UNIVERSITY OF JOS

FACULTY OF ENGINEERING
DEPARTMENT OF MINING ENGINEERING
SECOND SEMESTER 2020/2021 SESSUON

MNE 510: MINE MANAGEMENT AND LAW

CREDIT UNIT: TUTORIAL QUESTIONS
EXAMINER: ENGR. DR. OLADUNNI O. ALABI

1. State types of Mineral and Mining titles or permits available in Nigeria according to mining
act.
ANSWER:
 Reconnaissance Permit
 Exploration License
 Small Scale Mining Lease
 Mining Lease
 Quarry Lease
 Water Use Permit

2. What are the general conditions towards obtaining a mineral and mining titles.
ANSWER:
1. Application must be purchased, filled and submitted
2. Application must be submitted with non-refundable fee depending on the type of title sees for.
3. Conditions stated in the application to be a holder of applied mining lease must be met before
consideration be gven
4. Each exploration permit has its expiring date and must be renewed as such.
5. Application will be attended to or approved at the discretion of the Director General.

3. As a good Mine site Manager, What could lead to suspension or complete revocation of
mining license from a holder

ANSWER:
1. Failure to pay yearly permit renewal due
2. Relocation of title without the knowledge of the cadastral office
3. Failure to submit and keep to community development agreement,
4. Failure to disclose all the types of minerals located on the licensed mine site
5. Failure to pay royalty on quantity of mineral mined on the licensed site.
6. Failure to operate on the site for more than two years.

4. In most African countries mineral exploration and production constitute significant parts of
their economic and remains key to economic growth. Why is it not so in Nigeria.

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 ANSWER:
Nigeria a great nation sitting on gold mine still shouting of hunger. Nigeria is blessed with over
56 different types of mineral resources such as crude oil, gold, columbite, Tin oxide etc., but
dwell only on crude oil and abandoned the exploration and exploitation of other mineral
resources. If the two are properly harnessed and properly managed; it is of believed that Nigeria
will be like other countries with strong economic growth gear towards economic growth.

5. State different types of challenges encountered in mining practice.

ANSWER:
 Project Funding
 Climatic
 Health and safety
 Constant innovation and technology challenges
 Inadequacy of needed supporting infrastructure
 Security Challenges
 Illegal mining and community challenges
 Maintenance – skill shortage

6. What are the 8 steps to mineral exploration?

ANSWER:
 Locate potential deposit
 Claim staking and permitting
 Safe exploration
 Early stage exploration
 Core drilling
 Resource Modeling
 De – risking
 Production decision

7. Enumerate extensively types of mines sites with relevant examples.

ANSWER:
 Open cast or Surface mining. Examples: Strip mining, Placer mining, Mountain top mining,
Hydraulic mining process, dreging process and open pit process.
 Underground mining. Examples: Slope mining, Hard rock process, Drift mining process, shaft
process and Borehole process.

8. Differentiate between Domestic mining and organized mining.

ANSWER:
Domestic mining is a type of underdeveloped mining, which is operated using crude method type
of mining.
Organised mining is a type of mining that is backed by law and started in the year 1903 when the
mineral survey of the northern protectorates was created by the British colonial government. It
involves the use of machines and equipment.

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9. State some of the mining Laws in used in Nigeria
ANSWER:
1. Land use act of 1978
2. Companies and allied matter act 2020
3. National environment standard regulation enforcement
4. environmental impact assesment act
5. Mines and quarriesact
6. Nigerian Mining and Mineral act 2007
7. Condified Mining and mineral act of 1999
8. Mineral oil ordinance of 1914

10. Why is mining law important?

ANSWER:
Mining Law: It is important because it holds the rules and regulations governing mine lease
holding, activities and exploration and exploitation of valuable mineral guided by Nigerian
minerals and mining act 2007.
It is important to.
1. Protect the health and safety of miners
2. Encourage the efficient use of national resources
3. Protect the environment and raise tax revenue
4. Protect the right of the land owners.

