Oil and Gas Business in NigeriaDecember 12, 2023

This article discusses the requirements for application for the different types of  mineral titles and the pre-grant requirements.

The requirements for the grant of the different types of Mineral Titles as stated below.

Mining Lease

Pre-grant Requirements

  1. Duly completed application forms in triplicate copies
  2. Feasibility report (with Council of Mining Engineers and Geoscientist (COMEG) seal and signature)
  • Prospecting plan/reserve estimation
  1. Mine plan/design
  2. Extant Exploration License
  3. Evidence of financial capability with sufficient working capital by way of a verifiable bank statement of account and bank reference letter

READ: MINING BUSINESS OPPORTUNITIES

  • Evidence of technical competence/competent person(s) in applicant’s employment who possess adequate qualifications and experience in exploration and exploitation of minerals and is registered with COMEG
  • Irrevocable consent from landowner(s)/occupier(s) with sworn affidavit in support of the consent by the applicant from a competent Court, attesting that the consent was duly obtained from the land owner(s)/occupiers(s) (Section 100 of the Act)
  1. Attestation of non-conviction of criminal offences under the Act
  2. Evidence of payment of processing fees of N500,000.00, payable to the MCO and Centers, Central Bank of Nigeria through approved e- payment platforms with any commercial bank in Nigeria or online e-payment platforms.
  3. Certified true copy of Certificate of Incorporation Company including Forms CAC2 and CAC7, Articles and Memorandum of Association of applicant company
  • Mineral(s) to be exploited should be specified on the application form (Section 64 of the Act)
  • Submission of survey plan of the area specified to be surveyed in line with the provisions of Section 79 of the Act
  • Notice to landowner(s)/occupier (private or state land) with a response-indicating rate of surface rent to be paid to the landowner/occupier, in accordance with the provision of Section 102 of the Act.
  1. Submission of copy of current Tax Clearance Certificate of applicant.

Quarry Lease/Small-Scale Mining Lease

Pre-grant requirements:

  1. Duly completed application forms in triplicate copies
  2. Pre-feasibility report (with COMEG seal & signature)
  • Quarrying plan/design
  1. Evidence of financial capability with sufficient working capital by way of verifiable bank statement of account and reference letter (Section 54 of the Act)
  2. Evidence of technical competence of applicant/competent person(s) in applicant’s employment who possess a minimum qualification of a certificate in mining or quarrying related fields and who is registered with COMEG
  3. Irrevocable consent from landowner(s)/occupier(s) with sworn affidavit in support of the consent by the applicant from a competent Court, attesting that the consent was duly obtained from the landowner(s)/occupiers(s) (Section 100 of the Act).
  • Attestation of non-conviction of criminal offence under the Act (Section 53 of the Act)
  • Certified True Copy of Certificate of Incorporation of company including Forms CAC2 and CAC7, Articles and Memorandum of Association of the company
  1. Evidence of payment of processing fee of N100, 000:00, for the first 4 CUs and N50,000 for any additional CU in the case Quarry Lease
  2. Evidence of payment of processing fee of N50,000.00 for the first 5 CUs and N20,000.00 for any additional CU in the case of SSML payable to MCO and Centers, Central Bank of Nigeria through approved e-payment platforms with any commercial bank in Nigeria or online e-payment platforms
  3. Submission of survey plan of the area specified to be surveyed in line with the provisions of Section 79 of the Act
  • Notice to landowner(s)/occupier (private or state land) with a response indicating the rate of surface rent to be paid to the landowner/occupier, in accordance with the provisions of Section 102 of the Act
  • Submission of copy of current Tax Clearance Certificate of the applicant

READ:MINERAL TITLES

Exploration license

Pre-grant conditions:

  1. Duly completed application forms in triplicate copies
  2. Detailed Minimum Work Program (with COMEG seal and signature)

iii.  Evidence of financial capability with sufficient working capital by way of verifiable bank statement of account and bank reference letter (Section 54 of the Act)

  1. Evidence of technical competence/competent person(s) in applicant’s employment who possess adequate qualifications and experience in mineral exploration and who is registered with COMEG
  2. Irrevocable consent from land owner(s)/land occupier(s) with sworn affidavit in support of the consent by the applicant from a competent Court, attesting that the consent was duly obtained from the land owner(s)/land occupiers(s) -(Section 100 of the Act)
  3. Attestation of non-conviction of criminal offences under the Act

vii. Certified True Copy of Certificate of Incorporation of company including Forms CAC2 and CAC7, Articles and Memorandum of the Association of the company

viii. Mineral(s) to be explored should be specified on the application form (Section 64 of the Act)

  1. Copy of current Tax Clearance Certificate of the applicant
  2. Evidence of payment of processing fees of N100,000:00 for the first 200 CUs and N1,000.00 for any additional CU payable to MCO and Centers, Central Bank of Nigeria through approved e-payment platforms with any commercial bank in Nigeria or online e-payment platforms

Reconnaissance Permit

Pre-grant requirements:

  1. Duly completed application forms in triplicate copies
  2. Attestation of non-conviction of criminal offences under the Act

iii. Evidence of payment of processing fees of N50, 000.00 payable to Nigeria MCO and Centers, Central Bank of Nigeria through approved e-payment platforms with any commercial bank in Nigeria or online e-payment platforms

  1. Evidence of technical competence/competent person(s) in applicant’s employment who possess adequate qualifications and experience in Exploration of minerals and registered with COMEG
  2. Evidence of financial capability with sufficient working capital by way of verifiable bank statement of account and bank reference letter (Section 54 of the Act).

 

Pre-development conditions (post-grant)

For Mineral Titles The holder of an Exploration License, Mining Lease, Quarry Lease and Small-Scale Mining Lease, or Water Use Permits shall commence development or water use operations in the mineral title area only upon:

  1. a) Submission of:
  2. A copy of approved Environmental Impact Assessment (EIA) studies and mitigation plans to the Mines Environmental Compliance Department (MEC) (Section 119 of the Act and 158 and 160 of the Regulations)
  3. Copy of Community Development Agreement (with the exception of Exploration License) approved by the MEC Department and copied to MCO (Section 116 of the Act and 193 of the Regulations)

iii. Detailed work program to be undertaken in the mineral title area to Mines Inspectorate Department (MID)for approval

  1. Documentary evidence that the mineral title holder has notified, compensated, or offered compensation to the landowner(s)/occupier(s) (Section 107 the Act and Section 162 of the Regulations
  2. A plan of mining operations prepared in accordance with the provisions of the Regulations submitted to MID
  3. Completion of placement of all demarcation points maker defining the boundary of the mineral title in accordance with the provisions of Section 108 of the Regulation
  4. b) Ensuring that the mineral title area is free of any unresolved boundary dispute.
  5. c) Submission of mine closure plan/rehabilitation plan in respect of Mining Lease, Quarry Lease and Small-Scale Mining Lease to MEC, MCO & MID (Section 225 of the Regulations).