Mining Comparative Guide -

1 Legal and regulatory framework

1.1 Which legislative and regulatory provisions govern mining in your jurisdiction?

The primary law governing the mining sector in Zambia is the Mines and Minerals Development Act (11/2015) (‘Mines Act'), as read together with its various amendments (Act 14/2016, Act 18/2018 and Act 25/2020). Various regulations have been made pursuant to the Mines Act, such as the following:

the Mines and Minerals (Trading in Reserved Minerals) Regulations (Statutory Instrument 110/1995);
the Mines and Minerals (Application for Mining Rights) Regulations (Statutory Instrument 123/1996);
the Mines and Minerals (Application for Mining Rights) (Amendment) Regulations (Statutory Instrument 29/1997);
the Mines and Minerals (Environmental Protection Fund) Regulations (Statutory Instrument 102/1998);
the Mines and Minerals (Royalty) (Remission) Order (Statutory Instrument 18/2000);
the Mines and Minerals (Environmental) (Exemption) (Amendment) Order (Statutory Instrument 31/2000);
the Mines and Minerals Development (General) Regulations (Statutory Instrument 84/2008);
the Mines and Minerals Development (Prospecting, Mining and Milling of Uranium Ores and other Radioactive Minerals Ores) Regulations (Statutory Instrument 85/2008);
the Mines and Minerals Development (Mining Rights and Non-Mining Rights) Order (Statutory Instrument 27/2009);
the Mines and Minerals Development (Remission of Mineral Royalties) (Luanshya Copper Mines Plc) Regulations (Statutory Instrument 66/2009);
the Mines and Minerals Development (Mining Rights and Non-Mining Rights) Order (Statutory Instrument 26/2010);
the Mines and Minerals Development (General) (Amendment) Regulations (Statutory Instrument 34/2012);
the Mines and Minerals Development (General) (Amendment) Regulations (Statutory Instrument 17/2013);
the Mines and Minerals Development (General) Regulations (Statutory Instrument 7/2016) (‘Mines General Regulations');
the Mining Appeals (Tribunal) Rules (Statutory Instrument 82/2018); and
the Mines and Minerals Development (Remission) (Ndola Lime Company Limited) Regulations (Statutory Instrument 28/2020).

1.2 When was the mining legislation last reviewed?

The Mines Act was enacted on 14 August 2015 and was reviewed and amended in 2016, 2018 and 2020. The last amendment was on 18 December 2020, when the Mines and Minerals Development (Amendment) Act (25/2020) was enacted.

The regulations under the Mines Act were last reviewed in 2020, when the Mines and Minerals Development (Remission) (Ndola Lime Company Limited) Regulations were issued.

1.3 What other legislative and regulatory provisions have relevance for mining operations in your jurisdiction?

Other than the Mines Act and its regulations, the mining industry is also affected by the following laws:

the Income Tax Act (Chapter 323 of the Laws of Zambia);
the Property Transfer Tax Act (Chapter 340 of the Laws of Zambia);
the Customs and Excise Act (Chapter 322 of the Laws of Zambia);
the Environmental Management Act (12/2011);
the Zambia Development Agency Act (11/2006);
the Ionising Radiation Protection Act (16/2005);
the Factories Act (Chapter 441 of the Laws of Zambia);
the Occupational Health and Safety Act (36/2010);
the Explosives Act (Chapter 115 of the Laws of Zambia);
the Citizens Economic Empowerment Act (9/2006);
the Zambia Wildlife Act (14/2015);
the Lands Act (Chapter 184 of the Laws of Zambia); and
the Land and Deeds Registry Act (Chapter 185 of the Laws of Zambia).

1.4 Are there any regional treaties or laws that need to be taken into account?

The Citizens Economic Empowerment Act (COMESA) Treaty; and
The Southern African Development Community Protocol on Mining.

1.5 Which bodies are responsible for enforcing the applicable mining laws and regulations? What powers do they have?

The mining industry is administered by the Ministry of Mines and Minerals Development (‘Ministry of Mines'). Sections 5(1) and (2) of the Mines Act establish the following offices which are to exercise and perform the powers and functions conferred or imposed upon them by the Mines Act:

the director of mines;
the director of mines safety;
the director of mining cadastre; and
the director of geological survey.

More specifically, Sections 5(3) to (6) of the Mines Act confer the following powers on the abovementioned offices:

The director of mines supervises and regulates the proper and effective development of mines and the conduct of mining operations.
The director of mines safety is responsible for matters concerning the environment, public health and safety in exploration, mineral processing and mining operations.
The director of geological survey has the power to:
- undertake the geological mapping of Zambia and exploration operations on behalf of the state;
- advise the minister of mines on geological matters;
- provide data concerning the geology and mineral resources of Zambia, and assist members of the public on information concerning geological matters; and
- maintain such laboratory and library and record facilities as may be necessary for the performance of the functions under the Mines Act.
The director of mining cadastre is responsible for the administration of mining rights and mineral processing licences.

In addition to the offices of the directors, Section 6 of the Mines Act establishes the Mining Licensing Committee, which consists of the following members appointed by the minister of mines:

the director of mines;
the director of geological survey;
the director of mines safety;
the director of mining cadastre, who is the secretary of the committee;
one representative each from the ministries responsible for the environment, land, finance and labour; and
one representative each of the attorney general of Zambia, the Zambia Development Agency and the Engineering Institution of Zambia.

In accordance with Section 6(1) of the Mines Act, the Mining Licencing Committee has the power to:

consider applications for mining rights and non-mining rights, and grant, renew or refuse to grant or renew mining rights and non-mining rights;
terminate, suspend or cancel mining rights and non-mining rights;
amend the terms and conditions of mining rights and non-mining rights; and
advise the minister of mines on matters relating to his functions under the Mines Act.

1.6 What is the regulators' general approach in regulating the mining sector?

The Ministry of Mines' approach is one of command-and-control regulation. Under this approach, the regulator sets forth the methods, materials and processes by which regulated entities must operate. Command-and-control regulation, in theory, enhances certainty for the government, regulated entities and the public, in that a body of experts carefully develops the safest and most efficient mode of operation for the sector. This type of regulation is relatively easy for the regulator to observe and evaluate, and therefore to ensure compliance.

2 Mining industry

2.1 How mature is the mining industry in your jurisdiction?

Zambia's mining industry dates back to colonial times. It is one of the country's oldest industries and contributes significantly to the national economy. In this sense, it can be considered as mature.

The Zambia Development Agency's website states that Zambia is the world's seventh-largest producer of copper and holds 60% of the world's known copper reserves. Copper and cobalt – the country's traditional exports – account for well over 70% of export earnings. Zambia's copper mines are concentrated in the Copperbelt Province, though the past decade has seen the establishment of mines in other parts of the country, such as the Northwestern Province. Other mineral endowments include gold, zinc, lead, iron ore, manganese, nickel, feldspar, sands, talc, barite, apatite, limestone, dolomite, uranium, coal and gemstones (eg, diamonds, emeralds, aquamarine, topaz, opal, agate and amethysts). Notably, Zambia produces over 20% of the world's emeralds, with unutilised capacity to increase its production.

This extensive range of mineral resources – including a variety of industrial minerals and energy resources such as uranium, coal and hydrocarbons – presents excellent investment opportunities, especially in the area of extraction and processing.

2.2 What are the key minerals which are mined in your jurisdiction and where is mining activity typically based?

Zambia is internationally recognised as a major producer of copper and cobalt. It also produces gemstones (amethyst, aquamarine, emerald and tourmaline), coal and industrial minerals (production of industrial minerals is on a low scale).

According to the Zambian Mining Cadastre Map Portal, Zambia's mines are concentrated in the Copperbelt, Northwestern, Lusaka, Luapula and Central Provinces.

2.3 Are any minerals deemed strategic and, if so, what impact does this have?

Strategic minerals are those which are critical and essential to the socio-economic development of a country, or which enhance its defensive capabilities. These are minerals which are key to manufacturing and agricultural supply chains, and to the successful deployment of modern technologies in a variety of industries, including telecommunications, national defence and both conventional and renewable energy.

According to the Ministry of Mines, tin, gold, tantalum and tantalite are deemed strategic minerals in Zambia.

Gold was declared a strategic mineral following the launch of Zambia's Export Diversification Strategy in Gold and Gemstone Mining on 17 October 2020. The strategy will guide the formalisation of the sector and stop illegal trading of the commodities in the country. In the strategy, the government went further to declare gold a strategic mineral that plays an important role in diversification, job creation and economic development of the country.

2.4 Who are the key players in the mining industry in your jurisdiction?

The big three industry players are:

Barrick Lumwana;
First Quantum Minerals Kansanshi (‘FQM Kansanshi'); and
Mopani.

These players account for around 70% of Zambia's annual copper production. They also generate most of the mining employment, most of the corporate social investment and most of the media publicity in Zambia.

Barrick Lumwana is wholly owned by Canada's Barrick Gold Corporation, the world's largest gold-mining company.

The other two each have a majority foreign shareholding, as well as a minority shareholding by ZCCM Investment Holdings Plc (ZCCM-IH), the biggest overall shareholder in Zambia's mining industry.

The majority shareholder in FQM Kansanshi is FQM Limited, a Canadian mining and exploration company; ZCCM-IH's stake is 20.6%.

The majority shareholder in Mopani was previously Swiss-based commodity trading and mining company Glencore. However, in November 2020, ZCCM-IH controversially acquired a majority stake of 90% in a $1.5 billion deal.

The balance of Zambia's mineral production comes from a handful of smaller copperbelt mines, some of which are listed below together with their shareholders:

Lubambe Copper Mine (African Rainbow Minerals of South Africa and Vale of Brazil);
Chibuluma Mines (Metorex of South Africa, which is owned by Jinchuan Group of China);
NFC Africa Mining (China Non-ferrous Metal Mining Group);
CNMC Luanshya (NFC Africa Mining);
Chambishi Copper Smelting Company (China Non-ferrous Metals Mining Group);
Sino-Metals Leach Zambia (China Non-ferrous Metals Mining Group);
Sable Zinc Kabwe (Glencore);
Albidon (Jinchuan Group Resources of China); and
Chambishi Metals (Eurasian Natural Resources Corporation, headquartered in London).

