Revocation of Dormant Mining Licences and Surge in New Applications in Nigeria
The Nigerian Mining Cadastre Office (NMCO) has announced its intention to revoke inactive mining licenses in response to the launch of the Electronic Mining Cadastral Plus (eMC+), an online platform designed to enhance transparency within the country’s mining sector. Since its launch on November 2, 2022, the eMC+ has received a total of 7,310 mineral title applications.
During a presentation at the 2023 ‘Nigeria Mining Week,’ Director-General of the Nigeria Mining Cadastre Office, Obadiah Nkom, disclosed that 3,030 companies have actively engaged with the eMC+, submitting applications for various categories, including mining, exploration, quarry, and small-scale mining licenses. Notably, 977 companies completed their applications online, while 2,053 sought assistance at the MCO.
Nkom underscored the significance of transparency in licensing and cautioned that failure to fulfill obligations, such as non-payment of fees and dormant activities, could lead to the revocation of mining licenses. This approach is in line with the principle of ‘Use it or lose it’ and is aimed at dissuading companies from retaining idle licenses. In fact, as reported by The Guardian, there has been a noticeable reduction in mineral titles issued between January and October 2022 compared to 2016.
The eMC+ has achieved a 38 per cent adoption rate within the mining sector, and Nkom expressed optimism about its potential impact, highlighting a 40 per cent unaided application rate. He emphasized that the platform has the capability to attract crucial investments to the mining sector and urged stakeholders to embrace the digital evolution in the industry.
This development signifies a pivotal shift towards fostering transparency and efficiency in the management of mining licenses in Nigeria. It is expected to promote active participation in the sector and attract new investments, ultimately contributing to the sustainable development of the industry.
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