Cooperation on new minerals bill

The Minerals (Prospecting and Mining) Act, promulgated in 1992, needs reviewing to keep up with the new knowledge, trends and leading practices, and to create or maintain a competitive environment for investment for the benefit of all Namibians.

This according to mining commissioner Isabella Chirchir, who said the mines and energy ministry's internal review of the draft minerals bill is underway.

This is the culmination of about 20 years of efforts to amend the existing law, she said. Regional stakeholder meetings are planned, as well as more engagements with the Chamber of Mines of Namibia.

Allaying fears, the mining commissioner and her deputy Erasmus Shivolo both affirmed that the bill won't change much of the core of the long-standing legislation, but will instead focus on providing the minister with more powers to make regulations.

Recently, Chamber of Mines of Namibia CEO Veston Malango said the preparation of the new minerals bill has been a long process, but “it is above board and we are heavily involved in that”. He added that members of the chamber would have loved for it to be concluded already and that the chamber has even offered technical assistance to help with drafting the bill.

Assistance has also been offered to draft the envisioned licencing regulations, he said, agreeing that the amendment is necessary. Other recommendations contained in the bill include application cost adjustments, relaxation of exclusivity for reconnaissance licences and exploration licences, small-scale mining on mining claims and exclusive prospecting licence areas requiring mineral agreements, and lifting the cap on royalties from 5% to 10% for minerals other than diamonds, upon which the 10% cap already applies.

The new law would prohibit ministry employees from acquiring rights for 12 months after leaving the ministry, while new provisions include enforcing at least 5% Namibian ownership in mining companies, requiring a production percentage stays in country for local beneficiation, as well as mine closure financing and rehabilitation responsibilities.

It would also introduce a small-scale mining permit. Furthermore, the new bill is expected to define levies, charges and fees that may be deducted from royalty payments, which the ministry said were sometimes inflated in the past.

A new mineral dealer’s licence or permit will also be introduced for buying, selling and exporting Namibian minerals. However, many aspects of the bill are dependent on what the awaited National Equitable Economic Empowerment legislation will entail.