The Zambian government also has a minority stake in some of these smaller mines through ZCCM-IH.

2.5 In addition to exploration rights and mining rights, what other mining rights and titles exist (eg, artisanal or small-scale mining rights)?

Section 13 of the Mines Act provides that the following mining and non-mining rights may be granted under the Mines Act:

an exploration licence (mining right);
a mining licence (mining right);
a mineral processing licence (non-mining right);
a mineral trading permit (non-mining right);
a mineral import permit (non-mining right);
a mineral export permit (non-mining right); and
a gold panning certificate (non-mining right).

Further, the Mines Act provides for two categories of exploration licence:

a small-scale exploration licence; and
a large-scale exploration licence.

In addition, the Mines Act provides for three categories of mining licences:

a small-scale mining licence;
a large-scale mining licence; and
an artisanal mining licence.

Section 29(2) of the Mines Act stipulates that artisanal mining is reserved for Zambian citizens. Accordingly, an artisanal mining licence can only be granted to a Zambian citizen or a cooperative wholly composed of Zambian citizens.

Section 13(3) of the Mines Act imposes restrictions on the types of companies which can hold a small-scale mining licence or a small-scale exploration licence. Accordingly, a small-scale mining licence or a small-scale exploration licence can only be granted to a citizen-influenced, citizen-owned or citizen empowerment company. The Mines Act does not define these three types of companies, but instead refers to Section 3 of the Citizens Economic Empowerment Act (CEEA), which is instructive in defining them. The CEEA defines:

a ‘citizen empowerment company' as a company where 25% to 50% of its equity is owned by citizens;
a ‘citizen-influenced company' as a company where 5% to 25% of its equity is owned by citizens and in which citizens have significant control of the management of the company; and
a ‘citizen-owned company' as a company where at least 50.1% of its equity is owned by citizens and in which citizens have significant control of the management of the company.

3 Exploration rights

3.1 What licences are required to undertake prospecting and exploration activities in your jurisdiction? Do these vary depending on the type of mineral or the location of the activity?

In accordance with Section 12 of the Mines Act, an exploration licence is required to carry out prospecting and exploration activities in Zambia.

While prospecting permits were granted under the Mines and Minerals Development Act (7/2008), now repealed, they are no longer granted under the current Mines Act. Instead, Section 2 of the Mines Act defines the term ‘exploration' to mean searching for a mineral by any means and carrying out such works and removing such samples as may be necessary to test the mineral-bearing qualities of any land and determine the extent and economic value of the mineral deposit. This definition is sufficiently wide to cover prospecting activities.

Although no new prospecting permits are granted under the Mines Act, Section 121(5) of the act stipulates that a prospecting permit issued under the repealed Mines Act will remain valid under the current Mines Act for the period specified in the permit.

The licences do not vary depending on the type of mineral or the location of the activity.

3.2 What requirements must be satisfied to obtain a licence?

In accordance with Section 22(1) of the Mines Act, an applicant must satisfy the following requirements:

It has the financial resources and technical ability to conduct the proposed exploration optimally in accordance with the exploration work programme;
The estimated expenditure is compatible with the proposed exploration work programme, the area size and the duration of the exploration work programme;
If the land is within a national park, community partnership park, game management area, bird or wildlife sanctuary, national forest, local forest, botanical reserve or private forest, the applicant has obtained the necessary written consent of the appropriate authority;
The proposed programme of exploration operations is adequate and makes proper provision for environmental protection;
The proposed exploration area is not the same as, and does not overlap in any manner with, an existing mining right or mineral processing licence area; and
If the applicant is a licence holder, it has not contravened any condition of the licence or permit, or any provision of the Mines Act.

3.3 What is the procedure for obtaining a licence? How long does this typically take?

Regulation 7 of the Mines General Regulations provides that a person that wishes to undertake exploration must apply to the director of mining cadastre for an exploration licence by filling out Form I, which is set out in the First Schedule, upon payment of the fees set out in the Second Schedule.

The form must be accompanied by the following documentation:

a cover letter addressed to the director of mining cadastre;
the proposed programme of exploration operations (which should include an estimate of the investment commitment in the approved format);
proposals for the employment and training of citizens of Zambia;
proposals for the promotion of local business development;
a tax clearance certificate issued under the Income Tax Act; and
proof of consent from the appropriate authority if the activity is in a national park or game management area.

The director of mining cadastre may require further information, which must also be provided.

In line with Section 23 of the Mines Act, it takes 60 days for the Ministry of Mines to process and grant or reject the licence application.

3.4 Who can own exploration rights in your jurisdiction? Do specific requirements or restrictions apply to foreign operators?

There are no restrictions on who can own large-scale exploration rights. However, Section 13(3) of the Mines Act restricts the types of companies which can hold a small-scale exploration licence.

Accordingly, a small-scale exploration licence can only be granted to a citizen-influenced, citizen-owned or citizen empowerment company. The Mines Act does not define these three types of companies, but instead refers to Section 3 of the Citizens Economic Empowerment Act (CEEA), which is instructive in defining them. The CEEA defines:

a ‘citizen empowerment company' as a company where 25% to 50% of its equity is owned by citizens;
a ‘citizen-influenced company' as a company where 5% to 25% of its equity is owned by citizens and in which citizens have significant control of the management of the company; and
a ‘citizen-owned company' as a company where at least 50.1% of its equity is owned by citizens and in which citizens have significant control of the management of the company.

3.5 What fees and other charges are incurred in obtaining a licence?

In accordance with the Second Schedule to the Mines General Regulations, an applicant must pay ZMW 3,000 or ZMW 900 in order to apply for a large-scale exploration licence or a small-scale exploration licence, respectively.

3.6 What is the duration of a licence? What is the process for renewal?

In accordance with Section 24 of the Mines Act, an exploration licence is valid for an initial period of four years. It may be renewed, upon expiry, for two further periods not exceeding three years each; but the maximum period from initial grant of the licence must not exceed 10 years.

In line with Section 76 of the Mines Act, as read together with Regulation 21 of the Mines General Regulations, renewal of an exploration licence must be sought six months before expiry. The application is made using Form XIII set out in the First Schedule of the regulations, on payment of the fees set out in the Second Schedule.

The form must be accompanied by the following documents:

a cover letter addressed to the director of mining cadastre;
a report on the execution of the approved programme of exploration operations, including the results of the work presented in digital format;
an approved environmental project brief approved by decision letter of the Zambia Environmental Management Agency (ZEMA);
the proposed programme of exploration operations for the renewal period (including an indication of the investment commitments);
proposals for the employment and training of citizens of Zambia;
proposals for the promotion of local business development; and
a tax clearance certificate.

In addition, the Mining Licensing Committee may request the applicant to provide any other information.

Further, in line with Section 72(2) of the Mines Act, the holder of an exploration licence applying for renewal must relinquish at least 50% of the initial exploration area on the first renewal and at least 50% of the balance on the second renewal.

Unfortunately, there is no prescribed timeline within which an application for renewal must be approved by the Mining Licensing Committee.

3.7 What are the operator's rights and obligations under the licence?

Obligations: Section 25 of the Mines Act is instructive and provides that the holder of an exploration licence must:

only commence exploration operations if it submits to the Mines and Minerals Development Mining Cadastre Department (MCD):
- a decision letter on the environmental project brief approved by ZEMA; or
- written consent from the appropriate authority where required by the Mines Act;
within 180 days of grant of the exploration licence, register a pegging certificate with the MCD;
give notice to the director of mining cadastre of the discovery of any mineral deposit of possible commercial value within 30 days of the discovery;
expend on the exploration operations no less than the amount prescribed or required by the terms and conditions of the exploration licence;
carry on explorations in accordance with the programme of exploration;
backfill or otherwise make safe any excavation made during the course of the exploration, as the director of mining cadastre may specify;
permanently preserve or otherwise make safe any borehole in the manner directed by the director of mining cadastre and surrender to the government, on termination, without compensation, the drill cores, other mineral samples and boreholes and any water rights in respect of the boreholes;
unless the director of mining cadastre stipulates otherwise, remove, within 60 days of the expiry or revocation of the exploration 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 mining cadastre; and
keep and preserve such records as the director of mines safety may determine relating to the protection of the environment.

In addition, the holder of an exploration licence must keep full and accurate records at its office of the exploration operations, which must indicate:

the boreholes drilled;
the strata penetrated, with detailed logs of the strata;
the minerals discovered;
the results of any seismic survey or geochemical, geophysical and remote sensing data analysis;
the result of any analysis or identification of minerals removed from the exploration area;
the geological interpretation of the records maintained;
the number of persons employed;
any other exploration work;
the costs incurred for all exploration activities carried out by the holder under the exploration licence; and
such other matters as may be prescribed.

Further, the holder of an exploration licence must furnish to the directors, at least once every three months, digital and hard copies of its records, as may be prescribed.

Rights: An exploration licence confers on the holder the exclusive rights:

to carry out exploration in the exploration area for the minerals specified in the licence; and
to do all such other acts and things as are necessary for, or incidental to, the carrying on of those operations (Section 23(2) of the Mines Act).

3.8 Are there any requirements re relinquishment of an exploration licence or part of the area covered by an exploration licence?

In accordance with Section 24(3) of the Mines Act, the holder of an exploration licence must relinquish 50% of the exploration area at each renewal. In line with Section 72(2) of the Mines Act, the holder of an exploration licence applying for renewal must relinquish at least 50% of the initial exploration area on the first renewal and at least 50% of the balance on the second renewal.

3.9 Can licences be transferred? If so, how and subject to what consents? Do any restrictions or taxes apply to direct or indirect transfers?

Yes, an exploration licence can be transferred in accordance with Section 66 of the Mines Act.

