Chapter 1

1.  (1)     The entire property in and control of all minerals, in, under or upon any land in Nigeria, its contiguous continental shelf and of all rivers, streams and watercourses throughout Nigeria, any area covered by territorial waters or constituency, the Exclusively Economic Zone is and shall be vested in the Government of the Federation for and on behalf of the people of Nigeria.

(2)   All lands in which minerals have been found in commercial quantities shall, from the commencement of this Decree be acquired by the Government of the Federation in accordance with the provisions of the land Use Act and the Minister may, from time to time, with the approval of the Federal Executive Council, designate such lands as security lands.

Functions of Minister with Respect to Mineral Development

(a)    ensure the orderly and systematic development of the mineral resources of the country;

(b)    have a well planned and coherent programme of exploration of mineral resources taking into account the national interest, state security, economic development, ecological and environmental factors;

(c)     monitor the development and exploration of all the minerals considered strategic;

(d)   set out the procedure for monitoring development in mineral sector and involve the private agencies as partners in mineral resources development;

(e)     ensure that in the exploration of the mineral resources, an equitable balance is maintained between foreign and indigenous interests;

(f)     identify areas where Government intervention is desirable in achieving policy goals and proper prospective in mineral resource development;

(g)    define the roles to be played by the Federal, State, Local Government and private investors in the administration of mineral exploitation

(h)     create avenues for the private sector to adequately and meaningfully perform its roles in the mineral sector;

(i)     highlight public awareness in the various mineral resources available in Nigeria;

(j)     collate detailed data concerning Nigeria's minerals and identify their quantity and quality;

(k)    ensure planned development of the mineral resources through research and acquisition of modern technology by indigenous operators;

(1)     encourage the private sector to take the leadership role in the exploration and exploitation of the mineral resources;

(m)     accelerate the development of technical and professional manpower required in the mineral sector;

(n)     introduce adequate measures to discourage illegal mining by -

(i)     equipping and strengthening the Inspectorate to Division of the Ministry

(ii)     controlling the abuse of use of licences,

(iii)     monitoring the activities of the mineral processing facilities,

(iv)    enlightening the public on evil of illegal mining,

(v)     establishing mines field police, and

(vi)     providing maximum fine and sentence for illegal miners;

(o)     protect society and the environment from the adverse effects of unapproved mining practices and operations; and

(p)     prescribe measures for the general welfare and safety of workers engaged in the exploitation of minerals.

3.   (l)     There is hereby established for each State of Federation a Committee to be known as the Mineral Resources Committee (in this section referred to as "the Committee").

(2)     The Committee shall consist of -

(a)     a chairman to be appointed by the Minister from amongst persons in the State who have considerable knowledge of mineral resources in that State;

(b)     the Commissioner responsible for land matters or mineral related matters in the State;

(c)     the Federal Mines Officer in the State,

(d)     the Permanent Secretary of the Ministry of Agriculture or Forestry in the State;

(e)     the Surveyor General of the State;

(f)     one person to represent the Local Governments in the State nominated by the Commissioner responsible for Local Governments in the State; and

(g)     two other persons appointed by the Minister.

(3)     The functions of the Committee are to -

(a)     consider and advise the Minister on issues affecting returns of necessary reports affecting grants of mining titles;

(b)     consider issues affecting compensation and make necessary recommendations to the Minister;

(c)    discuss, consider and advise the Minister on matters affecting pollution and degration of any land on which any mineral was or is being extracted;

(d)    consider and discuss such other matters relating to mineral resources development within the State as the Minister may, from time to time, refer to the Committee.

(4)     The Committee shall -

(a)     meet at least once every three months and at such times as the Minister may deem necessary;

(b)     regulate its own procedure.

(5)    The Federal Mines Officer in the State appointed pursuant to subsection (2)(c) of this section shall be the Secretary of the Committee.

(6)     The Committee shall forward its report to the Minister after each meeting.

5.    (1)     No person shall be qualified for the grant of any mining title under this Decree unless the person is a body corporate duly incorporated under the Companies and Allied Matters Decree 1990.

