Example 21.3.1:

Article [_]

(1) In the case of discovery of a mineral not included in the license granted, the licensee shall:

(a) Secure the area where the mineral was discovered, not allowing third parties to access it without the permission of the Licensor.

(b) Mark the area in the way established by the governing agency, to identify the site.

(c) Immediately stop the exploitation of the mineral not covered by the license granted.

Example 21.4.1:

Article[_]

(1) If in the course of exercising his rights the holder of a mining license discovers any other mineral to which such license does not relate, he shall, within thirty calendar days after such discovery, notify the [Regulating Entity] giving particulars of the deposits or the mineral discovered, and the site and circumstances of the discovery, and may apply to the [Regulating Entity] to have the mining of such deposits or such mineral included in his mining license, giving in the application a proposed program of mining operations in respect of that discovery.

Example 21.4.2:

Article [_]

(1) If in the course of exercising his or her rights under a mining lease the holder of the mining lease discovers any mineral for which the lease does not relate, he or she shall, within thirty days after the discovery, notify the [Regulating Entity] of the discovery, giving particulars of the mineral discovered and the site and circumstances of the discovery; and the holder of the lease may apply to the [Regulating Entity] to have the mining of such mineral included in his or her mining lease, giving in his or her application a proposed program of mining operations in respect of the discovery.

(2) Where the holder of a mining lease does not wish to develop a newly discovered mineral or minerals, and it is in the national interest to do so, the [Regulating Entity] may grant a mineral right under this Act to a third party subject to the reasonable rights of the holder.

Example 21.5.1:

Article [_]

(1)The provisions of this Act relating to exploration, and mining of minerals shall apply to radioactive minerals with such modifications as are provided in this Part and as may be prescribed in the Regulations

(2) Where any radioactive mineral is discovered in the course of exercising any right under this Act or any authority under any other enactment, the holder of the mineral right or such other authority shall immediately notify the [Regulating Entity], but in any case, not later than seven calendar days after the discovery.

(3) Where any radioactive mineral is discovered on any land other than land subject to a mineral right, the owner or lawful occupier of the land shall as soon after he is aware of such discovery notify the [Regulating Entity].

(4) The holder of a mineral right in respect of a radioactive mineral shall within the first week of every month, furnish the [Regulating Entity] with a report, in writing, of the exploration and mining operations conducted by him in the immediately preceding month.

(5) No person shall explore for or mine or treat or possess or export or import or otherwise dispose of any radioactive mineral except under and in accordance with the terms and conditions of a permit granted by the [Regulating Entity].

(6) A permit issued under subsection (5) shall be in such form and shall be subject to the payment of such fee as the [Regulating Entity] may prescribe.

Example 21.5.2:

Article [_]

(1) If required for the safety of the public, the President of the Republic may, by Decree, and on the recommendation of the [the Regulatory Authority], in accordance with the opinion of the [Geology Division], declare a mineral substance to be "reserved" and hence subject to special rules.

(2) A Decree which classifies a mineral substance as a "reserved" shall specify the rules and provisions which the substance is subject to. The declaration shall be published in the [Official Gazette].

(3) Thorium and uranium ores and, in general, all radioactive ores shall fall under the rules for reserved materials provided for in the above paragraphs of the present Article.

Example 24.1.1:

Article [­_]

(1) Any natural person or legal entity with the required technical and financial ability to carry out reconnaissance surveys for indicators, and prospecting for mining and quarry materials, may carry out said activities under the terms of the present Act. A Decree of the [President] shall specify what is meant by "technical and financial capacities."

(2) Persons or companies which are subject to international sanctions or criminal investigations related to fraud, corruption or money laundering may not obtain mining or quarrying titles.

(3) No natural person may obtain or hold a mining title or permit in the event that:

(a) they suffer from a legal disability preventing them from acting in their own name; or

(b) they have been imprisoned for violating the provisions of the present [Code][Act][Law] and its implementing regulations.

Example 24.1.2:

Article [_]

A qualified applicant for a Prospecting/Reconnaissance Permit is-

(a) a citizen of [Country] with legal capacity and who has not been convicted of a

criminal offence; or

(b) a body corporate duly incorporated under the [Companies Act]; or

(c) a Mining Co-operative.

