The Federal Government, through the Ministry of Solid Minerals Development, has announced a new set of rates for the mining sector.
This, according to the FG is to enhance the ease of doing business and consolidate ongoing reforms.
The announcement was made at a press conference on Saturday, the Minister of Solid Minerals Development, Dr. Dele Alake.
The review highlighted the federal government’s dedication to boosting revenue from solid minerals to improve services and strengthen mining’s role in economic growth.
Under the updated framework:
- Mining Lease licence applicants will pay ₦3 million.
- Small Scale Mining Lease (SSML) applicants will pay ₦300,000 for the initial two cadastral units.
- Exploration Licence (EL) will cost ₦600,000 for the first 100 cadastral units.
- Quarry lease and reconnaissance permit both now cost ₦300,000.
The new regulations, developed with industry stakeholders, aim to reduce speculation and tackle funding shortfalls that hinder the federal government’s ability to enhance the sector’s business environment.
The updated fees include:
- Annual service fee of ₦31,500.
- Small Scale Mining License (SSML): ₦260,000.
- Quarry Lease: ₦500,000.
- Mining Lease: ₦1,250,000.
Upon renewal, fees are:
- Exploration Licence: ₦42,000.
- Small-Scale Mining Lease (SSML): ₦420,000.
- Mining Lease: ₦1,500,000.
- Quarry Lease: ₦1,100,000.
The revised regulations also affect the Mining Cadastral Office (MCO) services, including mineral title applications, transfer, enlargement, surrender, and consolidation of titles.
Alake noted the new rates aim to maximize royalties from minerals like lithium and gold to enhance national revenue and support economic growth.
Specific royalties include:
- Lithium ore (Lepidolite): ₦18,000 per tonne (market value: ₦600,000 per tonne).
- Lithium (Kunzite): ₦90,000 per tonne (market value: ₦3 million per tonne).
- Lithium ore (Spodumene): ₦9,500 per tonne (market value: ₦316,667 per tonne).
The revised rates apply immediately and detailed information will be available on the ministry’s website.
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