(2)     The holder of a mining title shall not, without the prior consent of the Minister -

(a)     transfer the equity shares of the company to any other company or person; or

(b)     enter into agreement, arrangement or understanding with any other company or person if the transfer, agreement or understanding will give the person or company control of the mining title.

(3)    Where a mining title had been granted to or held by any unincorporated body or person prior to the coming into force of this Decree that unincorporated body or person shall, within the period of six months from the coming into force of this Decree, comply with the provisions of subsection (1) of this section.

6.    (1)     Notwithstanding anything in this Decree, no person shall prospect or conduct mining operations unless he holds a licence or lease granted by the Minister.

(2)     Any licence or lease issued pursuant to subsection (1) of this section shall be subject to such conditions as may be prescribed in the licence or lease or by regulations made under this Decree.

7.    (1)     Nothing in this Decree shall be construed as preventing any citizen of Nigeria from winning, subject to such conditions as may be prescribed by the Minister, salt, soda, potash or galena from any land (other than land within the area of a mining lease or land designated by the Minister as security land pursuant to subsection (2) of section 1 of this Decree) from which it had been the custom of the members of the community to which he belongs to win before the coming into force of this Decree.

(2)     The Minister may by Order published in the Gazette direct the provisions of subsection (1) of this section to apply, within such local limits as may be prescribed by the Order, to any mineral which the Minister is satisfied has before the commencement of this Decree, been customarily won by any community.

(3)     Where before the commencement of this Decree, it was the custom of the members of any community to win any of the minerals to which subsections (1) and (2) of this section apply from any lands over which a mining lease is granted, the lessee shall, during the continuance of the lease, pay to the members of that community compensation as prescribed by the Minister under this Decree.

8.     (1)     No person shall, in the course of prospecting or mining, carry out operations on, in or under any area held to be sacred or permit injury or destruction of any tree or other thing which is the object of veneration.

(2)     Where any question arises under this section as to whether an area is held to be sacred or a tree or thing is the object of veneration, the question shall be decided by the Administrator of the State, whose decision shall be final.

(3)     A licensee or lessee who causes injury or damage to any area, tree or thing mentioned in subsection (1) of this section shall pay fair and adequate compensation to the persons or communities affected by the injury or damage.

9.    (1)     A holder of an exclusive prospecting licence or mining title and a lessee of a mining lease shall at all times -

(a)     keep correct plans of every prospecting or mining done,

(b)     keep correct records of every mineral found and ore reserve calculated on the area of his licence or lease; and

(c)     supply to the Minister on request, copies of the plans and records at such time and periods as the Minister may so demand.

(2)     The plans required to be kept by subsection (1) shall be on the prescribed scale.

10.    (1)     The Minister shall require an applicant for an exclusive prospecting licence, mining lease or mining title to provide -

(a)     proof of sufficient working capital for the prospecting, development or working of the area applied for and of technical competence to carry on the proposed prospecting or mining operation;

(b)     a banker's guarantee as prescribed in Form K in Schedule 1 to this Decree for such sum as the Minister may determine;

(c)     a report on the mineral or on the area of a mining lease prepared by the prospector or any other expert;

(d)     the proposed programme of prospecting or mining operation provided that the proposed programme of prospecting and mining does include a detailed programme of progressive reclamation and rehabilitation of lands so disturbed; and

(e)     any other further information as the Minister may require or prescribe.

(2)     Where an applicant fails to satisfy the Minister as provided in subsection (1) of this section, the Minister may refuse the application but the applicant may submit a new application to the Minister with any information on the matters required.

11.     (1)  Where several applications are received on the same area or for overlapping areas from two or more persons on the same business day the application which is first received and in the proper form, shall be deemed to have priority over the others.

(2)     The decision of the Minister on any question of priority shall be final.

12.    (l)     The holder of an exclusive prospecting licence, a milling lease or other mining title shall not assign the licence or lease or any portion of the rights or interests conferred by the licence or lease without the consent in writing of the Minister and the consent shall be by endorsement on the instrument of assignment.

(2)     The assignee shall be liable for all fees and obligations of the assignor under this Decree which may have accrued at the time of assignment.

(3)     An assignment shall be as in Form G in Schedule 1 to this Decree.

