Obtaining a mining lease
Mining lease applicant status
A mining lease application may be submitted, in conformity with the provisions of the following sections, by any qualified person, whether or not the application is emergent from an exploration licence.
A mining lease application is emergent from an exploration licence if-
a) made by the an exploration licence titleholder during the term of the exploration licence, and
b) the entire area requested for inclusion in the mining lease area is a contiguous area from within the exploration licence area.
A mining lease application that does not meet the requirements of subsection 2 of this section is not emergent from an exploration licence.
Mining lease application
An applicant for a mining lease shall pay the non-refundable Mining Lease Application Processing Fee specified in Schedule 1 of these Guidelines.
A mining lease application, in Form A-4 (Application for Mining Lease), shall be submitted, in triplicate, by the applicant to the Central Mining Cadastre Office, or to the Zonal Mining Cadastre Office responsible for the area being applied for, for registration and processing.
A mining lease application shall-
c) specify the complete identification and contact information of the applicant, the address of its headquarters, the identity and address of any legal representative(s), and the identity and address of its commercial representative in Nigeria, if any;
d) Provide the identifying code of the applicant’s exploration licence;
e) Describe the desired mining lease area, its size and configuration, outlined on a topographical map of the area (the overall area shall not exceed the area reasonably necessary to carry out the mining operations);
f) Identify, in accordance with the method specified in Schedule 2 of these Guidelines, the contiguous area applied for;
g) Identify the mineral resources located in the area being applied for;
h) List the mineral types(s) to be mined (if for Mineral Water, no additional minerals shall be listed);
i) Specify the period of mining lease duration sought if less than twenty-five (25) years;
j) be completed and signed by the applicant or an authorized representative of the applicant; and shall have annexed the following:
k) A certified copy of the certificate of incorporation or other constitutive document provided under the Companies and Allied Matters Act and any amendments thereto;
l) Form AT-1 (Attestation of No Minerals and Mining Act Offence or Felony Conviction) attesting that the applicant, including all members or directors of the applicant or any shareholder holding a controlling share of the applicant has not been convicted of a felony or an offence under this Act;
m) A prefeasibility study which shall include-
i) a general description of the proposed mining scheme, including sufficient detail to indicate the scale of operation, and the possible location of all major mining operation facilities, pits, shafts, dumps and dams;
ii) the planned commencement date of mine development;
iii) the planned commencement date of commercial mineral resources production;
iv) the planned production profile and capacity;
v) the characteristics and nature of the final products;
n) Receipt for payment of Mining Lease Application Processing Fee, and
o) Such other information as the applicant desires to include.
An application containing all information required under subsection 3 of this section is complete.
At the time that a mining lease application is received by the Mining Cadastre Office, the Mining Cadastre Office officer receiving the application shall immediately verify whether the application is complete.
An application that is found to not be complete under subsection 5 of this section shall be rejected and not registered.
when an application is verified to be complete under subsection 5 of this section-
p) the Mining Cadastre Office officer making such verification shall assign an identifying code to the application and shall register its date, hour and minute of submission in the Priority Register;
q) the Priority Register shall be signed by both the officer verifying the application and the applicant or the applicant’s authorised representative;
r) the identifying code, date, hour and minute of application shall be recorded in the application forms, which shall be stamped and signed by the Mining Cadastre Officer, and
s) one copy of the application shall be given to the applicant.
When a mining lease application is registered, the area applied for shall be recorded in the Cadastral Maps.
A registered mining lease application shall be officially accepted for consideration of approval unless the mining area applied for is fully within an area-
t) currently under an exploration licence, mining lease, small-scale mining lease, quarry lease, or water use permit held by another licence, lease or permit titleholder, or
u) closed to mining operations by this or any other law in which case the application shall be null and void, the Mining Cadastre Office shall, in writing, notify the applicant that the application is null and void within seven (7) calendar days of the application registration date, and the date of such notification shall be recorded in the Priority Register.
Where there is any partial overlap between the area applied for in a mining lease application and any area which-
v) is subject to a current exploration licence, small-scale mining lease, mining lease, quarry lease, or water use permit;
w) is closed to mining operations;
x) has been applied for by any applicant for any mineral title, other than a reconnaissance permit, and such application is not yet decided and was registered earlier in time than the mining lease application; the area of such overlap shall be excluded from the mining lease application, and the Mining Cadastre Office shall, in writing, notify the current applicant, within seven (7) calendar days from the application registration date, requesting that the applicant amend the area applied for in the application.
Upon receipt of a notice under subsection 10 of this section, an applicant shall modify the application to redefine the mining lease area applied for in such a way as to avoid the overlap.
In the review of a mining lease application, the Director General may;
y) request the applicant to correct any defects or omissions;
z) confirm the information provided in the application;
aa) consult with other specialists as necessary;
bb) consult other relevant government entities;
cc) propose alterations in the application.
