FG sets agenda for mining investors, revokes 1,633 minerals licenses

Federal Government through the Ministry of Solid Minerals, on Tuesday, warned illegal miners to desist from their economic sabotaging activities and revoked 1,633 licenses of defaulters

It noted that the decisions were noble goals of the present administration to sanitize the Solid Minerals sector and position the industry for international competitiveness.

Minister of Solid Minerals Development, Dr. Oladele Alake, disclosed this in Abuja, at the press briefing, said that it was indeed very unconscionable for corporate bodies making huge profits from mining to refuse to give the Government its due by failing to pay their annual service fee. 

Alake said: “In compliance with the law, the MCO on October 4, 2023 began the process of revoking 2,213 titles. These included 795 Exploration titles, 956 Small Scale Mining Licences, 364 Quarry licences and 98 Mining Leases. 

“These were published in the Federal Government Gazette Number 178, Volume 110 of October 10, 2023 with the notice of revocation for defaulting in the payment of Annual Service Fee.

“The mandatory 30 days expired on November 10, 2023. Only 580 title holders responded by settling their indebtedness. With this development, the MCO recommended the revocation of 1, 633 mineral titles as follows: Exploration Licence, 536; Quarry Licence, 279; Small Scale Mining Licence, 787 and Mining Lease, 31.

“In line with the powers conferred on me by the NMMA 2007, Section 5 (a), I have approved the revocation of the 1,633 titles. I hereby warn the previous holders of these titles to leave the relevant cadaster with immediate effect as security agencies shall work with the Mines Inspectorate of the Ministry to apprehend any defaulter found on any of the areas where titles have been revoked.”

He said that it was indeed a reasonable conjecture that such a company will even be more unwilling to pay royalties and honor its tax obligations to the Government adding that the amount the companies were being asked to pay is peanuts compared to their own revenue projections.

He said that the solidarity of the Nigerian Press and the Nigerian Public on solid minerals matters has led to the national resolve which has injected fresh vigor to its stamina and preparedness to execute reforms with impactful alacrity and unity of purpose. 

Explaining the Nigerian Minerals and Mining Act, 2007 and the Administration of Mineral Titles, the Minister explained that every sector requires a governance system that regulates the conduct of its participants, the procedures for entry and exit, the obligations of the Government to participants and the penalties for non-compliance. 

He said that this philosophy of the Nigerian Minerals and Mining Act 2007 was to establish a rational system of administering titles transparently and comprehensively to ensure a seamless transition from renaissance to exploration and from exploration to mineral extraction.

He added, “The principal agency for the administration of titles is the Mining Cadastral Office which receives applications, evaluates them and issues titles with the approval of the office of the Honourable Minister of Solid Minerals Development. Although the MCO has tried to improve its efficiency by adopting new application administration technology, it continues to face challenges in monitoring the compliance of title holders with the most basic requirements for the maintenance of its operations and sustenance of titles.

“For instance, while Section 10 (a) prescribes payment for processing of applications, Section 10 subsection B provides for the payment of the Annual Service Fee. According to the law, the Mining Cadastre Office shall collect a fee for processing of applications for mineral titles; an annual service fee established at a fixed rate per square cadastral unit for administrative and management services rendered by the Cadastre.

“It is indeed very unconscionable for corporate bodies making huge profits from mining to refuse to give the government its due by failing to pay their annual service fee. 

“For example, the holder of an exploration title pays only N1,500 per cadastral unit not exceeding 200 units. Those holding titles covering more than 200 units pay N2,000 per unit. In short, the larger the area your title covers, the more you pay.

“This principle was applied to ensure that applicants don’t hold more than they require to explore. With a cadastral unit captured as a square of 500 metres by 500 metres, any law-abiding title holder should not hesitate to perform its obligations.”

In her remarks, the Permanent Secretary, Mines and Steel Development (MMSD), Dr. Mary Ogbe, said that all hands must be on deck to drive the policy. 

She said: “I urge you Press to take the message far and wide even if it would be in another dialect. like the Minister of mining says, the mining sector is the next petroleum and together we can salvage it.”

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