(4)     Where an application has been made for an exclusive prospecting licence or a mining lease, the provisions of this section shall apply in respect of the application, and any consequential amendment for the purpose shall be made in Form G to Schedule 1 to this Decree.

(5)     Where an assignment is effected and approved by the Minister, the assignee shall be entitled to any right which the assignor has in accordance with subsection (1) of section 21, subsection (2) of section 32, subsection (1) of section 1 and subsection (1) of section 37 of this Decree.

13.    (1)     A holder of any mining title shall not transfer his licence or lease or any portion of the rights or interest conferred in the licence or lease without the consent of the Minister in writing.

(2)     In an application for an assignment or transfer of mining title, the applicant shall give to the Minister such details of the assignment or transfer as may be required in the case of an application for the mining title, together with any other information the Minister may require.

(3)     Subject to the provisions of section 12(1) and subsection (1) of this section, the Minister may in his discretion and taking into consideration all matters required -

(a)     refuse to give his consent to the assignment or transfer; or

(b)     give his consent with or without any conditions prescribed by him,

14.     (1)   No prospecting right, exclusive prospecting licence or mining lease granted under this Decree shall authorise prospecting or mining on or in or the erection of beacons on or the occupation of any land -

(a)     set apart for, or used for or appropriated or dedicated to any public purpose (other than mining) except with the prior consent of the Head of State, Commander-in-Chief of the Armed Forces;

(b)     within the area of an oil pipeline licence granted under the Oil Pipeline Act, without the consent of the Minister as defined in section 2 of that Act;

(c)     situate within any township, except with the prior approval of the Minister after consultation with other appropriate authorities;

(d)     occupied by any town, village, market, burial ground or cemetery, except with the prior permission of the Minister;

(e)     appropriated for a railway or situate within one hundred metres of a railway, except with the prior consent in writing of the Minister and subject to such conditions as the Minister may specify;

(f)     land which is the site of, or is within fifty metres of any government or public building, reservoir, dam, public road or tramway, except with the prior consent in writing of the Minister and subject to such conditions as the Minister may specify;

(g)     actually under cultivation, except with the prior consent of occupier;

(h)     within the site of, or within fifty metres of any building, without prior notice to the owner or occupier of the building;

(i)     over which exclusive prospecting licences or mining leases have previously been granted by the Minister and are still subsisting;

(j)     which has been declared as a national monument under the National Commission for Museums and Monuments Act; and

(k)     which has been previously declared congested area and closed to prospecting.

(2)     No prospecting licence or mining lease shall be granted within areas demarcated as developmental areas by the Federal Government, a State Government or a Local Government Council except with the express consent in writing of the Minister after consultation with the State Government or the Local Government Council concerned.

(3)     Licences or leases granted in developmental areas shall be, in any case, subject to restoration to the satisfaction of the Minister and shall be so certified after the expiry of the period contained in the licence or lease.

(4)     Where a lease, granted prior to demarcation, falls within a newly demarcated area, the lessee shall be entitled to adequate notice of not less than 3 years, from the Minister or be paid appropriate compensation for immediate vacation of the lease.

(5)     Any person prospecting or mining on or under any lands specified in subsection (1) without the requisite consent or authority shall be guilty of an offence.

15.    (l)     Any mineral obtained in the course of prospecting or mining operations shall be liable to such royalty as may be prescribed by the Minister and published in the Gazette.

(2)     The Minister may reduce or waive royalty on any mineral which the Minister is satisfied is being exported solely for the purpose of analysis or experiment or as a scientific specimen, not being in greater quantity than in his opinion is necessary for that purpose.

(3)     The Minister may defer payment of royalty on any mineral for a specific period as in his discretion becomes necessary, by publication in the Gazette.

16.    (1)     An exporter of any mineral specified in section 15 of this Decree shall -

(a)     before the mineral is entered for export, declare on the appropriate customs entry form the state in which the mineral was extracted;

(b)     on demand made by the prescribed authority, furnish the information relating to any mineral which the exporter has exported under paragraph (a) of this subsection within the time and in the manner as may be required.

