FG Revokes 1,633 Mining Licences In Nigeria

,,,,,,The Federal Government through the Ministry of Solid Minerals Development has revoked 1,633 minerals titles previously given to non-complying mining companies in the country.

The minister also promised to clean up the solid minerals sector for international competitiveness and urged all stakeholders who have acted wrongly in this sector to turn a new leaf.

The Minister of Solid Minerals Development, Dele Alake, announced this during a press briefing on Tuesday in Abuja.

He said the licenses of these mineral title holders were revoked due to failure to pay mandatory annual service fees of N1,500 per cadastral unit.

Alake said the revocation, based on earlier warnings to 2,213 mining companies, complies with Sections 10, 11, and 12 of the Mining Act and frees up spaces for potential investors who are willing to invest.

He lamented that the mining firms who have held the licenses for years, making huge profits from mining sites, still failed to make necessary payments accrued to the government.

,,,,,,He said, “It is indeed very unconscionable for corporate bodies making huge profits from mining to refuse to give the government its due by failing to pay their annual service fee. It is indeed a reasonable conjecture that such a company will be willing to pay royalties and honour its tax obligations to the government. The amount the companies are being asked to pay is peanuts compared to their revenue projections.

“In compliance with the law, the Mining Cadastral Office on October 4, 2023, began the process of revoking 2,213 titles. These included 795 Exploration titles, 956 Small Scale Mining Licences, 364 Quarry licenses, and 98 Mining Leases.

These were published in the Federal Government Gazette Number 178, Volume 110 of October 10, 2023, with the notice of revocation for defaulting in the payment of the Annual Service Fee.

“The Mining Cadastre Office has recommended the revocation of 1,633 mineral titles as follows: Exploration Licence, 536; Quarry Licence, 279; Small Scale Mining Licence, 787 and Mining Lease, 31. In line with the powers conferred on me by the NMMA 2007, Section 5 (a), I have approved the revocation of the 1,633 titles.”

He further warned that those whose licenses had been revoked should vacate mining sites to avoid being apprehended by security agencies.

,,,,,Explaining the revocation process, Alake stated that the ministry gave a thirty-day written default notice to the defaulting parties to pay up the fees but only 580 titleholders responded to the notice and paid their annual fees.

“Any notice required to be sent by the Mining Cadastre Office to an applicant for, or holder of a mineral title shall be sent by courier service or registered mail to the last known address in Nigeria of the mineral titleholder or given in person to an authorised representative of the applicant or holder of the mineral title in Nigeria or published in the Gazette. The notice shall for all purposes be sufficient notice of the subject matter of the notice to the applicant for or holder of a mineral title.”

“The mandatory 30 days expired on November 10, 2023. Only 580 titleholders responded by settling their indebtedness. With this development, the MCO recommended the revocation of 1, 633 mineral titles as follows: Exploration Licence, 536; Quarry Licence, 279; Small Scale Mining Licence, 787 and Mining Lease, 31. A mineral title shall become liable to revocation where the holder thereof has failed to pay the prescribed fees.

“In case of default of payment of the annual service fee due to the Mining Cadastre Office, the Mining Cadastre Office shall give a thirty-day written default notice to the defaulting party and, if payment is not effected…..during that period, the Mining Cadastre Office shall record the default and revoke the mineral title.