Nigeria is endowed with several types of mineral resources and the mining sector is one of the lucrative sectors of the Nigerian economy. Every investor or company willing to engage in the Nigerian mining sector requires government approval or a license to proceed.
One of such license which an investor or company is meant to have is the mining lease. This type of license is proceeded by an exploration license to mine in commercial quantity. A mining lease confers on the holder [among other rights] the right to obtain access and enter the Mining Lease Area, the exclusive use, occupation and the carrying out of mineral exploration within the Mining Lease Area.
A Mining Lease will not be granted in respect of any area within an Exploration Licence Area or Small Scale Mining Lease except to the holder of the Exploration Licence or Small Scale Mining Licence. The duration of a mining lease is twenty-five (25) years and is renewable every twenty-four years subject to the holder complying with his minimum work obligations and commitments.
The major requirements for grant of mining lease are as follows:
a. Exploration License
b. Certified true copy of Incorporation documents
c. Completed application forms
d. Pre-Feasibility Report
e. Prospecting plan
f. Payment of processing fee
g. Evidence of financial capability or banker reference letter
h. Evidence of technical competence or COMEG accredited geologist
i. Irrevocable consent from landowner(s) and/or occupier(s) to the applicant
j. Attestation of non-conviction of criminal offences under the Act by a Lawyer
There are however instances in which a mineral title can be revoked by the government.
Section 151 of the Nigerian Minerals and Mining Act (2007) lists certain conditions under which a mineral title may be revoked. Those instances include where the holder:
– is convicted of an offence by a court of competent jurisdiction;
-breaches any provision of the Act or regulations made pursuant to the Act;
-is declared insolvent or bankrupt by court of competent jurisdiction;
-in the case of a Small Scale Mining Lease or Mining Lease, the Holder wholly discontinues operations under the lease for a continuous period of six months etc.
