MINES AND MINERALS DEVELOPMENT ACT
Arrangement of Sections
1. Short title
3. Rights to minerals vested in President
4. Acquisition of mining rights
5. Prohibition of prospecting, mining, etc., without mining right or mineral processing licence
6. Types of rights
7. Certain persons disqualified from holding mining rights
8. Restrictions on mining rights and mineral processing licence
9. Priority of applications for mining rights
10. Mining right for area subject to other rights
11. Survey of land
13. Preference for Zambian products, etc.
LARGE-SCALE MINING OPERATIONS
Division I - Prospecting Licence
14. Application for prospecting licence
15. Consideration of application for prospecting licence
16. Grant of prospecting licence
17. Duration of prospecting licence
18. Rights conferred by prospecting licence
19. Obligations of holder of prospecting licence
20. Amendment of programme of prospecting operations
21. Transfer of prospecting licence
22. Restrictions on removal of minerals
23. Discovery of minerals not included in prospecting licence
24. Renewal of prospecting licence
Division II - Large-Scale Mining Licence
25. Application for large-scale mining licence
26. Consideration of application for large-scale mining licence
27. Grant of large-scale mining licence
28. Duration of large-scale mining licence
29. Rights conferred by large scale mining licence
30. Obligations of holder of large-scale mining licence
31. Amendment of programme of mining operations
32. Transfer of large scale mining licence
33. Discovery of minerals not included in large-scale mining licence
34. Suspension of production
35. Renewal of large-scale mining licence
Division III - Large-Scale Gemstone Licence
36. Application for large-scale gemstone licence
37. Consideration of application for large-scale gemstone licence
38. Grant of large-scale gemstone licence
39. Duration of large-scale gemstone licence
40. Rights conferred by large-scale gemstone licence
41. Obligations of holder of large-scale gemstone licence
42. Amendment of programme of mining operations
43. Transfer of large-scale gemstone licence
44. Discovery of minerals not included in large-scale gemstone licence
45. Suspension of production
46. Renewal of large-scale gemstone licence
SMALL-SCALE MINING OPERATIONS
Division I - Prospecting Permit
47. Application for prospecting permit
48. Consideration of application for prospecting permit
49. Grant of prospecting permit
50. Duration of prospecting permit and transfer of permit
51. Rights conferred by prospecting permit and transfer of prospecting permit
52. Obligations of holder of prospecting permit
53. Restrictions on removal of minerals
Division II - Small-Scale Mining Licence
54. Application for small scale mining licence
55. Consideration of application for small-scale mining licence
56. Grant of small scale mining licence
57. Duration of small-scale mining licence
58. Rights conferred by small-scale mining licence
59. Obligations of holder of small scale mining licence
60. Renewal of small-scale mining licence
61. Transfer of small-scale mining licence
62. Requirement to convert small-scale mining licence to large-scale mining licence
63. Termination of small-scale mining licence for insufficient production
Division III - Small-Scale Gemstone Licence
64. Application for small-scale gemstone licence
65. Consideration of application for small-scale gemstone licence
66. Grant of small-scale gemstone licence
67. Duration of small-scale gemstone licence
68. Rights conferred by small-scale gemstone licence
69. Obligations of holder of small-scale gemstone licence
70. Renewal of small-scale gemstone licence
71. Transfer of small-scale gemstone licence
72. Requirement to convert small-scale gemstone licence to large scale gemstone licence
73. Termination of small-scale gemstone licence for insufficient production
74. Application for artisan's mining right
75. Grant of artisan's mining right
76. Duration of artisan's mining right
77. Renewal of artisan's mining right
78. Rights conferred by artisan's mining right
79. Suspension or cancellation of artisans mining right
80. Right to building materials
81. Obligations of holder of artisan's mining right
MINERAL PROCESSING LICENCE
82. Application for mineral processing licence
83. Consideration of application for mineral processing licence
