Post by Trade Coach on Feb 12, 2018 17:09:34 GMT 1
Ten (10) years ago, the federal government put in place a 25-year lease for investors in the mining sector of the Nigerian economy. The government also prescribed a jail – term of two to five years for any person who interferes with or obstructs mining and quarrying operations across Nigeria.
These highlights were contained in the Nigerian Minerals and Mining Act, 2007, launched on Tuesday, April, 29 2008 by the then Vice-President Ebele Goodluck Jonathan.
Government then disclosed that the reform in the mining sector was targeted at opening the sector to private sector participation in line with global trends.
Relying on the government’s steps towards this direction, Nigerians had anticipated quick achievements on the vision, since the government has placed a high premium on developing the minerals and mining sectors of the economy.
According to the document, a qualified applicant or investor is entitled to a mining lease within 45 days of such application. The Act reads in part: ‘’The Minister shall, upon receipt of a valid application from qualified applicant, grant and issue to that person, a Mining Lease for the purposes required within 45 days of such application. The duration of a Mining Lease is 25 years and shall be renewable every 24 years provided that the holder thereof has complied with his minimum work obligation commitments and all other requirements of this Act and its regulations have been met.
The area of land in respect of which any Mining Lease is granted shall be determined in relation to the Ore body as defined in the feasibility study submitted in respect of the Mining Lease, together with an area reasonably required for the workings of the Mineral Resources provided such area shall not exceed 50 sq. kilometers.
Every holder of a Mining Lease shall commence mine development within 18 months for a Mining Lease for Mineral Resources and 12 months for a Mining Lease for Mineral Water, effective from the date that the requirements of this Act have been met, unless circumstances justify an extension period.
Every holder shall commence production not later 36 months for a Mining Lease for Mineral Resources and 12 months for a Mining Lease for Mineral Water, effective from the date that the requirements of this Act have been met.
The Act also recommends that an operator or investor would enter into an agreement with a mine community’’.
The document adds: ‘’Subject to the provisions of this section, the Holder of a Mining Lease, Small Scale Mining Lease or Quarry Lease shall prior to the commencement of any development activity within the lease area, conclude with host community where the operations are to be conducted, an agreement referred to as a Community Development Agreement or other such agreement that will ensure the transfer of social and economic benefits to the community.
The Community Development Agreement shall contain undertakings with respect to the social and economic contributions that the project will make to the sustainability of such community.
Interestingly, the government also emphasis on the need for operators in this sector to target vigorously export potentials that surround the business, noting that, a lot of foreign exchange earnings can be generated from the mining business.
To this end, succeeding governments have made efforts aimed at positioning the mineral resources and mining sectors and give prompt attention to all that is needed to fast-track the exportation of these minerals for the benefit of the country’s prosperity.
These highlights were contained in the Nigerian Minerals and Mining Act, 2007, launched on Tuesday, April, 29 2008 by the then Vice-President Ebele Goodluck Jonathan.
Government then disclosed that the reform in the mining sector was targeted at opening the sector to private sector participation in line with global trends.
Relying on the government’s steps towards this direction, Nigerians had anticipated quick achievements on the vision, since the government has placed a high premium on developing the minerals and mining sectors of the economy.
According to the document, a qualified applicant or investor is entitled to a mining lease within 45 days of such application. The Act reads in part: ‘’The Minister shall, upon receipt of a valid application from qualified applicant, grant and issue to that person, a Mining Lease for the purposes required within 45 days of such application. The duration of a Mining Lease is 25 years and shall be renewable every 24 years provided that the holder thereof has complied with his minimum work obligation commitments and all other requirements of this Act and its regulations have been met.
The area of land in respect of which any Mining Lease is granted shall be determined in relation to the Ore body as defined in the feasibility study submitted in respect of the Mining Lease, together with an area reasonably required for the workings of the Mineral Resources provided such area shall not exceed 50 sq. kilometers.
Every holder of a Mining Lease shall commence mine development within 18 months for a Mining Lease for Mineral Resources and 12 months for a Mining Lease for Mineral Water, effective from the date that the requirements of this Act have been met, unless circumstances justify an extension period.
Every holder shall commence production not later 36 months for a Mining Lease for Mineral Resources and 12 months for a Mining Lease for Mineral Water, effective from the date that the requirements of this Act have been met.
The Act also recommends that an operator or investor would enter into an agreement with a mine community’’.
The document adds: ‘’Subject to the provisions of this section, the Holder of a Mining Lease, Small Scale Mining Lease or Quarry Lease shall prior to the commencement of any development activity within the lease area, conclude with host community where the operations are to be conducted, an agreement referred to as a Community Development Agreement or other such agreement that will ensure the transfer of social and economic benefits to the community.
The Community Development Agreement shall contain undertakings with respect to the social and economic contributions that the project will make to the sustainability of such community.
Interestingly, the government also emphasis on the need for operators in this sector to target vigorously export potentials that surround the business, noting that, a lot of foreign exchange earnings can be generated from the mining business.
To this end, succeeding governments have made efforts aimed at positioning the mineral resources and mining sectors and give prompt attention to all that is needed to fast-track the exportation of these minerals for the benefit of the country’s prosperity.
