The Honourable Minister of Solid Minerals Development, Dr. Dele Alake, has unveiled a transformative new rates regime for services rendered by the Ministry’s departments and agencies. This move marks a significant step in the ongoing efforts by the present administration to enhance the sector’s economic consolidation and international competitiveness.
Dr. Alake made this announcement today during a press briefing held at the Ministry’s Headquarters Office in Abuja. He emphasized the necessity of adjusting rates to reflect the substantial investments made by the government, ensuring that stakeholders who benefit from these services contribute equitably to the sector’s sustainability.
“For instance, we supervised the successful implementation and conclusion of the mineral sector support for economic diversification, MinDiver project,” Dr. Alake stated.
Elaborating further, Dr. Alake explained that the new rates regime, in line with the Ministry’s seven-point agenda, is designed to reflect the qualitative measures and technological advancements recently implemented. These enhancements aim to elevate the technical efficiency of services, streamline transaction processes, and bolster the infrastructure necessary to support the surge in business interest.
He highlighted examples such as the Mining Cadastre Office, the agency responsible for licensing, which has acquired the new mining information system, the EMC+ portal. This system enables a 24-hour application and administration process that accelerates the rate of applications and access for applicants to the MCO.
The major highlights of the new rates regime cover 268 items, with significant changes including:
- Applicants for Mining Lease: N3 million
- Reconnaissance Permit: N300,000
- Exploration Licence: N600,000
- Small-Scale Mining Licence: N300,000
- Quarry Lease: N600,000
- Water User Permit: N300,000
- Annual Service Fee: N31,500 per cadastral unit for the first time; Small Scale Mining N260,000; Quarry Lease N500,000; and Mining Lease N1,250,000
- Penalties for Late Renewal of mineral titles: reconnaissance permit N600,000; exploration Licence N1,500,000; Mining Lease N300,000; and Quarry Lease N1,250,000
Royalty rates have increased by 100%, with specific rates for various minerals, such as:
- Baryte: N2,100 per tonne (Market value N42,000 per tonne)
- Coal: N3,000 per tonne (Market value N100,000 per tonne)
- Gold: N14,400 per tonne (Market value N1,081,200 per ounce)
- Lithium Ore (Lepidolite): N18,000 per tonne (Market value N600,000 per tonne)
- Lithium (Kunzite): N90,000 per tonne (Market value N3 million per tonne)
- Lithium Ore (Spodumene): N9,500 per tonne (Market value N316,667 per tonne)
Other fees include:
- Licence for Explosives: Ranges from N500,000 to N20 million
- Gold Refining Licence: N5 million
- Mineral Processor Permit: N100,000
- Mineral Resources Map: N500,000
- Geological Map of Nigeria: N300,000
Dr. Alake also highlighted several successful initiatives of the Ministry, including the creation of the first electronic inventory of operators by the Artisanal and Small-Scale Miners Department, which enhances training, extension services, and government support for artisanal miners’ cooperatives.
In her vote of thanks, the Permanent Secretary commended the media for their astute support, promising that comprehensive details of the new rates will be posted on the Ministry’s website: www.msmd.gov.ng.
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