84. Grant of mineral processing licence
85. Duration of mineral processing licence
86. Rights conferred by mineral processing licence
87. Obligations of holder of mineral processing licence
88. Amendment of programme of mineral processing operations
89. Royalties on production of minerals
90. Renewal of mineral processing licence
91. Termination of mineral processing licence for insufficient production
GEMSTONE SALES CERTIFICATE
92. Prohibition of trading in gemstones without gemstone sales certificate
93. Application for gemstone sales certificate
94. Grant of gemstone sales certificate
95. Obligations of holder of gemstone sales certificate
GENERAL PROVISIONS RELATING TO LICENCES AND PERMITS
96. Annual operating permit
97. Holder to have office in Zambia
98. Alteration of prospecting area
99. Alteration of mining area
100. Mergers or co-ordination of mining operations
101. Abandonment of land subject to licence or permit
102. Suspension or cancellation of mining right or non-mining right
103. Transitional extension of mining right or non-mining right pending certain applications
104. Transfer of control of company
104A. Tax clearance for transfer of mining right
105. Surrender of records on termination of mining right
106. Export, import, etc of minerals
107. Prohibition of acquisition, selling, etc of radioactive minerals
108. Application to export, sell, etc radioactive minerals
109. Insurance and indemnities
110. Obstruction of holder of mining right
111. Production of information
113. Inspection of Register
114. Power to close area to prospecting
SAFETY, HEALTH AND ENVIRONMENTAL PROTECTION
115. Environment and human health to be considered when granting mining rights or mineral processing licences
116. Conditions for protection of environment and human health
117. Direction to comply with conditions of mining right or mineral processing licence
118. Rehabilitation by Director of Mines Safety at holder's expense
119. Clearing away of mining plant or mineral processing plant
120. Sale of mining plant or mineral processing plant
121. Wasteful mining practices
122. Environmental Protection Fund
123. Liability and redress
GEOLOGICAL SERVICES AND MINERAL ANALYSIS
124. Responsibilities of Director of Geological Survey
125. Geological survey, mapping and prospecting on behalf of Republic
126. Prohibition of operation of mineral analysis laboratory and geological or mining consultancy firm without permit
MINING RIGHTS AND SURFACE RIGHTS
127. Restrictions of rights of entry by holder of licence or permit
128. Rights under licence or permit to be exercised reasonably
129. Right to use and access water or graze stock
130. Acquisition of use of land by holder of licence or permit
131. Arbitration of disputes
132. Compensation for disturbance of rights, etc.
ROYALTIES AND CHARGES
133. Royalties on production of minerals
134. Due date for mineral royalty
135. Commissioner-General to be responsible for royalties
136. Mineral royalty sharing mechanism
137. Mineral royalty returns
138. Returns and assessments
139. Remission of royalties
140. Deferment of royalties
141. Provisional assessment of royalty
142. Prohibition of disposal of minerals
143. Annual charge in respect of licences
144. Director and other officers
145. Mining cadastre offices
146. Execution and delegation of powers and functions of Director and other officers
147. Power of entry by Director
148. Obstruction of Director or authorised officer
149. Recovery of fees
150. Mining Advisory Committee
151. Disclosure of information
152. Appeals against decisions of Director or Director of Geological survey
153. Appeals in relation to licences issued by Minister
154. Appeals in relation to insurance
155. Notification of decisions
156. General penalty
157. Miscellaneous offences
158. Offence committed by body corporate or un-incorporate body
159. Development agreements
160. Existing development agreements to cease to be binding on Republic
162. Repeal of Cap. 213
to revise the law relating to the prospecting for, mining and processing of minerals; to repeal and replace the Mines and Minerals Act, 1995; and to provide for matters connected with or incidental to the foregoing.
[1sth April, 2008]
Act 7 of 2008,
Act 9 of 2009,
Act 28 of 2011,
Act 12 of 2012,
Act 11 of 2014,
Act 14 of 2016.
This Act may be cited as the Mines and Minerals Development Act.
