Cost of Obtaining Mining License in Nigeria (2024)
Absolutely nobody can dismiss the possibility that the mining sector is not profitable. Furthermore, because Nigeria has a large amount of solid minerals, a venture capitalist will indeed be attracted in the lucrative market. The most basic condition for beginning the mining process is to have a mining license. If you’re curious about how much it would cost you to get a mining license from the government to start off, this article will look into the cost of obtaining a mining permit in Nigeria.
Due to the fact that the mining business is so important, the federal government has given it special attention. To ensure adherence to the laid down standards, the government mandates organisations, firms, and individuals interested in entering the mining industry to have obtained the necessary mining permit. The relevant fees as well as how to acquire the permission in the country will be discussed in this article.
COST OF MINING LICENSE IN NIGERIA (2024)
Different sorts of mining permits are available in Nigeria, dependent on the sort of mining you want to perform. For the most part, these licenses are critical for everyone or any organization planning to enter the mining industry. While there is a set fee for the permission, the overall cost depends on the services provided by the investor.
When it comes to the cost of a mining license, the sum that will be levied is determined by the characteristics of the job that will be performed by the applicant company. The mining license costs around ₦50,000 average. Nevertheless, several charges, such as registration fees, consultancy fees, and other connected expenses, raise this figure significantly. Overall, the price will be determined by the company’s negotiations with the expert.
REQUIREMENTS FOR OBTAINING MINING LICENSE IN NIGERIA
Knowing now you know how much a mining license costs, there are a few standards you must complete in required to be deemed for a license.
There are a few requirements that must be met before a firm or individual is granted a mining permit in Nigeria. Here are some of the most basic and critical needs you’ll need to get started:
- Company Certificate of Incorporation — The mining company ought to have a certificate of incorporation, which should be included in the paperwork. Additional relevant associate reports should also be available, as they will be required for the application.
- Application letter — You can’t simply ignore the application letter even after you’ve completed the application form. The letter is crucial since it will state which part of the mining industry you want to work in and when you want to work there.
- Evidence of technically competent individuals — Your organization or company should consist of highly capable individuals. They should be mining professionals who are properly qualified for the job. Geologists with COMEG accreditation, for example, could fall into this category.
- Tax clearance certificate of the corporation — The applicant will similarly be depended upon to present evidence of tax clearance, which demonstrates the organization pays the taxes up to current. They’ll have to show this tax clearance certificate as well.
- A legal practitioner’s attestation of non-conviction for a criminal offense – In addition, a lawyer’s attestation of non-conviction for a criminal offense is required. This will form part of the documentation for collecting the mining license in Nigeria.
- Banker’s Reference Letter — As part of the mining license application process, a reference letter from the organization’s bank will be required. As a result, before submitting an application for a mining permit, the applicant should have a signed reference letter from their lender prepared.
- Evidence of Payment — This is another essential requirement, and it is required once the application for the actual permission has begun. You must pay a particular amount based on the fees paid by the consultant who assisted you with the process.
Other Documents include the following:
- COMEG seal and signature on pre-feasibility report
- Estimation of reserves / prospecting plan
- Exploration license currently in effect
- Proof of financial stability
- A accurate copy of the certificate of incorporation that has been certified.
- Minerals that will be mined
- Notice to land owners (private or state land) with a response on the rate to be paid Survey plan of specified area to be submitted
You will then have a seamless application procedure after these documents are set up. You’ll be able to sign up and get your mining license in this manner. Now that we’ve covered the requirements for acquiring a mining license, let’s look at how to apply for and secure one.
HOW TO APPLY FOR A MINING LICENSE IN NIGERIA (2024)
The following is a step-by-step guide to applying for and obtaining a mining license in the country:
- Initially, the applicant must get an application form that is specific to the type of lease he is seeking. This can be done by contacting the Mining Cadastre Offices or downloading the information from their website.
- The next action should be to fill out the Application form with all of the required information. This should be delivered in three copies, along with the appropriate documentation, to the Mining Cadestra Office, together with the requisite processing costs.
- So when application has been submitted and a receipt has been obtained, the Office will notify the land owner or occupants in order to secure an irreversible approval.
- Ten organizations or individuals seeking for a license will be granted a lease, license, or permit following an examination and recommendation. Furthermore, the applicant must pay the Annual Service Fee within two weeks of receiving the lease, license, or permission.
All done! You can go ahead and do your mining operation in the stated location in the country. We believe this piece of information was helpful to some extent.
We were able to detail the cost of a mining license in Nigeria, thus that’s the length of this article. We also gave the go-ahead on the necessary prerequisites and how to quickly apply for and receive the license. All of these info is meant to give you a guide on how to apply and successfully obtain a mining license in the country. That’s the size of this write-up.