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Laws of the Nigerian Federation
NIGERIAN MINERALS AND MINING ACT
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EXPLANATORY MEMORANDUM
This Act repeals the Minerals and Mining Act, No. 34 of 1999 and re-enacts the Nigerian Minerals and Mining Act 2007 for the purposes of regulating all aspects of the exploration and exploitation of solid minerals in Nigeria; and for related purposes.
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ARRANGEMENT OF SECTIONS
CHAPTER I: Minerals, Prospecting, Mining and Quarrying
PART I: Ownership and Control of Minerals
Control of property in minerals, water, etc., vested in the State.
Prohibition of exploration or exploitation of minerals without authority.
Lands excluded from minerals exploration and exploitation.
PART II: Administration of the Act
Functions of the Minister.
Establishment of the Mining Cadastre Office.
Central and Zonal Offices of the Mining Cadastre Office.
Mining Cadastre Registers.
Priority.
Competitive bidding.
Fees payable to the Mining Cadastre Office.
Revocation of mineral title for failure to pay fees.
Process for revocation when mineral titleholder fails to pay fees.
Determination of fees payable.
Notice to applicant.
Relationship between the Minister and the Mining Cadastre Office.
Establishment of departments.
Functions of the Mines Inspectorate Department.
Functions of the Mines Environmental Compliance Department.
Establishment of State Mineral Resources and Environmental Management Committee.
Delegation of powers by the Minister.
Regulation.
Use of land for mining a priority.
PART III: Mining Incentives
Persons eligible.
Capital allowances.
Exemption from customs duty and other benefits.
Permission to retain and use earned foreign exchange.
Free transferability of funds.
Tax relief period.
Application of Cap. F34 L.F.N. 2004 and the NIPC Act.
Deductibility of environmental costs.
Pension Reform Act No.2, 2004.
Annual capital cost indexation.
Royalty.
Establishment of the Solid Minerals Development Fund.
Management board of the Fund.
Functions and powers of the Board.
Custodians of the Fund.
Financial provisions.
Annual budget.
Investment of surplus monies in the Fund.
Accounts and audit.
Annual reports.
PART IV: Minerals Exploration
Records and plans of exploration and exploitation.
Discovery of radio-active minerals.
Disclosure of confidential information.
Grant of mineral titles.
Qualification for Reconnaissance Permit.
Qualification for Exploration Licence.
Qualification for Small-scale Mining Lease.
Qualification for Mining Lease.
Qualification for Quarry Lease.
Qualification for Water Use Permit.
Prohibition of certain persons from obtaining mineral titles.
Working capital.
Grant of Reconnaissance Permit.
Conditions for grant of Reconnaissance Permit.
Duration of Reconnaissance Permit.
Rights of holder of Reconnaissance Permit.
Grant of Exploration Licence.
Rights of Exploration Licence holder.
Obligations of an Exploration Licence holder.
Duration of an Exploration Licence.
Payment of royalty for scale of mineral resources under Exploitation Licence.
Discovery of additional minerals.
PART V: Mining
Grant of Mining Lease.
Duration of Mining Lease.
Area for Mining Lease.
Rights of Mining Lease holder.
Prohibition of sale of plants, animals, water obtained in the Mining Lease area without authorisation.
Obligations of Mining Lease holder.
Pre-conditions for commencement of development.
Rights to graze livestock by occupier of land or holder of certificate of occupancy.
Technical supervision of mining under a Mining Lease.
Rights of lessee to remove fixtures.
PART VI: Quarrying
Application.
Prohibition of unauthorised quarrying.
Area and validity of Quarry Lease.
Rights of the holder of a Quarry Lease.
Survey.
Consequential amendment.
PART VII: Roads
Construction of roads.
Use of mining road.
Obstruction of rights of way prohibited.
PART VIII: Inquiry into Accidents
Report of accident.
Panel of inquiry.
Matters to be determined on inquiry.
Power of panel of inquiry.
Inquiry by court.
Interpretation of this Part.
CHAPTER 2 – Small-scale Mining
The area of small-scale lease.
Extension services.
CHAPTER 3 – Possession and Purchase of Minerals
Exemption.
Possession of minerals.
Purchase of minerals.
Establishment of mineral buying centres.
Registration as a buying centre.
CHAPTER 4 – Environmental Considerations and Rights of Host Communities
Saving as to winning of certain minerals.
Prohibition of minerals exploration in certain areas.
Saving as to certain quarriable minerals.
Notice to owner or occupier.
Reservation of rights of owner or occupier.
Surface rent.
Land Use Allocation Committee.
Compensation on Certificate of Occupancy.
Acceptance of rent not to operate as waiver of forfeiture.
Security.
Compensation.
Assessment of compensation.
Non-payment of compensation.
Payment of compensation an implied condition.
Prevention of pollution of environment.
Compensation to lessee.
Compensation for crops, economic trees, etc.
Restoration of mines land.
Reclamation.
Community Development Agreement.
Objectives of the Community Development Agreement. 118. Environmental obligations.
Environmental Impact Assessment.
Contents of the Environmental Protection and Rehabilitation Program.
Establishment of the Environmental Protection and Rehabilitation Fund.
Service of demand notice.
Pollution of watercourse prohibited.
Purification of water.
Compensation for damages and pollution.
Deposit of tailings.
Alterations in water supply prohibited.
Restoration of river bank.
Amendment of water licence.
Agreement of other interested persons.
Offences and Penalties
Illegal mining; false and misleading statements; false or non-declaration; smuggling.
Loans.
Offences.
Salting.
Use of false or fraudulent scales.
Misrepresentation.
Unlawful interference.
Obstruction.
Offence by a body of persons.
Offence by body corporate.
Dispute resolution.
Jurisdiction of the Federal High Court.
CHAPTER 6 – Miscellaneous Provisions
Exporter of minerals to make declaration, etc.
Scientific specimen.
Boundary.
Power to seize.
Transfer of mineral title.
Renewal of mineral title.
Suspension of mineral title.
Surrender of mineral title.
Revocation of mineral title.
Delivery of documents.
Notice of requesting delivery of documents.
Failure to deliver documents.
Continuing obligations of mineral titleholder.
Appeal of revocation.
Relinquishment of part of mineral title.
Contiguous areas.
Abandonment of permanent cessation of production.
Geological studies and mapping.
Repeal of the Minerals and Mining Act, 1999.
Savings in respect of Office holders.
Savings provisions in respect of mineral titles granted under the repealed Act.
Interpretation.
Citation.
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NIGERIAN MINERALS AND MINING ACT
An Act to repeal the Minerals and Mining Act, No. 34 of 1999 and re-enact the Nigerian Minerals and Mining Act 2007 for the purposes of regulating all aspects of the exploration and exploitation of solid minerals in Nigeria; and for related purposes.
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[Commencement.] [29th March, 2007]
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ENACTED by the National Assembly of the Federal Republic of Nigeria.
