Title of presentation Benjamin Obidegwu,  Partner  Hermon (Barristers & Solicitors) ,  Lagos, Nigeria
<ul><li>The Law supporting the acquisition of Mining Rights in Nigeria is the Nigeria Mineral and Mining Act (NMMA) 2007. ...
Functions of the Mining Cadastre Office   <ul><li>Has exclusive responsibility for the administration of Mineral Title and...
Functions of the Mining Cadastre Office cont’d <ul><li>Receive and dispose of applications  for the transfer, renewal,  mo...
Functions of the Mining Cadastre Office cont’d <ul><li>a General Registry book which is  to be used for all other types of...
TYPES OF MINERALS TITLES <ul><ul><ul><li>S.46 NMMA 2007 provides for: </li></ul></ul></ul><ul><ul><ul><li>Reconnaissance P...
PROCEDURE FOR OBTAINING RECONAISEEANCE PERMIT   <ul><li>Procedure is similar with the procedure for obtaining exploration ...
<ul><li>Obtaining, completion and submission of application form in triplicate. Form A-2  </li></ul><ul><li>Submission of ...
PROCEDURE FOR OBTAINING EXPL0RATION LICENCE cont’d <ul><li>Indication of the type of mineral to be explored </li></ul><ul>...
PROCEDURE FOR OBTAINING EXPLORATION LICENCE cont’d <ul><li>Assignment of Identification code  </li></ul><ul><li>Registrati...
PROCEDURE FOR OBTAINING SMALL SCALE MINING LEASE  <ul><li>Completion and  submission of application form in triplicate. Fo...
PROCEDURE FOR OBTAINING SMALL SCALE MINING LEASE  <ul><li>Submission of certified true copy of certificate of incorporatio...
ANNUAL SERVICE FEE FOR MINERAL RIGHTS IN NIGERIA <ul><ul><li>EPL Annual Service Fee = N500 per CU/year (CU =20.25Ha) </li>...
CANCELLATION OF LICENCES <ul><ul><li>License and right are automatically cancelled when holders refused to pay their fee o...
INVESTMENT OPPORTUNITIES <ul><li>Proven solid minerals available in Nigeria in commercial quantity include: </li></ul><ul>...
Proven solid minerals available cont’d <ul><li>n) Columbite o) Cassiterite </li></ul><ul><li>p) Diatomite q) Silica Sand <...
AVAILABLE INVESTMENT OPPORTUNITIES <ul><li>Local sales and export of crude and processed solid minerals.  </li></ul><ul><l...
AVAILABLE INVESTMENT OPPORTUNITIES <ul><li>Mining equipment technologies leasing services, technical consultancy </li></ul...
INCENTIVES FOR INVESTORS  <ul><li>S 23-32 OF NMMA -Attractive tax policy. </li></ul><ul><li>Deduction of 95% of qualifying...
INCENTIVES FOR INVESTORS <ul><ul><li>all infrastructure costs for mining purpose in the year incurred; </li></ul></ul><ul>...
INCENTIVES FOR INVESTORS <ul><ul><li>Unclaimed capital cost can be increased by 5% annually until fully recovered; </li></...
INCENTIVES FOR INVESTORS <ul><ul><li>Exemption from Custom Duties on all equipment and capital items agreed to be required...
INCENTIVES FOR INVESTORS <ul><li>Royalty payment is affordable and is dependent on the type of mineral being mined.  </li>...
END OF SLIDE <ul><li>THANK YOU  </li></ul><ul><li>FOR YOUR </li></ul><ul><li>ATTENTION </li></ul>
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Mining rights, acquisitions and investment opportunities in Mining in Nigeria

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A presentation made at iPAD West Africa open conference and exhibition 25 – 27 November 2008 - Abuja, NIGERIA

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  • iPAD West Africa 2008, Abuja, NIGERIA
  • Mining rights, acquisitions and investment opportunities in Mining in Nigeria

    1. 1. Title of presentation Benjamin Obidegwu, Partner Hermon (Barristers & Solicitors) , Lagos, Nigeria
    2. 2. <ul><li>The Law supporting the acquisition of Mining Rights in Nigeria is the Nigeria Mineral and Mining Act (NMMA) 2007. </li></ul><ul><li>Section 5 of the act established the Mining Cadastre Office as an autonomous body to administer Mining Rights on a 1 st come 1 st serve basis </li></ul>Mining Rights, Acquisitions and Investment Opportunities in Mining in Nigeria .
