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Copyright © 2007 Somalilandlaw.com. All rights reserved |
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MINISTRY OF WATER & MINERALS
(Decree No.__________) April 2000
THE MINING CODE AND REGULATIONS OF THE REPUBLIC OF SOMALILAND
(All Previous Mining Laws Pertaining to Somali Democratic .... are repealed and replaced wholly by (this) Mining Law No. ______ of 2000)
PART I
Article 1- Summary of the Mining Code and Regulation
Article 2 – Definition
Adit: Means a tunnel of indication of less than Fifteen-(15) degrees in the horizontal which is or might be used for access, travelling, drainage or ventilation in connection with prospecting or mining operations. Agreement: Means a contract between the Government and a person relating to Hydrocarbon or Minerals. Commercial Discovery: Means a discovery of Minerals or Hydrocarbons, which can be produced commercially. Alluvial: Includes all those mineral deposits which occur as detrital grains within the near surface Court: Means a territorially competent court of Somaliland Director: Shall Mean the Director of Geology and Mining To Explore: To carry out surveys, studies and Appraisal of Minerals and Hydrocarbon Government: Means the Government of Republic of Somaliland Holder: Means a person to whom a permit, License or lease has been granted pursuant to this code, and includes his representatives, transferees or assignees. Hydrocarbons: Means all natural organic substances Composed of carbon and hydrogen, including crude oil and natural gas and all other Mineral substance, products and by products and derivatives found in conjunction with the same excluding coal which is considered on Mineral Licence/Lease Area: Means a portion of the geographic Area of the Republic which is subject to a lease/license granted pursuant to this code. Lessee: Means the holder of a lease issued under the provision of this code and includes all persons having a right or interest relevant to the lease Licensed Mineral Dealer: Means a person to whom a mineral Dealer’s license granted under the provision or article 80 of this code. Reef/Lode: Includes all minerals occurring in Solid form Mine/to Mine: Means any place, excavation or Working where any operation in connection with mining is carried on. Minerals: Means any natural occurring substances of economic value that are formed within the earth’s crust and includes slats, water, and geothermal deposits, metals, precious areas & industrial Minerals, excluding Hydrocarbon. Mining Rights: Means the rights to mine as defined in this code and regulations. Minister/Ministry: Means the Minister/Ministry of Mineral & Water resources. Passageway: Means any required facilities for Mining operations Person: Includes a corporation, company, Syndicate or other association or body of persons corporate or unincorporated. Permit Area: Means a portion of the geographic Area of the Republic, which is subject to a permit granted pursuant to this code. Pit/Shaft: Means any vertical or inclined tunnel or excavation other than Adit which is or may be used for access travelling, drainage, or ventilation in connection with prospecting or mining operations. Petroleum: Means all natural hydrocarbons gas, Liquid or solid form produced from the ground. Controller: Means an authorised of by licensed Authority. To Prospect: Means to search for minerals through testing the Mineral bearing qualities of land. Prospecting Rights: Means rights to prospect as defined in this code and the regulations. Regulations: Means the regulations made under this code. Rented Surface Area: Means the area of land within mining Lease area which is occupied by mining work, installation etc., for which a separate rent is prescribed in article 49. Republic: Means the Republic of Somaliland State: Means the Somaliland Government Tailings: Means all stones, gravel, sand, slime or other substance derived from mining operations. Water Course: Means any water channel which confines the flow of water, whether continuously or periodically.
Article 3 Property in and Control of Minerals The entire property in and control of all Minerals in any land/sea territory of the Republic and on or under the sea bed, to a distance of two hundred (200) nautical miles from the low water mark may be determined by agreement or otherwise between the Republic and other states is vested in the state.
Article 4 Delegation of Power The Minister may, by degree, delegate any of his powers conferred by this code or regulation except his powers to grant or revoke a permit license or lease.
Article 5 Powers to close areas to prospecting or mining The Minister may, with the approval of the council of Ministers, by decree, declare any area to be closed to prospecting or mining, for minerals or for environmental reasons for limited time, unless the Minister offers special permit.
