In a bid to ensure that only serious investors are granted access to the country’s minerals assets, the Federal Ministry of Mines and Steel Development, Wednesday, issued new guidelines for prospective mineral title applications.
According to a notice approved by the Minister, Kayode Fayemi, subsequent applications for mineral titles must be accompanied with a minimum work programme (that will be carried out on the title with timeliness and cost estimates); a bank statement showing a credit balance equivalent to at least (50%) of the cost of implementing the minimum work programme; and a bank reference letter of good standing.
The new conditions according to the notice, are in strict compliance with Section 54 of the Nigeria Minerals and Mining Act, 2007.
The Ministry may have been forced to act on the issue of working capital as the said Act is not specific on its demands. Section 54 (1) (a) of the Act merely states that an applicant for a mineral title should provide “proof of sufficient working capital for the exploration or mining of the area applied for.”
Section 54 (1) (b) however provides for the Mining Cadastre Office to require or prescribe “any other information.”