Section 66 of the Mines Act provides that anyone that wishes to transfer, assign, encumber or otherwise deal with an exploration licence, or an interest in an exploration licence, can do so only after obtaining the approval of the minister of mines and producing a tax clearance certificate. The procedure for obtaining such approval is governed by Regulation 29 of the Mines General Regulations, which states that the application must be made by completing Form XVI set out in the First Schedule of the regulations. The form must be accompanied by the following documentation:

a cover letter addressed to the director of mining cadastre, which also sets out the reasons for transferring the exploration licence;
the minutes of the company's board meeting;
the resolution of the company's board meeting;
an application form for an exploration licence completed by the proposed assignee (to provide further information on the exploration licence); and
a tax clearance certificate for the holder of the mining right or mineral processing licence.

In accordance with Section 66 of the Mines Act, property transfer tax (PTT) is payable on a direct transfer. In line with Section 4(2) of the PTT Act, the PTT payable is 10% of the realised value of the transfer.

3.10 Does an exploration licence give any priority when applying for a mining right?

Yes. In accordance with Section 30(1) of the Mines Act, an exploration licence is a prerequisite for applying for a mining licence. Therefore, in order to apply for a mining licence, the applicant must hold an exploration licence.

4 Mining rights

4.1 How is ownership of mining rights determined in your jurisdiction?

The holder of a licence is the owner of the mining rights in the area covered by the licence.

4.2 What are the key requirements in order to apply for a mining right?

In accordance with Section 31(1)(a) of the Mines Act, an applicant must satisfy certain requirements. In considering the application, the Mining Licensing Committee must be satisfied of the following:

There are sufficient deposits or resources of minerals to justify their commercial exploitation;
The area of land over which the licence is sought does not exceed the area required to carry out the applicant's proposed programme for mining operations;
The proposed programme of mining operations is adequate and compliant with the decision letter on the environmental project brief or environmental impact assessment approved by the Zambia Environmental Management Agency;
Where consent is required for the area under any written law, the applicant has submitted evidence of that consent;
The standards of good mining practice and the applicant's proposed programme for the development, construction and mining operations are sufficient to ensure the efficient and beneficial use of the mineral resources for the area over which the licence is sought;
In respect of large-scale mining:
- the applicant has the necessary financial resources and technical competence, and the financing plan is compatible with the programme of mining operations;
- the applicant has made undertakings on the employment and training of citizens and the promotion of local business development;
- the applicant's feasibility study report is bankable; and
- the applicant's capital investment forecast is adequate; and
The applicant is not in breach of any condition of the exploration licence or any provision of the Mines Act.

4.3 What fees and other charges are incurred in obtaining a mining right?

In accordance with the Second Schedule to the Mines General Regulations, an applicant must pay ZMW 900, ZMW 4,500 or ZMW 48,000 to apply for an artisanal mining licence, a small-scale mining licence or a large-scale mining licence, respectively.

4.4 What is the duration of a mining right? What is the process for renewal?

In accordance with Section 34 of the Mines Act, a mining licence is valid for a period not exceeding:

two years for artisanal mining;
10 years for small-scale mining; and
25 years for large-scale mining.

In terms of the procedure for renewal, the holder of a mining right may apply for renewal in the prescribed manner through completion of the required form, upon payment of the prescribed fee, both of which are set out in the Mines General Regulations.

Regulation 21 of the Mines General Regulations provides that an application for renewal of a mining right must be made:

for an exploration licence, six months before the expiry of the licence; and
for a mining licence:
- three months before the expiry of the licence in the case of artisanal mining;
- six months before the expiry of the licence in the case of small-scale mining; and
- one year before the expiry of the licence in the case of large-scale mining.

An application for renewal of a mining right is made by completing Form XIII as set out in the First Schedule of the Mines General Regulations.

For a large-scale mining licence, the form must be accompanied by the following documentation and payment of the amount paid when initially applying for the licence (outlined above):

a report on the execution of the approved programme of mining operations;
the latest statement of proved, estimated and inferred mineral deposits in the area over which renewal is sought (including details of all known minerals proved, estimated or inferred, ore resources and mining conditions, expected changes in mining activities and the estimated life of the mine);
the proposed programme for exploration and mining operations (including a forecast of capital investment, the estimated recovery rate of ore and mineral products, and the proposed plan for the treatment and disposal of ore and minerals recovered);
the approved environmental management plan;
details of expected infrastructure requirements;
proposals for the employment and training of citizens of Zambia;
proposals for the promotion of local business development;
a tax clearance certificate;
a plan of the proposed mining area during the renewal period;
an execution report of the plan for cutting, polishing and faceting gemstones in Zambia during the previous tenure; and a plan for cutting, polishing and faceting gemstones in Zambia during the renewal period; and
any further information which the Mining Licensing Committee may require.

For a small-scale mining licence, the form must be accompanied by the following documentation and payment of the amount paid when initially applying for the licence (outlined above):

a report on the development of the mining area during the previous tenure;
the proposed programme of mining operations (including a forecast of investment, estimated recovery rate of ore and a proposal for the treatment and disposal of ore);
a description of the mineral deposit in the area over which renewal is sought;
a statement of the duration for which the licence is sought (which may not exceed 10 years);
a tax clearance certificate;
an approved environmental management plan; and
any further information which the Mining Licensing Committee may require.

For an artisanal mining licence, the form must be accompanied by the following documentation and payment of the amount paid when initially applying for the licence (outlined above):

a report on the development of the mining area during the previous tenure;
an approved environmental management plan; and
a programme of the intended mining operations (including proposals for the proper conservation and use of mineral resources in the mining area, in the national interest).

4.5 Who can own mining rights in your jurisdiction? Do specific requirements or restrictions apply to foreign operators?

There are no restrictions on who can own a large-scale mining licence. However, Section 13(3) of the Mines Act imposes restrictions on the types of companies which can hold a small-scale mining licence.

Accordingly, a small-scale mining licence can only be granted to a citizen-influenced, citizen-owned or citizen empowerment company. The Mines Act does not define these three types of companies, but instead refers to Section 3 of the Citizens Economic Empowerment Act (CEEA), which is instructive in defining them. The CEEA defines:

a ‘citizen empowerment company' as a company where 25% to 50% of its equity is owned by citizens;
a ‘citizen-influenced company' as a company where 5% to 25% of its equity is owned by citizens and in which citizens have significant control of the management of the company; and
a ‘citizen-owned company' as a company where at least 50.1% of its equity is owned by citizens and in which citizens have significant control of the management of the company.

In addition, Section 29(2) of the Mines Act stipulates that artisanal mining is reserved for Zambian citizens. Accordingly, an artisanal mining licence can only be granted to a Zambian citizen or a cooperative wholly composed of Zambian citizens.

4.6 Do any indigenous ownership requirements apply in your jurisdiction?

There are no restrictions on who can own a large-scale mining licence.

However, Section 29(2) of the Mines Act stipulates that artisanal mining is reserved for Zambian citizens. Accordingly, an artisanal mining licence can only be granted to a Zambian citizen or a cooperative wholly composed of Zambian citizens.

In addition, Section 13(3) of the Mines Act imposes restrictions on the types of companies which can hold a small-scale mining licence and a small-scale exploration licence.

4.7 What role does the state play in the mining industry in your jurisdiction?

The state plays the role of regulator through the Ministry of Mines.

In addition, through ZCCM Investment Holdings Plc (ZCCM-IH), which is the biggest overall shareholder in Zambia's mining industry, the state has a stake across the mining sector. The state is a majority shareholder in ZCCM-IH, in that it holds 77.7% of the shares in ZCCM-IH – 17.4% through the state directly and 60.3% through the Industrial Development Corporation Zambia Limited (IDC). The IDC is a state-owned enterprise charged with spearheading the Zambian government's commercial investments agenda in order to strengthen Zambia's industrial base and promote job creation. The IDC was incorporated in January 2014 and is wholly owned by the government through the minister of finance pursuant to the Minister of Finance (Incorporation) Act (Chapter 349 of the Laws of Zambia). Through ZCCM-IH, the state occupies a unique and strategically advantageous position as an investor, as it holds key interests across the Zambian mining industry.

Further, in certain mining companies such as Konkola Copper Mines, in which ZCCM-IH is a minority shareholder with a 20.6% shareholding, ZCCM-IH holds a golden share. A ‘golden share' is a nominal share, often held by a government organisation, which can outvote all other shares in specified circumstances. The consent of the holder is required for actions such as material disposals, share issues or a voluntary winding up.

4.8 Are there requirements for the government to enter into a mining development (or similar) agreement in addition to the licences/permits? When is this required or available?

There is no requirement for the government to enter into a mining development agreement in addition to the licences and permits issued.

In fact, development agreements were abolished by Section 159 of the repealed Mines Act. Section 160 of the repealed Mines Act went further and provided that, notwithstanding any provision to the contrary contained in any law or in the relevant development agreement, all development agreements which existed before the commencement of the repealed Mines Act would cease to be binding on the government from the commencement of the repealed Mines Act.

4.9 Can mining rights be transferred? If so, how and subject to what consents? Do any restrictions or taxes apply to direct or indirect transfers?

Yes, a mining licence can be transferred in accordance with Section 66 of the Mines Act.

Section 66 provides that any person that wishes to transfer, assign, encumber or otherwise deal with a mining licence, or an interest in a mining licence, can do so only after obtaining the approval of the minister of mines and producing a tax clearance certificate. The procedure for obtaining such approval is governed by Regulation 29 of the Mines General Regulations, which states that the application must be made by completing Form XVI set out in the First Schedule of the regulations. The form must be accompanied by the following documentation:

a cover letter addressed to the director of mining cadastre, which also provides the reasons for transferring the mining licence;
the minutes of the company's board meeting;
the resolution of the company's board meeting;
an application form for a mining licence completed by the proposed assignee (to provide further information on the mining licence); and
a tax clearance certificate for the holder of the mining right or mineral processing licence.

