Revoke of 1,633 Mining Licences due to Non-Payment of Service Dues
The federal government has revoked the operating licences of 1,633 mining title holders for their failure to pay annual service fees to the government. Minister of Solid Minerals, Dele Alake, announced this decision during a press conference in Abuja on Tuesday. Alake emphasized that the revocation of licences is part of a restructuring effort aimed at creating opportunities for new investors who will meet their obligations.
Holders of exploration titles are required to pay N1,500 per cadastral unit not exceeding 200 units, while those holding titles covering more than 200 units are expected to pay N2,000 per unit, according to Alake. He expressed disappointment at the failure of companies to pay their dues on time, describing it as “unconscionable” for profitable corporate bodies to neglect their obligations. Alake pointed out that the amount being requested from these companies is insignificant in comparison to their projected revenue and profits.
The Ministry of Solid Minerals has initiated the process of revoking 2,213 titles, including exploration titles, small-scale mining licences, quarry licences, and mining leases, in compliance with the Nigerian Minerals and Mining Act 2007. The notice of revocation was published in the Federal Government Gazette, and despite the mandatory 30-day grace period for payment expiration, only 580 titleholders settled their debts. As a result, the Minister approved the revocation of 1,633 mineral titles, including exploration licences, quarry licences, small-scale mining licences, and mining leases.
In addition, Alake warned that the security agencies would collaborate with the Ministry’s mines inspectorate to apprehend any defaulter found in the areas where the titles have been revoked. He further explained that the philosophy behind the Nigerian Minerals and Mining Act 2007 is to establish a transparent administration of titles to ensure a smooth transition from reconnaissance to exploration and from exploration to mineral extraction.
The Minister also addressed the issue of illegal miners, stating that their actions are unacceptable and warned them to desist from such activities or face legal consequences. He also highlighted that the sites revoked may not be granted back to the former holders, potentially jeopardizing their chances of owning mining sites in the country.
The move to revoke the mining licences is a significant step towards enforcing compliance within the mining sector and ensuring that companies uphold their obligations to the government. The Ministry of Solid Minerals is committed to sanitising the sector and creating an environment that is conducive for responsible and lawful mining operations.
It is essential for companies and individuals involved in mining activities to understand and adhere to the regulatory requirements set forth by the government to avoid the revocation of their licences. By complying with the regulations, companies not only contribute to the growth of the mining sector but also demonstrate their commitment to operating within the confines of the law.
