Search

The Environmental Protection Fund (EPF) has been established under the new Mines and Minerals Development Act of 2008 to address environmental liabilities corresponding to the new mining investors as provided for under the Act.

Exploration licences may be granted for areas between 400 and 20,000 ha for a maximum of 10 years with a possible extension of 5 years. Prospecting licences may be granted for periods of up to 2 years with a possible extension of 2 years. Mining licences may be granted for the expected life of the mine or 21 years, whichever is shorter, with the possibility of renewal. An environmental impact assessment is required for mines of 250 ha or more (Table 4.21). There are no restrictions on foreign companies participating either in their own right, through equity in a local company, or through joint ventures with a local company or companies.

In 2014, the Federal Executive Council submitted the Nigerian Metallurgical Industry Draft Bill to the National Assembly. The Bill provides a framework for regulating the operations of all metallurgical plants in Nigeria to ensure that metallurgical products and raw materials manufactured locally or imported into the country meet the required standards. The Bill also provides for the establishment of an inspectorate department that would enforce compliance with quality, safety and metallurgical environmental regulations.

MME (Ministry of Mines and Energy)'s Strategic Plan 2012/13 to 2016/17 includes initiatives to amend the mining regulatory framework, promulgate the Earth Science Professions Bill and amend the diamond legislative framework. Other strategic targets include creating a conducive investment climate, educating communities with regard to geo-environment, mining and energy, promoting beneficiation of minerals and increasing the participation of Namibians in the mining sector.

In addition to profits tax at 20%, under the Mining Code, companies mining metal ores and producers of metal ore concentrates and smelting products are required to pay royalties and make payments into the nature and environment preservation fund. (…)

Reportedly, while the recent issue of new legal instruments (see below) demonstrates efforts to draft stricter provisions on exploiting and preserving mineral resources, they imply that investors in the mining sector could face greater regulatory obstacles.

State-owned enterprises, 2018
Type of enterprise Sector Number
State-owned enterprises of the Central Government Infrastructure and non-renewable natural resources 10
(...) (...)
Habitat and environment 2
(...) (...) (...)

According to the World Bank, the exploitation of phosphates at Farim (deposits discovered in 1978) and bauxite at Boé could contribute more than 15% of GDP. The reserves of the five bauxite deposits identified at Boé are estimated at 110 million tonnes, with an alumina (AlO3) and silica (SiO2) content evaluated at 44% and 3.7%, respectively. Since 2007, Bauxite Angola has had an exploitation licence for these deposits; the Governments of Angola and Guinea-Bissau hold 20% and 10%, respectively, of the company's capital. After having updated the environmental and social impact study paving the way for exploitation operations, in 2016 Bauxite Angola was at the technical, economic and financial viability study phase. Bauxite Angola has announced investment of up to US$500 million, also covering rehabilitation of the necessary road network for exports and the first stages of construction of the deep-water port of Buba.

The Department of Minerals and Energy 2008/09-2010/11 Strategic Plan is aimed, inter alia, at increasing investment in mining, promoting the sustainable use of energy resources, and ensuring the development of an efficient, safe, and cost effective electricity industry.

The Mine Safety Act 1981 provides for safety, health and environmental conditions in the mining industry. (...)