FG Increases Mining Rates, Decries Non-Remittance

Date:

July 5, 2024.

Thank you for reading this post, don't forget to subscribe!

Azonuchechi Chukwu.

The Federal Government has increased the rates and charges for all activities in the mining sector.

Dr Dele Alake, the Minister of Solid Minerals Development, who disclosed this while briefing newsmen on the new charges on Thursday in Abuja, expressed concerns over non-remittance by some operators.

Alake said that mining operators in the industry were making huge amounts of money but refused to remit to the Federal Government.

“Today, we are taking a major step in the efforts to implement the seven point agenda.

“This is to position the sector for economic consolidation by announcing a new regime of rates and charges for various services of the department and agencies of the ministry.’’

The minister said the development was in view of the introduction of qualitative measures being implemented in recent times.

He added that it would raise the level of the services; improve traffic of the transaction and developed infrastructure.

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

He said the mining sector involved Mining Cadastral Office (MCO)–the agency responsible for licensing which acquired the new mining information system, Electronic Mining Cadastre System, EMC+ portal.

“This enables 24 hours application and administration system that accelerated the rate of application and access of applicants to MCO, adding that the system had improved transparency.

Alake said the system would also encourage more interest and boost participation in the sector; thereby giving the stakeholder confidence to invest the sector.

He said that the Nigerian Geological Survey Agency (NGSA) had acquired an integrated base data accessible by the public.

“The stakeholders have been enjoying the mining sector; it is therefore equitable that those who invest in the mining sector and make profits from it should be on the front lines of government’s efforts to recoup rather than pass it to poor Nigerians.’’

Alake said that there were about 268 items in the rates regime, adding that it would be difficult to mention all the items.

“The major highlights are as follows: under the new regime, investors applying for a mining lease license will pay N3 million, while Small Scale Mining Lease (SSML) applicants will pay N300, 000 for the first two cadastral units.

“The cost to obtain an Exploration Licence (EL) is N600, 000 for the first 100 cadastral units.’’

He listed others as a Quarry lease and reconnaissance permit which attracted N300, 000.

“The aim is to discourage speculation and address the paucity of funds, limiting the Federal Government’s capacity to improve ease of doing business in the sector.

“The new rate, which affects 268 items in the industry, includes an annual service fee of N31, 500 for the first time.

“Also, N260, 000 for a Small Scale Mining License (SSML), N500,000 for a Quarry Lease, and N1,250,000 for firms operating with a Mining Lease.

“Following the renewal of licenses, the rates for the respective categories will be N42, 000,” he said.

Alake said also listed an exploration license, N420, 000, for a SSML N1.5 million for a mining Lease and N1 million for a quarry lease.

“Other services affected by the new regulations include mineral title applications of the MCO, alongside the transfer, enlargement, surrender, and consolidation of mineral titles.’’

According to Alake, the new regulations seek to maximise royalties from critical minerals like lithium and gold to boost the nation’s revenue base and contribute significantly to economic development.

“In the new rates regime, lithium ore lepidolite at the current market value of N600, 000 per tonne attracts an N18,000 royalty per tonne.

“Kunzite with a current market value of N3 million per tonne, attracts a N90, 000 royalty per tonne, while lithium ore spodumene with a current market value of N316,667 per tonne, attracts a N9,500 royalty per tonne,’’ he said.

He said that the rates review also affected services rendered by the MCO and the NGSA.

According to the minister, the new rates regime takes immediate effect.(www.naija247news.com).

Chukwu Azochukwu, The Naija247news
Chukwu Azochukwu, The Naija247newshttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

Share post:

Subscribe

Popular

More like this
Related

Airlines’ Blacklist Allegation Inaccurate, Maligning – Operators

July 18, 2024. Azonuchechi Chukwu. The Airline Operators of Nigeria (AON)...

Nigeria Sets Minimum Wage at $50 Per Month with Three-Year Review Cycle

After six months of intense negotiations, the federal government...

South Africa Introduces Five-Year Multiple Entry Visa for Nigerian Business Travelers

South Africa has launched a five-year multiple entry visa...

Nigeria’s Tinubu Sets New Minimum Wage at $43.015 Per Month

President Bola Tinubu has established a new minimum wage...
× How can I help you?