In accordance with Section 66 of the Mines Act, property transfer tax (PTT) is payable in a direct transfer. In line with Section 4(2) of the PTT Act, the PTT payable is 10% of the realised value of the transfer.

4.10 Can security be taken over mining rights?

Mining rights may be assigned to a financial institution as security for a loan subject to the approval of the minister of mines under Section 66 of the Mines Act, who must approve any assignment or encumbrance of a mining right.

However, in practice, financial institutions are reluctant to accept a mining right as security, because they would face issues in enforcing the security to retrieve their money in the event of default. It is thus recommended to obtain a charge over the shares of the company which holds the mining licence instead.

4.11 What provisions apply with regard to closure or abandonment of a mining right?

Section 70 of the Mines Act, as read together with Regulation 31 of the Mines General Regulations, provides that the holder of a mining right that wishes to abandon all or any part of the land subject to the mining right must apply to the director of mining cadastre for a certificate of abandonment no later than 90 days before the date on which it wishes the abandonment to take effect.

The application must:

identify the land to be abandoned and, if the application applies to only part of the land that is subject to the mining or non-mining right, include a map with geographical coordinates that clearly identify both the part to be abandoned and the part to be retained;
state the date on which the applicant wishes the abandonment to take effect;
include a certificate of closure issued by the director of mines safety;
give particulars of the operations which have been carried on under the mining or non-mining right on the land to be abandoned; and
be supported by such records and reports in relation to those operations as the director of mining cadastre may require.

In addition, the applicant must complete Form XVII which is set out in the First Schedule to the Mines General Regulations and attach the following documents:

the board resolution;
a report on the execution of programme of operations;
a copy of the closure certificate granted by the director of mines safety;
the receipt of payment of the application fees; and
the company registration details.

A mine is closed at the instance of the director of mines safety or the director of mines in accordance with Section 36 of the Mines Act. Essentially, the director may direct the holder of a mining right to close the mine or a section thereof for any of the following reasons:

contravention of a condition of the mining right that presents a danger of imminent harm to persons within the exploration or mining area;
an unsafe working environment;
uncontrollable pollution of the area resulting from the mining operations;
force majeure; or
a labour dispute that disrupts the mining operations.

However, before exercising the powers provided by Section 36 of the Mines Act, as outlined above, the director must give the holder of a mining right a period within which to take remedial measures. If the holder fails to do so within the specified period, the closure may be effected or the period may be extended.

In accordance with Section 71 of the Mines Act, the holder of a mining right may decide not to continue with the activity or operations to which the mining right relates. In such case, the holder must notify the director of mining cadastre of its intentions in writing. Thereafter, the director will specify the terms and conditions of the surrender of the mining right and the mining right will lapse and be revoked.

5 Surface rights

5.1 Does the law of your jurisdiction distinguish between mining rights and surface rights? If so, how does an owner of mining rights acquire surface rights?

Yes, the law distinguishes between mining and surface rights.

Section 3 of the Mines Act provides that all rights to own, search for, mine and dispose of minerals, wheresoever located in Zambia, vest in the president of Zambia on behalf of the Zambian people. This provision applies notwithstanding any right, title or interest which a person may possess in or over the soil in, on or under which minerals are found. It makes clear that even if one owns surface rights to a particular piece of land, the mining rights in that land do not belong to the landowner. The mining rights are rather vested in the president, who can grant them to anyone, upon application, in accordance with the Mines Act.

In accordance with Section 52(1)(b) of the Mines Act, if one person is granted mining rights over land in which another person holds surface rights, the holder of the mining rights cannot exercise its rights without the written consent of the owner of the surface rights.

In terms of acquiring surface rights, Section 55 of the Mines Act provides that the holder of a mining right which requires the exclusive or other use of the whole or any portion of the exploration or mining area for the purpose of the mining right may, in accordance with the laws relating to such acquisition, acquire a lease to the land or other right to use the land upon such terms as may be agreed between the holder and the owner or occupier of the land. This provision allows the parties to enter into a commercial transaction for the sale of the land that is subject to the mining area.

In accordance with Section 52(3) of the Mines Act, if the holder of the surface rights unreasonably withholds consent or in the event of any other dispute:

either party to the dispute may apply to the director of mining cadastre to determine the dispute; or
the director of mining cadastre may require the parties to refer their dispute to arbitration in line with Section 56 of the Mines Act.

At this point, the matter will come before the director of mining cadastre or an independent arbitrator, who may make an order as he or she deems fit.

5.2 Where surface rights are acquired, what are the operator's rights and obligations as regards the landowner? And what are the landowner's rights and obligations as regards the operator?

In accordance with Section 53 of the Mines Act, the rights conferred by a mining right or mineral processing licence:

must be exercised reasonably; and
except to the minimum extent necessary for the reasonable and proper conduct of the operations, must not be exercised so as to prejudice the interest of any owner or occupier of the land over which those rights extend.

According to Section 55 of the Mines Act, the owner or lawful occupier of any land within the area of an exploration licence retains the right to use and access water and to graze stock upon, or to cultivate the surface of, the land, insofar as such use, grazing or cultivation does not interfere with proper working in the area for exploration or other operations to be carried on under the exploration licence.

In addition, if the surface rights are subject to a lease, additional obligations may be set out in the lease. Further, if the surface rights are subject to a certificate of title, they will be subject to the terms of the head lease initially entered into by the surface rights holder and the government.

In accordance with Section 57 of the Mines Act, the holder of a mining right or mineral processing licence must, on demand by the owner or lawful occupier of any land that is subject to the mining right:

promptly pay the owner or occupier fair and reasonable compensation for any disturbance of the rights of the owner or occupier and for any damage done to the surface of the land by the operations; and
on demand by the owner of any crops, trees, buildings or works damaged during the course of the operations, pay compensation for the damage.

In accordance with Section 58 of the Mines Act, except as otherwise provided under the Mines Act, the owner or lawful occupier can take from any land that is not subject to a mining right limestone or other materials ordinarily used for building, roadbuilding or agricultural purposes, where:

the materials taken are for use on the land; and
the owner or lawful occupier is the holder of a permit from the director of mines authorising such taking.

5.3 Please give an overview of the process for any mandatory acquisition of surface rights (eg, process and time to enforce).

In order to acquire surface rights, Section 55 of the Mines Act provides that the holder of a mining right can approach the owner of the surface rights to enter into a commercial transaction for the sale of the land that is subject to the mining area.

In accordance with Section 52(3) of the Mines Act, if the holder of the surface rights unreasonably withholds consent or in the event of any other dispute:

either party to the dispute may apply to the director of mining cadastre to determine the dispute; or
the director of mining cadastre may require the parties to refer their dispute to arbitration in line with Section 56 of the Mines Act.

At this point, the matter will come before the director of mining cadastre or an independent arbitrator, who may make an order as he or she deems fit.

In addition, the Zambian government is entitled to compulsorily acquire any property or any interest or right in land within Zambia, as long as:

this is done in line with the public interest; and
adequate compensation is paid to the owner of the land.

This is in line with Article 16(1) of the Constitution, Chapter 1 of the Laws of Zambia, which guarantees that any property, interest or right will not be expropriated unless authority is granted by an act of Parliament which provides for the payment of adequate compensation for the compulsory acquisition. Unfortunately, ‘adequate compensation' is not defined under the Constitution. However, the procedure for determining this is set out in the enabling act of Parliament, which in this instance is the Lands Acquisitions Act (Chapter 189 of the Laws of Zambia).

Section 3 of the Lands Acquisition Act empowers the president to compulsorily acquire any property of any description where, in his opinion, this is desirable or expedient in the interests of Zambia. However, the Lands Acquisition Act does not specify when it would be desirable and expedient for the president to compulsorily acquire property; this is left entirely to the opinion of the president. That said, case law such as William David Cerlisle Wise v Attorney-General (1990-1992) ZR 124 (HC) seems to suggest that despite that the Land Acquisition Act granting the president the power to compulsorily acquire property when he deems this desirable and expedient upon payment of compensation, this does not give the state (acting through the president) a blanket right to expropriate property without any public cause or purpose. In other words, compulsory acquisition without a public cause or purpose is illegal.

In terms of the procedure for compulsory acquisition of land by the president, Section 5 of the Lands Acquisition Act provides that if the president decides that it is desirable or expedient in the interests of Zambia to acquire any property, the minister of lands and natural resources will give notice using Form LA1 contained in the Lands Acquisition (Prescribed Forms) Regulations (Statutory Instrument 60/1970) to the persons interested in the property. The notice will also include an invitation to any person claiming to be interested in such property to submit such claim to the minister within four weeks of publication of the gazette notice.

In line with Section 6 of the Lands Acquisition Act, once the requisite four-week period has elapsed, the minister may issue notice using Form LA2 set out in the Lands Acquisition Forms Regulations to direct the persons to whom notice was initially issued to yield up possession of the property on the expiry of the period specified in the notice, which will not be less than two months from the date of service of the notice. Where the president certifies that the property in question is urgently required, the persons may be required to yield up possession of the property on the expiration of such lesser period as the president may direct. On the expiration of the period in the notice, the president and all persons authorised by him may take possession of such property.

In line with Section 10 of the Lands Acquisition Act, the minister of lands and natural resources must pay compensation to the persons interested in the property.

5.4 Are any native title issues applicable, either at the exploration licence stage or when a mining right is issued?

Yes, in accordance with Section 52(1) of the Mines Act, the holder of a mining right cannot exercise such right without the permission of the appropriate authorities if the land on which the mining right was issued is:

a traditional burial site;
a village with land held under customary tenure;
a national heritage site;
located within 90 metres of government buildings or areas regulated by the Aviation Act; or
a national park or game protected area designated by the Zambia Wildlife Authority and Railway Administration.

5.5 Are any other rights needed to use the land (eg, zoning permissions or planning requirements)?

Under Section 49 of the Urban and Regional Planning Act (3/2015 (‘Planning Act'), any person seeking to carry out any development on land must seek planning permission from the local planning authority. In turn, Section 2 of the Planning Act defines ‘development' to include the carrying out of mining activities.