The failure of an applicant to provide any of the information requested pursuant to subsections 11 or 12 (a) of this section within seven (7) calendar days, or the lack of clarity in the provision of such information, shall render the application null and void, and the Mining Cadastre Office shall in such a case-
dd) In writing, notify the applicant that the application is null and void, and
ee) Record the date of such notification in the Priority Register.
Any person who otherwise qualifies to apply for a mining lease area shall be ineligible to apply for a mining lease if-
ff) it is shown that any of the members or directors of the applicant or a shareholder holding a controlling share of the applicant has been convicted of a felony or an offence under the Minerals and Mining Act, or
gg) the applicant, in the ninety (90) calendar days preceding the application registration date, had a prior mining lease application that applied for part or all of the area currently being applied for, which was deemed null and void under subsection 24 of this section, or
hh) in the case of a mining lease application not emergent from an exploration licence, the applicant is a former mining lease or small-scale mining lease titleholder whose lease has been revoked for the same mining area or any part therein applied for when such application is made within twelve (12) months from the date of such revocation.
The Director General shall deny approval to a mining lease applicant if that applicant is ineligible, under subsection 14 of this section, to apply for a mining lease.
The Director General shall deny approval to a mining lease applicant who has not employed a person who possesses adequate professional qualification and experience in mining and the Director General is satisfied that the company shall, during the currency of the lease, have such qualified person in its employment.
Subject to subsections 15 and 16 of this section, the Director General, in accordance with the provisions of the Minerals and Mining Act and these Guidelines, shall grant application approval-
ii) for a mining lease application emergent from an exploration licence.
jj) For a mining lease application not emergent from an exploration licence, unless there is a partial overlap with any area(s) for which another exploration licence, small-scale mining lease, mining lease, quarry lease, or water use permit application is currently pending, in which case, the first registered application shall be given exclusive priority for the area of overlap.
The Mining Cadastre Office shall, in writing, notify, within forty-five (45) calendar days of the application registration date, a mining lease applicant whose application is denied approval, and the date that such notice of denial was sent shall be recorded in the Priority Register.
The Mining Cadastre Office shall, in writing, notify an applicant whose mining lease application is granted approval, within thirty-eight (38) calendar days of the application registration date that,-
kk) the application is granted approval;
ll) the Mining Cadastre Office at which the lease can be issued;
mm) that the lease shall be collected by the applicant, or its representative, within fourteen (14) calendar days from the date of notification, and shall have the date that the notice was sent recorded in the General Register.
The mining Cadastre Office shall issue to the applicant of a mining lease application granted approval by the Director General, upon payment by the applicant of the non-refundable Annual Service Fee specified in Schedule 1 of these Guidelines, a mining lease.
When a mining lease is issued, the lease area shall be recorded in the Cadastral Maps, and the date of issuance shall be recorded in the Mining Lease Register.
when a mining lease application is denied by the Director General, or is not acted on by the Director General within the forty-five (45) calendar day application processing period, an appeal may be taken to the Federal High Court; any such appeal shall be lodged within thirty (30) calendar days of receipt of notification under subsection 18 of this Section, or when the Director General has failed to act, after the forty-five (45) day processing period has ended but before sixty (60) calendar days from the application registration date.
In any case appealed to the Federal High Court under subsection 22 of this Section, where the Federal High Court has determined that a mining lease is to be granted, the Director General shall grant the lease within seven (7) calendar days of such determination.
When an applicant fails to appear and pay the non-refundable Annual Service Fee within fourteen (14) calendar days from the date of being notified under subsection 19 of this section, the application shall be deemed to be null and void, and the date upon which the application became null and void shall be recorded in the Priority Register.
When it becomes known to the Mining Cadastre Office that a false attestation was made in Form AT-1 (Attestation of No Minerals and Mining Act Offence or Felony Conviction), any resultant mining lease shall be null and void.
Restrictions on the grant of a mining lease
A mining lease may only be granted in available areas.
For the purposes of the subsection 1 of this section, all areas within the land borders, territorial waters, the continental shelf and in the exclusive economic zone of Nigeria are available areas except areas that are-
nn) subject to any of the following mineral titles held by a party other than the applicant for the mining lease:
i) small-scale mining lease,
ii) mining lease,
iii) quarry lease,
iv) water use permit, or
v) exploration licence,
oo) closed to mining operations by this or any other law.
Form of mining lease
A mining lease shall be in Form M-4 (Model Form of Mining Lease).
A mining lease shall have appended to it, by the Mining Cadastre Office, a map with the position of the granted mining lease area marked upon it, and any directly adjacent mineral titles, with the exception of reconnaiance permits shall also be identified clearly on the map.
Duration of mining lease
A mining lease shall be issued initially for the term applied for, or twenty-five (25) years, whichever period is shorter.
A mining lease may be renewed for further periods not to exceed twenty (20) years.
There is no maximum limit on the number of times a mining lease can be renewed.
Application for renewal of mining lease
Not later than twelve (12) months before the expiration of a mining lease, the titleholder of the lease may submit an application to renew the lease.
