BASIC APPLICATIONS OF THE MINERALS (PROSPECTING AND MINING) ACT 33 OF 1992

BASIC APPLICATIONS OF THE MINERALS (PROSPECTING AND MINING) ACT 33 OF 1992 By A. Iilende, 14/3/11

PURPOSE OF THE PRESENTATION • To highlight problems which the Mining Commissioner’s office has been experiencing with mineral right holders. • To encourage mineral rights holders to follow provisions of the Minerals Act. • To create mutual understanding b/w the Industry and MC’s Office.

MINERAL RIGHTS • In Namibia, Mineral rights vest in the State, Section 2 of the Minerals Act.

WHO MAY APPLY FOR MINERAL RIGHTS • Section 46 • (a) a company, • (b) a Namibian citizen older than 18

Current Licences

Problems with EPL holders • Converting too much areas into ML; • Sealing and implementing partnership agreements without Minister’s consent; • Land locking; • Servicing certain EPLs at the expense of other;

EPLs Continue • EPL holder not giving a comprehensive picture when giving their grievances; • EPL holders running to courts for issues which can be resolved amicably.

General • Applying for areas overlapping other EPLs without notification to pre-existing EPL holders; • But sometimes notification misunderstood; • Suspending exploration or mining activities without Minister’s permission.

SURFACE RIGHTS • Farm owners frustrating mineral rights holders unnecessarily. • EPL holders starting to explore without an agreement with the land owner, Section 52.

Mining Claims • Applicants pegging claims without permission from the land owner, Section 52. • An environmental clearance does not automatically result in the awarding of a mining claim. • Section 33 supersedes clearance • Applicants not supplying corner coordinates, Section 40(3)(a). • Coordinate table attached to the application but ignored by clients.

General • Section 125 abused by some exploration companies • Application to be considered in the same order as they have been received. • It does not say applications to be granted on a first come first served basis.

Section 71 • (1)(b) EPL to be renewed only twice • (2) unless the Minister deems it desirable • (3) EPL does not expire while a renewal application is pending

Section 72(2)(b) • At first renewal, area should be reduced to 75% of the original area. • At subsequent renewals, area should be reduced 50% of the original size.

Section 72 • (2)(a) Renewal application to be lodged not later than 90 days before the expiry date

CESSION OR ASSIGNMENT OF INTEREST • Section 47 (1)(c) • Cession or assignment of any interest in any mineral licence requires the Minister’s approval • This means a foreign based company, which has an interest in a mineral licence in Namibia, cannot be taken over without the Minister’s consent.

Amendments, Sec 47(1)(b) • Mineral Licence can be amended, by changing commodity groups or area size; • commodity groups could also be amended in the case of mining claims

Compliments • Our office thanks exploration companies, especially members of the Chamber of Mines for outstanding exploration reports. • We also thank some mining companies which have incorporated BEE groups in their structures.

SUMMARY • We hope the Industry will in future improve on the issues highlighted in the presentation. • It is incumbent upon the holders of mineral rights to study and understand the Minerals Act.

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BASIC APPLICATIONS OF THE MINERALS (PROSPECTING AND MINING) ACT 33 OF 1992