Article 6 Land/minerals required for public purpose Whenever any land or mineral being the whole or part of the surfaces of any permit, license or lease area is required for any public purpose. The Minister with the approval of the Council of Ministries, give notice or shall pay reasonable compensation to the holder if agreed, if not agreed between the parties be determined by a court.
Article 7 Revocation of Permits, License or Leases in Cases of fraud and breaches Where any permit, license or lease has been granted in pursuance of this code and found that such grant has been obtained as a result of any false or fraudulent representation or in the case of a breach, the Minister may give notice to the holder later on if the holder fails to comply with the case in specified time the Minister revokes such permit, License or leases with the approval of the Council of the Ministers.
Article 8 Certain persons prohibited from acquiring Rights 1. No member of the Government or civil service, nor any other person associated with the administration of this code or regulations shall directly or indirectly, by himself or by any other person, acquire or hold any right or interest under any prospecting or mining right. Any permit, license, lease, document, or other transaction purporting to confer such right or interest on any such person shall be null and void.
2. No person shall acquire by transfer or through an agent any prospecting or mining right, which he is otherwise barred from obtaining in his own behalf under provisions of this code or regulations.
PART II RIGHTS AND OBLIGATIONS OF HOLDERS OF PROSPECTING AND MINING RIGHTS
Section I – General Rights
Article 9- Rights of Entry, Access, etc. Subject to the provisions of this code and regulations and except as may otherwise be expressly provided in the terms & conditions of any permit, license or lease and subject also to any other law which may prohibit, regulate or restrict the entry into any areas of the Republic, the holder of prospecting or mining rights within the permit, license or lease area may:
a) Enter upon and prospect in any land or under any Water (not excluded from prospecting or mining under Article 6) for such minerals as may be authorised in his permit, license or lease. b) Whilst engaged in bona fide prospecting or mining operations within such area. i) Erect on unoccupied land a temporary camp and such temporary structures & works as may be necessary for his operations, & enter into temporary occupation thereof. ii) Take foreword, other than standing timber, for his domestic use & for his employees, agents or servants. iii) Graze such animals as may be necessary for the carrying out of his operations. c) Dig pits and trenches and bore or drill holes provided that he shall not divert any water from any river stream or water course or abstract water from any lake, pool, or other source of water without the written consent of the competent authority controlling or the owner of such water. d) Employ for such operations any number of people as he may require and such methods of transport as may be necessary.
Article 10 Amalgamations of Permits, etc. 1. The holder of any permits, license or lease, which are contiguous and form a single block, may apply in the prescribed manner to the director to have such permits, licenses or leases amalgamated. Provided that Amalgamation shall not extend to difference classes of permits, licenses or leases or to different holders.
2. The total obligations imposed by this code & regulations in respect of all the permits, licenses or leases thus Amalgamated may then be performed in respect of any one of the holder.
3. Any prescribed returns, reports, & plans may be submitted in respect of the amalgamated block.
Article 11- Holder May Remove Plant, etc., on Termination of Permit, License or Lease 1. Any plant, machinery, engines or tools on the areas of any permit, license or lease which has terminated or which are on any passageways used in connection therewith may, within 90 days from the date of such termination, be removed by the holder or within such further time as the Minister may allow, but he shall not remove any timber from any mine, Adit or shaft except as may be approved by the Director in order to comply with the provisions Item (B) of Article 20.
2. If such plant, engines, engineers or tools aren’t so removed, they may be sold by negotiation or auction by order of the Minister, and the net proceeds of such sale, after deducting the costs thereof and any sum which the holder is required by law to pay to the Government, shall be retained by the Minister, and held until applied for by the holder within a period of twelve months, after which any such sum shall be fortified to the Government:
Provided that where plant, machinery, engines or tools can not be sold negotiation or auction they shall become the property of the state, and may be dealt with in such manner as the Minister may direct.
Article – 12 Right of Passageway 1. If on any permit, license or lease area or on lands outside the boundaries thereof, the holder of the prospecting or mining rights is desirous of obtaining a right of passageway, he/she may apply to the Minister in the prescribed manner for a grant of such right of passage way.
