Introduction
Mining is the process of extracting valuable or geological materials such as metals, bitumen, iron ore coal, gemstones, gold, limestone, tin as well as some other valuable minerals from the earth.
Nigeria is blessed with an abundance of various minerals which has drawn the interest of a lot of investors into the mining sector. To carry on mining activities, a mining license is required and one of the top players in the mining sector is Segilola Resources Operating Limited which mines gold.
In this article, we would look at all that is required to start a mining business with regards to legal compliance in Nigeria.
What Agency is responsible for issuing mining licenses in Nigeria
Nigerian Mining Cadastre (NMCO)
This is the body that regulates mining businesses in Nigeria by reviewing mining applications, issue, revoke, suspend and renew licenses, oversee mining areas, maintain record of mining license holders organize mining conferences and regulate operations in the mining sector.
Which locations in Nigeria can you find minerals for mining
Nigeria is blessed with a lot of mineral resources and according to Nigeria mineral exchange the minerals and their locations are in the table below:
| S/N | MINERAL | LOCATION (STATE) |
|---|---|---|
| 1. | Amethyst | Bauchi, Kaduna, Nasarawa, and Kaduna |
| 2. | Antimony Ore | Bauchi, Yobe, Zamfara, and Gombe |
| 3. | Aquamarine | Bauchi, Kaduna, Nasarawa, and Oyo |
| 4. | Barytes | Nasarawa, Benue and Plateau |
| 5. | Bauxite | Ekiti and Ondo |
| 6. | Bentonite | Borno and Edo |
| 7. | Bismuth | Plateau |
| 8. | Bitumen/Tar Sand | Southern part of Nigeria especially Ondo |
| 9. | Clay | All states- |
| 10 | Coal | Enugu, Kogi, Benue and Nasarawa |
| 11. | Columbite | Plateau and Kaduna State |
| 12 | Copper Ore | Bauchi, Niger, Nasarawa, and Gombe |
| 13. | Corundum | Bauchi Kaduna, and Kano states |
| 14. | Crystal Quartz | Kogi and Nasarawa |
| 15. | Diatomite | Yobe |
| 16. | Dolomite | Nasarawa, Abuja, and Kogi. |
| 17. | Emerald | Plateau, Nasarawa, and Kogi |
| 18. | Feldspar | Kaduna, Nasarawa, and Borno |
| 19 | Garnet | Kaduna and Bauchi |
| 20. | Gold | Osun, Niger, Nasarawa, Zamfara, and Kaduna |
| 21. | Granite | Bauchi, Nasarawa, Kogi, Niger, Cross River and Ekiti |
| 22. | Graphite | Kaduna and Bauchi |
| 23. | Gypsum | Yobe and Sokoto |
| 24. | Ilmenite | Ekiti Kaduna, Adamawa, Plateau, and Benue |
| 25. | Industrial Quartz | Nasarawa, Kaduna, Kwara, and Niger |
| 26. | Iron Ore | Kogi, Enugu, and Niger |
| 27. | Kaolin | Katsina and Borno |
| 28. | Laterite | Northern and southern part of Nigeria |
| 29. | Lead/Zinc | Ebonyi, Plateau, Nasarawa, and Benue |
| 30. | Limestone | Kogi, Ogun, and Cross River |
| 31. | Lithium | Nasarawa, Kwara, Niger, Kogi, and FCT |
| 32. | Magnesite | Kebbi |
| 33. | Marble | Ekiti and Kogi |
| 34. | Manganese | Kebbi |
| 35. | Mica | Kogi, Nasarawa, Kaduna, Bauchi, and Niger |
| 36. | Molybdenum | Plateau |
| 37. | Phosphate | Sokoto |
| 38. | Pyrite/Chalcopyrite | Nasarawa and Benue |
| 39. | Ruby | Jos and Zamfara |
| 40. | Rutile | Kaduna |
| 41. | Salt | Ebonyi |
| 42. | Sand | Nationwide |
| 43. | Sapphire | Bauchi, Gombe, Kaduna and Taraba |
| 44. | Shale | Niger and Anambra |
| 45. | Silica Sand | Bauchi |
| 46. | Soda Ash/Trona | Yobe |
| 47. | Talc | Kogi and Niger |
| 48. | Tantalite | Nasarawa, Kaduna, and Plateau |
| 49. | Tin | Plateau and Bauchi, and Nasarawa |
| 50. | Topaz | Nasarawa and Plateau |
| 51. | Tourmaline | Oyo, Ekiti, Nasarawa, Kaduna, Bauchi, Niger, Taraba, and Ogun |
| 52. | Wolframite | Plateau and Nasarawa |
| 53. | Zircon | Kaduna, Ogun, and Borno |
What are the types of mining licenses in Nigeria?
Mining licenses are issued based on the scope and nature of activities to be carried out. These include:
- Reconnaissance Permit: This permit is very important and it is the first phase of mining, it allows the holder carry out preliminary surveys and exploration of particular areas where the minerals are located.
- Exploration License: This permit helps the holder to carry out detailed exploration activities over the particular area intended for mining. It also helps to know the amount and quality of minerals in the identified area.
- Small-Scale Mining Lease: This is Issued for small scale mining activities where the applicant has limited capital and resources. According to the Nigerian Mineral Act, this is artisanal, alluvial and other forms of mining operations involving the use of low-level technology or application of methods not requiring substantial expenditure for the conduct of mining operations within a small scale
- Mining Lease: This license is granted for large scale mining operations and it is suitable for a company intending to engage in a large-scale mining activity.
- Quarry Lease: This license is used for the extraction of building materials like sand, granite, and gravel.
- Possess & Purchase License: This license is required to enable the applicant buy, sell or export minerals. What this means is that those who want to trade in minerals can participate in the mining sector without necessarily engaging in mining activities.
- Mineral Buying Centre license: This enables a company with a mining license to possess & purchase a property to store minerals in a particular location such as a warehouse.
- Mineral Export Permit: This is issued to companies that intend to export minerals to other countries.
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