The Federal Government has announced a new regime of rates for the mining sector, aimed at enhancing ease of doing business and consolidating ongoing reforms.

The Minister of Solid Minerals Development, Dr. Dele Alake, made the announcement at a press conference, stating that the review is part of the government’s commitment to increasing revenue from solid minerals to enhance service delivery and bolster mining’s contribution to economic development.

Under the new regime, mining lease licenses will now cost N3 million, while small-scale mining lease applicants will pay N300,000 for the first two cadastral units.

The cost of obtaining an exploration license has been set at N600,000 for the first 100 cadastral units, while a quarry lease will now attract N300,000.

The new regulations, which affect 268 items in the industry, also include annual service fees ranging from N31,500 to N1,250,000, depending on the type of license or lease.

The rates for renewal of licenses have also been reviewed, with exploration licenses now costing N42,000, small-scale mining leases costing N420,000, mining leases costing N1,500,000, and quarry leases costing N1,100,000.

The government has also introduced royalties on critical minerals like lithium and gold, with lithium ore (lepidolite) attracting an N18,000 royalty per tonne, lithium (kunzite) attracting a N90,000 royalty per tonne, and lithium ore (spodumene) attracting a N9,500 royalty per tonne.

The new rates regime takes immediate effect, and comprehensive details will be posted on the Ministry’s website.

The government hopes that the review will discourage speculation, address the paucity of funds, and maximize royalties from critical minerals to boost the nation’s revenue base and contribute significantly to economic development.