CHAPTER FIVE
PROCEDURES FOR OBTAINING MINING RIGHTS
5.1 Shapes of licenses and lease
In accordance with the Mining Regulations 2011, applications for exclusive license 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 (also simply referred to as SQUARE). A license polygon should always be made up of a certain number of Cadastral Units (CU) or squares. Consequently, the dimensions of the sides of any polygon corresponding to the license area will always be multiples of the size of the Cadastral Unit. 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. They must be located coherently with pre-defined and standardized grid.
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).
The average area of one CU (square) of 15” x 15” is roughly 20 Hectares. That means a polygon of one minute by one minute (1'x1') will have 16 CUs (squares) with area of about 300 Hectares (or 3 Km2).
The coordinate values limiting the license polygons can be obtained by direct readings from the cadastral maps (topo-sheets of 1:50,000 scale), or by readings from the field using the Global Positioning System (GPS) with the correct settings (i.e. Longitude/Latitude, WGS 84 – Minna Datum).
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. There is also the need to submit survey plans for lease applications. The Mining Cadastre Office will generate the license plans upon acceptance of the application.
The Nigeria Mining Cadastre Office has exclusive responsibility to administer mineral titles in accordance with the following statutory guidelines:
i. Consider applications for mineral titles and permits, issue, suspend and upon written approval of the Minister, revoke any mineral title;
ii. Receive and dispose of applications for the transfer, renewal, modification, relinquishment of mineral titles or extension of areas;
iii. 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;
iv. Maintain a general register which is to be used for all other types of applications where registration of the priority is not required;
v. Under take such other activities reasonably necessary for the purpose of carrying out its duties and responsibilities under the provisions of the Nigerian Minerals and Mining Act, 2007.
5.2 Types of mineral titles
In line with section 46 of the Nigerian Minerals and Mining Act, 2007, the right to search for, or exploit minerals in Nigeria, is governed by one of the following mineral titles:
Reconnaissance Permit
Exploration License
Small Scale Mining Lease
Mining Lease
Quarry Lease
Water Use Permit
5.2.1 Reconnaissance Permit (Section 47, 57 and 58 of NMMA, 2007)
The Mining Cadastre Office, shall within 30 days of the receipt of application of any qualified applicant and upon the payment of the prescribed fees, grant and issue a Reconnaissance Permit to search for minerals. The permit enables the holder to carry out reconnaissance on non-exclusive basis. The holder of a Reconnaissance Permit is not to engage in drilling, excavation or other sub-surface techniques, and must conduct activities in an environmentally and socially responsible manner and compensate for any damage to crops or Property in the course of prospecting. The permit is issued for one year and it is not transferable, but renewable annually as further spelt out in sections 57 and 58 of the Nigeria Minerals and Mining Act, 2007 and the Mining Regulation 2011.
5.2.2 Exploration Licence (Section 48 and 59 of NMMA, 2007)
The Nigeria Mining Cadastre Office, on receipt of a valid application, is obliged by the law to grant and issue an Exploration Licence within 30 days. 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, provided that title holder has complied with minimum work commitment/programme and all other legal requirements. The area of land covered by an Exploration Licence shall not exceed 200Km2 i.e. 930 CUs.
5.2.3 Small Scale Mining Lease (Section 49 of NMMA, 2007)
The Mining Cadastre Office, on receipt of a valid application, grants and issues a Small-Scale Mining Lease (SSML) within 45 days. A SSML shall not be granted in respect of any area within an exploration license area, mining lease area or quarry lease area to any person except the holder of an exploration license, 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 provided that the minimum work obligations have been met. The area of land for a SSML shall not exceed 3Km2. When the level of operations of a Small-Scale Mining Lease exceeds any of the criteria established in definition of SSML, the holder shall convert such a lease into mining lease by submitting a written application to the MCO.
5.2.4 Mining Lease (Section 50 of the NMMA, 2007)
The Mining Cadastre Office, on receipt of a valid application, grants and issues a Mining Lease within 45 days of the application. The duration of a Mining Lease is 25 years, renewable every 20 years, provided that the holder has complied with minimum work commitments and that all other legal and regulatory requirements have been met.
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 50Km2 (245 CUs).
5.2.5 Quarry Lease (Section 51 of the NMMA, 2007)
All operations for the extraction of construction materials are to be carried out under a Quarry Lease. On receipt of a valid application, the Mining Cadastre Office shall grant a Quarry Lease to the applicant within 45 days. The duration of a Quarry Lease shall not exceed five (5) years and may be renewed every five years as required, provided the renewal application is made within three (3) months before the expiration of the lease. The area of land shall not exceed 5Km2. (25 CUs).
5.2.6 Water Use Permit (Section 52 of the NMMA, 2007)
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.
5.3 Requirementsforapplicationfor mineral titles
The requirements for application for various mineral titles are as stated below:
5.3.1 Mining Leases
a) Pre-grant conditions
* Duly completed application forms
* Pre-Feasibility Report
* Prospecting plan/reserve estimation
* Valid exploration license
* 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).
* Area specified to be surveyed in accordance with provisions of Survey Co-ordination Act (section 79).
* Notice to land owner (private or state land) with a response on rate to be paid, (section 102).
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/ MIREMCO
5.3.2 Quarry Leases/Small Scale Mining Leases
a) Pre-grant conditions
* Duly completed application forms
* Pre-Feasibility Report
* Evidence of Financial capabilities - (section 54 of the NMMA)
* Evidence of Technical capabilities (CV of Technical Person(s) (Section 54 of the NMMA)
* Consent from land owners/land occupiers-(section 100 of the NMMA)
* Attestation of no conviction of criminal offences under the Act (section 53 of the NMMA)
* Certified true copy of certificate of incorporation
* Evidence of payment of fees and rents
* Area specified to be surveyed in accordance with provisions of Survey
* Coordination Act - (section 79 of the NMMA)
* Notice to land owner (private or state land) with a response on rate to be paid - (section 102 of the NMMA)
* Mineral/s to be exploited - (section 64 of the NMMA)
b) Pre-Development conditions (Post Grant)
* EIA-Environmental Impact Assessment - (section 119)
* CDA - Community Development Agreement - (section 116)
* Compensation – (section 107)
* Submit closure plan/rehabilitation plan - (section 61)
* Reports from state bodies/ MIREMCO
5.3.3 Exploration License
(a) Pre-grant conditions
* Duly completed application forms
* Minimum work programme (Detailed)
* Evidence of financial capabilities (section 54 of the NMMA)
* Evidence of technical competence (section 54 of the NMMA)
* Consent from land owners/land occupiers-(section 100 of the NMMA)
* Attestation of non-conviction of criminal offences under the Act
* Certified true copy of certificate of incorporation
* Evidence of payment of fees and rents
* Minerals to be explored (section 64 of the NMMA)
(b) Pre-Development conditions (Post grant)
* EIA-Environmental Impact Assessment (section 119 of the NMMA)
* Compensation
* Closure plan/rehabilitation plan
* Reports from state bodies/ MIREMCO
5.3.4 Reconnaissance Permit
(a) Pre -grant conditions
* Duly completed application forms
* Description of the work area and the activities to be carried out
* Attestation of non-conviction of criminal offences under the Act
* Receipt of payment of the application fee
* Evidence of technical competence (section 54 of the NMMA)
* Evidence of financial capability (section 54 of the NMMA)
b.) Pre-Development Conditions Post-Grant Compensation Section 56.
5.3.5 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.