2. If on any application made under the preceding paragraph the Minister is satisfied:
a) That it is necessary for the prospecting or mining operation or for the transportation, treatment, processing or storage of any minerals that the applicant should have the passageway: and b) That it is reasonable for such right to be granted over the particular land, which is the subject of the application, or as may be amended by the Minister with the agreement of the applicant, he may make a grant of right of passageway in the prescribed manner. c)
Article – 13 Duration of Right of Passageway 1. Any passageway acquired under the preceding article shall expire when the permit, license or lease, which it serves, is terminated, and thereupon the holder shall comply with the provisions of articles 11 and 20.
section 2- General Obligations
Article – 14 Surveys 1. Before granting any permit, license or lease or any passageway, and subsequent to such grant should the necessity arise, the Minister may require the area of land to be included or occupied or the boundaries thereof to be surveyed by a Surveyor approved by the Minister; the cost of such Survey shall be borne by the applicant or holder, as the case may be.
2. The Minister may require the boundary of any permit, license or lease or any part thereof to be demarcated in a manner approved by him including the clearing or any vegetation along such boundary, so that it shall be clearly visible, and the holder keep such boundary or part thereof permanently demarcated in such manner.
Article – 15 – Holder to Produce Permit, License, etc. The Holder of any permit license or lease shall produce his permit license or lease whenever demanded by any person having lawful interest in the land on which he is carrying out prospecting or mining operations, or when demanded by a controller Regional Co-ordinators or the Director or any Officer Authorised by him.
Article – 16 – Notice and Security for Compensation Any holder of prospecting or Mining Rights intending to prospect or mine on any land shall, whenever practicable, give notice to the person having lawful interest in such land before commencing operations thereon, and shall, if so require by such person or the Minister, deposit with the Minister such sum, or give security therefore, as the Minister may direct, for the payment of compensation which may be payable under article (17). Such sum or balance thereof (if any) may be refunded or released in accordance with the provision 5 of article 17.
Article –17 - Payment of Compensation 1. The holder of prospecting or mining rights shall, on demand being made by any person having lawful, interest in land where such prospecting or Mining operations are carried on by him, pay such person fair any reasonable compensation for any disturbance of his surface rights, and for any damage done to the surface of the land, or to any livestock, crops, trees, buildings or works, as a result of such operations.
2. The amount of compensation payable under the preceding paragraph shall be determined by agreement between the parties or, if the parties are unable to reach agreement, or if the agreed compensation is not paid, the party having lawful interest in the land may take proceedings before a court.
3. The holder shall pay the sum awarded by such court to the person entitled thereto within fourteen days of the date of communication of the decision.
4. If the sum awarded is not paid within the time specified in the preceding paragraph such sum may, where the party concerned has made a deposit under article 18, on application to the Minister, be paid out of such deposit under the order of the Minister, where no such deposit has been made, the award may be executed pursuant to the law.
5. The Minister, by notice to the holder of prospecting or mining rights who has failed to pay the sum awarded, suspend his mining or prospecting rights, until the sum awarded has been paid, and until the holder has lodged with the Minister such further sum as he may demand as security for any future compensation payable.
6. If such payment or deposit is not made within such time as the Minister may consider reasonable he may revoke the prospecting or mining rights of the holder in default, without prejudice to any further legal proceedings which may be instituted by reason of such default.
Article – 18 – Deposits 1. As a guarantee for the due performance of the obligations imposed by this code or the regulations, any person who has applied for, or is holding prospecting or mining rights, may be required by the Minister to deposit. In addition to any sum lodged under Articles 16 & 17, such sum, or security for like amount in lieu thereof, as may prescribe or the Minister may deny otherwise as .
2. If such person fails to make deposit within the time specified, the Minister may refuse the application, or the prospecting or mining rights revoked.
3. The Minister may, in any case where the depositor has failed, after due notice to meet any obligations imposed upon him by this code or the regulations, take such steps, as may consider necessary to fulfil the obligation, and may expend from any deposit such sum as may consider reasonable to defray any expense incurred by him in so doing.
