Mining License & Compliance

Mining in Nigeria is regulated by the Federal Ministry of Solid Minerals Development (FMMSD) through the Mining Cadastre Office (MCO).
Before any individual or company can explore, extract, or trade in solid minerals, they must obtain a valid mining license or permit from the MCO.

The Nigerian government regulates mining activities under the Nigerian Minerals and Mining Act, 2007, and the Nigerian Minerals and Mining Regulations, 2011, ensuring that mining is conducted legally, safely, and sustainably.

Mining License & Compliance refers to the legal authorization, operational requirements, and environmental standards that all mining operators must meet before and during mineral exploitation.

Why a Mining License is Important

Obtaining a Mining License is mandatory for any entity involved in mineral exploration, extraction, or trading.

Benefits include:

✅ Legal right to explore or mine solid minerals in a designated area.
✅ Protection of investment and mining rights.
✅ Compliance with national and environmental laws.
✅ Eligibility for export permits and financing.
✅ Ability to operate without fear of government sanctions or closure.
✅ Recognition and credibility for partnerships or joint ventures.

The Mining Cadastre Office (MCO) is responsible for the administration of mineral titles (licenses, leases, and permits).

Types of Mining Licenses and Permits in Nigeria

1. Reconnaissance Permit

Authorizes the holder to conduct a general search for mineral resources (non-exclusive).
Valid for 1 year, renewable.
No rights to extract minerals.

2. Exploration License

Grants the right to conduct detailed exploration to determine the commercial viability of minerals.
Valid for 3 years, renewable for two more terms of 2 years each.
Maximum area: 200 square kilometers.

3. Small Scale Mining Lease (SSML)

Allows Nigerian citizens or companies to mine on a small scale.
Valid for 5 years, renewable.
Area limit: 3 square kilometers.

4. Mining Lease

For large-scale commercial mining operations.
Valid for 25 years, renewable for another 25 years.
Area: up to 250 square kilometers.

5. Quarry Lease

Authorizes extraction of building materials like granite, marble, sand, or clay.
Valid for 5 years, renewable.

6. Water Use Permit

Required when water is used for mining or mineral processing purposes.
Must be obtained alongside a Mining or Quarry Lease.

7. Possess or Purchase License

For companies or individuals engaged in buying, selling, or trading minerals.

Eligibility Criteria

To apply for a mining license in Nigeria, an applicant must:

Be a Nigerian citizen or a registered corporate entity in Nigeria (foreigners can participate through joint ventures).
Have the financial and technical capacity to undertake mining activities.
Submit a detailed business plan and mining proposal.
Comply with environmental and community impact standards.

REQUIREMENTS FOR POSSESSION AND PURCHASE OF MINERALS.

Certificate of Incorporation of the Company including CAC Form I| and Form VII
Centre Permit
Three (3) years Tax Clearance Certificate of the Company
An attestation of non-conviction for a criminal offance. (Attestation Form is available in Mines Inspectorate Dept.)
Banker’s Guarantee (ie Reference letter from the applicant’s bank addressed to the: Director, Mines Inspectorate Department, Ministry of Mines and Steel Development)
Evidence of source of supply of the mineral i.e. a letter of introduction/consent from a Mineral title holder (Small Scale Mining Lease, Mining Lease or Quarry Lease) addressed to Director, Mines Inspectorate.
Evidence of a technically competent person –

Credentials of Mining Engineer or Geoscientist
Employment letter of Technical Person
Acceptance letter from the Technical Person
COMEG Seal of Technical Person

Please note that Raa N Oscar Consultancy Ltd possesses the capacity to provide essential regulatory documents including CAC Certificates, Tax Clearance Certificates, evidence of mineral supply sources, and proof of technically competent personnel, in instances where clients are unable to furnish or access these documents. This support is delivered in full compliance with applicable legal and regulatory standards.

Post-Licensing Obligations

Once the license is issued, the holder must:

Commence operations within six months.
Maintain proper records of production and royalties.
Submit annual returns and progress reports.
Comply with environmental and safety standards.
Pay all statutory fees and royalties.
Maintain cordial relations with host communities.

Mining License Renewal

Licenses are renewable before expiration (subject to good standing and compliance).
Renewal requires submission of updated documents (TCC, compliance reports, EIA, CDA updates, etc.).
Renewal fees vary based on license type and scale of operation.

Regulatory Compliance Obligations

To remain compliant, all mining operators must adhere to:

Environmental laws (EIA Act, NESREA guidelines).
Labour and safety standards (ITF, NSITF, PENCOM).
Community development obligations under the CDA.
Tax and royalty payments to the Federal Government.
Annual performance reporting to the Mining Cadastre Office.
Corporate Governance as per Nigerian company law.

Penalties for Non-Compliance

Operating a mining site or engaging in mineral trading without a valid license is an offence under the Mining Act.
Penalties include:

Revocation of license.
Seizure of minerals or equipment.
Heavy fines and imprisonment.
Permanent disqualification from future mining rights.
Blacklisting by the Mining Cadastre Office.

How Raa N Oscar Business Can Help

At Raa N Oscar Business, we provide end-to-end Mining License & Compliance Support for individuals and companies in Nigeria’s solid minerals sector.

Our services include: