PRESS RELEASE
FG ANNOUNCES NEW RATES FOR MINING SERVICES
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, marking 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 disclosure today during a press briefing held today in the Ministry's Headquarters Office in Abuja.
Recognizing the improved services enjoyed by stakeholders, Dr. Alake emphasized the necessity of adjusting rates to reflect the substantial investments made by the government. The new rates ensure that those 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'', the Minister added.
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''.
According to the Minister; ''Examples include the Mining Cadastre Office, the agency responsible for licensing, which acquired the new mining information system, the EMC+ portal. This enabled 24-hour application and administration system that accelerated the rate of applications and access of applicants to the MCO.
The major highlights of the New Rates Regime cut across 268 items but the major highlights, according to the Minister are:
Applicants for Mining Lease will pay N3million; 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 increased by 100%, with specific rates for various minerals. Baryte with N42,000 as Market value per tonne attracts N2,100 Royalty; Coal with N100, 000 per tonne market value attracts N3,000; Gold with N1,081,200 per ounce as market value attracts a royalty of N14,400 per tonne. Lithium Ore (Lepidolite) at the current market value of N600,000 per tonne attracts N18,000 Royalty per tonne; Lithium (Kunzite) with current market value at N3 million per tonne attracts N90, 000 Royalty per Tonne and Lithium Ore (Spodumene) with current market value of N316,667 per tonne attracts N9, 500 Royalty per tonne.
Licence for Explosives ranges from N500,000 to N20 million;
Gold Refining Licence costs N5 million and Mineral Processor permit is N100,000;
Mineral Resources Map costs N500,000;
while Geological Map of Nigeria is now N300,000.
For emphasis and further justifications for the new rates; Dr. Alake highlighted several successful initiatives of the Ministry which include the Mineral Sector Support for Economic Diversification (MinDiver) Project, which have fortified the Sector’s foundation:
Artisanal and Small-Scale Miners Department: Creation of the first electronic inventory of operators, enhancing 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 a comprehensive detail of the new rates will be posted on the Ministry's website-www.msmd.gov.ng
Chinwe Ekwugha (AD)
For:
Head (Information & PR)
More photos below.
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