4. Where any depositor portion thereof is so expended, the Minister may require the deposit or to make good such deposit or portion. Failure to do so may render any prospecting or mining rights, in respect of which the any deposit was made, liable to revocation by the Minister.
5. Where upon the termination of all interest in any prospecting or mining rights, in respect of which a deposit has been made, the permit, license or lease is produced to the Minister and the termination of such interests is duly recorded, then the person by whom such deposit was made may make written application to the Minister for the refund or release of such deposit or balance thereof and, upon production of satisfactory evidence by the applicant, the Minister shall authorise such refund or release to be made:
Provided that such refund or release is made without prejudice to any claim or proceeding existing, or which may arise through the breach by the holder or his agents or servants of any of the provisions of this code or regulations, or existing or arising from any other cause.
6. Subject to the provision of Article 26, where the interest of a depositor in any permit, license or lease is terminated by transfer, no refund or release shall be made until the transferee has made a like deposit of such sum as the Minister may demand.
Article – 19 - Records of Prospecting and Mining Operations 1. The holder of prospecting or mining shall keep on the permit, license, or lease area or such other place in the Republic as the director approve, full and accurate records, plans and maps of his prospecting and mining operations, and shall render to the director such returns, reports and plans as may be prescribed, or as, may be required under the terms or conditions of his permit, license or lease.
2. One half of the cores of any drill-holes shall be preserved by the holder, together with proper geological logs and records, Thereof, during the currency of such permit, license or lease and on the termination thereof such core portions, logs and records shall be made available to the Ministry.
3. If the holder fails to comply with the requirements of this Article, the Minister may, without prejudice to any other penalty for which the holder may be liable, refuse to entertain any application by such holder for any permits, license or lease.
Article – 20 - Obligations on Termination of a Permit, License or Lease The holder, of a permit, license or lease, which has terminated shall, not later than 30 days from the termination date:
a) Submit the permit, license or lease to the Minister for cancellation; b) Fill in and remove all shafts, pits or other excavations and all beacons for marking respectively to the satisfaction of the Director. c) Forward to the Director all plans both of surface and underground working, topographical, geological or assay plans, borehole core logs and other records of the area over which rights are terminated. d) Restore all disturbed to original landscape
Article – 21 – Liability Incurred Before Termination of Permits, etc. Termination of any permit, license or lease for whatsoever reason, including transfer and surrender shall not affect in any way any liability incurred by the holder before such termination takes effects.
Article – 22 – Appointment of Agents 1. When the holder is not personally residing on or sufficiently near his permit, license or lease area so as to maintain continuous supervision of any prospecting or mining operations in progress, he shall appoint an agent, who shall be approved/rejected by the Director on the basis of conditions pursuant to the code and regulations.
2. Any change in the appointment of an agent shall be notified to the Director forthwith.
3. Such appointment and approval shall in no way absolve the holder from any of his obligations and responsibilities under the provisions of this code or the regulations.
4. Every holder of an exclusive prospecting license, mining permit or lease, and every holder, of an oil, exploration, prospecting permit or mining lease when not resident in the Republic, or when such holder is a syndicate or company with it’s head office elsewhere than in the Republic, shall appoint an agent resident in the Republic at all times to represent the holder in all matters relating to any prospecting and mining operations, including the obligations imposed by this code or regulations, and the terms and conditions of such permit, license or lease.
5. A copy of the power of attorney duly signed by the agent in acceptance of his appointment shall be sent immediately to the Minister for record, and any subsequent documents by which such power of attorney is altered shall similarly be signed and submitted to the Minister.
PART III PROSPECTING AND MINING FOR MINERALS OTHER THAN HYDROCARBON
Section 1 – Prospecting Permit
Article 23 No Prospecting Without Permit No person shall prospect for minerals other than Hydrocarbon without a prospecting permit issue under the provisions of this part.