11. What are the class of minerals mined in Nigeria, give examples?
ANSWER:
CLASS A- Base and precious metals in lode deposit such as hematite and magnetite.
CLASS B- Base and precious metals in alluvial deposits such as platinum, silica.
CLASS C- Carbonaceous/ mineral fuels such as. Coal, bitumen, uranium.
CLASS D- gemstones and semi-gemstones such as diamonds, sapphire, emerald.
CLASS E- nonmetal/ industrial minerals, quarrable minerals such as granites, limestone,

12. What could lead to restriction in granting a mining lease to an applicant?

ANSWER:
 Application must be properly filled and submitted at the right time
 Coordinates of either the corner of the entire polygonons or cadastral unit (CU’s) applied for
should be stated in the application.
 Survey plan for the applied lease should be submitted
 Payment should be made as appropriate before and after the approval
Applicant should have enough capital to finance mining activities on the lease

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13. What are the importance of mines management?
ANSWER:
Is a set of management mining activities in accordance to NMM 2007. This helps in proper well-
being, record keeping and prompt activities on mines site which will lead to successful mining
operation, as he leads and manage underground or surface mining operations in a way that is safe,
sustainable, ecological and socially acceptable. He seeks good welfare to the employee and good
services to employer.

14. List and explain the three main process mining techniques.
ANSWER:
1. Process discovery
2. Conformance checking
3. Process enhancement

15. General stages of process mining operation you know.

ANSWER:
1. Planning
2. Extraction
3. Data processing
4. Mining and analysis
5. Evaluation
6. Process improvement and support.

17. The average area of one cadastral unit (CU) of 15 seconds by 15 seconds (15” by 15”) is
roughly 20 Hectares. What hectares of land will an average area of 6 minutes by 6 minutes
(6’ by 6’) cover.

ANSWER:
If Cu of 15” by 15” = 20 hectares
Then CU of 1’ by 1’ will have 4 *4 CU = 16 CUs * 20 = 320 Hectares (about 3 km2) of land
Therefore, the area of land covered by 16 CU in 6”’ by 6’ will be = 16 * 20 * 6 = 1,920
Hectares (about 16 km2) of land.

19. What are the steps to be taken ahead and activities after environmental impact assessment?
ANSWER:
1. Gather information from the middle men about the site.
2. Meet the owner of the site, discuss terms and agree as per your intension
3. Settle the terms of operation leasing, outright sales or co – ownership
4. Draft agreement
5. Proceed to village head and make him aware of the agreement made
6. Seek the king or village head’s consent in written Pay all the dues and honorarium it entails.
7. Provide an alternative for the displace inhabitant of the land.
8. Seek for Recconasciennce permit from the Cadastral office

20. What are the benefit of environmental impact assessment to an organization

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 ANSWER:
1.It allows the organization to minimize adverse impact, while improve positive impact of setting
an industry in the area.
2. Know the type of people living in he area.
3. Know the current health status of the community
4. Control mesures for mitigation of significant adverse impact on human being, animal and plant
to be displaced
5. Design an appropriate health management and pollution control plan for the project to succeed.
6. Know the needs of the community, school, hospital, market e. t.c.

21. What are the positive and negative impact of Environmental impact assessment on a study
environment?
ANSWER:
Positive Impact:
1. EIA will allow to know the Significant improvement to mineral exploration in the state and to
the nation
2. A large percentage of labour will be employed
3. Socio economic impact will be improved
4. Future impact will come such as provision of Pipe borne water, Electricity, School, better road,
etc

Negative impact:
1. Floral loss
2. Noise pollution will be increased
3. Transportation impact will increase.
4. Negative impact of Fauna, as wild life will run away from their natural habitat.
5. Increase in crime rate and prostitution