(1) In this Act, unless the context otherwise requires—
“access agreement” means an agreement entered into between the holder of a mining right and an owner or occupier of land over which the right subsists, for the regulation of prospecting, mining or other activities authorised by the mining right to be carried on upon the land;
“artisan's mining right” means an artisan's mining right granted under Part V of this Act;
“base metal” means a non-precious metal that is either common or more chemically active, or both common and chemically active and includes iron, copper, nickel, aluminium, lead, zinc, tin, magnesium, cobalt, manganese, titanium, scandium, vanadium and chromium;
“bird sanctuary” means an area declared as such under section 144 of the Zambia Wild life Act, 1998;
“cadastre unit” means a quadrilateral formed by the intersection of meridians and parallels and with a distance equal to six sexagesimal seconds, and that covers an average planimetric surface of 3.3400 hectares;
“Central Mining Cadastre Office” means the office established under section 145;
“citizen owned company” means a company where at least 50.1 per cent of its equity is owned by Zambian citizens and in which the Zambian citizens have significant control of the management of the company;
“Commissioner-General” means the Commissioner-General appointed under the Zambia Revenue Authority Act;
“Director” means the Director of Mines appointed under section 144;
“Director of Geological Survey” means the person appointed as such under sub-section (3) of section 144;
“Director of Mines Safety” means the person appointed as such under sub-section (2) of section 144;
“energy minerals” means a naturally occurring substance in the earth's crust used as a source of energy and includes coal, uranium and any other minerals used to generate energy but does not include petroleum;
“Environmental Council of Zambia” has the meaning assigned to it in the Environmental Protection and Pollution Control Act;
“environmental impact study” has the meaning assigned to it in the Environmental Protection and Pollution Control (Environmental Impact Assessment) Regulations, 1997;
“Environment Management Plan” means a plan approved by the Environmental Council of Zambia in accordance with the Environmental Protection and Pollution Control Act;
“game management area” means an area of land declared as such under section 26 of the Zambia Wild life Act, 1998;
“gemstone sales certificate” means a gemstone sales certificate granted under Part VII of this Act;
“gemstones” means amethyst, aquamarine, beryl, corundum, diamond, emerald, garnet, ruby, sapphire, topaz, tourmaline and any other non metallic mineral substance, being a substance used in the manufacture of jewellery, that the Minister, by statutory instrument, declares to be a gemstone for the purposes of this Act;
“holder” means the person in whose name a mining right is registered under this Act;
“industrial minerals” means a rock or mineral other than gemstones, base metals, energy minerals or precious metals used either in their natural state or after physical or chemical transformation and includes but is not limited to barites, dolomite, feldspar, fluorspar, graphite, gypsum, ironstone when used as a fluxing agent, kyanite, limestone, phyllite, magnesite, mica, nitrate, phosphate, pyrophyllite, salt, sands, clay, talc, laterite, gravel and any other minerals when so used:
Provided that the Minister may, by statutory order, classify any other mineral as an industrial mineral;
“large-scale gemstone licence” means a large-scale gemstone licence granted under Part III of this Act to enable a person prospect for and mine gemstones;
“large scale mining licence” means a large scale mining licence granted under Part III of this Act;
“local forest” means an area declared as such under section 17of the Forests Act;
“local office” means an office of the Ministry established for any area;
“mine” means any place, pit, shaft, drive, level or other excavation, and any drift, gutter, lead, vein, lode, reef, saltpan or working, in or on or by means of which any operation connected with mining is carried on, together with all the buildings, premises, erections and appliances, whether above or below the ground, that are used in connection with any such operation or for the extraction, treatment or preparation of any mineral or for the purpose of dressing mineral ores;
“mineral” means any substance, occuring naturally in or on the earth or in or under water and which was formed by or subjected to a geological process and includes any mineral occuring in residue stockpiles or in residue deposit, but excludes—
(a) water, other than water taken from the land or any water body for the extraction for any mineral from such water; and
“mineral processing” means the practice of beneficiating or liberating valuable minerals from their ores which may combine a number of unit operations such as crushing, grinding, sizing, screening, classification, washing, froth floatation, gravity concentration, electrostatic separation, magnetic separation, leaching, smelting, refining, calcining and gasification or any other processes incidental thereto;
“mineral process lincence” means a mineral processing licence granted under Part VI of this Act;
“mineral royalty” means a payment received as consideration for the extraction of minerals;
“mining” means the extraction of material, whether solid, liquid or gaseous, from land or from beneath the surface of the earth in order to win minerals, or any operations directly or indirectly necessary or incidental thereto;
“Mining Advisory Committee” means the Mining Advisory Committee established by section 150;
“mining area” means an area of land subject to a licence or permit under this Act;
“Mining Cadastre Office” means the central administrative office established in Lusaka which is responsible for the processing and administration of mining rights and non mining rights;
“mining operations” means any operation carried out under a mining right referred to in section 6 but does not include an operation carried out under a prospecting permit, prospecting licence or mineral processing licence;
“mining plant” means any building, plant, machinery, equipment, tools or other property used for mining, whether or not affixed to land, but does not include any timber or other material used or applied in the construction or support of any shaft, drive, gallery, terrace, race, dam or other work;
“mining right” means a right granted under sub-section (1) of section 6;
“National Forest” means an area declared as such under section 8 of the Forests Act;
“National Park” means an area declared as such under section 10 of the Zambia Wildlife Act;
“non-mining right” means a mineral processing licence or gemstone sales certificate granted under this Act;
"open cast mining operations" means any working or excavation open to the surface beneath the original surface of the ground for the purpose of mining, but excludes prospecting pits;
[Ins by s 2 of Act 11 of 2014.]