(2)     A person who does not comply with any of the provisions of subsection (1) of this section, commits an offence and is liable on conviction -

(a)     to a penalty of twenty thousand naira; and

(b)    in the case of failure to comply with a requirement of the prescribed authority under subsection (1) of this section, by which he was required to do any act at a specified time or within a specified period, to an additional penalty of twenty thousand naira for each day after that time or after the end of that period, as the case may be, during which the failure to do the act in question continues.

(3)     A proper officer of the Nigerian Customs Service may refuse to accept the entry of any mineral in respect of which he is satisfied that the provisions of subsection (1) of this section have not been complied with.

17.    (l)     Whenever any mineral is exported solely for the purpose of analysis or experiment or as a scientific specimen, the Minister shall require the result of analysis to be forwarded to him and the person exporting the sample shall obtain a certificate of the result of analysis of the sample and deliver, within six months of the export of the sample, a true copy of the certificate to the Minister.

(2)     A person who fails to comply with the provisions of this section commits an offence.

(a)     depreciation or capital allowance of 75 per Cent of the certified true capital expenditure incurred in the year of investment and 50 per cent in subsequent years;

(b)     losses in each financial year not exceeding the value of capital allowances for the year which may be carried forward;

(c)     investment allowance of 5 per cent;

(d)     capitalisation of all expenditure on prospecting and exploration approved by the Minister on the advice of the Director of Mines where the holder starts mining development.

19.    (1)     The holder of a mining lease shall be granted the following benefits as appropriate -

(a)     exemption from payment of customs and import duties in respect of an approved plant, machinery, equipment and accessories imported specifically and exclusively for the commencement of the mineral operations, and may after establishment receive additional relief from payment of customs and excise duties for spare parts, equipment and accessories;

(b)     expatriate quota and resident permit in respect of the approved expatriate personnel;

(c)     personal remittance quota for expatriate personnel, free from any tax imposed by any enactment for the transfer of external currency out of Nigeria.

(2)     For the purpose of subsection (l)(a) of this section, the Minister shall approve the appropriate machinery, equipment, and accessories to be imported by the holder of a mining lease for the purpose of this section.

(a)     payments in respect of loan servicing where a certified foreign loan has been obtained by the holder for his mining operations;

(b)     the remittance of foreign capital in the event of sale or liquidation of the mining operations or any interest therein attributable to foreign investment.

22.    (1)     The tax relief period of a company granted a mining lease under this Decree shall commence on the date of operation and subject to the provisions of this Decree or any other relevant financial enactment, the tax relief shall continue for three years.

(2)     The tax relief period of a company granted a mining lease under this Decree may, by the end of the three years, be extended by the Minister for one further period of two years.

(3)     The Minister shall not extend the tax relief period of a company in exercise of the~ power conferred under subsection (2) of this section unless the Minister is satisfied as to -

(a)     the rate of expansion, standard of efficiency and the level of development of the company in operation of mining for which the lease was granted;

(b)     the implementation of any conditions upon which the lease was granted;

(c)     the training and development of Nigerian personnel in the operation of the mineral concerned.

23.    (1)     Notwithstanding any provisions of this Decree and subject to the powers conferred upon the Minister by this Decree, application of the provisions of sections 24 and 25(1) and (2) of the Nigerian Investment Promotion Council Decree 1995 shall apply to any foreign investment made by any company granted a mining lease under this Decree.

(2)     Notwithstanding the provisions of this Decree and any condition imposed on a mining lease, the provisions of section 15 of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Decree 1995 shall apply to investment of foreign currencies and capital in solid minerals development in Nigeria.

(3)     The Minister may, by order published in the Gazette apply the provisions of sections 18 to 23 of this Decree to holders of other mining titles.

(a)     co-ordinate and monitor all investment activities in mineral resources;

(b)    initiate and support measures to enhance the investment estimate for both Nigerian and non-Nigerian investors;

(c)     promote investments for the development of mineral ventures in and outside Nigeria;

(d)     collect, collate, analyse and disseminate information about investment capital and advise on request, the availability, choice or suitability of partners in joint ventures projects in mineral resources;

(e)     register and keep records of all enterprises and companies established and pursuing activities in mineral resources and allied projects;

(f)     identify specific mineral resources, projects and invite interested investors for participation in those projects.