Article [_]

(1) The following persons shall not be eligible to obtain or hold licences set forth in this [Law][Act][Code]:

(a) The President, Vice-Presidents, Ministers, Chief Justice and members of Supreme Court, Attorney General, members of the National Assembly, Heads and members of the Independent Government Commissions, Governor of the Central Bank and General Director of National Directorate of Security, Provincial Governors, Mayors, and General Directors of the Government Independent Agencies, advisors, experts and Deputy Ministers of the [Mining Regulating Authority] and their relatives up to the second degree of consanguinity or by marriage.

(b) Judges, Prosecutors, Members of Provincial and District Councils, any Employee of the Ministry [in charge of Defence] or Ministry [in charge of Interior Affairs] or of the General Directorate of National Security, advisors, as well as experts and staff of the Commission, stipulated in [relevant article] of this [Law][Code][Act] (describing the membership of the Commission that reviews all licencing decisions and mining agreements, among other things);

(c) Any person who has been declared bankrupt and who continues to be bankrupt under the laws of [Country];

(d) Any person whose licence has been prematurely revoked, based on justifiable reasons, by the [Regulating Authority] prior to the expiry of the licence term.

(e) Companies in which the listed figures in (a) above, have obtained or will imminently obtain direct or indirect benefits;

(f) A natural person who has been convicted by a court of competent jurisdiction to more than ten (10) years in prison or has been convicted of administrative corruption and who has completed his or her prison term but has not yet had his or her prestige restored;

(g) Any legal person which is under a liquidation process, unless the liquidation is for the restructuring of such legal person;

(h) Any legal person that is subject to an order of dissolution issued by a court of competent jurisdiction;

(i) Any legal person in which one or more of its major shareholders, members of the executive board or members of its board of directors would be legally disqualified.

(j) Where one or more major shareholders of a legal person has been convicted of violation of the provisions of this [Law][Act][Code]; and/or

(k) Any major shareholder of a legal person or a member of its executive board is an existing employee of the [Petroleum Regulating Authority].

(2) Any person whose licence has been revoked, may not re-apply for all or part of its revoked Licence Areas for two years from the date of revocation;

(3) A major share for the purpose of this [Law][Act][Code] means ten percent or more of the total shares of a company.

(4) Any person stipulated in subsections (a) and (b) of Paragraph (1) of this Article may obtain a Licence or Contract provided for in this [Law][Act][Code] five years after termination of their term in office.

Example 24.2.1:

Article [_]

(1) An application for the grant of a prospecting/reconnaissance licence shall be submitted to the Mining Cadastre Office in the prescribed form and-

(a) shall contain the registered name and place of incorporation of the company, its certificate of incorporation and certified copy of its memorandum and articles of association, the names and nationalities of its directors and the name of every shareholder who is the beneficial owner of five percent or more of the issued share capital;

(b) shall contain the company profile and history of reconnaissance and exploration operations in Sierra Leone and elsewhere;

(c) shall identify the name and qualifications of the person responsible for supervising the proposed programme of reconnaissance operations;

(d) shall be accompanied by a plan of the proposed reconnaissance licence area over which the licence is sought, drawn in such a manner and showing such particulars as prescribed;

(e) shall be accompanied by a description of the contiguous blocks comprising the proposed reconnaissance licence area, identified in the prescribed manner, which shall be considered definitive should there be any discrepancy with the plan submitted under paragraph (d);

(f) shall be accompanied by a statement giving particulars of the technical and financial resources available to the applicant, and a certified copy of its audited accounts for the year immediately preceding the application;

(g) shall be accompanied by a proposed programme of reconnaissance operations as prescribed setting out in detail the work intended over the next twelve month period together with the estimated cost, with details of the equipment expected to be used in connection with it and the names and particulars of the persons to be responsible for the conduct thereof;

(h) shall state the period applied for which shall be no longer than one year;

(i) shall give details of any mineral right held within Sierra Leone by the applicant or by any person controlling, controlled by or under joint or common control with the applicant;

(j) shall provide details of any significant adverse effects which the carrying out of the programme of reconnaissance operations would be likely to have on the environment and on any monument or relic in the proposed reconnaissance area and an estimate of the cost of combating such adverse effects;

(k) shall give or be accompanied by a statement giving particulars of the applicant’s proposals with regard to the employment of [national] citizens; and

(l) may set out any other matter which the applicant wishes the [Regulating Authority] to consider.

