FG Moves To Review Mining Licenses

BY EDMOND ODOK – In a move to reposition Nigeria’s mining sector for productivity and economic viability, the Federal Government says plans are underway to review rates of mining licenses and other sundry fees payable by mining operators in the country.

Accordingly, the government has assured stakeholders that ongoing reforms will further sanitise the mining environment through the newly unveiled mining marshals currently conducting operations in parts of the country to protect legitimate miners and combat illegal mining.

Addressing the industry stakeholders’ consultative meeting, the Minister of Solid Minerals Development, Dele Alake explained the planned review aimed at boosting the government’s capacity to reposition the mining sector for effective service delivery as a viable revenue earner for the country.

Alake, who highlighted efforts at making the mining industry viable, urged stakeholders to support the impending increase in fees for mining licenses and other sundry fees, noting that the development has become inevitable for the government to fulfill its obligations of providing an enabling environment for mining operations to thrive and contribute effectively to Nigeria’s socio-economic development and growth.

A statement by the Special Assistant on Media to the Minister of Solid Minerals Development, Segun Tomori, quoted him as saying; “For us to continue to ensure that we secure the mining environment and keep putting in place measures that will ease the operational difficulties and challenges that confront miners, we need to review the rates of mining licenses and other sundry fees. We felt that we can’t just do this without letting you know because invariably, you are the players in the industry.”

The Minister, who also addressed issues around the recent revocation of dormant mining licenses, explained that the government followed due process and extant laws guiding the action, adding that a 30-day restitution window still exists for affected operators.

This is against the backdrop of recent development where the minister announced a restitution fee of N10 million; 7.5 million; five (5) million; and 2.5 million for Mining Leases, Small Scale Mining Licenses (SSML) Exploration License (EL), and Quarrying License respectively for revoked dormant licenses including those earlier revoked for default in payment of annual service fees.

For the Director-General of the Mining Cadastral Office, Obadiah Nkom, who also chairs the fees review committee, the recommended new rates are affordable with the capacity to enhance the competitiveness of the mining sector’s fiscal regime in comparison with regional and global standards.

Also, the President of the Miners Association of Nigeria (MAN), Dele Ayanleke, who spoke for the stakeholders, lauded the Minister’s efforts at putting the mining sector on the global front burner.

He said the Stakeholders fully support ongoing reforms and moves to review fees payable by operators but urged the government to consider existing miners’ challenges and ensure the rates are affordable.

Among the stakeholders at the meeting were the President of the Miners Association of Nigeria (MAN), Dele Ayanleke, Representatives of Women In Mining (WIN), the Gemstone Miners Association (GMA), and officials of the Ministry of Solid Minerals Development.