    3. 3. Functions of the Mining Cadastre Office <ul><li>Has exclusive responsibility for the administration of Mineral Title and maintenance of Cadastral register. </li></ul><ul><li>Consider applications for Mineral Titles and Permits, issue, suspend and may, upon the written advice of the Minister, revoke any Mineral Title </li></ul>
    4. 4. Functions of the Mining Cadastre Office cont’d <ul><li>Receive and dispose of applications for the transfer, renewal, modification, relinquishment of Mineral Titles or extension of areas; </li></ul><ul><li>Maintain a chronological record of all applications for Mineral Title in: </li></ul><ul><li>a Priority Book which is to be specifically used to ascertain the priority and registration of applications for exclusive rights on vacant areas: </li></ul>
    5. 5. Functions of the Mining Cadastre Office cont’d <ul><li>a General Registry book which is to be used for all other types of applications where registration of the priority is not required. </li></ul><ul><li>undertakes such other activities necessary for the carrying out of duties and responsibilities under the law. </li></ul>
    6. 6. TYPES OF MINERALS TITLES <ul><ul><ul><li>S.46 NMMA 2007 provides for: </li></ul></ul></ul><ul><ul><ul><li>Reconnaissance Permit; </li></ul></ul></ul><ul><ul><ul><li>Exploration Licence; </li></ul></ul></ul><ul><ul><ul><li>Small-Scale Mining Lease; </li></ul></ul></ul><ul><ul><ul><li>Mining Lease; </li></ul></ul></ul><ul><ul><ul><li>Quarry Lease; and </li></ul></ul></ul><ul><ul><ul><li>Water Use Permit. </li></ul></ul></ul>
    7. 7. PROCEDURE FOR OBTAINING RECONAISEEANCE PERMIT <ul><li>Procedure is similar with the procedure for obtaining exploration licence and same will be discussed in the next slide </li></ul>
    8. 8. <ul><li>Obtaining, completion and submission of application form in triplicate. Form A-2 </li></ul><ul><li>Submission of the coordinate of the area of application not exceeding 200sqkm </li></ul><ul><li>Submission of certified true copy of certificate of incorporation of applicant </li></ul>PROCEDURE FOR OBTAINING EXPLORATION LICENCE
    9. 9. PROCEDURE FOR OBTAINING EXPL0RATION LICENCE cont’d <ul><li>Indication of the type of mineral to be explored </li></ul><ul><li>Submission of work programme </li></ul><ul><li>Evidence of payment of the statutory fee – N5,000 (approx $50 US. </li></ul>
    10. 10. PROCEDURE FOR OBTAINING EXPLORATION LICENCE cont’d <ul><li>Assignment of Identification code </li></ul><ul><li>Registration with time of submission </li></ul><ul><li>Signing of document by applicant and cadastre officer and copy is given to the applicant for record purposes </li></ul><ul><li>Application is granted 30 days after submission of documents if all the documents are in order </li></ul>
    11. 11. PROCEDURE FOR OBTAINING SMALL SCALE MINING LEASE <ul><li>Completion and submission of application form in triplicate. Form A-3 </li></ul><ul><li>Submission of the coordinate of the area of application not exceeding 3sqkm </li></ul><ul><li>Submission of prefeasibility study which shall include a general description of the proposed mining scheme </li></ul>
    12. 12. PROCEDURE FOR OBTAINING SMALL SCALE MINING LEASE <ul><li>Submission of certified true copy of certificate of incorporation of applicant </li></ul><ul><li>Assignment of Identification code and Registration with time of submission </li></ul><ul><li>Signing of document by applicant and cadastre officer and copy is given to the applicant for record purposes </li></ul><ul><li>Application is granted 45 days after submission of documents if all the documents are in order </li></ul>
    13. 13. ANNUAL SERVICE FEE FOR MINERAL RIGHTS IN NIGERIA <ul><ul><li>EPL Annual Service Fee = N500 per CU/year (CU =20.25Ha) </li></ul></ul><ul><ul><li>SSML Annual service Fee = N10,000 per CU/year </li></ul></ul><ul><ul><li>ML Annual Service Fee = N20, 000 per CU/Year </li></ul></ul><ul><ul><li>QLS Annual Service Fee = N15,000 per CU/Year </li></ul></ul><ul><ul><li>Water Use Permit Annual Service Fee = N5,000 per CU/year </li></ul></ul>