Example 24.2.2:

Article [_]

(1) Applications for prospecting permits as provided for in Articles [_] and [_] (on the authority to grant a prospecting permit and its scope) above are to be sent to [the regulatory authority] and must include:

(a) an application, duly signed by the managing director of the company requesting the mining title;
(b) the company's constitutional documents;
(c) the composition of the management team and the positions of its members;
(d) the comprehensive technical programme:
(e) the details of the financial outlay per item;
(f) the detailed business card for the company, along with the latest balance sheet for the financial year for said company:
(g) what the company requires locally.

(2) An application for a prospecting permit is to be drawn up in two original copies, one of which must be stamped, in the case of a general application, and in four original copies, two of which must be stamped, if it relates to substances in categories [_] as provided for in Article [_] (on the classification of mineral substances). It shall indicate the extent of the area and the minerals applied for.

Example 24.3.1:

Article [_]

A decision of the [Regulating Authority] denying the issuance of a prospecting/reconnaissance licence shall not be subject to reconsideration or appeal.

Example 24.3.2:

Article [_]

(1) A decision of the [Regulating Authority] denying the issuance of a prospecting/reconnaissance licence shall state the reasons for the decision. The party whose application for a prospecting/reconnaissance licence has been rejected may, within ten business days of receipt of notice of the decision, submit to the [Regulating Authority] a request for reconsideration of the decision, in writing, together with relevant documentation and arguments in writing.

(2) The [Regulating Authority] shall issue its decision on reconsideration, stating the reasons therefore, within thirty (30) days of the filing of a timely request for reconsideration.

(3) If the decision on reconsideration affirms the initial decision of denial, the applicant may appeal the decision on reconsideration in writing together with relevant documentation, to the [Administrative Reviewer] within fifteen (15) business days of receiving such decision.

(4) The [Administrative Reviewer] shall issue his or her decision on appeal in writing, stating the reasons therefore; and said decision shall be notified to the applicant within thirty (30) days of the filing of a timely appeal.

(5) If the decision of the [Administrative Reviewer] on appeal affirms the initial decision of denial, the applicant may, within 45 days of receiving notification of the decision on appeal, apply to the [Judicial Reviewer] for review of the decision and seek such remedy as the [Judicial Reviewer] is empowered to grant.

(6) The filing of a request for reconsideration or appeal of the initial decision of denial does not suspend the administrative decision denying the application unless so ordered by the [Regulating Authority] or the [Administrative Reviewer], as the case may be.

Example 24.4.1:

Article [_]

A prospecting/reconnaissance licence area shall not exceed ten thousand (10,000) square kilometres.

Example 24.4.2:

Article [_]

(1) The area of land in respect of which a reconnaissance licence may be granted shall be a block or any number not more than five thousand contiguous blocks each having a side in common with at least one other block the subject of the application.

(2) For purpose of this [Act][Code][Law], the surface of the Earth shall be deemed to be divided in accordance with the co-ordinates represented in the official maps of [Country] held at the [Regulating Authority] at a scale of 1:50,000,

(a) by the meridian of Greenwich and by meridians that are at a distance from that meridian of 15 or a multiple of 15 seconds of longitude,

(b) by the equator and by parallels of latitude that are at a distance from the equator of 15 or a multiple of 15 seconds of latitude, into sections (“geometric sections”) each of which is bounded,

(c) by portions of those 2 meridians that are at a distance from each other of 15 seconds of longitude, and

(d) by portions of 2 of those parallels of latitude that are at a distance from each other of 15 seconds of latitude.

(3) For purposes of this [Act][Code][Law]

(a) a geometric section that is wholly within [Country] constitutes a block and

(b) where only part of a geometric section is within [Country], that part constitutes a block.

Example 24.5.1:

Article [_]

(1) A Prospecting/Reconnaissance Permit shall be granted subject to the covenants and conditions that the holder thereof shall-

(a) carry out prospecting/reconnaissance on a non-exclusive basis;

(b) not engage in drilling, excavation or other sub-surface techniques;

(c) submit information and such periodical reports as may be prescribed by the [Regulating Authority];

(d) conduct reconnaissance activities in an environmentally and socially responsible manner as may be prescribed by the [Regulating Authority]; and

(e) compensate users of land for damage to land and property; and pay the fees prescribed by regulation.

(2) The activities allowed under a Prospecting/Reconnaissance Permit together with corresponding environmental and social obligations shall be further specified in regulations.

(3) Prospecting/Reconnaissance activity authorised by a Prospecting/Reconnaissance Permit shall not constitute a land use right for the purposes, objectives, rents, fees and requirements of the [Land Use Act].