Consequently, an entity that intends to commence mining activities must seek planning permission, which is granted by way of a development permit. If the mining entity commences mining activities without seeking planning permission, this entitles the planning authority to demolish structures erected without the payment of compensation

In accordance with Section 49(2) of the Planning Act, a person who contravenes this provision commits an offence and is liable upon conviction to a fine not exceeding ZMW 9.

If the area is not zoned for mining, the holder of the mining right may apply to the local planning authority to change the use of the land in line with Section 52 of the Planning Act and Regulation 17 of the Urban and Regional Planning (General) Regulations, 2020 (Statutory Instrument 56/2020) (‘Planning Regulations'). The holder of the mining right must give at least 14 days' notice to the local planning authority of its intention to change the use of land in Form IV set out in the First Schedule to the Planning Regulations. The notice is then published by the local planning authority at its offices, in public places in the area and on its website for a period of 14 days.

After this period, the holder of the mining right must lodge an application for the change in land use in Form 2 set out in the First Schedule to the Planning Regulations. The application will be considered within 90 days for a major development and within 28 days for any other development.

6 Environmental issues

6.1 What environmental authorisations are required to undertake prospecting, exploration and mining activities in your jurisdiction? Do these vary depending on the type of mineral or the location of the activity?

Section 31(2) of the Environmental Management Act (EMA) provides that a "person shall not, without a licence — (a) conduct any activity that produces, or is likely to produce, a controlled substance or any other substance likely to deplete the ozone layer; or (b) import, export, distribute, sell or offer for sale, handle, store, recover, recycle or reclaim a substance likely to deplete the ozone layer". Mining activities are known to produce pollutants, so Section 31(2) applies in this regard. In accordance with Section 31(3) of the EMA, anyone that contravenes this provision commits an offence and is liable, upon conviction, to a fine not exceeding ZMW 210,000, imprisonment for up to seven years or both.

Under Section 29 of the EMA, a person must not undertake any project that may have an effect on the environment without the written approval of the Zambia Environmental Management Agency (ZEMA), and except in accordance with any conditions imposed in that approval. Further, an appropriate authority or other public body will not grant a permit or licence for the execution of any project that is likely to have an effect on the environment unless:

an approval for the project has been granted by the ZEMA; or
grant of the permit or licence is made conditional upon such approval being granted.

Therefore, the Mines and Minerals Development Mining Cadastre Department cannot issue a mining licence if the applicant has not obtained ZEMA approval for the relevant project.

The application procedure for ZEMA approval is governed by the Environmental Protection and Pollution Control (Environmental Impact Assessment) Regulations (Statutory Instrument 38/1997) (‘EIA Regulations'). According to Regulation 3 of the EIA Regulations, a developer must not implement a project unless a project brief or environmental impact assessment has been concluded and ZEMA has issued a decision letter on the project.

Once a developer has received ZEMA approval for the project in the form of a decision letter, Section 32(1) of the EMA provides that it must not, without a licence, discharge or cause or permit the discharge of a contaminant or pollutant into the environment if this will cause or is likely to cause an adverse effect. The EMA provides for the following licences which are required to undertake exploration and mining activities:

an emission licence (Section 33), which authorises the holder to emit or discharge a pollutant or contaminant into the environment;
a hazardous waste management licence (Section 55(2)), which is required when handling, transporting or storing hazardous waste;
a waste management licence (Section 55(1)), which is required if a holder of mining right intends to:
- reclaim, reuse, recover or recycle waste;
- collect and dispose of waste from industrial or commercial activities;
- transport waste to a disposal site;
- own, construct or operate a waste disposal site or other facility for the permanent disposal or storage of waste; or
- transit, trade in or export waste; and
a pesticides and toxic substances licence (Section 65) for:
- the manufacture, import, export, storage, distribution, transportation, blending, processing or reprocessing of a pesticide or toxic substance;
- the changing of the composition of a pesticide or toxic substance; or
- the reprocessing of an existing pesticide or toxic substance for a significantly new use.

These environmental authorisations will not vary depending on the type of mineral or the location of the activity.

6.2 What environmental obligations must the operator observe while the mine is operational?

The relevant approvals and licences are granted with conditions attached.

The holder must comply with those conditions to ensure the protection of the environment when operating the mining licence.

6.3 What environmental obligations must the operator observe in relation to closure of the mine?

In accordance with Section 71 of the Mines Act, where the holder of a mining right decides not to continue with the activity or operations to which the mining right relates, it must notify the director of mining cadastre of its intentions in writing. Thereafter, the director of mining cadastre will specify the terms and conditions of the surrender of the mining right and the mining right will lapse and be revoked. The terms and conditions of closure may include environmental obligations.

6.4 What are the potential consequences of breach of these requirements – both for the operator itself and for directors, managers and employees?

In line with Section 112 of the Mines Act, anyone that contravenes a provision of the Mines Act for which a penalty is not already specified commits an offence and is liable upon conviction:

to a penalty not exceeding ZMW 150,000, imprisonment for up to five years or both, for natural persons; or
to a penalty not exceeding ZMW 300,000, for legal persons.

In line with Section 125 of the EMA, anyone that pollutes the environment or that contravenes a provision of the EMA for which a penalty is already specified commits an offence and is liable upon conviction to fine not exceeding ZMW 90,000, imprisonment for up to three years or both. Further, except as otherwise specified, a person who is convicted of an ongoing offence will, in addition to the penalty specified for the offence, be liable upon conviction to a further fine for each day or part of a day for which the offence continues of:

up to ZMW 150 per day on a first conviction and up to ZMW 140 per day on each subsequent conviction, for natural persons; and
up to ZMW 300 per day on a first conviction and up to ZMW 600 per day on each subsequent conviction, for legal persons.

In addition, any licences held may be suspended, revoked or amended.

6.5 Which bodies are responsible for enforcement of environmental obligations?

ZEMA, established in accordance with Section 7 of the EMA.

The director of mines safety is also tasked by Section 5(4) of the Mines Act with supervising matters concerning the environment, public health and safety in exploration, mineral processing and mining operations.

The approach of ZEMA and the director of mines safety in regulating the mining sector from an environmental perspective is one of command-and-control regulation. Under this approach, the regulator sets out the methods, materials and processes by which regulated entities must operate.

6.6 What is the regulators' general approach in regulating the mining sector from an environmental perspective?

See Question 6.5.

7 Health and safety

7.1 What key health and safety requirements apply to operators in your jurisdiction?

Four main laws govern health and safety requirements in the mining industry:

the Mines Act;
the Occupational Health and Safety Act (OHSA);
the Factories Act; and
the Workers' Compensation Act (WCA).

Mines Act: In accordance with Section 81 of the Mines Act, the conditions subject to which a mining right is granted or renewed will include such conditions as may be prescribed by the minister of mines, by statutory instrument or as the minister of mines may otherwise determine in a particular case in relation to the protection of human health, in consultation with the minister responsible for health.

OHSA: According to Section 3 of the OHSA, the act regulates health and safety within the workplace and applies to all places of work, except as otherwise provided by the OHSA itself. Section 11 obliges every employer of 10 persons or more to establish a health and safety committee. In line with Section 13 of the OHSA, the functions of the health and safety committee are as follows:

to promote cooperation between the employer and the employees in achieving and maintaining healthy and safe working conditions;
to share information about occupational health, safety and welfare with employees;
to investigate and resolve any matter that may be a risk to the health and safety of employees in the workplace;
to review measures taken in relation to the health and safety of employees in the workplace; and
to formulate, review and disseminate to employees the standards, rules and procedures relating to health and safety to be carried out in the workplace.

Further, according to Section 16(1) of the OHSA, an employer owes the following general duties to employees:

to ensure, as far as is reasonably practicable, the health, safety and welfare of employees in the workplace; and
to ensure that the occupational environment is adapted to employees' physical, physiological and psychological abilities.

More specifically, according to Section 16(2) of the OHSA, an employer must:

so far as is reasonably practicable, provide plant and work systems that are safe and without any risk to human health, and maintain them in that condition;
so far as is reasonably practicable, ensure that articles, devices, items and substances provided for the use of employees in the workplace are used, handled, stored and transported in a manner that is safe and without any risk to the health and safety of employees;
provide all information, instruction, training and supervision as is necessary to ensure, so far as is reasonably practicable, the health and safety of employees;
so far as is reasonably practicable, maintain the workplace in a condition that is safe and without risk to the health and safety of employees;
so far as is reasonably practicable, provide and maintain safe means of access to, and exit from, the workplace that are without risk to the health and safety of employees;
provide and maintain a working environment that, so far as is reasonably practicable, is safe and without risk to the health and safety of employees, and which is adequate as regards facilities and arrangements for their welfare;
provide for measures to deal with emergencies and accidents, including adequate first aid arrangements;
provide, at its own expense, all appropriate protective clothing and equipment to be used in the workplace by employees who are likely to be exposed to the risk of bodily injury in the course of their employment, and adequate instructions on the use of such protective clothing or equipment; and
do for, or provide to, employees free of charge anything which by law is required from the employer.

Anyone that contravenes these provisions is liable upon conviction to a fine of up to ZMW 30,000 or to imprisonment for up to one year or to both.

Factories Act: In line with the preamble, the Factories Act regulates the conditions of employment in factories and other places with regard to the safety, health and welfare of employees, as well as the safety, examination and inspection of certain plant and machinery. According to Section 2, a ‘factory' is defined as any premises in which persons are employed to perform manual labour for any of the following purposes:

the manufacture or assembly of any article or of part of any article;
the alteration, repair, ornamentation, completion, cleaning, break-up or demolition of any article; or
the adaptation for sale of any article.

Notably, this definition is quite broad and thus includes mines.

