Govt pegs mining lease licence at N3m, eyes higher royalties

In a bid to enhance ease of doing business and deepen ongoing reforms in the mining sector, the Ministry of Solid Minerals Development has unveiled a new fee structure with the aim to increase royalties.

During a press conference in Abuja on Thursday, Dr. Dele Alake, the Minister of Solid Minerals Development, emphasised that this review is part of the government’s strategy to boost revenue from solid minerals, improve service delivery, and elevate the sector’s contribution to economic growth.

According to the new fee schedule, investors will now pay N3 million for a Mining Lease license. Small Scale Mining Lease (SSML) applicants will be charged N300,000 for the first two cadastral units. An Exploration Licence (EL) will cost N600,000 for the initial 100 cadastral units. Additionally, a Quarry lease and reconnaissance permit will each attract a fee of N300,000.

These updated regulations, developed in collaboration with industry stakeholders, are designed to curb speculation and address funding shortages that hinder the federal government’s ability to streamline business operations in the sector.

The revised rates, affecting 268 items, include an annual service fee of N31,500 for the first year, N260,000 for a Small Scale Mining License (SSML), N500,000 for a Quarry Lease, and N1,250,000 for companies with a Mining Lease. Upon license renewal, fees will be 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.

The new regulations also impact mineral title applications and various services provided by the Mining Cadastral Office (MCO), such as the transfer, enlargement, surrender, and consolidation of mineral titles.

Dr. Alake highlighted that the aim is to optimize royalties from critical minerals like lithium and gold, thereby enhancing national revenue and significantly contributing to economic development.

Under the revised rates, lithium ore (Lepidolite) with a market value of N600,000 per tonne will have an N18,000 royalty per tonne; lithium (Kunzite), valued at N3 million per tonne, will incur a N90,000 royalty per tonne; and lithium ore (Spodumene), worth N316,667 per tonne, will attract a N9,500 royalty per tonne.

These changes also extend to services provided by the Nigeria Geological Survey Agency (NGSA) and will be detailed on the Ministry’s website, www.msmd.gov.ng.