Solid Minerals Development Agency

• About 269 licenses/grants have been issued by the Ministry of Mines and Steel Development to investors interested in solid minerals development in Oyo State.
• 99 Exploration Licenses
• 65 Exploration License Grant
• 16 Mining/Small Scale Mining License
• 6 Mining/Small Scale Mining Grant
• 83 Quarry Licenses
• Enforced environmental, health and safety regulations in the mining and quarry sites.
• Enforced social responsibility regulations and Community Development Agreement (CDA) in the mining and quarry sites as outlined in the 2007 Nigerian Minerals & Mining Act and the 2011 Nigerian Minerals and Mining Regulation.

• Synergy with Federal Ministry of Mines and Steel (Zonal Mines Office) in tackling illegal mining activities and developing the mining industry in Oyo State.
• Synergy with Revenue Mobilization Allocation and Fiscal Commission to improve on fiscal allocation to Oyo State.
• Confirmation of Oyo State as a Solid Mineral producing State to benefit from 13% derivate.
• Collaboration with NGSA to update the mineral map of the state.
• A joint investigation by the State and Federal Government for sourcing ecological and poverty alleviation fund from Federal Government.
• A joint survey with Federal Ministry of Mines and Steel Development (Environmental Compliance Department) on abandoned mining sites, in order to access funds for reclamation of sites.

• Intervention in inter-communal boundary dispute arising from mining activities with the Ministry of Lands, the Surveyor General’s Office and Security Department.
• Preservation of Forest Reserve from miner’s incursion with the Ministry of Agriculture.
• Carried out geological and geophysical investigation to determine subsurface integrity of proposed 10,000 metric tons’ silo at Awe, Oyo for Ministry of Agriculture.
• Resuscitating Nigerian Marble Mining Company, Igbeti by reconstituting its Board.
• Participating in solid minerals exhibition and conferences to showcase solid mineral potential of the State.
• Resuscitation of Pacesetter Quarry and Asphalt Plant, Ijaye, and Oloba Burnt Bricks Factory which are in progress.
• Collaboration with BIR for revenue generation in the state such as, haulage fees on granite products, sand and gravel, petroleum products, cement and manufactured products, surface rent, ground rent among others.
• Dissemination of sound, relevant information and sensitization of investor (local and foreign) on solid minerals development in Oyo State.

• Prior to this administration, the Agency generates about N36 million yearly.
• The revenue base of the agency has increased appreciably from when it was a department to its present status as an agency with a progressive increase of 197% between 2010 (of N36,000,000) and 2016 (of N71,029,680).

Oyo State is endowed with huge varieties of coloured gemstones and tantalite (average 48% Ta₂O₅) that are well known in the international market.

Brief Geology: Much of the state is covered by Precambrian igneous and metamorphic rocks thereby referred to as Basement Complex. The crystalline basement complex is pervaded by pegmatite’s which are host for gemstones, tantalite and varieties of mineral deposits. The older granites have resulted in smooth domed inselbergs particularly in areas around Iseyin, Okeho, Igboho, Saki, Ogbooro, Oyo, Igbeti and the greater parts of Oyo North.

Certain groups of metasediments which abound in areas around Saki west, Kajola, Olorunsogo and Itesiewaju, Local government areas include the quartzfelspathic biotite schists, quartzites and marble. Larger quantities of quartzites are found within Ogbomosho and Oyo areas.

Mineral Resources: Oyo State is rich in prominent minerals and endowed with a wide distribution of the sample but easy to utilize igneous and metarmorphic groups of minerals, namely Iron ore, tantalite, columbite, cassiterite, bismuth, gemstones, gold, marble, red clay, sand, gravel, granite, syenite, kaolin and talc.

Oyo state is nationally acknowledged as the bastion of huge supply of gemstones, tantalite, granites, marble and minerals waiting to be tapped into, thus an emerging high profile supply Market for coloured gemstones and tantalite with the potential to consistently produce diverse and spectacular coloured gems and tantalite in reasonable quantities.

The Abiola Ajimobi Government is set to help in the mineral resources sector in Oyo State, Nigeria to make it an irresistible destination for global mining

Features of the reform includes:

• Development of a new state policy that clearly defines the role of the government as administrator/regulator and the private sector as owner/operator and charts the direction of future activities in the sector.
• Create c onductive environment for investors with incentives, low tax rate and mobilization of work-force to assist investors operation in the state. Offering transparent and efficient mechanism for granting access to mineral titles
• Advocate for review of the Minerals and Mining Law within the confines of the national policy to create a regulatory environment that is attractive to mining investment capital.
• Advocate for restricting of the affiliated ministries to the activities of Solid Minerals for a more effective performance of its role as “administrator/regulator” of the sector.
• Strengthening geological data generation and dissemination capability.
• Creating a stronger public-private partnership for mutual benefit profitability to investors and developmental impact to the people of Oyo State
• Promotion/Marketing of investment opportunities such as represented by this copy.

