Abdul Muhammed Law Practice
Abdul Muhammed Law Practice discusses legal cost of obtaining a solid minerals export License in Nigeria.
Introduction
Embarking on the export of solid minerals in Nigeria involves obtaining necessary licenses and an understanding of relevant legal considerations.
This article explores the intricacies of acquiring a mining license in Nigeria and delves into the factors affecting legal fees.
Basics of solid minerals export
Before delving into the costs associated with obtaining a mining license, it’s crucial to grasp the broader context of solid minerals export regime in Nigeria.
Solid minerals encompass a variety of valuable resources like minerals, metals, gemstones and industrial materials.
Nigeria’s abundant mineral deposits create lucrative opportunities for exporters to contribute to the national economy.
Legal fees in this area of practice are influenced by factors such as the experience of the lawyer and their ability to efficiently secure necessary documents. While a more experienced lawyer may charge higher upfront fees, the advantage lies in their ability to expedite the process. It’s a balance between upfront legal costs and timely results.
Let’s focus now on the procedures for exporting solid minerals which are discussed briefly below.
Preparation
Exporters should conduct feasibility studies to assess the quantity, quality and market demand for chosen minerals.
This information guides decision-making throughout the export process.
Exploration license
To mine and acquire solid minerals, exporters need a valid exploration license from the Nigerian Mining Cadastre Office (MCO), granting the right to explore and assess mineral deposit viability.
Mining lease
Successful exploration leads to the need for a mining lease, granting exclusive rights to mine and exploit the mineral. The application is submitted to the MCO, including a proposed environmental impact assessment.
Mineral buying centers and export licensing
Small-scale miners must sell minerals to licensed buying centers, which process them for export. Export licenses, obtained from the Ministry of Mines and Steel Development, authorize legal transportation from buying centers to export destinations.
Export declaration and documentation
Exporters must declare the intended quantity and value of minerals, submitting this information to relevant authorities.
Preparation of appropriate export documentation is mandatory.
Customs clearance and shipping
Exported minerals must undergo customs clearance procedures at the point of exit before being shipped to the international market.
How Much does a mining license cost in Nigeria?
Specifically, what would a business lawyer charge to process the export license efficiently on behalf of a client?
For a mining business lawyer to handle the entire documentation process (per mineral) clients can expect fees ranging from 4.5 million Naira to 8 million Naira. These costs encompass the comprehensive legal assistance required to navigate the entire process, ensuring a timely and efficient result.
Size of mining operation
The type and size of the mining operation does not play a role in legal fees per se.
Government fees and charges
The government charges various fees for the processing and approval of mining licenses but these fees are built into the lawyer’s fees and are not charged to the client separately.
Rounding up
The complexities of solid minerals export necessitate a nuanced understanding of the mining license acquisition process.
Prospective exporters must navigate through the various stages.
DIY approach
For those considering a do-it-yourself (DIY) approach, thorough research, consultations and discussions with relevant authorities are strongly encouraged.
Engaging directly with the intricacies of the solid minerals export license process can provide valuable insights into costs and requirements.
However, DIY exporters should be wary of potential pitfalls and or delays that may arise without professional guidance.
Conclusion
Prospective exporters can choose between engaging experienced legal professionals or opting for a DIY approach, but in either case, thorough research and consultations are key to a successful and cost-effective venture into solid minerals export in Nigeria.
Need to obtain solid minerals exporting license from Nigeria?
