The Minister of Solid Minerals Development, Dr. Dele Alake, has announced 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 current administration to enhance the sector’s economic consolidation and international competitiveness.
Dr. Alake made this disclosure during a press briefing held today at 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. For instance, applicants for a Mining Lease will now pay N3 million, a Reconnaissance Permit will cost N300,000, an Exploration Licence N600,000, a Small-Scale Mining Licence N300,000, a Quarry Lease N600,000, and a Water User Permit N300,000. Annual service fees have also been adjusted, with a cadastral unit costing N31,500 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 have also been outlined, with specific rates for various permits and licenses.
Additionally, the royalty rates have increased by 100%, with detailed rates for various minerals. For example, baryte with a market value of N42,000 per tonne now attracts a royalty of N2,100, while coal with a market value of N100,000 per tonne attracts a royalty of N3,000. Other minerals like gold, lithium ore (lepidolite, kunzite, spodumene), and others have also seen their royalty rates adjusted accordingly.
Furthermore, licences for explosives now range from N500,000 to N20 million, a gold refining licence costs N5 million, and a mineral processor permit is N100,000. The cost of a mineral resources map is now N500,000, while the geological map of Nigeria is N300,000.
Dr. Alake highlighted several successful initiatives of the Ministry that have fortified the sector’s foundation, such as the creation of the first electronic inventory of operators through the Artisanal and Small-Scale Miners Department, which has enhanced 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.
