The revised fee structure covers various mining activities, including gold, diamond, iron ore, and strategic minerals, as well as quarrying, dredging, blasting, and other related operations.
Monrovia – The Government of Liberia has released a new fee structure for mining licenses and permits, aimed at enhancing transparency and boosting revenue generation in the mining sector. The Joint Administrative Regulation, issued by the Ministry of Finance and Development Planning (MFDP) in collaboration with the Ministry of Mines and Energy, takes effect immediately, as outlined in the official document dated December 30, 2024.
The revised fee structure covers various mining activities, including gold, diamond, iron ore, and strategic minerals, as well as quarrying, dredging, blasting, and other related operations. It is part of the government’s broader effort to streamline the mining industry and ensure compliance with the Liberia Consolidated Revenue Code of 2021, as amended.
Key Highlights
For Gold and Base Metals,Class A Mining License: $1,000,000, Class B Mining License (Liberian & Foreign Owned): $50,000, Class B Mining License (100% Liberian Owned): $25,000 and Class C Mining License: $250.
For Diamond Mining,Class A Mining License: $1,000,000, Class B Mining License (Liberian & Foreign Owned): $50,000 and Class B Mining License (100% Liberian Owned): $25,000
Strategic Minerals (e.g., Coltan, HMS, Lithium): Class A Mining License: $500,000, Class B Mining License (Liberian & Foreign Owned): $80,000 and Class B Mining License (100% Liberian Owned): $40,000.
Quarry and Dredging Activities: Rock Quarry License (Liberian & Foreign Owned): $50,000 and River Sand Mining License (Liberian & Foreign Owned): $50,000.
For Blasting and Explosives,Class A Blasting License: $20,000 and Import License (Non-Manufacturer): $100,000 per quarter.
Royalty and Application Fees
The regulation also prescribes royalty rates for various minerals, such as 3% for gold and diamonds, 5% for iron ore, and 8% for strategic minerals. Application fees for licenses range from $50 to $150, depending on the type of application.
According to a joint statement from the Ministries of Mines & Energy and Finance and Development Planning,the updated fee structure is an amendment to the Ministry of Mines and Energy’s 2010 Administrative Regulations and is designed to foster better governance in the issuance of mining licenses. It aims to ensure that all revenues from the sector are paid directly to the Liberia Revenue Authority (LRA) for deposit into the Government of Liberia’s account.
Government’s Call for Compliance
The Ministers of Mines and Energy, Wilmot Paye, and Finance and Development Planning, Augustine Kpehe Ngafuan, emphasized the importance of compliance, urging all stakeholders to adhere to the revised fee structure. They noted that these measures are crucial for promoting transparency and accountability in Liberia’s extractive industries.
The ministries called on stakeholders, including mining companies, brokers, dealers, and community organizations, to review the fee structure and ensure timely payment of the required fees. They also pledged to address any concerns raised by stakeholders in implementing the new regulation.
With this new framework, Liberia aims to optimize its natural resource potential while maintaining a fair and competitive investment environment for local and international stakeholders.
