...announces revocation of1,633 mining companies licenses over non-payment of dues and other infractions.
The Minister of Solid Minerals Development, Dr. Oladele Alake has reiterated the commitment of the federal government towards ensuring that reforms in the solid mineral sector are engineered with maximum impact.
He made this known while addressing the press in Abuja during which he announced that 1,633 mining companies had their licenses revoked over non-payment of dues and other infractions.
“Let me begin by expressing the appreciation of the Ministry of Solid Minerals Development to the Nigerian Press and the Nigerian Public for the enthusiastic support we have received since we began this journey of positioning the Solid Minerals sector for international competitiveness through the Seven Point Agenda.
”The solidity of this national resolve has injected fresh vigour to our stamina and preparedness to execute our reforms with impactful alacrity and unity of purpose. We shall continue to carry all stakeholders along in this rescue mission and shall always ensure that we are fair to all concerned. However, we don’t intend to bend or break the rules whenever and wherever there are violations and non-compliance. Rather, we shall make such cases the examples for others to emulate”, he stated.
He emphasized that every sector requires a governance system that regulates the conduct of its participants, the procedures for entry and exit, the obligations of the Government to participants and the penalties for non-compliance.
According to him, the philosophy of the Nigerian Minerals and Mining Act 2007 is to establish a rational system of administering titles transparently and comprehensively to ensure a seamless transition from reconnaissance to exploration and from exploration to mineral extraction.
”The principal agency for the administration of titles is the Mining Cadastral Office which receives applications, evaluates them and issues titles with the approval of the office of the Honourable Minister of Solid Minerals Development. Although the MCO has tried to improve its efficiency by adopting new application administration technology, it continues to face challenges in monitoring the compliance of title holders with the most basic requirements for the maintenance of its operations and sustenance of titles.
“For instance, while Section 10 (a) prescribes payment for processing of applications, Section 10 subsection B provides for the payment of the Annual Service Fee. According to the law:
“The Mining Cadastre Office shall collect-
a fee for processing of applications for mineral titles; and; an annual service fee established at a fixed rate per square cadastral unit for
administrative and management services rendered by the Cadastre.”
Dr. Alake lamented that it was unconscionable for corporate bodies making huge profits from mining to refuse to give the government its due by failing to pay their annual service fee. It is indeed a reasonable conjecture that such a company will even be more unwilling to pay royalties and honour its tax obligations to the government.
”The amount the companies are being asked to pay is peanut compared to their own revenue projections. For example, the holder of an exploration title pays only N1,500 per cadastral unit not exceeding 200 units. Those holding titles covering more than 200 units pay N2,000 per unit, In short, the larger the area your title covers, the more you pay.
“This principle was applied to ensure that applicants don’t hold more than they require to explore. With a cadastral unit captured as a square of 500 metres by 500 metres, any law-abiding title holder should not hesitate to perform its obligations”, he maintained.
The rest of his address reads:
Sections 11 and 12 of the NMMA 2007 state in clear terms as follows:
A mineral title shall become liable to revocation where the holder thereof has failed to pay the prescribed fees.
In case of default of payment of the annual service fee due to the Mining Cadastre Office, the Mining Cadastre Office shall give a thirty day written default notice to the defaulting party and, if payment is not effected during that period, the Mining Cadastre Office shall record the default and revoke the mineral title.”
Inspired by the provisions of the Law, the EMC+, the title administration portal of the MCO automatically notifies every mineral title holder of its obligation to pay the annual service as at when due. This is the first administrative alert signal that every mineral title holder receives and should ordinarily prompt the company to settle its obligation.
The Law has also put in place a procedure for notification by providing that MCO issues a 30-day notice and the means to perform the procedure. Section 14 states:
Notice to applicant
Any notice required to be sent by the Mining Cadastre Office to an applicant for, or holder of a mineral title shall be sent by courier service or registered mail to the last known address in Nigeria of the mineral titleholder or given in person to an authorized representative of the applicant or holder of the mineral title in Nigeria or published in the Gazette. The notice shall for all purposes be sufficient notice of the subject-matter of the notice to the applicant for or holder of a mineral title.”
In compliance with the law, the MCO on October 4, 2023 began the process of revoking 2,213 titles. These included 795 Exploration titles, 956 Small Scale Mining Licences, 364 Quarry licences and 98 Mining Leases. These were published in the Federal Government Gazette Number 178, Volume 110 of October 10, 2023 with the notice of revocation for defaulting in the payment of Annual Service Fee.
The mandatory 30 days expired on November 10, 2023. Only 580 title holders responded by settling their indebtedness. With this development, the MCO recommended the revocation of 1, 633 mineral titles as follows: Exploration Licence, 536; Quarry Licence, 279; Small Scale Mining Licence, 787 and Mining Lease, 31.
In line with the powers conferred on me by the NMMA 2007, Section 5 (a), I have approved the revocation of the 1,633 titles. I hereby warn the previous holders of these titles to leave the relevant cadaster with immediate effect as security agencies shall work with the Mines Inspectorate of the Ministry to apprehend any defaulter found on any of the areas where titles have been revoked.
