ZAMBIA Law and Practice Contributed by: Harriet Mdala, Natasha Lungu, Samuel Muleya and Chanda Musonda-Chiluba, MAY and Company
the local business development undertaking attached to the mining licence. 2.7 Environmental, Social and Governance (ESG) Guidelines and Regulations Zambian ESG guidelines are found in a myriad of regulations and policies under the Mines Act and environmental laws are primarily focused on community 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 with - out an EIA. Furthermore, an obligation is placed on the holder of a mining licence to develop the mining area, and carry on mining operations, with due diligence and in compliance with the programme of mining operations and the EIA. Furthermore, Section 32 of the Mines Act pro - vides that there will be attached to a mining licence as part of the conditions of the licence the developer’s undertaking for management of the environment in the mining area. Social Holders of mining rights have various social obligations under the Mines Act including the following. • The obligation to develop the mining area which is subject to a mining right. • The obligation for a holder of a large-scale mining licence to employ and train citizens of Zambia in line with the proposal for employ - ment and training attached to the licence. Section 4 of the Mines Act on general prin - ciples for mining and minerals development
provides for the development of local com - munities in areas surrounding the mining area to be based on the prioritisation of commu - nity needs and health and safety. • Section 20 of the Mines Act requires a holder of a mining right, in the conducting of mining operations or mineral processing operations and in the purchasing, constructing, install - ing and decommissioning of facilities, to give preference to Zambian products, contrac - tors and services as well as employ Zambian citizens with relevant qualifications or skills and conduct training programmes for the transfer of technical and managerial skills to Zambians. It should also be noted that attached to a mining licence as part of the conditions of the licence under the Mines Act is the developer’s undertak - ing for the employment and training of citizens and undertaking for the promotion of local busi - ness development. An EIA also evaluates the potential social impacts of the mining operations and suggests appropriate mitigation measures. Governance There are no mandatory governance require - ments specifically placed on mining companies. However, it is worth noting that the Mines Act disqualifies the holding of a mining right to a company which is in liquidation, 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 an undischarged bankrupt or have been convicted within the previous five
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