The right to search for or exploit Mineral Resources under the Act is obtained through one of the following mineral. In general terms these licences and Mining Leases are granted to any of the following class of persons: a citizen of Nigeria, a body corporate duly incorporated under the Companies and Allied Matters Act (CAMA), a mining Cooperative and where applicable a holder of the relevant prior licence.
Reconaissance Permit: A Reconnaissance Permit confers on the holder the right to obtain access into, enter on or fly over any land within the territory of Nigeria available for mining purposes to search for Mineral Resources on a non-exclusive basis. In addition, it also confers on the holder the right to obtain and remove surface samples in small quantities, is issued for a period of 1 year and is renewable annually provided the conditions under the Act and any regulations made pursuant to the Act are met.
Exploration Licence: This type of license allows the licensee to search for the required mineral resources deposited in the areas covered by the license.
Small Scale Mining Lease: The Small-Scale Mining Lease is a lease to mine in smaller quantities compared to the Mining Lease and can also be converted to Mining License if the scale of production increases. The duration is for 5 years.
Mining Lease: This type of license is preceded by an exploration license to mine in commercial quantity. Mineral resources must have been found in satisfactory quantities making application for the lease. Under the Act, duration is for a period of 25 years.
Quarry Lease: A quarry lease is granted in respect of a land area not exceeding 5 square kilometres and covers a 5 year period unless renewed and applies in relation to all naturally occurring quarriable minerals, such as asbestos, sand, stone, limestone, gravel, etc. which may also be lawfully extracted under Mining leases.
Water Use Permit: A Water Use Permit (WUP) authorises the consumptive use of particular quantities of ground or surface water.
