• Tuesday, July 16, 2024
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FG raises royalty rates by 100%, introduces new charges

FG faces racketeering, others in mining sector, after tackling payment defaulters

The federal government on Thursday raised royalties by 100 percent. The government also even introduced new charges for mining licences and others.

Dele Alake, the minister of Solid Minerals Development, gave the information While briefing the Media in Abuja.

“We are taking a major step in the efforts to implement the seven-point agenda to position the sector for economic consolidation and international competitiveness by announcing a new regime of rates and charges for various services of the departments and agencies of the ministry,” Alake said.

“This is in view of the introduction of qualitative measures and human and technological capacity upgrades implemented in recent times to raise the level of technical efficiency of the services, improve the traffic of transactions and develop infrastructures to cope with the resurgence of business interests in the sector.”

The minister stated that there are 268 items in the rates regime. However, he highlightedo only the major increases.

“Applicants for Mining Lease will pay N3million; Reconnaissance Permit, N300,000, Exploration Licence, N600,000, Small Scale Mining License, N300,000, Quarry Lease N600,000 and Water User Permit N300,000,” he said.

“Annual Service Fee now N31,500 per Cadastral Unit for the first time, Small-Scale Mining. N260,000; Quarry Lease, N500,000, Mining Lease, N1,250,000.”

The Minister further said that penalties for late renewal of mineral titles: Reconnaissance Permit will attract, N600,000, Exploration License, N1,500,000; Mining Lease, N3,000,000 and Quarry Lease N1,500,000.

Hw noted further that the royalty rate per standard weight of minerals will now cost 100 per cent more. Baryte, with N42,000 as a market value per tonne attracts N2,100 royalty; Coal, with a 100,000-tonne market value, attracts N3,000; Gold, with N1,081,200 per ounce as a market value, attracts N36,436 royalty per tonne; Lead/Zinc concentrate with 480,000 per tonne as market value attracts a royalty of N14,400 per tonne. Lithium Ore (lepidolite) at the current market value of N600,000 per tonne, attracts N18,000 royalty per tonne; Lithium (kunzite) with a current market value of a million per tonne, attracts N90,000 royalty per tonne and Lithium ore, (spodumene)with a current market value of N316,667 per tonne attracts N9,500 royalty per tonne.

Licence to manufacture explosives now costs N20 million, modifying explosives, N10 million and the sale of explosives for mining, N500,000.

He added that investors willing to obtain a licence to refine gold will pay N5 million and a permit to operate a Mineral Processor costs N100,000. Mineral resources map of Nigeria will cost N500,000 and the Geological Map of Nigeria now costs N300,000.

For instance, we supervised the successful implementation and conclusion of the mineral sector support for economic diversification, MINDIVER project.

Read also: Nigeria missing out on $110bn global bitumen market, says Senate

Speaking on the successes of the government over the past 191 months since they had been in office Alake informed that the mining cadastral office, the agency responsible for licensing, which acquired the new mining information system, the EMC+ portal has enabled 24-hour application and administration system that accelerated the rate of applications and access of applicants to the MCO.

He added that the Nigerian Geological Survey Agency acquired an integrated geological database available and accessible to the public. This facility, known as the data centre, has made the acquisition of geological information easier for companies embarking on exploration among others

He further added that “Beyond the impact on these agencies, the World Bank loan, through the MINDIVER project, established a system for the estimation and assessment of revenues from the mining sector, established fiscal accountability and transparent framework for the solid minerals development fund and developed local supply chain for industrial minerals.

“Since the activation of these systems, all the stakeholders in the mining sector have been enjoying the improved services but at the rates in force before the services were provided. It is therefore equitable that those who use these services to invest in the mining sector and make profits from it should be on the frontlines of the government’s efforts to recoup rather than pass it to the poor” he added.