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Minerals and Mining Decree

No 34 of  1999

Laws of the Federation of Nigeria

 

 

 

 

Arrangement of Sections

 

 

 

 

Chapter I

 

Minerals and Mining

 

 

Part I

 

Ownership of Minerals

 

 

1.

Control of and property in minerals, in water, etc. vested in the State.

 

 

 

 

 

 

Part II

 

Functions of Minister with Respect to Minerals Development

 

 

2.

Functions of Minister with respect to minerals development.

3.

Establishment, etc. of the Mineral Resources Committee.

 

 

 

 

Part III

 

Mining Operations - General

 

 

4.

Prohibition of prospecting of mining or diverting or impounding without authority.

5.

Qualification for the grant of mining title.

6.

Prohibition of mining operation except under licence or lease.

7.

Saving as to winning of certain minerals.

8.

Saving of sacred areas, trees and other objects of veneration.

9.

Plans of prospecting and mining operation.

10.

Working capital.

11.

Priority.

12.

Assignment of mining title.

13.

Transfer of mining titles.

14.

Lands excluded from prospecting and mining.

15.

Royalties and deferment of royalty.

16.

Exporter of minerals to make declaration, etc.

17.

Certificate of analysis required in certain cases.

 

 

 

 

Part IV

 

Mining Incentives and other Assistance

 

 

18.

Capital allowances.

19.

Exemption from Customs duty and other benefits.

20.

Permission to retain and use earned foreign exchange.

21.

Free transfer ability of funds.

22.

Tax relief period.

23.

Incentives under Decrees Nos. 16 and 17 of 1995.

24.

Power of the Minister in respect of foreign investment in solid minerals.

25.

Additional assistance to small-scale miners.

 

 

 

 

 

Part V

 

Prospecting Titles

 

 

26.

When prospecting lawful.

27.

Minister may close areas of prospecting.

28.

Minister may prohibit prospecting for certain minerals.

29.

Discovery of another mineral while prospecting.

30.

Minerals raised by holder of an exclusive prospecting licence to be property of Nigeria, etc.

31.

Conditions on which minerals raised may be disposed.

32.

Grant and duration of prospecting right.

33.

Rights and obligations under a prospecting right.

34.

Grant of an exclusive prospecting licence.

35.

Renewal of exclusive prospecting licence.

36.

Notice to be given to owner or occupier of land.

37.

Rights under an exclusive prospecting licence.

38.

Obligations of the holder of an exclusive prospecting licence.

39.

Surrender of licence.

40.

Grant of special exclusive prospecting licence.

41.

Provisions applicable to exclusive prospecting licence.

 

 

 

 

 

 

Part VI

 

Mining

 

 

42.

Mining when lawful.

43.

Temporary mining lease.

44.

Temporary grants may be cancelled.

45.

Radio-active mineral.

46.

Restoration of mines land.

47.

Kinds of leases to be prescribed by regulations.

48.

Grant of a mining lease.

49.

Special mining lease.

50.

Technical supervision of mining under a mining lease.

51.

Duration and renewal of lease.

52.

Surrender of mining lease.

53.

Renovation and restoration.

54.

Implied conditions of part of licence.

55.

Further deposits of mineral covered by existing licerice.

56.

Reservation of certain rights, etc. of land owner or occupier.

57.

Right of lessee.

58.

Right under temporary title.

59.

Surface rent.

60.

Land Use Allocation Committee to report on certain matters.

61.

Right of lessee to take timber.

62.

Compensation to be paid by lessee on a certificate of occupancy or on resumption of possession of land leased by the State.

63.

Right of lessee to remove fixtures, etc.

64.

Acceptance of rent not to operate as a waiver of forfeiture.

 

 

 

 

Part VII

 

Provisions Regarding Water

 

 

65.

Pollution of watercourse prohibited.

66.

Purification of water.

67.

Licensee or lessee to pay compensation to owner occupier for damages and pollution.

68.

Deposit of tailing.

69.

Alterations in water supply prohibited.

70.

Action to be taken to prevent continuance or recurrence of offence.

71.

Restoration of river banks.

72.

Grant of a water licence.

73.

Prior permission to dig a leat or to use water.

74.

Power to grant provisional water licence.

75.

Amendment of water licence.

76.

Agreement of other interested parties.

77.

Duration of water licence.

78.

Transfer.

79.

Cancellation of water licence.

80.

Power of Minister as regards overflow.

81.

Water rights under repealed laws.

 

 

 

 

Part VIII

 

Surveys

 

 

82.

Requirement as to survey.

83.

Time of completion.

 

 

 

 

Part IX

 

Possession and Purchase of Minerals

 

 

84.

Exemption.

85.

Right of pre-emption of Federal Government.

86.

Possession of controlled mineral.

87.

Purchase of controlled minerals.

