PRESENTED BY
ENGR. OSEKWE OCHADE
MANAGING DIRECTOR/CEO,KENLYN GLOBAL RESOURCES LTD

Generally, ECOWAS Region has a favorable geologic
environment and a high potential for economic mineraldeposits, due to its position within the extensive PanAfrican mobile belt separating the West African and Congocratons. In neighboring countries, the Pan-African mobile
belt is often associated with a number of world-classdeposits.
 Prior to the emergence of the petroleum industry 30 years
ago, solid minerals and agriculture were the key sectors of
Nigeria's economy. Until 1960, coal and tin were minedand exported on a large scale. Poor management,changing economic and political circumstances, as well as
neglect, led to a decline in existing operations and asituation in which little new investment in mineral
exploration and development, neither foreign nor
domestic, could be attractedTake Nigeria, for example, the national economy of Nigeria
is critically dependent on products and services generated
by the natural environment. The majority of the poorest
Nigerians depend directly on natural resources. Thus,
sustainable use of Nigeria's natural resources is afundamental factor for achieving poverty reduction andlong-term development. Focus on private sector
development in the non-oil sector is crucial to thecountry's long-term economic health.
Recognizing this obvious gap, and in order to improve
Nigeria and other ECOWAS Countries competitiveness to
attract private investments, the Government of Nigeria has
identified the need to improve and strengthen theinstitutional and administrative capacity of MMSD via a
new mineral sector reform strategy.

 Part of this strategy is the new Mining andMineral Act, in Nigeria for instance which clearly
defines the Government’s role as a regulator,facilitator and supervisor, while the operationand implementation of mining activities are left
in the hands of the private sector. In addition, thenew Mining and Mineral Act defines the MiningCadastre Office as an autonomous bodyadministering mining titles with integrity and in atransparent manner on a "first come, first served"
basis.

 The general objectives of the Mining Cadastre

Office are:
 Promotion of the private sector investment insolid minerals sector
 Improvement of the investment climate andattraction of foreign investors Generation of appropriate revenue for thegovernment

Generally, the new mineral sector reform strategy aimsto i) increase the Government's long-term institutional
and technical capacity to manage Nigeria's mineral
resources in a sustainable way and this also applies toother ECOWAS States.
ii) to establish a basis for poverty reduction and rural
economic renewal in selected areas of the country via
the development of non-farm income generating
opportunities associated with mining. In order toachieve these goals and to allow the private sector totake a pivotal role in the growth of the mining sector
the government has established a stable regulatory,
economic and political environment to encourage
foreign investors to make long-term commitments to
exploration and mine development.



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2.
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5.

The new mining and mineral act was passed by theparliament in 2007 in Nigeria. It clearly defines theMining Cadastre Office as an autonomous body being
responsible for:Management for mining titles/rights on a "first come,first served" basis
Protection of legal rights of domestic and international
investors
Security of tenure of titles/rights
Application of the principle of "use it or lose it" tomining title/rights administration
Use of time limits for granting titles The New Mining Cadastre Office was re-established in 2006 as an autonomous bodyto secure mining properties and toadminister mining titles with integrity andin a transparent manner on a "first come,first served" basis.

 MCO has the exclusive responsibility to:
1.

2.

Receive and dispose of applications forthe transfer, renewal, modification,
relinquishment of mineral titles orextension of areas
Maintain a chronological record of all
applications for mineral titles Overall, MCO is structured to serve domestic

and international investors as an independent
body providing an interface to theGovernment. Specifically, the internal
structure reflects the needs in following thegiven procedures and in fulfilling its tasks
and responsibilities to administer mining
titles with integrity and in a transparent
manner

The following incentives are available in the solidminerals sector in many of the ECOWAS Countries: (a) 3 to 5 years tax holiday;(b) Low income tax of between 20% and 30%;(c) Deferred royalty payments depending on themagnitude of the investment and the strategic
nature of the project;(d) Possible capitalization of expenditure onexploration and surveys;(e) Extension of infrastructure such as roads andelectricity to mining sites;(f) The holder of a mining lease shall, wherequalified, be entitled to: .
i)ii)(f) The holder of a mining lease shall, wherequalified, be entitled to:

Depreciation or capital allowance of 75% of thecertified true capital expenditure incurred in
the year of investment and 50% in subsequent
yearsii) Investment allowance of 5%iii) Exemption from payment of customs &import dutiesiv) Expatriate quota & resident permit for
approved expatriate personnel(g) In addition to roll-over relief under thecapital gains tax (CGT), companies replacing
their plants and machinery are to enjoy aonce-and-for-all 95% capital allowance in thefirst year with 5% retention value until theassets is disposed, 15% will be granted for
replacement of an asset be granted for
replacement of an asset

THANK YOU