Licensing issues

The Minister of Solid Minerals Development, Oby Ezekwesili has reiterated her commitment towards sanitizing the solid mineral sub sector by establishing a mining cadastre that will regulate the issuance of mining licenses, leases and other mining rights.

She has therefore directed the revalidation of existing mineral tittles, leases and licenses with a view to expunging the ones that do not meet up with the existing legal requirements for holding such titles.

License types

There are various types of mining Licenses/leases, which will be issued under the Minerals and Mining Act by the Minister based on the recommendation of the Mining Cadastre Office. These are:

Reconnaissance Permit: a non-exclusive Permit to search for Mineral Resources; no area limits.

Exploration License: right to explore [discover, determine characteristics and evaluate economic value of Mineral Resources] on an exclusive basis for all Mineral Resources within the title area. This has a typical duration of 3 years, renewable for 2 further periods of 2 years each.

Small-Scale Mining Lease: right to exclusively carry out small-scale mining operations [Mining Operations involving low-level technology or methods not requiring substantial expenditure] within the title area. A five-year lease period is applicable for all alluvial/artisanal leases, renewable for further periods of 5 years each; for other small-scale mining operations; the lease period is 10 years, renewable for further periods of 10 years.

Mining Lease: an exclusive right carry out all Mining Operations within the Mining Lease area. All Mining leases are for 25 years, renewable every 20 years.

Quarry Lease: an exclusive right to carry out quarry operations within the Quarry Lease area. Quarry leases are for duration of 10 years.

Water Use Permit: an exclusive right to obtain and convey water; occupy land for the conveyance of water.