What You Need To Obtain A Mining License In Nigeria
The mining sector in Nigeria is highly competitive and accounts for a sizable portion of the country’s GDP.
This article aims to evaluate what a mining licence is and to highlight the steps that must be followed in order to obtain one in Nigeria.
A mining license: what is it?
A mining license is a document that a company or individual receives from the government or a state agency allowing them to develop a mineral resource and establish related mining operations on a concession.
In Nigeria, there are basically two kinds of mining licenses available. For individuals wishing to deal in mineral resources and process/warehouse mineral resources, respectively, there are two licences available: the Possess or Purchase licence and the Mineral Buying Centre licence.
What is the process for acquiring or buying mining?
- The Federal Ministry of Mines and Steel Development receives licence applications, which specify the kinds of minerals to be acquired or bought.
- Make the required fee payments.
- Entire application must be accompanied by these documents: (
- Certificate of tax clearance
- a bank reference letter
- a letter of consent from the owner of a mineral title to be bought or owned
- Evidence of technically competent person having COMEG accreditation.
- It is vital to note that this license is valid for 1 year and subject to fulfilment of certain conditions. There are similar application requirements for the mineral buying centre license. Also, it is vital to point out that there are other licenses and permits that apply in the mining industry such as the Mineral Export Permit.
- Anyone seeking to be a player in the mining industry needs to consult their lawyers to know the licenses required for their mining operations and the current procedure on obtaining one.