“ore” means a natural aggregate of one or more valuable minerals which may be mined or from which some parts may be extracted;
“ore body” means a continuous, well defined mass of ore;
“petroleum” has the meaning assigned to it in the Petroleum (Exploration and Production) Act, but does not include coal or oil shale;
“preliminary investigation rights” means rights granted by the Director of Geological Survey under sub-section (2) of section 5;
“person” includes a partnership and a co-operative;
“prospect” means to search for any mineral by any means and to carry out such works, and remove such samples, as may be necessary to test the mineral bearing qualities of any land;
“prospecting area” means an area of land subject to a prospecting licence or a prospecting permit;
“prospecting licence” means a prospecting licence granted under Part III of this Act;
“prospecting operations” means operations carried out in the course of prospecting;
“prospecting permit” means a prospecting permit granted under Part IV of this Act;
“radioactive mineral” means a mineral which contains by weight at least one twentieth of one per centum of uranium or thorium or any combination thereof, and includes, but is not limited to—
(a) monazite sand and other ores containing thorium; and
(b) carnotite, pitchblende and other ores containing uranium.
“regional mining cadastre offices” means other mining cadastre offices, established in other districts throughout the Republic other than Lusaka, to enable the public lodge applications for mining rights and non mining rights;
“Register” means the Register established and maintained pursuant to section 112;
“royalty” means the royalty charged under this Act;
“small-scale gemstone licence” means a small-scale gemstone licence granted under Part IV of this Act; and
“small-scale mining licence” means a small scale mining licence granted under Part IV of this Act;
"underground mining operations" means any working beneath the surface of the ground, which is accessed by means of a ramp, adit, raise, shaft or winze, but does not include an open pit mine or quarry.
[Ins by s 2 of Act 11 of 2014.]
(2) A reference, in any provision of this Act, to an authorised officer is a reference to a public officer or other person, designated under section 144,who is duly authorised to exercise and perform the powers and functions conferred or imposed by that provision on an authorised officer.
(3) A reference in this Act to land subject to a mining right, is a reference to an area of land in respect of which a mining right has been granted and subsists.
(1) All rights of ownership in, searching for, mining and disposing of, minerals wheresoever located in the Republic are hereby vested in the President on behalf of the Republic.
(2) The provisions of this section have effect notwithstanding any right, title or interest which any person may possess in or over the soil in, on or under which minerals are found.
Subject to the other provisions of this Act, rights of prospecting for, mining and disposing of, minerals shall be acquired and held under and in accordance with this Act.
(1) A person shall not prospect for minerals or carry on mining operations or mineral processing operations except under the authority of a mining right or mineral processing licence granted under this Act.
(2) The Director of Geological Survey may, for a period not exceeding 90 days, grant in writing, subject to such conditions, including conditions relating to work and expenditure, as the Director of Geological Survey may impose, the right to enter any area that is not subject to a mining right, or undertake an aerial survey, for the purpose of reconnaissance operations for the location of minerals by geo-physical, geo-chemical and photo-geological survey or by the study of surface geology.
(3) A right granted by the Director of Geological Survey under sub-section (2) shall not confer on the holder exclusive rights over the area to which it relates or any preference or priority in respect of an application for a mining right over that area.
(4) A person who contravenes sub-section (1) commits an offence and is liable upon conviction—
(a) in the case of an individual, to a fine not exceeding one million penalty units or to imprisonment for a term not exceeding 10 years, or to both; or
(b) in the case of a body corporate or un-incorporate body, to a fine of five million penalty units.
(1) The following mining rights may be granted under this Act:
(a) a prospecting licence;
(b) a large-scale mining licence;
(c) a large-scale gemstone licence;
(d) a prospecting permit;
(e) a small-scale mining licence;
(f) a small-scale gemstone licence; and
(g) an artisan's mining right.
(2) The following non-mining rights may be granted under this Act:
(a) a mineral processing licence; and
(b) a gemstone sales certificate.
(1) A mining right or non-mining right shall not be granted to any person except in accordance with the provisions of this Act.
(2) A mining right or non-mining right shall not be granted to or held by —
(a) an individual who—
(i) is under the age of 18 years;
(ii) is or becomes an undischarged bankrupt, having been adjudged or otherwise declared bankrupt under any written law, or enters into any agreement or scheme of composition with creditors, or takes advantage of any legal process for the relief of bankrupt or insolvent debtors; or
(iii) has been convicted, within the previous 10 years, of an offence involving fraud or dishonesty, or of any offence under this Act or any other law within or outside Zambia, and been sentenced therefor to imprisonment without the option of a fine or to a fine exceeding fifty thousand penalty units; or
(b) a company—
(i) which is in liquidation, other than liquidation which forms part of a scheme for the reconstruction of the company or for its amalgamation with another company;
(ii) unless the company is incorporated under the Companies Act.
