ZAMBIA Law and Practice Contributed by: Harriet Mdala, Natasha Lungu, Samuel Muleya and Chanda Musonda-Chiluba, MAY & Company
Social Applicants for mining rights have various social obli - gations under the Minerals Act, including the follow - ing. • Holders of large-scale mining licences must employ and train Zambian citizens in accordance with their employment and training proposals. Additionally, Section 4 of the Minerals Act requires the development of local communities surrounding mining areas, prioritising community needs, health, and safety. It should also be noted that the Commission will issue a mining licence to an applicant under the Minerals Act where, in respect of large-scale mining, the appli - cant undertakes to employ and train citizens and pro - mote local content. An EIA also evaluates the potential social impacts of the mining operations and suggests appropriate miti - gation measures. Governance There are no mandatory governance requirements specifically placed on mining companies. However, it is worth noting that the Minerals Act disqualifies the holding of a mining right to a company which is in liq - uidation, forms part of a scheme for the reconstruction of the company or for its amalgamation with another company, is not incorporated under the Companies Act of 2017 or has not established a registered office in Zambia. It also disqualifies a company whose directors or shareholders become undischarged bankrupts, or have been convicted within the previous five years of an offence involving fraud or dishonesty, or of an offence under other written law within or outside Zambia, and sentenced to imprisonment without the option of a fine. 2.8 Illegal Mining Illegal mining is a major issue in Zambia, with a recent escalation of cases, including illegal gold mining in Kasempa district, as well as the explosive growth of illegal mining sites for minerals in Muchinga, North- Western, Southern, Northern, and Western Provinces.
This is a legal requirement carried out by the devel - oper/investor. 2.5 Impact of Specially Protected Communities on Mining Projects Zambia does not have specially protected communi - ties. 2.6 Community Development Agreement for Mining Projects Community development agreements (CDAs) in Zam - bia are not robust, and community development obli - gations are addressed through the use of business development undertakings, which are required before the issuance of a mining licence. There is a further obligation to conduct mining opera - tions in compliance with the mining right condition, as well as the EIA and the programme of mining operations, which is compliant with the decision let - ter issued. 2.7 ESG Guidelines and Regulations Zambian ESG guidelines are found in a myriad of regulations and policies under the Minerals Act and environmental laws are primarily focused on commu - nity development and environmental protection. Some of these are as follows. Environmental Environmental authorisation is carried out under the Act as read together with the EIA Regulations and other regulations. Under these, exploration, mining or mineral processing is prohibited without an EIA. Fur - thermore, the holder of a mining licence must carry on mining operations, with due diligence and in compli - ance with the programme of mining operations and the EIA. Furthermore, Section 60 of the Minerals Act provides that the conditions under which a mining right is granted or renewed shall conform to specifications and practices established by national standards for the management of the environment as affected by mining or mineral processing operations.
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