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  • Nigerian Energy and Mining Law

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    Blackfriars LLP
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    Are the Mining Permits Issued by the Mining Cadastre Office (MCO) Under Nigeria’s Minerals Mining Act 2007 Valid? Some Suggestions for Foreign Investors: Following the recent revision of the 1999 National Policy Initiative on mining, the Federal Government of Nigeria has issued a new set of guidelines on mining. A key innovation in the new guidelines is the Mining Cadastre Bill which seeks to incorporate the Mining Cadastre Office as an independent legal entity. Under the old regime, the Mining Cadastre Office (MCO) was ostensibly established by the Ministry of Solid Minerals Development as an autonomous body with exclusive responsibility to administer mining titles with integrity and on a “first come, first served” basis. Notwithstanding the good intensions of the Ministry of Solid Minerals Development, appropriate steps were not taken to establish the MCO as an independent legal entity. The MCO did not have its own legal personality in law. Thus, it would appear that between 1999 and the first quarter of 2007, the MCO purported to discharge its enormous functions without the appropriate legal foundation. The MCO has exclusive responsibility to: • CONSIDER, ISSUE, SUSPEND, REVOKE Applications/Mining Titles and Permits, and to • Receive and dispose of applications for the TRANSFER, RENEWAL, MODIFICATION, RELINQUISHMENT, MODIFICATION of mining titles or EXTENSION of areas. Under the provisions of the Mining Act of 2007, the Mining Cadastre Office (MCO) issued various types of licenses and permits including: • Reconnaissance permits; • Exploration permits; • Small-scale mining lease; • Mining lease; • Quarry lease; and • Water use permit. The key question that arises with the proposed rectification of the anomalous status of the MCO is the legal status of the various licenses and permits issued by the MCO. More worrisome is that until the second quarter of 2007, the MCO operated without any mining regulations. Thus, in addition to its questionable legal status, it would appear that the MCO exercised whatever power it believed it possessed without recourse to any mining regulations. The Ministry of Solid Minerals has however approved an integrated mining regulation. Prima facie, it would appear that the licenses issued by the MCO were done ultra vires and such may be void in law. However, considering the huge investment of time and resources by several reputable foreign investors in Nigeria’s nascent solid minerals sector, the Ministry of Solid Minerals has wisely decided to avoid a doctrinaire attitude towards the consequences of the lapses in the legal status of the MCO. Rather than pursue a blanket invalidation of the permits and licenses already issued by the MCO, the new regulation adopts a revalidation programme. The revalidation programme would entail a case-by-case re-assessment of the various permits and licenses already issued by the MCO. The revalidation exercise will throw up three major challenges. First, entities with permits and licenses who have already added value to the titles they have taken will be asked to continue. Their licenses and permits will simply be re-validated by the MCO as properly constituted under law. Second, entities whose licences and permits are flawed under the new mining regulations would be given a stipulated time within which to cure those defects. Once the defects are remedied, the licenses will be re-validated. The third category deals with those without mining background or interests but who nonetheless obtained permits and licenses with a view to re-selling same to genuine mining companies. This category of license holders will lose their permits. The revalidation process is headed by a bureaucrat, a Permanent Secretary in the Ministry of Solid Minerals Development.

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    Are the Mining Permits Issued by the Mining Cadastre Office (MCO) Under Nigeria’s Minerals Mining Act 2007 Valid? Some Suggestions for Foreign Investors: Following the recent revision of the 1999 National Policy Initiative on mining, the Federal Government of Nigeria has issued a new set of guidelines on mining. A key innovation in the new guidelines is the Mining Cadastre Bill which seeks to incorporate the Mining Cadastre Office as an independent legal entity. Under the old regime, the Mining Cadastre Office (MCO) was ostensibly established by the Ministry of Solid Minerals Development as an autonomous body with exclusive responsibility to administer mining titles with integrity and on a “first come, first served” basis. Notwithstanding the good intensions of the Ministry of Solid Minerals Development, appropriate steps were not taken to establish the MCO as an independent legal entity. The MCO did not have its own legal personality in law. Thus, it would appear that between 1999 and the first quarter of 2007, the MCO purported to discharge its enormous functions without the appropriate legal foundation. The MCO has exclusive responsibility to: • CONSIDER, ISSUE, SUSPEND, REVOKE Applications/Mining Titles and Permits, and to • Receive and dispose of applications for the TRANSFER, RENEWAL, MODIFICATION, RELINQUISHMENT, MODIFICATION of mining titles or EXTENSION of areas. Under the provisions of the Mining Act of 2007, the Mining Cadastre Office (MCO) issued various types of licenses and permits including: • Reconnaissance permits; • Exploration permits; • Small-scale mining lease; • Mining lease; • Quarry lease; and • Water use permit. The key question that arises with the proposed rectification of the anomalous status of the MCO is the legal status of the various licenses and permits issued by the MCO. More worrisome is that until the second quarter of 2007, the MCO operated without any mining regulations. Thus, in addition to its questionable legal status, it would appear that the MCO exercised whatever power it believed it possessed without recourse to any mining regulations. The Ministry of Solid Minerals has however approved an integrated mining regulation. Prima facie, it would appear that the licenses issued by the MCO were done ultra vires and such may be void in law. However, considering the huge investment of time and resources by several reputable foreign investors in Nigeria’s nascent solid minerals sector, the Ministry of Solid Minerals has wisely decided to avoid a doctrinaire attitude towards the consequences of the lapses in the legal status of the MCO. Rather than pursue a blanket invalidation of the permits and licenses already issued by the MCO, the new regulation adopts a revalidation programme. The revalidation programme would entail a case-by-case re-assessment of the various permits and licenses already issued by the MCO. The revalidation exercise will throw up three major challenges. First, entities with permits and licenses who have already added value to the titles they have taken will be asked to continue. Their licenses and permits will simply be re-validated by the MCO as properly constituted under law. Second, entities whose licences and permits are flawed under the new mining regulations would be given a stipulated time within which to cure those defects. Once the defects are remedied, the licenses will be re-validated. The third category deals with those without mining background or interests but who nonetheless obtained permits and licenses with a view to re-selling same to genuine mining companies. This category of license holders will lose their permits. The revalidation process is headed by a bureaucrat, a Permanent Secretary in the Ministry of Solid Minerals Development.

