PROCEDURE FOR ACQUIRING AN EXPLORATION LICENSE

PROCEDURE FOR ACQUIRING AN EXPLORATION LICENSE

The first step towards securing the authority to mine in an area already identified is to apply for an Exploration License (EL). The EL authorizes the holder to gain access into the land in which the mineral of interest occurs in order to carry out exploration activities aimed at determining the quantity and quality of the mineral.

In applying for an EL the following steps are taken:

1. An applicant for an exploration license shall pay the non-refundable Exploration License Application Processing Fee of five thousand naira (N5, 000.00)
2. An exploration license application, in Form A-2 [Application for Exploration License], shall be submitted in triplicate by the applicant to the Central Mining Cadastre Office, or the Zonal Mining Cadastre Office responsible for the area being applied for, for registration and processing.
3. An exploration license application shall:
4. specify the complete identification and contact information of the applicant ( if the applicant is a corporation, the address of its headquarters, the identity and address of any legal representative(s), and the identity and address of its commercial representative in Nigeria, if any);
5. Identify the contiguous area applied for, which shall be a polygon not exceeding two hundred (200) square kilometers, using co-ordinates of the apex points of the polygon.
6. be completed and signed by the applicant or an authorized representative of the applicant;

and shall have annexed the following:

1. d) when the applicant is a body corporate, a certified copy of the certificate of incorporation or other constitutive document provided under the Companies and Allied Matters Act and any amendment thereto;
2. e) when the applicant is a body corporate or mining cooperative, Form AT-1[Attestation of No Minerals and Mining Act Offence or Felony Conviction] attesting that the applicant, including all members or directors of the applicant or any share holder holding a controlling share of the applicant has not been convicted of a felony or an offence under the Nigerian Minerals and Mining Act, 2007;
3. f) Receipt for Payment of Exploration License Application Processing Fee,
4. g) Bank guarantee

1. h) Proof of technical competence (evidenced by letters of employment of geologists or                       mining engineers)
2. A site plan covering the area of interest
3. A letter of consent from the land owner, and
4. Such other information as the applicant desires to include.
5. Currently under license, lease, or permit held by another license or lease titleholder, or
6. Closed to mining operations by any law of the Federation.

1. An application containing all information as specified in 3 above is deemed to be complete.
2. A complete application is registered after verification and officially accepted for consideration of approval unless the area applied for is fully within an area:

After securing the Exploration License and successfully carrying out the exploration, the next and final step is to apply for a Small-Scale Mining Lease or a Mining Lease. A small-scale mining lease is granted for areas that do not exceed three (3) square kilometers whereas a mining lease is granted for an area that shall not exceed the area reasonably necessary to carry out the mining operation.

The application procedure is about the same as that of EL except that information will be required from the exploration activity carried out.