(iii) which has not established an office in Zambia; or
(iv) which has among its directors or shareholders any person who would be disqualified under sub-paragraphs (ii) or (iii) of paragraph (a).
(3) A prospecting permit, small-scale mining licence, small-scale gemstone licence and an artisan's mining right shall not be granted to a person who is not a citizen of Zambia or a company which is not a citizen-owned company.
(4) Any document or transaction purporting to grant a mining right to any person not entitled to hold the right shall be void and of no effect.
[S 7(4) rep by s 2(a), s 7(5) renumbered as s 7(4) by s 2(b) of Act 9 of 2009.]
(5) For the purposes of this Act, “citizen of Zambia” means—
(a) in relation to an individual, an individual who is a citizen of Zambia; and
(b) in relation to a partnership, a partnership which is composed exclusively of persons who are citizens of Zambia.
[S 7(6) renumbered as s 7(5) by s 2(b) of Act 9 of 2009.]
A mining right or mineral processing licence, and the rights conferred by it, shall be subject to the provisions of this Act, the conditions attached to it at the time it is granted and, to the extent that the amendment of such conditions during the currency of the mining right or mineral processing licence is permitted under this Act, to the conditions as amended.
Subject to this Act, where more than one person apply for a mining right over the same area of land, the Director of Geological survey as the case may be shall dispose of the applications in the order in which they are received.
(1) An applicant for a mining right over an area subject to another mining right may apply for consent from the holder of the mining right, which consent shall not be unreasonably withheld.
(2) A holder of a mining right over an area in respect of which an application is made under sub-section (1) shall, within a period of 90 days, consent to the application where—
(a) the minerals or metals applied for are different from those indicated on holder's licence or permit;
(b) the geographical position of the minerals or metals applied for is different from the holder's ore body position indicated in the approved programmes of operations;
(c) the geological position of the minerals or metals applied for is different from the position of the holder's plant and infrastructure indicated in the approved programme of operations; or
(d) the mineral applied for is an industrial mineral and the holder is not eligible under the Act.
(3) An applicant shall, where a holder of a mining right over an area in respect of which the application is made withholds consent, apply to the Mining Advisory Committee which shall determine the matter taking into account the matters referred to under paragraphs (a) to (d) of sub-section (2).
The Director or the Director of Geological Survey as the case may be, may before a mining right or mineral processing licence is issued, require that the land over which the mining right or mineral processing licence is to be issued be properly surveyed in accordance with the provisions of this Act.
(1) Subject to the other provisions of this Act, the Minister may, by notice in a newspaper of general circulation in the Republic, issue invitations for bids for mining rights over identified areas or mineral resources.
(2) The notice referred to under sub-section (1) shall include—
(a) a description of the areas for which the bids are to be solicited;
(b) the procedures and rules relating to the submission of the bids; and
(c) the period within which the bids shall be submitted.
(3) The Minister shall, within five days of the expiry of the period referred to under paragraph (c) of sub-section (2), refer all the bids submitted in accordance with this section to the Mining Advisory Committee for evaluation.
(4) The Mining Advisory Committee shall consider the following in evaluating the bids:
(a) the investment and financial plan;
(b) the environmental management plan;
(c) in the case of a holder of a mining right, whether the holder has been compliant with the provisions of this Act and the terms and conditions of the right, as the case may be; and
(d) any other matter relevant for purposes of this Act.
(5) The Mining Advisory Committee shall, where a bid complies with the requirements of this Act, recommend to the Minister that the bidder be granted a mining right in accordance with the provisions of this Act.
(6) The Minister shall grant a licence to the holder with the best proposed programme and in so doing shall take into account the recommendation of the Mining Advisory Committee.
(1) A holder of a mining right or a mineral processing licence issued under this Act, shall, in the conduct of operations under the mining right or mineral processing licence, and in the purchase, construction and installation of facilities, give preference, to the maximum extent possible to—
(a) materials and products made in Zambia; and
(b) service agencies located in Zambia and owned by Zambian citizens or citizen owned companies.
(2) A holder of a mining right or mineral processing licence shall, in all phases of the operations, give preference in employment to citizens of Zambia to the maximum extent possible.
(3) A holder of a mining right or mineral processing licence shall, in the mining operations, conduct training programmes, in consultation with the Minister, for the benefit of employees to enable the employees qualify for advancement.
LARGE SCALE MINING OPERATIONS
Division I - Prospecting Licence
(1) An application for a prospecting licence shall be made to the Director of Geological Survey in the prescribed form upon payment of the prescribed fee.