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    Baixe no formato PDF, TXT ou leia online no Scribd
    Sinalizar o conteúdo como inadequado
    186 visualizações2 páginas

    Nigerian Energy and Mining Law

    Enviado por

    Blackfriars LLP
    Are the Mining Permits Issued by the Mining Cadastre Office (MCO) Under Nigeria’s Minerals Mining Act 2007 Valid? Some Suggestions for Foreign Investors: Following the recent revision of the 1999 National Policy Initiative on mining, the Federal Government of Nigeria has issued a new set of guidelines on mining. A key innovation in the new guidelines is the Mining Cadastre Bill which seeks to incorporate the Mining Cadastre Office as an independent legal entity. Under the old regime, the Mining Cadastre Office (MCO) was ostensibly established by the Ministry of Solid Minerals Development as an autonomous body with exclusive responsibility to administer mining titles with integrity and on a “first come, first served” basis. Notwithstanding the good intensions of the Ministry of Solid Minerals Development, appropriate steps were not taken to establish the MCO as an independent legal entity. The MCO did not have its own legal personality in law. Thus, it would appear that between 1999 and the first quarter of 2007, the MCO purported to discharge its enormous functions without the appropriate legal foundation. The MCO has exclusive responsibility to: • CONSIDER, ISSUE, SUSPEND, REVOKE Applications/Mining Titles and Permits, and to • Receive and dispose of applications for the TRANSFER, RENEWAL, MODIFICATION, RELINQUISHMENT, MODIFICATION of mining titles or EXTENSION of areas. Under the provisions of the Mining Act of 2007, the Mining Cadastre Office (MCO) issued various types of licenses and permits including: • Reconnaissance permits; • Exploration permits; • Small-scale mining lease; • Mining lease; • Quarry lease; and • Water use permit. The key question that arises with the proposed rectification of the anomalous status of the MCO is the legal status of the various licenses and permits issued by the MCO. More worrisome is that until the second quarter of 2007, the MCO operated without any mining regulations. Thus, in addition to its questionable legal status, it would appear that the MCO exercised whatever power it believed it possessed without recourse to any mining regulations. The Ministry of Solid Minerals has however approved an integrated mining regulation. Prima facie, it would appear that the licenses issued by the MCO were done ultra vires and such may be void in law. However, considering the huge investment of time and resources by several reputable foreign investors in Nigeria’s nascent solid minerals sector, the Ministry of Solid Minerals has wisely decided to avoid a doctrinaire attitude towards the consequences of the lapses in the legal status of the MCO. Rather than pursue a blanket invalidation of the permits and licenses already issued by the MCO, the new regulation adopts a revalidation programme. The revalidation programme would entail a case-by-case re-assessment of the various permits and licenses already issued by the MCO. The revalidation exercise will throw up three major challenges. First, entities with permits and licenses who have already added value to the titles they have taken will be asked to continue. Their licenses and permits will simply be re-validated by the MCO as properly constituted under law. Second, entities whose licences and permits are flawed under the new mining regulations would be given a stipulated time within which to cure those defects. Once the defects are remedied, the licenses will be re-validated. The third category deals with those without mining background or interests but who nonetheless obtained permits and licenses with a view to re-selling same to genuine mining companies. This category of license holders will lose their permits. The revalidation process is headed by a bureaucrat, a Permanent Secretary in the Ministry of Solid Minerals Development.

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    Attribution Non-Commercial (BY-NC)
    Baixe no formato PDF, TXT ou leia online no Scribd
    Sinalizar o conteúdo como inadequado
    de 2

    WWW.BLACKFRIARS-LAW.