    14. 14. CANCELLATION OF LICENCES <ul><ul><li>License and right are automatically cancelled when holders refused to pay their fee obligations by due dates, after a holder has been served with notice of impending cancellation. </li></ul></ul><ul><ul><li>Once cancelled, a holder cannot re apply for, transfer, amend etc any license or right for 5 years. </li></ul></ul>
    15. 15. INVESTMENT OPPORTUNITIES <ul><li>Proven solid minerals available in Nigeria in commercial quantity include: </li></ul><ul><li>a) Tantalite b) Kaolin </li></ul><ul><li>c) Mica d) Baryte </li></ul><ul><li>e) Coal f) Rutile </li></ul><ul><li>g) Talc g) Bismuth </li></ul><ul><li>h) Gypsum i) Feldspar </li></ul><ul><li>j) Gold k) Clays </li></ul><ul><li>l) Silver m) Limestone </li></ul>
    16. 16. Proven solid minerals available cont’d <ul><li>n) Columbite o) Cassiterite </li></ul><ul><li>p) Diatomite q) Silica Sand </li></ul><ul><li>r) Fluorite s) Bitumen </li></ul><ul><li>t) Lead u) Zinc </li></ul><ul><li>v) Bentonite w) Iron Ore </li></ul><ul><li>x) Lithum y) Magnesite </li></ul><ul><li>z) Kyanite aa) Gemstones </li></ul><ul><li>bb) Mangenese cc) Copper </li></ul><ul><li>dd) Marble ee) Phosphate </li></ul>
    17. 17. AVAILABLE INVESTMENT OPPORTUNITIES <ul><li>Local sales and export of crude and processed solid minerals. </li></ul><ul><li>Importation and local marketing of modern mining equipment technologies and spares </li></ul><ul><li>Modern mineral testing and quality control equipment technologies and reagents </li></ul>
    18. 18. AVAILABLE INVESTMENT OPPORTUNITIES <ul><li>Mining equipment technologies leasing services, technical consultancy </li></ul><ul><li>Underground mining technologies services, provision and maintenance of automated systems for mining and construction, engineering and high speed underground exactions and development. </li></ul>
    19. 19. INCENTIVES FOR INVESTORS <ul><li>S 23-32 OF NMMA -Attractive tax policy. </li></ul><ul><li>Deduction of 95% of qualifying capital expenditure in the year of investment in: </li></ul><ul><li>a) all certified exploration and development expenditure (including feasibility study and sample assay costs in the year incurred) </li></ul>
    20. 20. INCENTIVES FOR INVESTORS <ul><ul><li>all infrastructure costs for mining purpose in the year incurred; </li></ul></ul><ul><ul><li>100% of the amount set aside in any particular year for environmental protection and rehabilitation costs. </li></ul></ul>
    21. 21. INCENTIVES FOR INVESTORS <ul><ul><li>Unclaimed capital cost can be increased by 5% annually until fully recovered; </li></ul></ul><ul><ul><li>Tax relief period is for three years but may be extended by Minister for another two years </li></ul></ul><ul><ul><li>Corporate Income Tax (20%-30%) All holders of a mining lease shall be liable to the payment of a corporate income tax on the net profits or taxable income earned from the mining activities. </li></ul></ul>
    22. 22. INCENTIVES FOR INVESTORS <ul><ul><li>Exemption from Custom Duties on all equipment and capital items agreed to be required for the mining operations; </li></ul></ul><ul><ul><li>Artisan miners are exempted from corporate income Tax but must pay the local taxes in the area of activities. </li></ul></ul><ul><ul><li>Full currency conversion and full Repatriation or remittances of Profits and dividends to allow investor service its (external) loans on the mining activities. </li></ul></ul>
    23. 23. INCENTIVES FOR INVESTORS <ul><li>Royalty payment is affordable and is dependent on the type of mineral being mined. </li></ul><ul><li>Gold N1090 per ounce </li></ul><ul><li>Copper N900 per metric ton </li></ul><ul><li>Granite N50 per metric ton </li></ul><ul><li>Limestone N40 per metric ton </li></ul><ul><li>Possible capitalization of expenditure on exploration and surveys; </li></ul><ul><li>Provision of 100% ownership of mining concerns. </li></ul>
    24. 24. END OF SLIDE <ul><li>THANK YOU </li></ul><ul><li>FOR YOUR </li></ul><ul><li>ATTENTION </li></ul>

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