According to Section 13 of the Factories Act, anyone that intends to occupy or use a factory must obtain a certificate of registration for the factory from the labour commissioner. In addition, the Factories Act sets out the following obligations:

A factory must be kept clean and free from effluvia arising from drains, sanitary conveniences and nuisances (Section 19).
A factory must not be overcrowded so as to cause risk of injury to the health of employees (Section 20).
There must be effective and suitable ventilation, whether artificial or natural (Section 21).
There must be effective, sufficient and suitable lighting (Section 22).
There must be sufficient and suitable sanitary conveniences which are maintained and kept clean (Section 23).
All practicable steps must be taken to prevent explosions due to the escape of any explosive or inflammable dust, gas, vapour or substance (Section 39).
Every flywheel directly connected to a prime mover and every moving part of a prime mover must be securely fenced, whether the flywheel or prime mover is situated in an engine house or not (Section 27).
Every part of transmission machinery must be securely fenced, unless it is in such a position or of such construction as to be as safe to every person employed or working on the premises as it would be if securely fenced (Section 28).
Every dangerous part of machinery, other than prime movers and transmission machinery, must be securely fenced, unless it is in such a position or of such construction as to be as safe to every person employed or working on the premises as it would be if securely fenced (Section 29).
No one may be employed at any machine or in any process which is liable to cause bodily injury, unless he or she:
- has received sufficient training;
- is under the supervision of a person with knowledge and expertise in operating the relevant machine or the process; and
- has been fully instructed on the dangers that are likely to arise in connection therewith and the precautions to be observed (Section 35).
All floors, steps, stairs, passages and gangways must be of sound construction and properly maintained, and must, so far as is reasonably practicable, be kept free from any obstruction and from any substance likely to cause persons to slip (Section 36).
Appropriate means for fighting fires which are readily available for use must be provided and maintained, and persons trained in the correct use of such means must be present during all working periods (Section 40).
Adequate means of escape in case of fire must be provided and properly maintained and kept free from obstruction (Section 41).
An adequate supply of clean drinking water must be provided at suitable points which are conveniently accessible to all employees (Section 63).
Adequate and suitable accommodation for employees' clothing not worn during working hours must be provided and maintained (Section 65).
A readily accessible first aid box must be provided and maintained (Section 67).
Where persons are subject to excessive exposure to any poisonous or other injurious or offensive substance, or to any heat, cold or wet, suitable protective clothing and appliances must be provided and maintained for their use (Section 71).

In line with Section 92 of the Factories Act, breach of these provisions is an offence that may incur a fine of up to ZMW 1,800.

Mining operators are often non-compliant with the provisions of the Factories Act, mainly because the act is deemed not to apply to mining operators even though the definition of a ‘factory' is sufficiently broad to encompass mines. In some instances, the labour commissioner advises mining operators to comply with the provisions of the Mines Act and any directives issued by the director of mines safety.

WCA: Section 97 of the WCA provides for the establishment and administration of a workers' compensation fund for the compensation of workers who are disabled by accidents occurring or diseases contracted in the course of their employment. The fund consists of several sources, including amounts which are supposed to be paid by employers upon being issued an assessment of the amount payable. In line with Section 110 of the WCA, every employer other than the government and any employer exempted by the minister of labour under Section 111 is liable to assessment under the WCA.

In line with Section 115 of the WCA, if an assessment is not fully paid by an employer at the time it becomes payable, the defaulting employer will be liable to pay an additional penalty for default of up to 10% per annum of the amount unpaid, as the labour commissioner may determine. If the employer does not pay the money due, the labour commissioner may recover the money as a civil debt (ie, against the employer's assets).

7.2 What reporting requirements apply with regard to mining accidents in your jurisdiction?

Mines Act: In accordance with Section 85 of the Mines Act, a licence holder must inform the director of mines safety of any accident that occurs at an exploration, mining, gold panning or mineral processing area in the prescribed manner and form.

OHSA: The OHSA does not outline any reporting obligations of operators.

Factories Act: In line with Section 76(1) of the Factories Act, where an accident in a factory causes loss of life to a person employed in the factory or disables any such person for more than three days, preventing him or her from earning full wages, the operator of the factory must send written notice of the accident to an inspector appointed under the Factories Act.

In line with Section 76(2) of the Factories Act, where an accident results in the death of the person disabled by the accident, the operator of the factory must send notice in writing to an inspector as soon as the death comes to its knowledge.

In line with Sections 77 and 78, these reporting provisions also apply to dangerous occurrences and industrial diseases in the factory.

WCA: In line with Section 75 of the WCA, an employer must:

report an accident involving a worker to the labour commissioner within three days of gaining knowledge of the accident; and
forward written notice of an accident to a worker to the labour commissioner within three days of receiving such notice.

7.3 What are the potential consequences of breach of these requirements – both for the operator itself and for directors, managers and employees?

Mines Act: According to Section 103 of the Mines Act, if the holder of a mineral processing licence wilfully fails or neglects to send notice of an accident in a mineral processing area to the director of mines safety contrary to the provisions of the Mines Act, it commits an offence and is liable upon conviction to a fine of up to ZMW 30,000, imprisonment for up to one year or both.

In line with Section 114 of the Mines Act, where a legal person is convicted of

an offence, the following individuals will be deemed to have committed the same offence and may be prosecuted and punished accordingly:

anyone who is a director of, or is otherwise concerned with the management of, the legal person; and
anyone who knowingly authorised or permitted the offence.

OHSA: The OHSA does not outline any reporting obligations of operators.

Factories Act: Section 92 of the Factories Act provides that breach of its provisions is an offence that may incur a penalty of up to ZMW 1,800.

In line with Section 91(5) of the Factories Act, where an offence committed by a company, cooperative society or other legal person is proved to have been committed with the consent or connivance of, or to have been facilitated by any neglect on the part of, a director, chairman, manager, secretary or other officer, that person will also be deemed to be guilty of the offence and will be liable to be prosecuted and punished accordingly.

WCA: In line with the proviso to Section 75(1) of the WCA, an employer that fails without reasonable excuse to comply with the provisions of sub-section 1 of Section 75 of the WCA will be guilty of an offence. In line with Section 126 of the WCA, anyone that is guilty of an offence in respect of which no special penalty is provided will be liable upon conviction to a fine of up to ZMW 300, imprisonment for up to three months or both. The WCA does not address the liability of directors, managers or employees.

7.4 What best practices in relation to health and safety should operators consider adopting in your jurisdiction?

OHSA: Best practices relating to the occupational health and safety are as previously outlined in question 7.

Factories Act: Best practices relating to the health and safety requirements that must be observed by factory operators are as previously outlined in question 7.

WCA: Best practices relating to workers' compensation are as previously outlined in question 7.

It is also common practice for mining operators to adopt the International Standards Organization's standards on health and safety.

7.5 Which bodies are responsible for enforcement of health and safety obligations?

Mines Act: Under Section 5(4) of the Mines Act, the director of mines safety is tasked with supervising matters concerning the environment, public health and safety in exploration, mineral processing and mining operations.

OHSA: Section 4 of the OHSA provides for the establishment of the Occupational Health and Safety Institute, which is charged with the administration of the OHSA.

Factories Act: Section 5 of the Factories Act tasks the office of the labour commissioner, under the Ministry of Labour and Social Security, with the administration of the health and safety requirements under the Factories Act.

WCA: Section 12 of the WCA provides for the establishment of the Workers' Compensation Fund Control Board, which is tasked with the administration of the WCA.

7.6 What is the regulators' general approach in regulating the mining sector from a health and safety perspective?

The director of mines safety, the Occupational Health and Safety Institute, the labour commissioner and the Workers' Compensation Fund Control Board all adopt the same approach in regulating the mining sector from a health and safety perspective through a command-and-control approach. Under this approach, the regulators set out the methods, materials and processes through which regulated entities must operate.

8 Processing, refining and export

8.1 What requirements and restrictions apply with regard to the processing or refining (beneficiation) or minerals?

According to Section 12 of the Mines Act, persons that wish to undertake mineral processing in Zambia must obtain a mineral processing licence. Breach of this requirement is an offence that may incur a fine of up to ZMW 1.5 million for a legal person. However, in accordance with Section 38(3) of the Mines Act, the holder of a mining licence for large-scale mining or small-scale mining may construct and operate a mineral processing plant within the licence area without a mineral processing licence.

Section 39(1) of the Mines Act provides that when applying for a mineral processing licence, the applicant must satisfy certain requirements below. In considering the application, the Mineral Licensing Committee must be satisfied of the following:

The applicant has the necessary financial resources and technical competence, and the financing plan is compatible with the programme of mineral processing operations;
The applicant has title to the land over which the application is made or written consent from the surface right holder or mining right holder;
The proposed programme of mineral processing operations is adequate and makes proper provision for environmental protection; and
The applicant has not contravened any provision of the Mines Act or any other relevant written law.

8.2 What requirements and restrictions apply to the export of minerals?

Section 47 of the Mines Act provides that a person may not export any mineral, ore or mineral product without a permit issued by the director of mines.

Section 47(3) of the Mines Act provides that when applying for a mineral permit, the applicant must satisfy certain requirements. In considering the application, the Mineral Licensing Committee must be satisfied of the following:

for a mineral import permit:
- clearance by the national authority responsible for mining in the country of origin; and
- for a conflict mineral, regional certification as confirmation that the minerals are not from a conflict area;
for a mineral export permit:
- a mineral analysis and valuation certificate issued by the director of geological survey;
- a verification report from the commissioner general of payment of the mineral royalty in accordance with Part VII of the Mines Act;
- security clearance by the police;
- the production returns made in respect of the mineral, ore and mineral products by the holder; and
- the mining right or mineral processing licence which is the source of the mineral, ore or mineral product;
for an application for a mineral export or mineral import permit for radioactive minerals, the applicant's compliance with the requirements of the Ionising Radiation Protection Act, 2005; and
such other information as may be prescribed.

9 Taxes and royalties

9.1 What taxes, royalties and similar charges are levied on mining operators in your jurisdiction? How are these calculated?

Under the Charging Schedule of Income Tax Act, the corporate income tax rate applicable to companies carrying out mining operations is 30%.