(2) An application made under sub-section (1) shall include—
(a) a full description, with geographical coordinates, of the area of land over which the licence is sought, but not exceeding twenty-nine thousand, nine hundred and forty cadastre units, and represented by complete and not partial cadastre units;
(b) a statement of the minerals to be searched for;
(c) an environmental management plan including the applicant's proposals for the prevention of pollution, the treatment of waste, the protection and reclamation of land and water resources, and for eliminating or minimising the adverse effects on the environment of prospecting operations;
(d) the proposed prospecting operations and an indication of the investment commitment in the proposed prospecting operations;
(e) the applicant's proposals with respect to the employment and training of citizens of Zambia;
(f) the applicant's proposals for the promotion of local business development;
(g) a tax clearance certificate issued under the Income Tax Act; and
(h) such further information as may be prescribed by the Minister by statutory instrument.
(3) A person, and in the case of a company or its subsidiaries, shall not hold a number of licences whose accumulated total area is more than one hundred and forty-nine thousand, seven hundred cadastre units.
(1) The Director of Geological Survey shall, in considering an application made under section 14, take the following into account—
(a) that the applicant has, or has secured access to, adequate financial resources, technical competence and experience to carry on effective prospecting operations;
(b) that the proposed programme of prospecting operations is adequate and makes proper provision for environmental protection;
(c) if the land is within the National Park, game management area, National Forest or local forest or is a bird sanctuary or land to which sub-section (1) of section 127 applies, the applicant has obtain the necessary written consent;
(d) that the proposed prospecting area is not the same as, nor does it overlap an existing prospecting area, mining area or permit area; and
(e) if the applicant is a holder, the applicant has not contravened any condition of the licence or permit as the case may be, or any provision of this Act.
(2) The Director of Geological Survey may cause such investigations to be made or such consultations to be carried on as the Director Geological Survey may consider necessary to assess whether or not the criteria in sub-section (1) has been met.
(3) The Director of Geological of Survey shall not grant a licence to an applicant where—
(a) the applicant is disqualified from holding a prospecting licence under section 7;
(b) the applicant is the holder of another mining right and is in breach of any condition of that right or any provision of this Act;
(c) the area of land for which the applicant has made the application, or a part of it, is subject to—
(i) another mining right and the holder thereof has not consented to the exercise of the right in respect of which the application is made; or
(ii) extends to or is included in, an area in respect of which the Director of Geological Survey has granted preliminary investigation rights on conditions which impose work or expenditure obligations, unless the applicant is the holder of that right; or
(d) the area of land for which the application is made covers or includes an area of land for which an application has been made by another person who has priority over the applicant.
(4) The Director of Geological Survey shall, where the Director of Geological Survey rejects an application under sub-section (3), inform the applicant of the rejection and give the reasons therefor.
(5) Where an application is made for a prospecting licence in respect of an area over which a previous prospecting licence has been held for seven years, a new prospecting licence shall not be granted before a period of two months has elapsed since the expiry of the previous licence.
(1) The Director of Geological Survey shall, within 60 days of receipt of an application under section 14, grant a prospecting licence to the applicant, where the application meets the requirements of this Act.
(2) A prospecting licence shall—
(a) state the date on which the licence shall commence the prospecting operation and the conditions on which it is granted;
(b) specify the minerals in respect of which it is granted; and
(c) include a description and plan of the prospecting area.
(3) There shall be attached to a prospecting licence the programme of prospecting operations as approved by the Director of Geological Survey, which shall form part of the conditions of the licence.
(4) In determining the date for the commencement of a licence, the Director of Geological Survey shall take account of any period not exceeding six months from the date of the grant which is required by the applicant to make any necessary preparations for prospecting operations.
(1) Subject to the other provisions of this Act, a prospecting licence shall be valid for a period of two years.
(2) A prospecting licence may, on its expiry, be renewed for a further two year period but the total maximum period shall not exceed seven years.
Subject to the conditions of the licence, a prospecting licence confers on the holder of the licence exclusive rights to carry on prospecting operations in the prospecting area for the minerals specified in the licence, other than gemstones, and to do all such other acts and things as are necessary for or reasonably incidental to the carrying on of those operations.