88.

Licences.

89.

Seller to satisfy himself that purchaser is licensed to buy.

90.

Holder of licence to satisfy himself that seller is authorised to posses, etc. controlled minerals.

91.

Duty of licensee.

92.

Offences and penalties.

93.

Interpretation under this Part.

 

 

 

 

 

 

Part X

 

Compensation etc.

 

 

94.

Minister may require security.

95.

Compensation to be paid.

96.

Assessment of compensation.

97.

Suspension and revocation of prospecting right or exclusive prospecting licence for non payment of compensation.

98.

Payment of compensation an implied condition.

99.

Prevention of pollution of environment.

 

 

 

Part XI

 

Appointment, Duties and Powers of Mines Officers

 

 

100.

Appointment and duties of mines officers.

101.

Duties of the Director of Mines.

102.

Duties of mines officers.

103.

Power of mines officer to arrest, etc.

 

 

 

 

 

 

 

Part XII

 

Roads

 

 

104.

Construction of roads.

105.

Use of mining road.

106.

Obstruction of right of way prohibited.

 

 

 

Part XIII

 

Inquiry into Accidents

 

 

107.

Accidents to be reported.

108.

Director of Mines to set up panel to enquire into accident.

109.

Powers of panel of inquiry.

110.

Calling of witnesses.

111.

Privilege of witness.

112.

Penalty for refusal to attend, etc. of witness.

113.

Interpretation of this Part of this Chapter.

 

 

 

 

 

 

 

Part XIV

 

Offences and Penalties

 

 

114.

114.False and misleading statement.

115.

Pollution.

116.

Salting.

117.

Using false or fraudulent scales.

118.

Removal of buildings, etc.

119.

Failure to assist authorised persons.

120.

Failure to comply with lawful directives.

121.

Fraud by applicant for exclusive prospecting licence or mining title.

122.

Penalty for injury to boundary marks.

123.

Interfering with mining prospecting or exercise of right by this Decree an offence.

124.

Penalties.

125.

Federal High Court to try offences.

126.

Liability of employer for offences committed by its servants.

127.

Penalty for other offences.

 

 

 

 

 

Part XV

 

Revocation of Titles

 

 

 

128.

Savings.

129.

Power to revoke a prospecting right.

130.

Power to revoke exclusive prospecting licence, mining lease, water licence, or temporary title

131.

Revocation of special exclusive prospecting licence or special mining licence, etc.

132.

Person aggrieved by revocation or refusal.

133.

Service of notice.

134.

Effect of revocation.

135.

Provisions as to relocation of tide after a conviction.

 

 

 

 

 

Part XVI

 

Miscellaneous

 

 

 

136.

Mining titles bounded by vertical planes.

137.

Where land required for public purposes.

138.

Compensation.

139.

Power of Minister to grant subsequent titles, etc.

140.

Rights of licensee or lessee under Cap. 350 to prevail.

141.

Right of entry and inspection.

142.

Control of building of other structure used in connection with mines or quarries.

143.

Obligations of exclusive prospecting licensee, lessee and holders of mining tides and rights on surrender, revocation or expiry of licence, lease or title.

144.

Prohibition of employment of tributes.

145.

Delay in submission of report.

146.

Power to make regulations under this Chapter.

 

 

 

 

 

Chapter II

 

Diamond Trading

 

 

147.

Restriction on selling or buying of diamonds.

148.

Restriction on import and export of diamonds.

149.

Issuance of diamond dealer's licence.

150.

Books to be kept by licensed diamond dealers.

151.

Unlawful possession of uncut diamond.

152.

Seizure of uncut diamond without an apparent owner.

153.

Persons who may institute proceedings.

154.

Offences, penalties and jurisdiction.

155.

Claims to forfeited diamonds.

156.

Arrest.

157.

Power to make regulations under this Chapter.

158.

Interpretation of this Chapter.

 

 

 

Chapter III

 

Trading in Gold and other Precious Metals

 

 

159.

Payment of debt in gold.

160.

Restriction on selling raw gold.

161.

Restriction on buying raw gold.

162.

Restriction on export and import of raw gold.

163.

Issuance of gold dealer's licence.

164.

Books to be kept by licence gold dealers.

165.

Right of licensed gold dealer to recover royalty paid as agent.

166.

Power to search.

167.

Unlawful possession of raw gold.

168.

Forfeiture of raw gold without an apparent owner.

169.

Persons who may institute proceedings.

170.

Penalties.

171.

Claims to forfeited gold.

172.

Arrest.

173.

Power to make regulations.

174.

Forms.

175.

Interpretation of this Chapter.

 

 

 

 

 

Chapter IV

 

Tin and Tine Ore

 

Part I

 

Control of Tin and Tin Ore

 

 

176.