In addition, in accordance with Section 89 of the Mines Act, mineral royalties for the holders of mining rights are payable at a rate of:

5% on base metals (except copper) and energy and industrial minerals; and
6% for gemstones and precious metals.

Where the mineral is copper, the mineral royalty rate will be:

5.5% of the norm value when the norm price of copper is less than $4,500 per tonne:
6.5% of the norm value when the norm price of copper is between $4,500 and $5,999 per tonne;
7.5% of the norm value when the norm price of copper is between $6,000 and $7,499 per tonne;
8.5% of the norm value when the norm price of copper is between $7,500 and $8,999 per tonne; and
10% of the norm value when the norm price of copper is $9,000 per tonne.

9.2 Are any tax incentives available for mining operators?

The Zambia Development Agency Act (‘ZDA Act') offers a wide range of incentives in the form of allowances, exemptions and concessions. In terms of tax incentives, Section 57 provides that investors that make an investment of at least $500,000 in a priority sector such as mining are entitled to a zero import duty rate on capital equipment and machinery including trucks and specialised motor vehicles for five years.

9.3 What other strategies might mining operators consider to mitigate their tax liabilities?

Fund the company with debt: If a company is funded with debt, it can record the interest paid on such debt as an expense for tax purposes. In Zambia, when a company files its tax returns, the expense incurred for the purpose of generating income is deductible. In this way, the operator can reduce its tax liability.

Set up in a multi-facility economic zone or industrial park: To further stimulate and promote investment in Zambia, the government has reintroduced tax incentives from the 2022 charge year for corporations that set up their operations in multi-facility economic zones (MFEZs) or industrial parks. In particular, where an entity sets up its operations in an MFEZ or industrial park, it will be subject to a zero corporate income tax rate for 10 years from the first year of commencement of operations in the MFEZ or industrial park on profits made on exports. In the 11th, 12th and 13th years, only 50% of the entity's profits will be taxed at the standard corporate income tax rate in the particular charge years; and in the 14th and 15th years, only 75% of profits will be subject to corporate income tax at the standard corporate income tax rate.

9.4 Have there been any significant changes to the taxation rates applicable to mining companies in the last three years?

Yes. The income tax rate was last amended in 2018 and the mineral royalty provisions were amended in 2018 and 2020.

In addition, for the 2022 charge year, the government has reduced the standard corporate income tax rate from 35% to 30% in order to mitigate the effects of the COVID-19 pandemic on businesses. Notably, mining companies already pay corporate income tax at a rate of 30%.

To further stimulate and promote investment in Zambia, the government has reintroduced tax incentives from the 2022 charge year for corporations that set up their operations in multi-facility economic zones (MFEZs) or industrial parks. In particular, where an entity sets up its operations in an MFEZ or industrial park, it will be subject to a zero corporate income tax rate for 10 years from the first year of commencement of operations in the MFEZ or industrial park on profits made on exports. In the 11th, 12th and 13th years, only 50% of the entity's profits will be taxed at the standard corporate income tax rate in the particular charge years; and in the 14th and 15th years, only 75% of profits will be subject to corporate income tax at the standard corporate income tax rate.

With respect to the mining industry specifically, with effect from 1 January 2022, the government has made mineral royalties a deductible expense for the purposes of corporate income tax assessment.

10 Disputes

10.1 In which forums are mining disputes typically heard in your jurisdiction?

In accordance with Section 97 of the Mines Act, anyone that is aggrieved by a decision of the director of mining cadastre, the director of mines safety, the director of mines, the director of geological survey or the Mining Licensing Committee may, within 30 days of receipt of the decision, appeal to the minister of mines. If that person is still aggrieved with the decision of the minister of mines, this decision may in turn be appealed to the Mining Appeals Tribunal within 30 days of receipt. If that person is still aggrieved with the decision of the tribunal, Section 100 of the Mines Act provides that it may appeal to the High Court of Zambia within 30 days of receipt.

In practice, because the tribunal has not yet been established, appeals against decisions of the minister are brought straight to the High Court of Zambia. The current government has advised that steps to set up the tribunal are underway and the tribunal will soon become operational.

10.2 What issues do such disputes typically involve? How are they typically resolved?

Mining disputes often involve issues of overlapping mining areas. They are often resolved by one party being declared the rightful owner of the mining area Normally, the party that obtained the mining right first prevails.

10.3 Have there been any recent cases of note?

Sanhe Mining Zambia Limited v Trumala Balaji (Z) Limited – Appeal 83/2017: This was an appeal of a High Court decision dismissing the appellant's entire action for lack of jurisdiction. The appellant was the owner of a small-scale mining licence and the second respondent was the holder of a small-scale mining licence in the same area and adjacent to the appellant's mine. The appellant commenced action in the High Court claiming:

damages for nuisance and trespass;
an interlocutory and permanent injunction restraining the respondents from entering its mining area; and
a declaratory order that the respondents had no legal right to be in the Kampumba mining area because their licence had expired.

In response, the respondents filed suit to dispose of the matter on points of law pursuant to Sections 98(3) and 100 of the Mines Act, arguing that the matter was one relating to mining or non-mining rights covered by Section 98 of the act, to be dealt with at first instance by the Mining Appeals Tribunal. The respondents further argued that under Section 100 of the act, the High Court was an appellate court. Based on the respondents' arguments, the High Court held that it had no jurisdiction to hear and determine the matter. Dissatisfied, the appellant appealed to the Court of Appeal.

The issue that arose was the import of Sections 96 to 98 of the Mines Act – that is, whether such provisions confer jurisdiction to hear and determine all disputes on the tribunal, thereby stripping the High Court of jurisdiction to adjudicate on the matter before it.

The Court of Appeal adopted a purposive approach when interpreting Section 96 to 98 of the Mines Act. In terms of the import of the provisions, it noted that in line with Section 98 of the Mines Act, the tribunal has jurisdiction to enquire into any matter affecting gold panning, mining or non-mining rights of any person or the government, whether under the Mines Act or otherwise. It equally has jurisdiction to determine disputes relating to compensation. The mining rights that may be granted under the Mines Act are an exploration licence and a mining licence. Non-mining rights that may be granted are:

a mining processing licence;
a mineral trading permit;
a mineral import permit;
a mineral export permit; and
a gold panning certificate.

Further, the court stated that the proposition that the tribunal was confined to hearing appeals only was negated, irrespective of the fact that Section 98 is found in Part VIII of the act, headed "Appeals". The court stated that this did not restrict the provisions in that part to appeals alone. Thus, the tribunal may perform such other functions as may be prescribed by an act or any other written law. At present, the tribunal may inquire into and determine matters that affect mining and non-mining rights law.

However, as the respondents did not file a defence, the averments in the statement of claim for the purposes of the application before the lower court stood unrefuted. These were that the respondents had no small-scale mining licence and this was known to the director of mines. That being the case, the respondents appeared to be mere busybodies and trespassers.

Nevertheless, the court stated that its reading of the Mines Act did not lead to the conclusion that the Mining Appeals Tribunal is endowed with jurisdiction to try cases of trespass and render judgment accordingly. As such, it cannot enjoin a trespasser from continuing to trespass on another's licenced area. Therefore, the High Court has jurisdiction to try cases in which trespass is alleged against a party that has no mining right or non-mining right over the area in question, and that trespasses on or becomes a nuisance to a small-scale mining licence holder. The High Court had therefore erred in holding that it had no jurisdiction to try the case.

The High Court's ruling was set aside and the case was remitted to the High Court for assignment to another judge.

Katenge Resources Limited v Avarmma Mining Corporation Limited – Appeal 173/2017: On 10 August 2015, the minister of mines announced his decision to issue a large-scale prospecting licence for the Katokamena Mine in Kasempa to the people of Kasempa. The first respondent commenced proceedings in the High Court arguing that the decision was unlawful as the mine belonged to it, because it held a large-scale prospecting licence in respect of the mine and was in the process of applying for a large-scale mining licence. Additionally, the first respondent argued that the minister should not have granted another licence in an area which was the subject of an application for an extension of licence. The application was deferred pending submission of an approved decision letter from the Zambia Environmental Management Agency and a comprehensive ore reserve statement.

In response, the appellant averred that:

the first respondent's licence in respect of the mine had expired and had not been renewed;
the first respondent's application for a large-scale mining licence did not meet all requirements of the Mines Act; and
the purported extension for submission was not supported by law.

The lower court held that the applicable law was the repealed Mines Act, as the current Mines Act took effect on 1 July 2015. Therefore, the extension granted by the Ministry of Mines could not be said to have been ultra vires the repealed Mines Act. Additionally, the lower court held that cancellation of the first respondent's licence and grant of another to the appellant was ultra vires the repealed Mines Act and against the rules of natural justice and commercial sense. Accordingly, the lower court cancelled the appellant's large-scale prospecting licence and held in favour of the first respondent. The appellant was dissatisfied with the judgment of the lower court and appealed.

The issues under consideration were whether:

the applicable law was the repealed Mines Act or the current Mines Act;
the High Court had jurisdiction to hear the matter, since the appellant had not exhausted the procedures stipulated in the Mines Act before appealing in the High Court; and
the High Court was in order to hear the matter and cancel the third respondent's licence without affording it an opportunity to be heard, contrary to the rules of natural justice.

The Court of Appeal held that the applicable act was the current Mines Act, which came into effect in 1 July 2015. This is because the appellant's cause of action arose on 10 August 2015, when the minister announced the issue of a large-scale mining licence to the people. A party aggrieved by this decision should thus have followed the requisite procedure under the Mines Act. Section 98 of the Mines Act establishes a Mining Appeals Tribunal, which has jurisdiction to hear complaints about decisions of the minister of mines within 30 days of receipt. Accordingly, the High Court should not have entertained the first respondent's purported appeal, as this did not fulfil the requisite legal provisions for the grievance procedure.

In light of the above, the Court of Appeal held that the lower court should not have proceeded to reserve the matter for a ruling on the same day that it granted leave to the appellants' advocates to withdraw from the record. The appeal was accordingly allowed.

