenue base and contribute significantly to economic development.
In the new rates regime, Lithium Ore (Lepidolite) at the market value of N600,000 per tonne attracts an N18,000 royalty per tonne; Lithium (Kunzite) with market value of N3 million per tonne attracts a N90,000 royalty per tonne, while Lithium Ore (Spodumene) with market value of N316,667 per tonne attracts a N9,500 royalty per tonne.
The rates review also affects services rendered by the MCO and the Nigeria Geological Survey Agency (NGSA). Comprehensive details of the new rates regime will be posted on the ministry’s website, www.msmd.gov.ng.
SPECIAL Adviser to the Enugu Governor on Solid Minerals and Mining, Samuel Okoro, announced the state’s readiness during the inaugural meeting of the state’s Mineral Resources and Environmental Management Committee (MIREMCO), in Enugu, yesterday.
The Federal Government and Enugu agreed, in May, to set up the state’s MIREMCO to curb illegal mining and monitor mining companies’ compliance with environmental standards.
Presenting a Four-Point Agenda for Sustainable Development in Enugu State Mineral Sector, Okoro, who chairs the committee that has Alake’s nod, said it was anchored on productivity, revenue generation, environmental management and safety.
Regretting that over 90 per cent of the titles from all mineral classes were either inactive or dormant, he said the inactivity significantly hampers the productivity and economic potential of the state.
Okoro advised title holders to be part of a meeting scheduled for July 12, 2024, saying it was aimed at ascertaining the challenges they had been facing, resulting in their inability to go into full mining operations, as only less than 10 per cent of title holders were in operation.
