Nigeria Takes Strong Stance on Non-Compliant Mining Companies

The Nigerian Government has announced its decision to revoke 1,633 mining licenses previously held by non-compliant mining companies, as part of an effort to enhance the solid minerals sector for international competitiveness. Minister of Solid Minerals Development, Henry Dele Alake, emphasized the need for all stakeholders to adhere to regulations during a press briefing in Abuja.

The revocation of these mineral titles was due to the failure of mining companies to pay mandatory annual service fees of N1,500 per cadastral unit, in accordance with Sections 10, 11, and 12 of the Mining Act. This decision aims to open up opportunities for potential investors who are willing to comply with the regulations.

Minister Alake expressed his disappointment with the neglect of financial obligations by companies making substantial profits from mining sites, stressing the importance of corporate bodies paying their dues to the government, despite the modest nature of the annual service fee in comparison to the companies’ revenue projections.

The revocation process, initiated by the Mining Cadastral Office, followed a warning to 2,213 mining companies, with only 580 titleholders responding and settling their debts. As a result, 1,633 mineral titles, including Exploration Licences, Quarry Licences, Small Scale Mining Licences, and Mining Leases, have been recommended for revocation.

Minister Alake also warned that the companies whose licenses have been revoked should vacate the mining sites to avoid legal action by security agencies, emphasizing that the Ministry provided a thirty-day written default notice to the defaulting parties, providing them an opportunity to pay the fees before the revocation process.

The Mineral and Mining Act of 2007 provides powers for the revocation of mineral titles in cases of non-payment of prescribed fees, ensuring fairness and accountability in the process. This decision aims to reinforce compliance with mining regulations and create opportunities for ethical and law-abiding investors in the solid minerals sector, reflecting the commitment of the government to uphold the integrity of the mining industry and encourage responsible and transparent business practices.

[Source: Punch]