(g)     initiate, organise and participate in promotional activities in mineral resources and development, by exhibitions, conferences, seminars and workshops geared towards the stimulation of investments in mineral resources;

(h)    maintain liaison between investors and Government Departments and Agencies set up for the purpose of development of mineral resources and allied projects; and

(i)     provide and disseminate up-to-date information on incentives in mineral resources available to investors under this Decree

(a)     organise and group small miners into co-operatives;

(b)     organise simple and better techniques of mining for small scale miners;

(c)     provide basic mining equipment for small scale miner;

(d)     provide such technical consultancy as may improve the skill of small scale miners; and

(e)     provide support services which may enhance interest and investment in mineral resources.

26.     (1)    No person shall prospect for any mineral unless he is a prospecting right or an exclusive prospecting licence issued him in accordance with the provisions of this Decree

27.    (1)    The Minister may, by notice published in the Gazette, declare an area to be closed to prospecting generally or for a specified mineral for such period as he may specify in the notice.

(2)     The Minister may grant authority on such terms as he may think fit to any person to prospect and to erect beacons on any land which has been declared to be closed to prospecting.

(3)     No person, other than the holder of an exclusive prospecting licence or his agent, shall prospect or erect beacons within an area which is closed to prospecting.

(4)     A person who prospects within an area which is closed to prospecting in contravention of this section commits an offence under this Decree.

28.    (l)     The Minister may, by notice published in the Gazette, prohibit prospecting for any specified mineral.

(2)     Where the Minister prohibits prospecting under subsection (1) of this section; a prospecting right or exclusive prospecting licence granted before or after the notice issued by the Minister shall not authorise the holder to prospect for that mineral unless the contrary is expressly approved by the Minister.

29.    (l)     Where the holder, in the course of exercising its right under a prospecting right or licence, discovers any mineral not included in its licence, it shall notify the Minister of the discovery and may apply to the Minister for an endorsement of its prospecting right or licence to include that mineral.

(2)     An application for an endorsement of a prospecting right or licence under subsection (1) of this section shall -

(a)     specify the mineral discovered;

(b)     state particulars of the time, situation and the circumstances of the discovery; and

(c)     have appended to it a proposed programme of prospecting operations in respect of that mineral.

(3)     Subject to the provisions of subsection (1) of this section, the Minister may permit the endorsement of the exclusive prospecting licence to include the mineral discovered.

30.    (1)    Any mineral raised or obtained in the course of prospecting under a prospecting right or an exclusive prospecting licence shall be the property of the Federal Republic of Nigeria held for and on behalf of the people of Nigeria.

(2)     No person, whether or not the holder of a right or licence under this Decree, shall remove from the land or dispose of any mineral obtained in the course of prospecting by the holder except with the consent of the Minister.

(3)     If the holder of a prospecting right or an exclusive prospecting licence or his agent during the course of prospecting discovers any radio-active mineral or any mineral which may reasonably be expected to be radio-active, he shall forthwith notify the Minister of the discovery in writing.

(4)     The provisions of the Nuclear Safety and Radioactive Decree 1995 shall apply to any radio-active mineral discovered pursuant to subsection 3 of this section.

(5)     The Minister may authorise the removal of the radio-active minerals from the land from which they have been obtained to any place approved by him for safe custody, subject to such conditions, if any, as he may think fit and in accordance with subsection (3) of this section.

32.    (1)    The Minister may issue to any company, upon payment of the prescribed fee, a prospecting right as contained in Form A in the Schedule I to this Decree, and he may by, endorsement thereon -

(a)     restrict the use of the prospecting right -

(i)     to specified local government areas,

(ii)     to specified minerals; or

(b)     impose any conditions as he may consider necessary.

(2)     Notwithstanding anything contained in subsection (1) of this section, a prospecting right shall not be granted except with the consent of the Minister to any company which -

(a)     has been or whose director or partner has been convicted of an offence under this Decree; or

(b)     which has previously held any right, licence or lease granted under this Decree, or under any previous enactment relating to minerals which has been revoked by reason of a breach of the terms or conditions of the same; or

(c)     is unable to give satisfactory proof that it possesses sufficient funds or credit to enable it to pay -

(i)     any reasonable expenses that may be incurred by prospecting in an adequate matter,

(ii)     any compensation that may be required in the exercise of the rights conferred by the prospecting right.