11 Trends and predictions

11.1 What changes have there been to the mining landscape in your jurisdiction in the last five years?

The income tax rate was last amended in 2018 and the mineral royalty provisions were amended in 2018 and 2020.

In addition, for the 2022 charge year, the government has reduced the standard corporate income tax rate from 35% to 30% in order to mitigate the effects of the COVID-19 pandemic on businesses.

With respect to the mining industry specifically, with effect from 1 January 2022, the government has made mineral royalties a deductible expense for the purposes of corporate income tax assessment.

11.2 How would you describe the current mining landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

Following the change in government which occurred in August 2021, the new government is planning a number of reforms to the mining sector in an effort to promote investment to the benefit of the country, while still having regard to the environmental impact of mining and the need to protect the environment. In line with the ministerial statement on the new government's position and strategy for the mining sector, which was presented by the minister of mines on 6 October 2021 in the National Assembly, the following key reforms have been outlined:

The new government plans to introduce changes that will promote greater transparency in the mining sector, and to end the confusion and environmental destruction associated with illegal mining activities.
The new government has been consulting with key stakeholders to review the mining tax policy framework in order to design and develop a fiscal tax regime for the sector that is stable, predictable and competitive, to ensure sustained investment in the sector. The aim is to attract both local and foreign investment in mining and ultimately scale up mineral production in the country.
The new government plans to enhance monitoring and oversight mechanisms and technologies to reliably ascertain the volume and content of mining output for taxation purposes.
The new government is aware that Zambia has abundant mineral resources that can help in achieving its economic transformation. One notable mineral which the government stated can accelerate this transformation is gold. In this regard, the government is developing a legal framework to ensure that mining and trading of gold benefits the local communities in which it takes place.
The new government intends to promote skills development in the processing of gemstones and industrial minerals through centres such as the Gemstone Processing and Lapidary Training Centre in Ndola.
The new government is encouraging exploration activities around the country in order to identify possible greenfield mines that could lead to increased production in the mining sector.
Finally, the new government plans to promote small-scale mining, which is key to improving the livelihoods of local communities, as it has closer links to local economies, generates more local jobs and supports the retention of earnings within the country.

Further, in the 2022 Budget Address by the minister of finance delivered to the National Assembly on 29 October 2021, in addition to those measures outlined above by the minister of mines, the following reforms were outlined:

In a bid to benefit from the expected copper boom, the new government plans to ramp up production. Essentially, the new government will facilitate an increase in copper output from the current 800,000 metric tonnes to over 3 million metric tonnes within a decade. This means that existing mines will be required to produce more, while new mines must be opened.
The new government intends to promote diversification and value addition not only to copper, but also to gemstones, manganese and other high-value minerals such as gold.

The income tax rate was last amended in 2018 and the mineral royalty provisions were amended in 2018 and 2020.

In addition, for the 2022 charge year, the government has reduced the standard corporate income tax rate from 35% to 30% in order to mitigate the effects of the COVID-19 pandemic on businesses.

12 Tips and traps

12.1 What are your top tips for mining operators in your jurisdiction and what potential sticking points would you highlight?

Tips: As in many jurisdictions, the mining industry in Zambia faces many significant challenges. In addition, as global populations and economies grow, demand for minerals is increasing. As a result, mineral extraction and processing are becoming increasingly difficult, and the depletion of the earth's resources and the impact on fragile environments are growing social concerns.

Therefore, in conducting mining activities in Zambia, mining operators should be innovative and willing to invest in mining technology and qualified human resources to ensure that improved and more efficient processes are used to meet the social demands and new opportunities created by growing populations. New technologies and tools on the hardware, transportation and equipment sides can yield significant advantages for industry players – even more so when they are operated by competent and well-trained professionals.

In addition, in carrying out mining operations, sustainable mining practices should be adopted which ensure the longevity of the mineral resources and mitigate the negative impact on the environment. This can be achieved by investing in technological innovations which reduce fuel consumption, emissions, waste and water use in mining operations.

In order to ensure that the technologies in which mining operators have invested remain in good working order, it is important to conduct regular maintenance, including proper lubrication, adequate cleaning and immediate repairs as required. In addition, the tasks of operating and maintaining these machines should be assigned to properly trained individuals.

Success in the mining industry also depends on compliance with all provisions of law, as the regulators may have leeway to interfere with the mining operations of non-compliant operators.

Sticking points: Fluctuations in the price of copper and the instability of the kwacha tend to pose issues for investors, especially in the mining sector.

The mining sector is categorised by high taxes, in terms of both corporate income tax and mineral royalties payable to the revenue authority. While investors are entitled to certain tax incentives, this is only in limited circumstances.

In addition, the instability and unpredictability of the Zambian legal regime create a threat of uncertainty for investors.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Zambia: Mining Comparative Guide

1 Legal and regulatory framework

1.1 Which legislative and regulatory provisions govern mining in your jurisdiction?

1.2 When was the mining legislation last reviewed?

1.3 What other legislative and regulatory provisions have relevance for mining operations in your jurisdiction?

1.4 Are there any regional treaties or laws that need to be taken into account?

1.5 Which bodies are responsible for enforcing the applicable mining laws and regulations? What powers do they have?

1.6 What is the regulators' general approach in regulating the mining sector?

2 Mining industry

2.1 How mature is the mining industry in your jurisdiction?

2.2 What are the key minerals which are mined in your jurisdiction and where is mining activity typically based?

2.3 Are any minerals deemed strategic and, if so, what impact does this have?

2.4 Who are the key players in the mining industry in your jurisdiction?

2.5 In addition to exploration rights and mining rights, what other mining rights and titles exist (eg, artisanal or small-scale mining rights)?

3 Exploration rights

3.1 What licences are required to undertake prospecting and exploration activities in your jurisdiction? Do these vary depending on the type of mineral or the location of the activity?

3.2 What requirements must be satisfied to obtain a licence?

3.3 What is the procedure for obtaining a licence? How long does this typically take?

3.4 Who can own exploration rights in your jurisdiction? Do specific requirements or restrictions apply to foreign operators?

3.5 What fees and other charges are incurred in obtaining a licence?

3.6 What is the duration of a licence? What is the process for renewal?

3.7 What are the operator's rights and obligations under the licence?

3.8 Are there any requirements re relinquishment of an exploration licence or part of the area covered by an exploration licence?

3.9 Can licences be transferred? If so, how and subject to what consents? Do any restrictions or taxes apply to direct or indirect transfers?

3.10 Does an exploration licence give any priority when applying for a mining right?

4 Mining rights

4.1 How is ownership of mining rights determined in your jurisdiction?

4.2 What are the key requirements in order to apply for a mining right?

4.3 What fees and other charges are incurred in obtaining a mining right?

4.4 What is the duration of a mining right? What is the process for renewal?

4.5 Who can own mining rights in your jurisdiction? Do specific requirements or restrictions apply to foreign operators?

4.6 Do any indigenous ownership requirements apply in your jurisdiction?

4.7 What role does the state play in the mining industry in your jurisdiction?

4.8 Are there requirements for the government to enter into a mining development (or similar) agreement in addition to the licences/permits? When is this required or available?

4.9 Can mining rights be transferred? If so, how and subject to what consents? Do any restrictions or taxes apply to direct or indirect transfers?

4.10 Can security be taken over mining rights?

4.11 What provisions apply with regard to closure or abandonment of a mining right?

5 Surface rights

5.1 Does the law of your jurisdiction distinguish between mining rights and surface rights? If so, how does an owner of mining rights acquire surface rights?

5.2 Where surface rights are acquired, what are the operator's rights and obligations as regards the landowner? And what are the landowner's rights and obligations as regards the operator?

5.3 Please give an overview of the process for any mandatory acquisition of surface rights (eg, process and time to enforce).

5.4 Are any native title issues applicable, either at the exploration licence stage or when a mining right is issued?

5.5 Are any other rights needed to use the land (eg, zoning permissions or planning requirements)?

6 Environmental issues

6.1 What environmental authorisations are required to undertake prospecting, exploration and mining activities in your jurisdiction? Do these vary depending on the type of mineral or the location of the activity?

6.2 What environmental obligations must the operator observe while the mine is operational?

6.3 What environmental obligations must the operator observe in relation to closure of the mine?

6.4 What are the potential consequences of breach of these requirements – both for the operator itself and for directors, managers and employees?

6.5 Which bodies are responsible for enforcement of environmental obligations?

6.6 What is the regulators' general approach in regulating the mining sector from an environmental perspective?

7 Health and safety

7.1 What key health and safety requirements apply to operators in your jurisdiction?

7.2 What reporting requirements apply with regard to mining accidents in your jurisdiction?

7.3 What are the potential consequences of breach of these requirements – both for the operator itself and for directors, managers and employees?

7.4 What best practices in relation to health and safety should operators consider adopting in your jurisdiction?

7.5 Which bodies are responsible for enforcement of health and safety obligations?

7.6 What is the regulators' general approach in regulating the mining sector from a health and safety perspective?

8 Processing, refining and export

8.1 What requirements and restrictions apply with regard to the processing or refining (beneficiation) or minerals?

8.2 What requirements and restrictions apply to the export of minerals?

9 Taxes and royalties

9.1 What taxes, royalties and similar charges are levied on mining operators in your jurisdiction? How are these calculated?

9.2 Are any tax incentives available for mining operators?

9.3 What other strategies might mining operators consider to mitigate their tax liabilities?

9.4 Have there been any significant changes to the taxation rates applicable to mining companies in the last three years?

10 Disputes

10.1 In which forums are mining disputes typically heard in your jurisdiction?

10.2 What issues do such disputes typically involve? How are they typically resolved?

10.3 Have there been any recent cases of note?

11 Trends and predictions

11.1 What changes have there been to the mining landscape in your jurisdiction in the last five years?

11.2 How would you describe the current mining landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

12 Tips and traps

12.1 What are your top tips for mining operators in your jurisdiction and what potential sticking points would you highlight?

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