    COM

    Are the Mining Permits Issued by the • CONSIDER, ISSUE, SUSPEND,


    Mining Cadastre Office (MCO) Under REVOKE Applications/Mining
    Nigeria’s Minerals Mining Act 2007 Titles and Permits, and to
    Valid? Some Suggestions for Foreign
    • Receive and dispose of
    Investors applications for the TRANSFER,
    RENEWAL, MODIFICATION,
    January 2009 Vol. 22 Issue # 1 RELINQUISHMENT,
    MODIFICATION of mining titles
    Following the recent revision of the 1999
    or EXTENSION of areas.
    National Policy Initiative on mining, the
    Federal Government of Nigeria has issued a Under the provisions of the Mining Act
    new set of guidelines on mining. A key of 2007, the Mining Cadastre Office (MCO)
    innovation in the new guidelines is the issued various types of licenses and permits
    Mining Cadastre Bill which seeks to including:
    incorporate the Mining Cadastre Office as
    an independent legal entity. • Reconnaissance permits;

    Under the old regime, the Mining • Exploration permits;


    Cadastre Office (MCO) was ostensibly
    established by the Ministry of Solid • Small-scale mining lease;
    Minerals Development as an autonomous
    • Mining lease;
    body with exclusive responsibility to
    administer mining titles with integrity and
    • Quarry lease; and
    on a “first come, first served” basis.
    Notwithstanding the good intensions of the • Water use permit.
    Ministry of Solid Minerals Development,
    appropriate steps were not taken to The key question that arises with the
    establish the MCO as an independent legal proposed rectification of the anomalous
    entity. The MCO did not have its own legal status of the MCO is the legal status of the
    personality in law. various licenses and permits issued by the
    MCO. More worrisome is that until the
    Thus, it would appear that between 1999 second quarter of 2007, the MCO operated
    and the first quarter of 2007, the MCO without any mining regulations. Thus, in
    purported to discharge its enormous addition to its questionable legal status, it
    functions without the appropriate legal would appear that the MCO exercised
    foundation. whatever power it believed it possessed
    without recourse to any mining regulations.
    The MCO has exclusive responsibility
    to: The Ministry of Solid Minerals has however
    approved an integrated mining regulation.
    Prima facie, it would appear that the licenses

    ©Blackfriars LLP 2008. All rights reserved. This document is for general guidance only. Definitive advice
    should be sought from counsel if required. Blackfriars LLP is a Nigerian law firm with a representative
    office in Toronto, Canada.
    WWW.BLACKFRIARS-LAW.COM

    issued by the MCO were done ultra vires The revalidation process is headed by a
    and such may be void in law. bureaucrat, a Permanent Secretary in the
    Ministry of Solid Minerals Development.
    However, considering the huge investment
    of time and resources by several reputable For further inquiries, please contact:
    foreign investors in Nigeria’s nascent solid
    minerals sector, the Ministry of Solid Ms. Nkeiru Onyeaso
    Minerals has wisely decided to avoid a Tel: +234 808 718 0833
    doctrinaire attitude towards the Email: Nkay@blackfriars-law.com
    consequences of the lapses in the legal Fax: +234 1 2694781
    status of the MCO.

    Rather than pursue a blanket invalidation of


    the permits and licenses already issued by
    Ms. Clara Ndive
    the MCO, the new regulation adopts a Email: Clara@blackfriars-law.com
    revalidation programme. The revalidation Tel: +234 803 323 1868
    programme would entail a case-by-case re- Fax: +234 1 2694781
    assessment of the various permits and
    licenses already issued by the MCO.
    Dr. Pius Okoronkwo
    The revalidation exercise will throw up Tel: +647 831 7487
    three major challenges. First, entities with Email: pius@blackfriars-law.com
    permits and licenses who have already Fax: +234 1 2694781
    added value to the titles they have taken
    will be asked to continue. Their licenses and
    permits will simply be re-validated by the
    MCO as properly constituted under law.

    Second, entities whose licences and permits


    are flawed under the new mining
    This newsletter has been sent to you by
    regulations would be given a stipulated
    BLACKFRIARS LLP, a full-service law firm, in
    time within which to cure those defects.
    the genuine belief that its contents would be of
    Once the defects are remedied, the licenses
    interest to you. If you have received this
    will be re-validated. newsletter incorrectly, or if you do not want to
    receive further information about legal
    The third category deals with those without developments in Nigeria and West Africa,
    mining background or interests but who please accept our apologies. To unsubscribe
    nonetheless obtained permits and licenses from future newsletters from BLACKFRIARS
    with a view to re-selling same to genuine LLP, please send an email to
    mining companies. This category of license newsletters@blackfriars-law.comwith
    holders will lose their permits. "unsubscribe" in the subject line.

    ©Blackfriars LLP 2008. All rights reserved. This document is for general guidance only. Definitive advice
    should be sought from counsel if required. Blackfriars LLP is a Nigerian law firm with a representative
    office in Toronto, Canada.

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