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FG unveils new solid minerals rates to boost economic growth

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FG unveils new solid minerals rates to boost economic growth

FG unveils new solid minerals rates to boost economic growth

In a significant move aimed at revitalizing the solid minerals sector, the Nigerian federal government has introduced a new regime of rates and charges for various services within the Ministry of Solid Minerals Development. This comprehensive update impacts 268 items and is designed to enhance the sector’s economic viability and global competitiveness.

A New Era for Solid Minerals

The announcement was made by Dr. Dele Alake, the Minister of Solid Minerals Development, who emphasized that the new rates, effective immediately, follow recent qualitative measures and capacity upgrades. These upgrades, both human and technological, aim to elevate the technical efficiency of the sector’s services.

Dr. Alake highlighted that the revised rates, including royalties and penalties, are intended to boost transaction traffic and infrastructure development to meet the renewed business interest in the sector. “A committee comprising Directors of Departments and Directors-General of agencies within the ministry was tasked with devising these new rates. This was done to justify the government’s investment in service infrastructure and manage the anticipated surge in applicants,” he explained.

Key Highlights of the New Rate Regime

The revised rates are comprehensive, covering various aspects of the solid minerals sector:

– Mining Leases: Applicants will now pay N3 million.
– Reconnaissance Permit: Set at N300,000.
– Exploration License: Priced at N600,000.
– Small Scale Mining License: N300,000.
– Quarry Lease: N600,000.
– Water User Permit: N300,000.

The annual service fee per cadastral unit is now N31,500 for the first time, while small-scale mining will attract N260,000. Quarry leases will be N500,000, and mining leases N1.25 million. Penalties for late renewal of mineral licenses are also specified, with reconnaissance permits at N600,000, exploration licenses at N1.5 million, mining leases at N3 million, and quarry leases at N1.5 million.

Increased Royalty Rates

The royalty rates per standard weight of minerals have been significantly increased:

– Baryte: N2,100 per tonne (market value N42,000 per tonne).
– Coal: N3,000 per tonne (market value N100,000 per tonne).
– Gold: N36,436 per ounce (market value N1,081,200 per ounce).
– Lead/Zinc Concentrate: N14,400 per tonne (market value N480,000 per tonne).
– Lithium Ore (Lepidolite): N18,000 per tonne (market value N600,000 per tonne).
– Lithium (Kunzite): N90,000 per tonne (market value N3 million per tonne).
– Lithium Ore (Spodumene): N9,500 per tonne (market value N316,667 per tonne).

Additional Charges and Investments

Licenses for manufacturing explosives now cost N20 million, modifying explosives N10 million, and the sale of explosives for mining N500,000. Investors seeking a license to refine gold will pay N5 million, while a permit to operate a mineral processor costs N100,000. The mineral resources map of Nigeria is priced at N500,000, and the geological map at N300,000.

Onirogbo Power Plant Set for Inauguration

In a related development, the Onirogbo 80 Kwp Solar PV hybrid mini-grid located in Odigbo Local Government, Ondo State, is set for inauguration. The project, designed by Tripple E Systems Associate Limited, is funded entirely by equity and will be inaugurated by the Acting Managing Director of the Rural Electrification Agency (REA), Abubakar Aliyu. The project is expected to provide electricity to the community of about 1,000 residents, primarily farmers.

Tripple E Systems Associate Limited will also launch a 1MW Solar PV Hybrid Power plant for Charis Innovative Fabrication Ltd. in Ondo City. This project will support a Greenfield pressure vessel fabrication factory for the oil and gas industry, featuring a state-of-the-art Solar PV Hybrid Power System with a 1MWp Solar PV Rooftop/Farm System, 1300kWh battery backup, and a 1MWp standby propane generator.

The company is also engaging with three tertiary institutions—Joseph Ayo Babalola University (JABU) in Osun State, Olabisi Onabanjo University in Ogun State, and Elizade University in Ondo State—to design and implement sustainable energy solutions.