(1) A holder of a prospecting licence shall—
(a) commence prospecting operations within 90 days, or such further period as the Director of Geological Survey may allow, from the date of the grant of the licence;
(b) give notice to the Director of Geological Survey of the discovery of any mineral deposit of possible commercial value within 30 days of the discovery;
(c) expend on prospecting operations not less than the amount prescribed or required by the terms and conditions of the prospecting licence to be so expended;
(d) carry on prospecting operations in accordance with the programme of prospecting operations;
(e) notify the Director of Geological Survey of the discovery of the mineral to which the prospecting licence relates within a period of 30 days of such discovery;
(f) backfill or otherwise make safe any excavation made during the course of the prospecting operations, as the Director Geological of Survey may specify;
(g) permanently preserve or otherwise make safe any borehole in the manner directed by the Director of Geological Survey and surrender to Government, without compensation, the drill cores, other mineral samples and the boreholes and any water rights in respect therefor on termination;
(h) unless the Director of Geological Survey otherwise stipulates, remove, within 60 days of the expiry or termination of the prospecting licence, any camp, temporary buildings or machinery erected or installed and repair or otherwise make good any damage to the surface of the ground occasioned by the removal, in the manner specified by the Director of Geological Survey;
(i) keep and preserve such records as the Minister may prescribe, relating to the protection of the environment;
(j) subject to the conditions of the prospecting licence and the approval of the Director of Geological Survey, expend on prospecting, in accordance with the prospecting programme, not less than the amount specified in the prospecting licence; and
(k) submit to the Director of Geological Survey, at least quarterly, reports containing the information required under the licence and the Act.
(2) A holder of a prospecting licence shall keep full and accurate records at the holder's office, of the prospecting operations which shall indicate—
(a) the boreholes drilled;
(b) the strata penetrated, with detailed logs of such strata;
(c) the minerals discovered;
(d) the results of any seismic survey or geo-chemical, geophysical and remote sensing data analysis;
(e) the result of any analysis or identification of minerals removed under section 22;
(f) the geological interpretation of the records maintained under paragraphs (a) to (e) inclusive;
(g) the number of persons employed;
(h) any other prospecting work;
(i) the costs incurred; and
(j) such other matters as may be prescribed by the Minister by statutory instrument;
and shall furnish, at least once in every three months, digital and hard copies of the records to the Director, Director of Geological Survey and Director of Mines Safety.
(3) A person who—
(a) fails to keep any record or information required to be kept under sub-section (2);
(b) fails to supply any record or mineral samples to the Director, Director of Geological Survey and Director of Mines Safety in accordance with sub-section (2); or
(c) supplies any false or misleading record or information;
commits an offence and is liable, upon conviction, to a fine not exceeding two hundred thousand penalty units or to imprisonment for a period not exceeding two years, or to both.
(1) A holder of a prospecting licence shall apply to the Director of Geological Survey where the holder intends to make any amendments to the programme of prospecting operations in the prescribed manner and form.
(2) The Director of Geological Survey may, where the holder intends to make any amendment of programme of prospecting operations and the Director receives an application under sub-section (1)—
(a) approve the proposed amendments with or without any modifications and on such terms and conditions as the Director of Geological Survey may determine; or
(b) reject the proposed amendments and give the applicant the reasons therefor.
(1) Subject to sub-sections (2) and (3), a prospecting licence or any interest therein or any controlling interest in the holder thereof may be transferred to any other person.
(2) A holder of a prospecting licence who intends to transfer the prospecting licence or any interest therein shall notify the Minister not less than 30 days before the intended transfer.
(3) A holder of a prospecting licence shall, in the notification referred to under sub-section (2), give to the Minister such details of the transferee as would be required in the case of an application for a prospecting licence under section 14.
(4) Where the Minister is satisfied that the transferee is not disqualified under any provision of this Act from holding a prospecting licence, the Minister shall approve the transfer of the prospecting licence or an interest therein and notify the applicant accordingly.
(5) Upon the transfer of a prospecting licence, the transferee shall assume and be responsible for all the rights, liabilities and duties of the transferor under the prospecting licence for the unexpired period of the licence.
(6) Any transaction purporting to transfer a prospecting licence in contravention of this section is void.
(1) Except for the purpose of having the mineral analysed or conducting tests on the mineral, a holder of a prospecting licence shall not remove any mineral from the prospecting area without the written permission of the Director of Geological Survey and shall, when so removing any mineral, comply with such conditions as the Director of Geological Survey may specify in the written permission.
(2) The Minister may, by statutory instrument, determine the quantities of mineral samples to be removed from a prospecting area for the purpose of mineral analysis or conducting tests on the mineral.
(1) A holder of a prospecting licence shall, where the holder in the course of exercising any rights under a prospecting licence, discovers any mineral not included in the prospecting licence apply to the Director of Geological Survey for an amendment of the prospecting licence to include the discovered mineral.
