In Namibia, all mineral rights are vested in the state. The Minerals (Prospecting and Mining ) Act of 1992 regulates the mining industry in the country. Policy has been designed to faciliate and encourages the private sector to evaluate and develop mineral resources. The Mining Rights and Mineral resources division in the Directorate of Mining is usually the first contact for investors, as it handles all applications for and allocation of mineral rights in Namibia. Several types of mining and prospecting licenses exist, outlined briefly below:
· Non Exclusive Prospecting Licenses (NEPL)
Valid for 12 months, these licenses permit prospecting non-exclusively in any open ground not restricted by other mineral rights. Prospectors must furnish the Mining Commissioner on details on all samples removed from the NEPL area.
· Reconnaissance Licenses (RL)
These licenses allow regional remote sensing techniques, and are valid for 6 months (renewable under special circumstances) and can be made exclusive in some instances. A geological evaluation and work plan needs to be submitted to the Mining Commissioner.
· Exclusive Prospecting License (EPL)
Individual EPL’s can cover areas not exceeding 1000 km2 and are valid for three years, with two renewals of two years each. Two or more EPL’s can be issued for more than one mineral in the same area. A geological evaluation and work plan (including estimated expenditure commitments) are a pre requisite prior to issuing of the licenses.
· Mineral Deposit Retention Licenses (MDRL)
These allow successful prospectors to retain rights to mineral deposits which are uneconomical to exploit immediately. MDRL’s are valid up to five years and can be renewed subject to limited work and expenditure obligations.
· Mining Licenses
Can be awarded to Namibian citizens and companies registered in Namibia. They are valid for the life of mine or an initial 25 years, renewable up to 15 years at a time. Applicants must have the financial and technical resources to mine effectively and safely.
Prior to licenses (bar the NEPL and RL ) being issued, all applicants are required to complete an environmental contract with the Department of Environment and Tourism. Environmental impact assessments must be made with respect to air pollution, dust generation, water supply, drainage/waste water disposal, land disturbance and protection of fauna and flora.
MLS Price at posting:
1.3¢ Sentiment: LT Buy Disclosure: Held