Mining of colored gemstones and tantalite is widespread in the state mainly carried out by Artisans and Small-scale Miners (ASM). The artisan miners are informal, and have served as “pathfinders”. They helped richly in the discovery made so far in the state; thus making their role very significant and in the interest of the State Government.

The artisanal Miners are temporarily mining many rich deposits of spectacular gemstones and tantalite. The activities of the artisans are characterized by inefficient mining techniques, use of crude implements/tools, environmental degradation and lack of health and safety measures. The small-scale miners are legal, organized miners that apply low technology (jack hammer, water pump, earth moving equipment) and apply about low technology (jack hammer, water pump, earth moving equipment) and employ about 10-25 permanent workers in their operation. The numerous gem/tantalite mines in Oyo State have only been superficially worked due to the limitation of ASM miners in knowledge, capital, skill and equipment.

In this wise, the Government would readily welcome investors who would readily employ large scale and more efficient process to mining in Oyo State.

Meanwhile, the Government support and promote ASM to generate wealth from mineral exploitation in a manner that is environment friendly, healthy and safe, and contributes to livelihood as well as community well-being.

In addition to the support from government, the small-scale miners can improve their capacity through partnership with foreign investors – this the Government would readily welcome from the small-scale miners.

Oyo state is endowed with a wide distribution of diversified igneous and metamorphic minerals, many of which have been established to exist in commercially viable quantities most of these mineral resources are spread throughout the state for instance; granite, red clay and tantalite are found in almost every local government area of the state; to mention just a few are kaolin, marble, feldspar, emerald and sapphire.

Recently, gold was discovered in Saki, Irawo and Itesa area of Oyo State has intermittently produced some of the world’s impressive gemstones and tantalite. Oyo was the site of the rubellite tourmaline and spessartite garnet finds of the late 1990 and Ofiki, Komu and saki areas are still producing pink tourmaline in a range of colours, including black and deep pink.

Quarrying which is an arm of mining is one of the bedrock of the construction sector of any economy. Oyo state currently has 14 granite quarrying companies out of which 12 are operational. The quantity of the proven granite reserve is presently pegged at approximately 220 million tones. It has also been established that 80% of the granite produced within the state is sold and used in Lagos State. This affirms the profitability of the granite quarry and dimension stone business; other mineral resource currently being explored within the state is Marble. Nigerian Marble Mining Company situated in Oyo State.

Oyo State Government equally has in place generous fiscal incentives to encourage the exploitation of the minerals and the development of value adding industries that will sustain the demand for the final output. For instance, the State Government is currently working on establishing a lapidary to process the minerals and an international Gemstone Market in Ibadan City where miners can easily market their wares.

It is a requirement for potential investor seeking to exploit mineral resources in Nigeria to apply for necessary permit and titles to investigate, extract and market the minerals. The processes involved in obtaining a license are found in the appendix.

The State Government is willing to explore available opportunities for partnership as well as joint venture collaboration with technically competent investors (both local and foreign) in the exploitation as well as processing of solid minerals located within the state. The State is also willing to offer guidance to potential investors towards obtaining mining licenses and permits.

The succeeding page shows a list of top quality solid minerals available in the State

Obtaining a mining License

A grant of mining License to a prospective company is subject to proof of economic reserve of the mineral commodity for which a concession is sought. There are two options available for an individual or company to participate in the mining industry of Nigeria namely through the acquisition of an existing mining property or submission of an application. Both require approval from the Mining Cadastre Office (MCO) of the Ministry of Mines and steel Development.

Types of Mineral Titles:

In line with section 46 of the Nigerian Minerals and Mining Act 2007, the right to search for, or exploit minerals in Nigeria is governed by one of the following minerals titles:

• Reconnaissance Permit
• Exploration License
• Small Scale Mining Lease
• Mining Lease
• Quarry Lease
• Water Use Permit

The main regulation of the Mining industry is the Mineral and Mining Act 2007, Mineral Guideline 2007 and Mineral Regulation of 2011. Other regulation includes the National Environment Standards and Regulation Enforcement Impact Assessment Act 1992, the Nuclear Safety and Radioactive Act 1995, the Explosive Act 1990 and the Land Use Act