INTOSAI/WGEI WORKSHOP 24 TH – 26 TH August 2016 Mombasa, Kenya Ministry of Mining The Overview of Mining Law Presenter: Eng. Ngigi Colin
Mining Bill 2014 • The Mining Bill was published in the Kenya Gazette on 17 March 2014 (National Assembly Bill No. 8 of 2014) • It was passed by the National Assembly on 29 th October, 2014 • 16 th September 2015 it was passed by the Senate with amendments and referred to the National Assembly
The Mining Act 2016 • The Bill was assented to on 6 th May 2016 and came into effect on 27 th May 2016 as The Mining Act, 2016 – No. 12 of 2016 • Purpose of the Act is ‘ ...... to give effect to Articles 60, 62 (1)(f), 66 (2), 69 and 71 of the Constitution in so far as they apply to minerals; provide for prospecting, mining, processing, refining, treatment, transport and any dealings in minerals and for related purposes ’
Licensing Regimes Mining Act Cap 306 Mining Act 2016 Prospecting Right Reconnaissance Permit None Artisanal Mining Permit Prospecting Permit Mining Location Mining Permit Exclusive Prospecting Licence Reconnaissance Licence Prospecting Licence Special Licence None None Retention Licence Mining Lease Mining Licence
Mineral Dealings Regimes Mining Act Cap 306 Mining Act 2016 Dealers Licence Dealers Licence (Cap (Unwrought Precious Metals 306, 309) Act, Cap 309) Reprocessing, Value Addition as new additions (Diamond Industry Protection Diamond Dealers Act, Cap 310) Licence
Administration of the Mining Act 2016 Mining Act Cap 306 Mining Act 2016 Commissioner of Mines Scrapped and functions and Geology shared between Directors of Mines and Geological Surveys; and Cabinet Secretary Licensing advisory Mineral Rights Advisory committee Board (legal) (administrative) Representative of Director None of Mines (Artisanal mining)
Benefits Sharing Mining Act Cap 306 Mining Act 2016 Royalty Sharing: National Royalty sharing: 100% (Consolidated Fund) National-70%, County - 20%, Community – 10% State Participation: 10% None free carry interest in large scale mining
Local Content Mining Act Cap 306 Mining Act 2016 Voluntary Community Social Goods and Services Responsibility (CSR) Employment and training Community Development Agreement
State Control of Mineral Resources Mining Act Cap 306 Mining Act 2016 None Strategic Mineral Mineral Agreements No framework (Article 71 of Constitution) None Assets on Termination None Tender for Mineral Rights
Brief on Artisanal Mining • The Mining Act, 2016 recognized the need to formalize artisanal mining and made provisions through sections 92 to 100 • Only Kenyan citizens are eligible for artisanal mining permit • Artisanal mining permit is limited by permit area, mining thoroughput, technology allowed • Permitting processed at county level
Brief on Artisanal Mining • An authorized officer representing the Director of Mines shall work with a committee in processing of artisanal mining permits • The holder of an artisanal mining permit has obligations to submit monthly reports on his operation and to conduct his operations in accordance with mine safety, health and environment regulations
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