Control of export and delivery to smelters of tin and tin ore.

177.

Levy on tin for research.

178.

Report by smelter.

179.

Smelter of the tin ore to be agent of producer for royalty payment.

 

 

 

 

 

 

 

Part II

 

Prohibition of production and export of tin

 

 

180.

Prohibition of production of tin except under licence.

181.

Prohibition of export of tin except under licence.

182.

Effect of sections 183 and 184.

183.

Limited effect of certain provisions.

184.

Seizure, detention, etc. of tin, and forfeiture.

185.

Application of section 184 to ore containing tin.

186.

Control of production of ore containing tin.

187.

Special licence for tin ore obtained during operations other than the mining of tin.

188.

Control of excess stocks of tin ore.

189.

Offences and penalties.

 

 

 

 

 

 

 

Part III

 

Tin Production and Development Revolving Loans Fund

 

 

 

190.

Establishment of the revolving loans fund.

191.

Purpose of the Fund.

192.

Disbursement from the Fund.

 

 

 

Chapter V

 

Quarries

 

Part I

 

Quarrying operations

 

 

 

193.

Application.

194.

Prohibition of unauthorised quarrying operations.

195.

Quarrying leases.

196.

Area and validity of quarrying lease.

197.

Temporary quarrying lease.

198.

Quarrying licenses.

199.

Renewal of licenses and leases.

200.

Priority of application for leases and licence.

201.

Right of a lessee or licensee.

202.

Restriction on assignment of lease.

203.

Restrictions as to grants and determination of quarrying leases.

204.

Survey.

205.

Revocation of quarrying leases or licences.

206.

Land required for public purpose.

207

Savings as to certain quarriable minerals customarily extracted.

 

 

 

Part II

 

Powers and Functions of Director of Mines

 

 

208.

Powers and functions of the Director of Mines and Inspector of Quarries.

209.

Functions of the Director of Mines.

210.

Power to prescribe functions of inspectors.

211.

Functions of quarry officers.

 

 

 

 

 

 

 

Part III

 

Inquiry into Accidents

 

 

212.

Report of accidents.

213.

Inquiry into cause of accident.

214.

Enquiry by Court.

215.

Matters to be determined on inquiry.

216.

Summoning of witnesses, etc.

217.

Definition of "serious injury" etc.

 

 

 

Part IV

 

Offences and Penalties

 

 

 

218.

Offences as to interference with rights conferred.

219.

Offences as to injury to boundary marks, etc.

220.

Wilfully or recklessly giving of false information.

221.

Trial of offences.

222.

Penalties.

 

 

 

 

 

Part V

 

General

 

 

 

223.

Royalties.

224.

Surface rents.

225

Quarrying rights to be bounded by vertical planes.

226.

Removal of fixtures.

227.

Payment for crop, economic tree, etc.

228.

Enquiry as to existence of certain facts, etc.

229.

General power to make regulations under this Chapter.

230.

Application of Chapter 1 of this Decree.

231.

Consequential amendments.

232.

Interpretation of this Part.

 

 

 

 

 

 

Chapter VI

 

Small Scale Mining

 

Part I

 

Establishment and management of small scale mining guarantee scheme fund

 

 

233.

Established of Small Scale Mining Credit Guarantee Scheme Fund.

234.

Management Board of the Fund.

235.

Functions and powers of the Board.

236.

Management agent.

 

 

 

 

 

 

Part II

 

Financial Provisions

 

 

237.

Amount to be paid into the Fund.

238.

Limits of liability of the Fund in respect of guarantees.

239.

Applications for loans and for guarantees, etc.

240.

Form and terms of loan agreement.

241.

Rate of interest.

242.

Forms of security.

243.

Safeguard in respect of certain loans.

244.

Recovery of outstanding loan, etc.

245.

Loans to be applied for purposes for which made, and offences.

 

 

Part III

 

Miscellaneous and Supplementary

 

 

246.

Rules and their publication.

247.

Legal proceedings.

248.

Investment of surplus moneys in the Fund.

249.

Accounts and audit.

250.

Annual reports.

251.

Interpretation of this Chapter.

252.

Payment.

253.

Checking of unlawful import and export of minerals.

254.

Establishment of Mines

field Guards.

255.

Application of Arbitration and Conciliation Decree.

256.

Offence by body corporate.

257.

Repeal.

 

 

Chapter VII

 

Miscellaneous Provisions

 

 

258.

Regulations.

259.

General interpretation.

260.

Minister's power to delegate.

261.

Citation.

 

 

 

 

 

 

 

Schedules

 

 

Schedule 1     Form

 

Schedule 2     Legislation, the breach of which will lead to revocation of certain mining rights.

 

Schedule 3     Forms: Diamond

 

Schedule 4     Forms: Gold

 

Schedule 5     Forms: Quarrying