ZAMBIA Law and Practice Contributed by: Harriet Mdala, Natasha Lungu, Samuel Muleya and Chanda Musonda-Chiluba, MAY and Company
• that the applicant has undertaken to employ and train citizens and promote local business development; • that the applicant’s feasibility study report is bankable; and • that the applicant has submitted a capital investment forecast. Maintenance Requirements The mining rights established are granted sub - ject to certain conditions. These differ depend - ing on the mining rights. Generally, to maintain the mining licence, holders are required to: • pay annual area charges; • adhere to approved work programmes; • submit various reports; and • contribute to the Environmental Protection Fund, among others. Cancellation Procedure A mining licence can be suspended or revoked for various reasons. The Mines Act specifies these reasons under various provisions. The MCL can suspend or revoke a mining licence where: • the licence was obtained by fraud or submis - sion of false information; • the holder contravenes the Mines Act, any other written law or any terms and conditions of the right; • the holder fails to carry out mining opera - tions in line with the approved plan of min - ing operations and the gross proceeds of sale of minerals from the mining area in any three successive years is 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, pro - duction 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 exploration programme, in the case of a holder of an exploration licence; • the holder has ceased to fulfil the eligibility requirements under the Mines Act; or • the suspension or revocation is in the public interest. However, before the MCL exercises this power, it must give written notice to the holder of the licence of the intention to suspend or revoke the licence. The MCL 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 MCL cannot suspend or revoke a mining licence if the holder takes remedial measures to the satisfaction of the MCL. Where a person is dissatisfied with the decision of the MCL, the Mines Act provides that the per - son can appeal to the Minister of Mines within 30 days. Transferability A mining right like any other property right is transferrable. Section 66 of the Mines Act enti - tles the holder to do so. However, this right is subject to approval from the Minister of Mines and payment of property transfer tax (PTT). Similarly, Section 67 of the Mines Act further requires the consent of the Minister of Mines in order for a transfer of shares in a company hold - ing a mining right to be effected. This consent is required for both direct and indirect transfers.
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