By Palma Ileye
Federal Government has emphasized the importance of mining assets in the growth of nation’s economy also urging stakeholders to take advantage of the vast available mineral resources to develop the solid minerals sector.
This was disclosed yesterday in a Webinar organised by National Association of Securities Dealers Over-The-Counter market in Nigeria, NASD OTC PLC in collaboration with the Solid Minerals Development Fund, SMDF with the theme, “Uderstanding The Mining Asset Development Cycle.”
The Minister of Solid Minerals Development, Dr. Dele Alake said that the sector was not just about extracting minerals, it was about building an economy that was inclusive, resilient, and globally competitive.
Alake who was represented by Amira Adamu Waziri, Senior Adviser on Mining and Policy, commended the organizers for convening the webinar saying it was timely, strategic and it closely aligned with the Ministry’s vision of building a sustainable and investment-driven mining sector—one that serves as a foundation for economic transformation.
He said that Nigeria was blessed with an extraordinary endowment of solid mineral resources—over 44 commercially viable minerals, ranging from gold and lithium to tin, lead-zinc, barite, and rare earth elements and these resources were spread across the country’s six geopolitical zones, positioning mining as a truly national sector.
“Yet, despite this wealth, the sector currently contributes less than 1% to national GDP. The reasons are well known—insufficient geological data, weak infrastructure, informal operations, illegal mining, and a significant financing gap,” he said.
The Minister revealed that the Ministry of Solid Minerals Development was charged with regulating and facilitating the development of Nigeria’s mineral resources hence, his leadership has adopted a clear roadmap to reposition the sector.
The roadmap includes: “Establishment of the Nigeria Solid Minerals Company, a commercially driven national champion to catalyze investment in strategic minerals; Creation of the Mines Marshalls, working with national security agencies to tackle illegal mining and secure mining sites.
“Comprehensive Geological Data Acquisition, to de-risk investments and promote informed decision-making; Formalization of Artisanal and Small-Scale Mining, ASM, through cooperative structures, technical support, and access to markets.
“Promotion of Value Addition and Local Processing, to reduce raw exports and stimulate downstream industrialization; Attracting Large-Scale Foreign and Local Investment, through investor-friendly reforms, policy consistency, and transparency and Robust Stakeholder Engagement, including host communities, traditional institutions, private operators, financial institutions, and international development partners.”
“We look forward to collaborating with NSMC, SMDF, and other stakeholders to develop bespoke instruments, listings, and frameworks that will make this vision a reality,” the Minister said.
In his presentation on: “Licensing Processes And Requirements Of A Mining Asset,” the Director General, Nigeria Mining Cadastral Office, NMCO, Engr. Simon Obadiah Nkom, described mining assets as a resource or piece of property that a mining company owns or controls and uses in its operations to extract valuable minerals or other minerals from the earth.
Nkom explained that a mining assets was only legally recognized once a License or Title such as Exploration License, Small Scale Mining Lease, Quarry Lease or Mining Lease was issued adding that without a valid license from the MCO, mineral resources and reserves remains just Geological data not bankable or tradable assets.
He listed types of mineral titles available in the country such as: Reconnaissance Permit which was non-exclusive with one year lifespan; Exploration License which was exclusive with three years lifespan; Quarry Lease which was exclusive with five years lifespan, Small Scale Mining Lease, Mining Lease which was exclusive with 25 years lifespan and Water Use Permit for mining operations.
He further explained that requirements for New Mineral Titles include: Completed application forms, Copies of CAC2 and CAC7, processing fee of N300,000; Registration with Council of Mining Engineers and Geologists, COMEG; Letter of Employment and three months payslip or affidavit.
While requirements for Renewal include: CAC2 and CAC7, Copy of License, Evidence of Payment, Annual Service fees, Processing fees, Environmental Impact Assessment Report and processing fee of N700,000 paid to the MCO.
For Transfer of Mineral Title he said, the Holder must possess: Mineral Transfer Title Form/ Deed of Assignment, Copies of License or Lease, Annual Service Fees and Royalties, CAC2 and CAC7, Memorandum of Understanding, MoU, Progress Reports, Board resolution to transfer and Transferee must possess; CAC2, CAC7 and Attestation of non-conviction of criminal offences.
He stated that Mining or Mineral assets and titles not in use within a given period after acquisition, were revoked and reassigned.
The MCO boss encouraged stakeholders to take opportunity of the vast availability of minerals in the country to grow the nation’s economy saying, “For investors, start with Reconnaissance, it is the smartest, lowest-cost entry into the Nigerian mineral wealth.”
He noted that the MCO as the key regulator will continue to digitize and enforce standards stating that Reconnaissance was the beginning of shared prosperity not exploration.
Also, the Executive Secretary of the Solid Minerals Development Fund, SMDF, Hajiya Fatima Umaru Shinkafi in her speech delivered by Executive Assistant, Omotayo Omitokun, commended the conversations saying it had shed light on critical elements of the mining asset development cycle.
She said that these insights were vital to Nigeria’s mining sector and to unlocking the true value of the country’s mineral resources.
Shinkafi added that the insights gained will not only shape investment readiness but also accelerate sustainable growth and value creation in the nation’s mining industry.