22. State class of personnel by law in which mining title should be granted to and List bidding
procedures one will undergo to be granted exploration license or mining lease.
ANSWER:
Class of personnel by law in which mining title should be granted to
 Individual
 A company
A co – operative
The bidding procedure will normally include:
 An advertisement in both local and international media
 Data room due diligence process
 Receiving Expression of Interest (EIO)
 Selection of preferred investor
 Communication of selected investors to the National Assembly Committee on Solid
Minerals
 Offer of the mineral title

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23. Explain the Pre – grant conditions and Post grant conditions in granting exploration
license to an applicant.
ANSWER: Pre-grant conditions are the condition an applicant must meet before approval
and post- conditions that a lease holder must meet after least license must has been granted to
him.

 PRE-GRANT CONDITIONS
I. Duly completed application forms
II. Pre-feasibility Report
III. Prospective plan/reserve estimation
IV. Extant exploration license
V. Evidence of financial capability
VI. Evidence of technical competence
VII. Certified copy of certificate of incorporation.
VIII. Mineral (s) to be exploited
IX. Area specified to be surveyed in accordance with provisions of Survey Coordination Act
X. Notice to landowner (s) with a response on rate to be paid.

 POST-GRANT CONDITION
I. Environmental impact assessment
II. Community Development Agreement. A copy to be submitted to the Mining Cadastre
Officer (MCO) and all relevant departments in the Ministry
III. Compensation
IV. Mine closure/ rehabilitation plan
V. Reports from state bodies.

24. Write short note on transfer of mineral or mining lease or mineral title, Payment of
royalty, Annual service fee and Annual surface rent on a mineral title.
ANSWER:
Transfer of Mining Lease or Title:
Mineral titles, with the exception of Right to purchase (RP), are transferable under the
Act, subject to the approval of the minister and registration of the transfer with the
mining cadastre office (MCO). Rights arising from a mineral titles that are transferable
under the Act can be wholly or partially assigned, sub-leased, pledged, mortgage,
charged, hypocritical or subject to any security interest.
Payment of Royalty:
Mineral title holder, other than the holder of a reconnaissance permit or water permit,
shall pay royalty as prescribed by such other guidelines as may come into force under the
mineral and mining act and that are administered by the mines inspectorate department
and upon receipt of a notice from the mines inspectorates department that a mineral
titleholder has failed to meet prescribed royalty reporting and payment requirement, the
mining cadastre office shall proceed to revoke the title.

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 Payment of Annual Service Fee
The holder of a mineral title other than the holder of a reconnaissance permit shall pay an
annual service fee to the mining cadestre office equal to the number of cadastral units that
comprise the title area multiplied by the fee per cadastral unit for that type of title as set
out in mining schedule and such amount shall be payable regardless of whether the
mineral title area was held for less than a full calendar year failure will lead to revoke the
title.

Payment of surface rent

A small – scale mining lease, mining lease, quarry lease, or water permit shall annually
pay surface rent in such amount, at such place, in such form, and at such time as shall be
determine, pursuant to the land use act CAP 202 or successor legislation, by the state
Government of the state in which the lease is located; where the lease is located in two or
more contiguous states, the holder shall pay each state government an amount as shall be
determined by the respective state government. However, any surface rent paid to a state
government shall be reported to the mines inspectorate department in the respective
annual report for that type of mineral title.

25. Differentiate between competitive bidding and individual request ahead of grant of
exploration license or mining lease.
ANSWER:

 Competitive bidding: In competitive bidding, the government consolidates various

minerals locations into blocks, and offer the blocks for sales to international and local
investors with sufficient financial and technical capabilities to carry out on mining
operations.
 Individual request: An individual source for mineral deposit and equally apply
individually for this lease from government.

26. State the cogent relationship between this team players on mineral exploration and
exploitation.
ANSWER:
Mineral Exploration starts from Reconnaissance studies up to mining process of rock and
it is done by the Mining Engineers. While Exploitation of the mineral content of the ore
using suitable mineral processing machine. This is carried out by a Mineral processing
engineers.