Mining - Regulatory Update

HIGHLIGHTS OF THE GUIDELINES FOR THE PRODUCTION OF COMMUNITY DEVELOPMENT AGREEMENTS IN THE SOLID MINERAL SECTOR ISSUED BY THE MINISTRY OF SOLID MINERALS DEVELOPMENT

INTRODUCTION

On November 16, 2023, the Honourable Minister of Solid Minerals Development, Dr. Dele Alake, officially launched the 'Guidelines for the Production of Community Development Agreement in the Solid Minerals Sector' (the "Guidelines"). The Guidelines was issued in pursuance of the provisions of Section 116 of the Nigerian Minerals and Mining Act, 2007 (the "Act").

Section 116 of the Act stipulates that the holder of a Mining Lease, Small Scale Mining Lease, or Quarry Lease is required to finalise with the host community, an agreement known as a Community Development Agreement ("CDA" or the "Agreement") or such other agreement that will ensure the transfer of social and economic benefits to the host community prior to the commencement of mining activities within the lease area. The