An application to renew a mining lease shall include or be accompanied by the following data and information;
a) length of the renewal period desired, but not to exceed twenty (20) years;
b) proposed program of mining operations to be carried our during the renewal period;
c) detailed reports of, inter alia:
-current proven and estimated reserves;
-the estimated economic life of the mine;
-other material which the applicant considers relevant; and shall have attached
d) an environmental impact assessment statement approved by the Federal Ministry of the Environment in respect of Mining Operations to be conducted within the Mineral Title Area; and
e) an updated Environmental Protection and Rehabilitation Program containing such details as may be provided for in the environmental Guidelines issued pursuant to the Minerals and Mining Act.
3. The Director General shall grant approval to a mining lease renewal application within sixty (60) calendar days from the registration of the application if-
a) the conditions of the lease have been met;
b) the titleholder of the lease is not in default under the Minerals and Mining Act, and
c) the titleholder of the lease can demonstrate either mineral reserves justifying a renewal or the need to maintain the property for use an integral part of mining operations on other small-scale mining lease or mining lease lands.
4. When an application for mining lease renewal is received less than twelve (12) months prior to the expiry of the original term of the lease, the titleholder of the lease shall pay, in addition to the fee imposed in subsection 9 of this section, upon renewal of the lease, the non-refundable Late Filing Fee specified in Schedule 1 of these Guidelines.
5. The Director General shall not deny an application for a mining lease renewal without first having given the applicant prior notice of the intention to deny the renewal including the reasons therefore and inviting the applicant, within a specified time period to take the appropriate remedial measures or to present a documented statement in defense of the default.
6. Where the Director General denies a mining lease renewal application, he shall, by a written notice, inform the titleholder of the lease of such denial stating the reasons therefore.
7. A mining lease titleholder denied a renewal by the Director General under this section may within sixty (60) calendar days of being notified of such denial, appeal in writing to the Federal High Court.
8. In any case appealed under this section to the Federal High Court where the Federal High Court has determined that a mining lease renewal is to be granted, the Director General shall grant the renewal within seven (7) calendar days.
9. Where an application for a mining lease renewal is granted approval, such grant shall take effect upon payment of any fee imposed under subsection 4 of this section and the non-refundable Small-Scale Mining Lease Renewal Fee specified in Schedule 1 of these Guidelines.
10. Where the applicant for a mining lease renewal fails to pay the fee(s) required in subsection 9 of this section within thirty (30) calendar days after being notified of the Director General’s grant of approval, such renewal shall be deemed null and void.
Term of validity of mining lease
Subject to subsections 2 and 3 of this Section, a mining lease will remain during…
a) the initial period fixed in the lease measured from the date on which the lease is issued by the Mining Cadastre Office, and
b) any renewal period granted in conformity with Section 39 of these Guidelines.
When the term of a mining lease expires while an application for the renewal of the lease is pending, the lease will remain in force until in accordance with provisions of these Guidelines:
c) there is a decision on the renewal application; or
d) the renewal application is rendered void and without further effect.
Subject to subsection 2 of this Section, unless terminated earlier by revocation, a mining lease shall terminate upon expiration of the term provided therein.
Relinquishment of mining lease area
Without prejudice to the terms and conditions set forth in a mineral agreement, a mining lease titleholder may, at any time during the term of the mining lease, apply to the Director General, in Form A-7 (Application to Relinquish Mining Area), to relinquish part or all of the lease area.
There shall be no relinquishment under this Section of any mining lease area attached by the Court so long as such attachment remains in force.
There shall be no relinquishment under this Section of any mining lease area unless the written consent to the same of all persons having interests registered against the mining lease shall have been delivered to the Mining Cadastre Office.
When the entire mining lease area is to be relinquished, upon the Director General granting the application approval, the Mining Cadastre Office shall-
e) revoke the lease;
f) in writing, notify the titleholder of the date on which the lease was revoked;
g) record the revocation date in the Mining Lease Register;
h) update the Cadastre Maps.
When only part of the mining lease area is to be relinquished, upon the Director General granting the application for area relinquishment, the Mining Cadastre Office shall-
a) in writing, notify the titleholder of the area approved for relinquishment and on what date the area was relinquished;
b) record the area relinquishment in the mining lease;
c) record the area relinquishment in the Mining Lease Register and Cadastral Maps.
A titleholder receiving a notice under subsection 5 of this Section shall within fourteen (14) calendar days of receiving such notice adjust the mining lease boundary demarcation markers, in compliance with Section 97 of these Guidelines, to mark the new boundaries of the lease area.
When a mining lease titleholder relinquishes area pursuant to this Section the liability of the holder-
d) to pay any tax, fee, rental, royalty, penalty or other compensation that is payable before the date of relinquishment;
e) to fulfill all requirements for environmental matters;
f) to perform any obligation required by law to be performed on or before that date;
g) for any act done or default made on or before that date; that is payable under, in respect of, or arises out of or in relation to such lease under this or any other law then in force is not affected.
Extracted from the Guidelines for Applicants and Holders of Mining
Titles: A publication of the Mining Cadastre Office, Abuja.
Friday, November 09, 2007