The Ministry of Solid Minerals Development has announced a significant change in rates and charges for all activities within the mining sector. Dr. Dele Alake, the Minister of Solid Minerals Development, made this announcement during a press briefing in Abuja. The decision to increase rates and charges is in response to concerns regarding non-remittance by some operators, who are earning significant profits but failing to remit these earnings to the Federal Government.
Dr. Alake stated that the new measures have been introduced to enhance service levels, increase transaction traffic, and improve infrastructure development. The objective is to position the sector for economic consolidation and to encourage greater interest and participation, thereby instilling confidence in stakeholders to invest.
A major change is the implementation of new rates for licensing. The cost of obtaining an Exploration Licence (EL) is now set at N600,000 for the first 100 cadastral units. Furthermore, there are new rates for a Small Scale Mining License (SSML), Quarry Lease, and firms operating with a Mining Lease. After the renewal of licenses, the rates for the respective categories will be adjusted.
With regards to royalties, the new regulations aim to maximise royalties from critical minerals such as lithium and gold to boost the nation’s revenue and contribute significantly to economic development. Under the new rates regime, specific minerals now have corresponding royalties based on their market value per tonne.
Furthermore, the new rates review affects services provided by the Mining Cadastre Office (MCO) and the Nigerian Geological Survey Agency (NGSA). These changes have taken immediate effect, and stakeholders in the mining sector are required to comply accordingly.
These adjustments reflect the government’s commitment to facilitating economic growth and improving revenue generation in the mining sector. It is imperative for all stakeholders to be aware of these changes and to adhere to the new rates and charges set by the Federal Government.
In conclusion, these new measures and adjustments in rates and charges demonstrate the government’s dedication to ensuring that the mining sector operates efficiently and contributes substantially to the nation’s economic development.
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Author: Ministry of Solid Minerals Development