ZAMBIA Law and Practice Contributed by: Harriet Mdala, Natasha Lungu, Samuel Muleya and Chanda Musonda-Chiluba, MAY & Company
• that the applicant has undertaken to employ and train citizens and promote local business develop - ment; • that the applicant’s feasibility study report is bank - able; and • that the applicant has submitted a capital invest - ment forecast. Maintenance Requirements The mining rights established are granted subject to certain conditions. These differ depending on the min - ing rights. Generally, to maintain the mining licence, holders are required to: • pay annual area charges; • payment of the relevant taxes (including mineral royalties) • adhere to approved work programmes; • submit various reports; • comply with the Minerals Act and other relevant legislation; and • contribute to the Environmental Protection Fund, among others. Cancellation Procedure A mining licence can be suspended or revoked for various reasons. The Minerals Act specifies these rea - sons under various provisions. The Commission can suspend or revoke a mining licence where: • the licence was obtained by fraud or submission of false information; • the holder contravenes the Minerals Act, any other written law or any terms and conditions of the right; • the holder fails to carry out mining operations in line with the approved plan of mining operations and the gross proceeds of sale of minerals from the mining area in any three successive years are less than half of the deemed turnover applicable to the mining licence in each of those years; • the holder gives false information on the recovery of ores and mineral products, production costs or sale; • the holder fails to pay annual area charges; • the holder fails to pay mineral royalty; • the holder fails to execute the approved explo - ration programme, in the case of a holder of an exploration licence;
• the holder has ceased to fulfil the eligibility require - ments under the Minerals Act; or • the suspension or revocation is in the public inter - est. However, before the Commission exercises this power, it must give written notice to the holder of the licence of the intention to suspend or revoke the licence. The Commission must also give reasons for the intended suspension or revocation and require the holder to show, within 60 days, why the licence should not be suspended or revoked. The Commission cannot suspend or revoke a mining licence if the holder takes remedial measures to its satisfaction. Where a person is dissatisfied with the decision of the Commission, the Minerals Act provides that the per - son can appeal to the Mining Appeals Tribunal within 30 days. Transferability A mining right, like any other property right, is transfer - able. Section 46 of the Minerals Act entitles the holder to do so. However, this right is subject to approval from the Commission and payment of the property transfer tax (PTT). Similarly, Section 47 of the Minerals Act further requires the consent of the Commission in order for a transfer of shares in a company holding a mining right to be effected. This consent is required for both direct and indirect transfers. Protection of the Right to Property The security of tenure of mining rights is also guaran - teed under the Constitution. As property, mining rights receive constitutional protection under Article 16. This provision protects a holder from being deprived of property without compensation.
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