(2) An application for the amendment of a prospecting licence under sub-section (1) shall—
(a) specify the mineral discovered;
(b) give particulars of the situation and circumstances of the discovery; and
(c) have appended thereto a proposed programme of prospecting operations in connection therewith.
(3) The Director of Geological Survey shall, subject to sub-section (4) and where the applicant is not in default, permit the amendment of a prospecting licence to include the discovered mineral.
(4) A holder of a prospecting licence shall, where the mineral discovered under sub-section (1) is a gemstone, apply for a large-scale gemstone licence in accordance with section 36 of this Act.
(5) A holder of a prospecting licence shall, where the holder discovers petroleum, report to the Minister within 24 hours of making the discovery.
(1) A holder of a prospecting licence may, not later than three months before the expiry of the prospecting licence, apply to the Director of Geological Survey for the renewal of the licence in the prescribed manner and form upon payment of the prescribed fee.
(2) The Director of Geological Survey shall renew a prospecting licence for such period, not exceeding two years where the holder of the licence—
(a) is not in breach of any condition of the licence or any provision of this Act;
(b) undertakes to carry out during the renewal period an adequate programme of prospecting operations; and
(c) relinquishes at least 50 per centum of the initial prospecting area on the first renewal and at least 50 per centum of the balance on the second renewal.
(3) The Director of Geological Survey may, where the Director of Geological Survey considers it necessary for the completion of a feasibility study commenced by a holder of a prospecting licence into the prospects for recovery of any mineral deposit and its commercial significance, renew the prospecting licence for a further period but not exceeding one year.
Division II - Large-Scale Mining Licence
(1) A holder of a prospecting licence may apply for a large-scale mining licence for the mining of minerals within the prospecting area.
(2) An application for a large-scale mining licence shall be made to the Director in the prescribed manner and form upon payment of the prescribed fee.
(3) An application for a large-scale mining licence shall include—
(a) a statement of the period for which the licence is sought;
(b) a statement of the minerals to be mined under the licence;
(c) a comprehensive statement of the mineral deposits in the area over which the licence is sought, including details of all known minerals proved, estimated or inferred, ore reserves and mining conditions;
(d) the proposed programme for mining operations,, including a forecast of capital investment, the estimated recovery rate of ore and mineral products, and the proposed treatment and disposal of ore and minerals recovered;
(e) the applicant's environmental management plan, including the proposals for the prevention of pollution, the treatment of waste, the protection and reclamation of land and water resources, and for eliminating or minimising the adverse effects on the environment of mining operations;
(f) details of expected infrastructure requirements;
(g) the applicant's proposals with respect to the employment and training of citizens of Zambia;
(h) the applicant's proposals for the promotion of local business development outlining how the applicant intends to promote—
(i) the participation of Zambian entrepreneurs in procurement and supply business opportunities with the applicant;
(ii) the setting up by Zambian entrepreneurs of import substitution, and repair and maintenance businesses locally;
(iii) partnership between the Zambian entrepreneurs and foreign suppliers and contractors; and
(iv) skills development to enable the Zambian entrepreneurs attain quality standards in contract works and supply;
(i) a full description, with geographical coordinates, of the area of land for which the large-scale mining licence is sought, but not exceeding seven thousand, four hundred and eighty-five cadastre units and represented by complete and not partial cadastre units;
(j) a tax clearance certificate issued under the Income Tax Act;
(k) a plan of the proposed mining area prepared in such manner and showing such particulars as the Director may require; and
(l) such further information as the Director of Geological Survey may require for the disposal of the application.
(4) Where an application for a large-scale mining licence is in respect of radioactive minerals, the application shall contain the following additional information—
(a) a plan and description of the mine, processing facilities and disposal sites;
(b) a copy of the relevant licence issued under the Ionising Radiation Protection Act;
(c) a programme to educate persons living in the vicinity of the mine or processing facilities of the general nature and characteristics of anticipated effects on the environment, health and safety of persons;
(d) programmes to assist authorities outside the mining area in planning and preparing to limit the adverse effects of an accidental release of radioactive substances:
(e) the proposed programme for selecting, using and maintaining personal protective equipment;
(f) the proposed training programme for workers in relation to radiation safety;
(g) the proposed ventilation and dust control methods and associated equipment;
(h) in relation to security, the proposed measures during storage and transportation of any radioactive mineral products and measures to alert the holder to acts of sabotage at the mine or processing facility;
(i) the storage, transportation and marketing arrangements; and
(j) other requirements that the Director may, by statutory instrument, specify.
(5) An applicant shall commission and produce to the Director an environmental impact study on the proposed mining operations approved by the Environmental Council of Zambia.
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