Article 24 “Grant of Prospecting Permit” 1. The Minister may on application in the prescribed manner grant a prospecting permit in the prescribed form to any individual who:
a) Has attained the age of 21 years; b) Is able to prove to the satisfaction of the Minister, or other Authorised Officer, that he can understand the provisions of this code and regulations to such an extent as to unable him to carry out the obligation imposed by them
2. The Minister may issue a prospecting permit for all minerals, which are open to prospecting or for such minerals or class of Minerals, as he deems fit. He may restrict the rights under any prospecting permit by endorsement thereon, either in respect of certain minerals, or, class of minerals, or in respect of any specified area or areas in the Republic.
3. When prospecting is to be carried out by corporation company syndicate, partnership, society, or other body, such body shall employ an individual or individuals, as its prospecting agent. The prospecting permit shall be in the name of such individual as agent for such body.
4. When application is made for prospecting permit to be issued to an individual to act as an agent for another person:
a) Such person shall complete and undertaking in the prescribed form to be responsible for the acts and omissions of the individual who shall also be responsible for his own acts and omissions: b) The individual shall surrender for cancellation any valid prospecting permit he may hold in his own behalf.
5. The Minister may refuse to issue a prospecting permit to an individual who, or whose employer has previously:
a) Held any prospecting or mining right, which has been revoked. b) Being convicted of an offence against this code or regulations or of an offence against laws relating to the employment of labour.
Article 25 “Duration and Renewal” A prospecting permit shall remain enforce for one year from the date of issuing, and may be renewed on application in the prescribed manner for further periods of one year each.
Article 26 “Prospecting Permit Not Transferable” A prospecting permit shall not be transferable.
Article 27 “Rights and Obligations under a Prospecting Permit” 1. Subject to the provision of this code and regulations and to any conditions on his prospecting permit, the holder of the prospecting permit may prospect on any land, not otherwise closed to prospecting, for such minerals as are endorsed on his permit.
2. The holder shall be present at site of any prospecting or other operations being carried out under the authority of this prospecting permit, but may employ at such site such persons working under his direct supervision as may be necessary for such operations, such persons shall not require prospecting permits.
3. The holder may, in the prescribed manner demarcate and apply for an exclusive prospecting license, mining permit or mining lease.
Section 2 “grant of an exclusive prospecting license exclusive”
Article 28 “Grant of an Exclusive Prospecting License” 1.The Minister may, on application in the prescribed manner by the holder of the prospecting permit, and on being satisfied that applicant has sufficient capital to ensure proper prospecting of the area applied for, grant an exclusive prospecting license in the prescribed form.
2.The Minister may, after approving the grant of the license, authorise where to begin on the license area, bending the issue of the license.
Article 29 “License Area, Duration and Renewal” The area of an exclusive prospecting license shall not exceed eight square miles which will be valid for one year, and may, on application prescribed manner renewed by the Minister at his discretion, by endorsement thereon, for further terms of one year each up to a maximum of five years duration.
Article 30 “Rights on obligations under an exclusive prospecting license” 1. Subject to the provisions of this code and regulations and to the terms and conditions contained in the exclusive prospecting license, the holder shall have the sole right of prospecting within a license area for such minerals as may be authorised in the license.
Provided that such right shall not extend to the area of any other license, permit or lease lying within the boundaries of the license during the currency of such other license, permit or lease.
2. The holder may apply in the prescribed manner for the grant of a mining permit or mining lease within the license area.
3. Throughout the currency of the license the holder shall continuously carryout prospecting operations within the license area to the satisfaction of the director, unless suspension of such operations has been authorised by the Minister in the prescribed manner.
Article 31 “Transfer of license” The holder of an exclusive prospecting license or any interested therein shall not transfer his license or any such interest without the prior written approval of the Minister
Article 32 “Surrender of license”
An exclusive prospecting license may be surrendering in the prescribed manner at any time on giving thirty (30) days notice to the Minister:
Provided that where the holder desires to surrender a part of the license area, he shall apply in the prescribed manner for approval of the Minister.
Section 3 – Mining Permit
Article 33 “No Mining without Mining Permit or Lease” Same as provided by Article 8, no person shall mine minerals other than hydrocarbons without the Ministry Permit or Mining Lease issued under the provision of this part.
