Surface and underground prospecting is permitted, as is the use of remote sensing techniques. The objective of the prospecting programme must be stated in the application, although there are no fee or land holding requirements. An Exploration Permit confers to the holder the right to dispose of any minerals obtained during exploration and testwork, and also confers the right to a Mining Permit if a viable reserve is discovered. A Mining Permit will be granted in the case of successful exploration, subject to the right of the Government to participate in the project. A 'small mine' permit is valid for five years, renewable 3 times for five-year periods, while a 'large mine' permit lasts for 20 years initially, renewable 2 times per period of 10 years.
Further extensions are possible if commercial reserves remain.
Companies applying for Mining Permits must conform to Nigerian Company law. The fourth type of licence is the Authorisation for Small-Scale Mining, and it concerns artisanal level of production. The Government welcomes overseas private investment as a key to relaunching the national economy, and the new mining code contains a number of incentives for potential investors. Small mines enjoy a two-year income tax holiday, while for large mines this period extends to five years from the start of commercial production. Other charges include stamp duty, public notary fees, value added tax and social security contributions for employees.