(3)     A prospecting right shall remain in force for one year unless revoked or determined under the provisions of this Decree.

(4)     The holder of a prospecting right shall, during the currency of the right, keep continuously in his employment a person who possesses adequate professional qualifications and experience in geology or mining who shall be in charge of the prospecting operations of the holder and who shall have been registered for that purpose with the prescribed officer.

(5)     Any change in employment of ~ person referred to in subsection (4) of this section shall be notified to the Minister.

33.    (1)     The holder of a prospecting right may -

(a)     enter upon and prospect on any land within any Local Government Area specified in the prospecting right (not being land closed to prospecting) including any of the lands referred to in section 14 of this Decree, if he has first obtained the consent of the Local Government Council stated to be entitled to give the consent but not otherwise;

(b)     whilst engaged in bona fide prospecting, construct a camp and take timber (other than. protected trees), and water from any lake, or watercourse not the subject of a water licence for domestic purposes or for the purposes of prospecting;

(c)     sink shafts or wells and dig holes or trenches so, however, that the holder -

(i)     shall not divert water from any watercourse without the consent in writing of the Minister,

(ii)     shall not prospect in any forest reserve except with the consent of the Minister,

(iii)     intending to prospect on private land or on land occupied under State lease or the subject of a right of occupancy, shall give notice to the Chairman of the Local Government Council concerned and, to the occupier of the land before commncing prospecting operations on the land.

(2)     A person who is carrying out underground prospecting may be granted permit by the proper authority to take protected without the payment of royalties and fees but if any question arises as to whether the operations for which a protected tree is required or is being used are or are not prospecting, the matter shall be referred to the Minister whose decision shall be final.

(3)     The holder of a prospecting right who fails to give any notice required under subsection (1) of this section or fails to comply with the conditions imposed by the Minister commits an offence.

(4)     The holder of a prospecting right shall fill up any shafts, wells, holes or trenches made by him and restore the ground to its original state at the completion of prospecting operations.

(5)     A holder of a prospecting licence who fails to comply with the provisions of subsection (4) of this section commits an offence.

34.    (1)     The Minister may, grant an exclusive prospecting licence to prospect for such minerals as are stated in the licence to any company which -

(a)     being the holder of a prospecting right, has beaconed the area over which the licence is applied for; or

(b)     has, by an agent who is the holder of a prospecting right on its behalf, beaconed the area.

(2)     On the application of any licensee, the Minister may add to or vary the minerals so stated in any exclusive prospecting licence.

(3)     The applicant for an exclusive prospecting licence shall be informed, at the time of approval of its application, of any special conditions which the Minister proposes to include any lease granted by virtue of the exclusive prospecting licence.

(4)     An exclusive prospecting licence shall be in Form B set out in Schedule 1 to this Decree.

(5)     An exclusive prospecting licence shall not be grant in respect of an area exceeding 20 square kilometres.

(6)     An applicant for an exclusive prospecting licence shall satisfy the provisions of section 10 of this Decree.

35.    (l)     An exclusive prospecting licence shall be granted for 2 years from the date specified in the licence but may be iewed in whole or in part for further terms of one year each to a maximum of -

(a)     two renewals, where the mineral is in alluvium;

(b)     four renewals, where the mineral is covered by basalt; and

(c)     five renewals, where the mineral is in lode.

(2)     The Minister may grant renewals of the licence in whole or part for such further periods of one year, if it be shown that all obligations have been fulfilled or that prospecting operations have been stopped or seriously hindered by circumstances beyond the control of the licensee.

(3)     Where the application for renewal is refused the licence shall be valid for a further period of three months from on which it would otherwise have expired.

(4)     An application for the renewal of an exclusive licence shall be made in writing at least one month before the date of the expiry of the licence and the licence and a copy of the plans required by section 9 of this Decree and the rent for the following year shall be forwarded together with application.