Example 24.5.2:

Article [_]

(1) No prospecting/reconnaissance licence shall authorise the holder of the licence to prospect over an area of land that is, or forms part of -

(a) An exploration area, a mining area, a retention area or a location licence area; or

(b) a forest reserve, game reserve, national park, or an urban centre, unless the holder of the prospecting/reconnaissance licence has first given notice to and obtained permission from the relevant authorities and complies with any conditions imposed by such authorities.

(2) Where it is necessary to fly over any land for the purpose of exercising any right under a prospecting/reconnaissance licence, nothing in this section shall prevent any such flight from being undertaken, provided it is in accordance with the provisions of [relevant section] (requiring compliance with other applicable laws) of this [Act][Code][Law].

(3) The holder of a prospecting/reconnaissance licence shall-

(a) subject to section (1) of this article, carry on prospecting/reconnaissance operations in accordance with the licence;

(b) submit to the [Regulating Authority] quarterly, or at such other intervals as may be prescribed, geological and financial reports and such other information as may be prescribed by regulation;

(c) report any mineral discovery to the [Regulating Authority]; and

(d) remove on or before the expiration of the prospecting/reconnaissance operations, any camps, temporary buildings or installations which may have been erected; and shall repair or make good any damage caused to the surface of the land to the satisfaction of the [Regulating Authority].

Example 24.6.1:

Article [_]

(1) Subject to this [Act][Code][Law] and the conditions of a reconnaissance licence granted under this [Act][Code][Law], the holder of a reconnaissance licence, his employees, servants or agents shall have the non-exclusive right to carry on reconnaissance operations in the reconnaissance area.

(2) For the purpose of exercising the right conferred under subsection (1), the holder of a reconnaissance licence may-

(a) enter on or fly over the reconnaissance area to carry on approved reconnaissance operations on a non-exclusive basis;

(b) take and remove specimens and samples from the reconnaissance area not exceeding such limit as is reasonably required for reconnaissance purposes;

(c) sell, with the prior written permission of the[Regulating Authority], mineral specimens and samples obtained from reconnaissance operations;

(d) subject to any law then in force, take timber and water from any lake or watercourse for the purposes of reconnaissance operations;

(e) erect camps and temporary buildings, including installations in any water forming part of the reconnaissance area provided that the erection of any camp or building under this paragraph shall not be construed as conferring any right, title or interest in the land;

(f) remove on or before the termination of the reconnaissance operations, any camps, temporary buildings or installations which the holder may have erected.

Example 24.6.2:

Article [_]

(1) Subject to this [Act][Code][Law] and the Regulations made under this [Act][Code][Law], a prospecting/reconnaissance licence confers on the holder and a person authorized, in accordance with this [Act][Code][Law] by the holder of the prospecting/reconnaissance licence, the exclusive right to carry on reconnaissance in the reconnaissance area for the minerals to which the reconnaissance licence relates and to conduct other ancillary or incidental activity.

(2) For the purposes of exercising the right conferred under subsection (1), a holder of a prospecting/reconnaissance licence and a person authorized in accordance with this [Act][Code][Law] by the holder of the prospecting/reconnaissance licence, may enter the reconnaissance area and erect camps or temporary buildings, subject to compliance with the provisions of this [Act][Code][Law].

(3) A holder of a prospecting/reconnaissance licence shall not engage in drilling or excavation.

(4) If a holder of a prospecting/reconnaissance licence applies for an exploration licence over all or part of the land and for a mineral which is the subject of the prospecting/reconnaissance licence and the holder has materially complied with the obligations imposed by this [Act][Code][Law] with respect to

(a) the holding of the licence, and

(b) the activities to be conducted under the licence,

The [Regulating Authority] shall within sixty days of the application, subject to the permits and other obligations required by law having been complied with, grant the applicant the exploration licence on the conditions that shall be specified in the licence.

Example 24.7.1:

Article [_]

A prospecting/reconnaissance licence shall be valid for a period not exceeding one year.

Example 24.7.2:

Article [_]

A prospecting/reconnaissance licence shall be valid for a period not exceeding one year.

Article [_]

A prospecting/reconnaissance licence shall be valid for a period not exceeding one year.

Example 24.7.3:

Article [_]

An Exclusive Permit to Reserve an Area confers on the holder an exclusive right to prospect and then, should the need arise, apply for a mining licence with a view to prospecting and/or carrying out mining operations, for one or more zones within the area covered by the permit.