Article 34 “Grant of Mining Permit” 1. The holder of a valid prospecting permit or exclusive prospecting license may apply to the Minister on the prescribed manner for a grant of mining permit: if the Minister is satisfied that application is prima facie in order, he shall grant the mining permit in the prescribed form to the applicant as authorised in the prospecting permit or exclusive prospecting license.
Article 35 “Duration and Renewal”
A mining permit shall be valid for one year from the date of the demarcation, and may be renewed in the prescribed manner for further periods of one year each, subject to the Minister being satisfied the other requirements of this code and regulations have being met, and that mining operations are being carried on in a safe and satisfactory manner.
Article 36 “Conversion to Lease” Where, in the opinion of the Minister, the scale of the operations on a mining permit or permits is of such a scale to warrant the grant of a mining lease, he may require the holder to apply for a lease, and such lease shall be granted, but subject to such terms and conditions that the Minister may think fit.
Article 37 “Rights and Obligations of the Holder of Mining Permit” 1. Subject to the provisions of Articles 16 and 19, the holder of a mining permit, shall, within the permit area, have the right;
a) To prospect for and to mine such minerals as may be specified in the permit b) Subject to the provisions of part five (part V), to dispose of such minerals. c) To make all necessary excavations.
d) To stack and subject to the provisions of Article 96 to dump any of the product of mining. e) To erect permanent houses, buildings, engines, machinery, and other works and to make such passageways as may be necessary for the mining operations.
2. The holder shall throughout the currency of the permit carry on mining operations continuously within the permit area to the satisfaction of the Minister:
Provided that the Minister may, on application in the prescribed manner authorise the holder to suspend work within the permit area for periods not exceeding ninety days (90) where he is satisfied that circumstance make it desirable to do so.
Article 38 “Transfer of Permit or Shares” 1. Subject to the approval of the Minister, which shall not be unreasonably with held, and to the provisions of Article 11, the holder may transfer his mining permit or permits in the prescribed manner. 2. Subject to the approval of the Minister which shall not be unreasonably with held, the holder may by instrument in writing divide his interest in any mining permit into such shares as he shall think proper, but not exceeding 12 in number, and may transfer such shares, and the rights and interests in the permit in the prescribing manner.
3. When the transfer of shares in a permit is effected, all or any of the shareholders may be held responsible for the obligations imposed by this code or regulations, unless otherwise provided in the instrument creating the shares.
Article 39 “Surrender of Permit” A mining permit may be surrendered at any time by notice to the Minister and submission of the permit for cancellation, together with the confirmation required by Article 20.
Article 40 “Revocation of Permit” Without prejudice to the generality of Articles 6 and 7, a mining permit shall be liable to revocation:
a) If subsequent to its grant it’s found that the area was not properly demarcated prior to application. b) If the holder ceases work for a period exceeding (14) days in any month without the authority of the Minister, or if failure to submit of any prescribed return or report. c) If after due warning in writing the holder fails to maintain the beacons demarcating the area; d) If the holder fails to keep proper records and accounts of his operations as required by Articles 19 and 71.
Section 4 - Mining Lease
Article 41 “Grant of Mining Lease” 1. Where the holder of a prospecting permit, exclusive prospecting license or mining permit in the course of his exploration and operations discoveries deposits of minerals of sufficient size and has carried out development work or preparations for mining, or such other prospecting work as in his opinion indicates a reasonable probability of steady and continuous production for a period of at least five years, such holder may, in the prescribed manner, apply for the grant of a mining lease.
2. If the Minister is satisfied with the evidence submitted and is further satisfied:
a) That the applicant has or can command sufficient capital for the proper development of a mine; b) That a market exists or can be found for the products, the Minister may, with the approval of the Council of the Ministers, grant a mining lease in the prescribed manner, subject to such conditions as he may think fit.
Article 42 “Duration and Renewal” 1. The initial term for mining lease shall not be less than (5) years and not more than (21) years.
2. Not less than (6) months before the end of the term granted the lessee may apply in | |||