Mining business is a lucrative on in Nigeria but before you can mine, you must have a registered business/ company and a Mining Licenses. This post contains the Procedure and Cost for Obtaining Mining Licenses. Mining licenses/ permits in Nigeria are issued by The Nigeria Mining Cadastre Office (NMCO). Contact Aziza Nigeria for support in obtaining corporate Mining license in Nigeria.
INTRODUCTION
In Nigeria, mining business has three key stakeholders that must be engaged. This starts with securing e a Mining licenses/ permits from The Nigeria Mining Cadastre Office (NMCO), engage the state and communities/ landlord of the land where the mining activities will take place.
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. The Nigerian government has also in place a number of regulations to ensure that the mining operations are conducted in a safe and responsible manner.
These regulations include environmental protection measures, such as the requirement for companies to conduct environmental impact assessments before beginning operations. Companies must also adhere to safety standards and must ensure that their operations do not cause any harm to the environment or local communities.
Read: Mining License/ Permits Costs and Requirements
In addition, the Nigerian government has also put in place a number of incentives to encourage companies to invest in the lithium mining industry. These incentives include tax breaks and other forms of support. It is important to further emphasis that any foreign company seeking to engage in mining or buying mineral resources in Nigeria must first incorporate a local company in Nigeria.
The Procedure for Obtaining Mining Licenses in Nigeria
Due to the fact that the mining business is so important, The Nigerian federal government has given mining business a special attention. To ensure adherence to the laid down standards, the government mandates organizations, firms, and individuals interested in entering the mining industry to have obtained the necessary mining permit. 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.
Read: Oil and Gas Permits/ Licenses to Know
Cost for obtaining mining licenses in Nigeria.
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 mining activities, state/ location where the mining will take place.
Mining License/ Permits Fixed fees:
– EL: N100,000.00 for first 200 CU,
Any additional CU – N1,000.00 QL:
First 4CU – N100,000.00
Any additional Cu – N50,000.00 SSML:
First 5CU – N50,000.00
Any additional CU – N20,000.00
However, it is advisable to use experience Consultant when applying for any mining license in Nigeria. The final cost for processing any license with a professional that handle it differs.
Read: Business/ Company Registration in Nigeria
CONCLUTION
Nigerian mining sector is thriving and it continues to attract an increased attention and focus from government and investors, both foreign and domestic. However, it is an offense to deal in mineral resources without the requisite license in Nigeria.
For Mining license/ permit support in Nigeria, contact Aziza Nigeria. Remember, you can start your business/ company registration in Nigeria with us and to obtain other relivant corporate compliances like Tax certificate and other licenses/ permits to to operate in Nigeria.