Example 24.8.1:

Article [_]

(1) Subject to subsection (2), a reconnaissance licence may be extended once only and for a period not exceeding twelve months.

(2) Where, at least one month before the end of the extended period, or within the shorter period that the [Regulating Authority] may allow, the holder of a reconnaissance licence satisfies the [Regulating Authority] that delay by a government institution in the issuance of a permit or in carrying out a lawful activity has resulted in delay by the holder in the discharge of an obligation under the reconnaissance licence, the holder may apply in writing to the [Regulating Authority] for extension and the [Regulating Authority] may extend the term of the reconnaissance licence for a period not more than twelve months.

Example 24.8.2:

Article [_]

The reconnaissance permission is valid for two years and is not renewable.

Example 24.9.1:

Article [_]

(1) The [Regulating Authority], or any person authorised by the [Regulating Authority], may, in writing, order reconnaissance, exploration or mining operations to be temporarily suspended on an emergency basis, regardless of whether such operations are authorized by a mineral right, until such arrangements are made that are in the Regulating Authority’s opinion necessary to prevent danger to life, property or the environment or to comply with this [Act][Code][Law].

(2) The [Regulating Authority] may cancel or vary the terms of any temporary suspension order.

(3) The [Administrative Reviewer] shall have the power to confirm a temporary suspension order made by the [Regulating Authority] and may not delegate this power.

(4) A temporary suspension order shall lapse after twenty one days of its issuance, unless it is confirmed, in writing, by the [Administrative Reviewer].

(5) The [Administrative Reviewer] after consultation with the [Regulating Authority] may suspend a mineral right if the holder-

(a)fails to make any of the payments required by or under this [Act][Code][Law] on the date due;

(b)fails to meet any prescribed minimum annual programme of work or work expenditure requirement;

(c)grossly violates health and safety regulations or causes environmental harm;

(d)employs or makes use of child labourers;

(e)fails to submit reports required by this [Act][Code][Law];

(f)contravenes any of the provisions of this [Act][Code][Law] or the conditions of his mineral right or the provisions of any other enactment relating to mines and minerals;

(g)dies and his heir or successor in title is not qualified under this A[Act][Code][Law] to hold the mineral right, unless an application is received from the heir or successor within ninety days of the death to transfer the right to a third party who is so qualified and accepts all duties under the right;

(h)becomes an un-discharged bankrupt or becomes of unsound mind;

(i)makes any statement to the [Regulating Authority] in connection with his mineral right which he knows or ought to have known to be false;

(j)fails to substantially comply with the terms of a community development agreement when required by this [Act][Code][Law] to do so;

(k)for any reason becomes ineligible to apply for a mineral right under section [_] (listing the grounds for ineligibility).

(6) The [Administrative Reviewer] shall, before suspending any mineral right, give notice to the holder in such a manner as shall be prescribed and shall, in such a notice require the holder to remedy in not less than thirty calendar days any breach of the conditions of his mineral right.

Example 24.9.2:

Article [_]

(1) Without prejudice to any other provisions of this [Act][Code][Law], upon the written approval of the [Regulating Authority], the Mining Cadastre Office may suspend a mining right for a period not exceeding sixty days if the holder-

(a)fails to make any payments required by or under this [Act][Code][Law] on the due date; or

(b)has breached any condition of the mining right;

(c)has contravened any provisions of this [Act][Code][Law];

(d)has failed to comply with any lawful order given In connection with his operations;

(e)makes any statement to the Mining Cadastre Office which he knows or ought to have known to be false; or

(f) for any reason becomes ineligible to apply for a mining right under the provisions of this [Act][Code][Law].

(2) A mining right shall only be suspended after thirty days’ notice of the intention to suspend the mining right containing in detail the grounds thereof is given to the holder and during the period fixed the holder has failed to remedy the breach or remove the grounds for suspension within the required period.

Example 24.10.1:

Article [_]

(1) [A mineral right shall be deemed terminated upon (a) the expiry of the licence (b) surrender of the licence by the licence holder pursuant to Section/Article [Surrender section/article of the Law] or (c) revocation of the licence by the [Regulating Authority] pursuant to Section/Article [Revocation section/article of the Law]].

(2) On the termination of a mineral right, the former holder shall deliver to the [Regulating Authority] or as the [Regulating Authority] directs,

(a) the records which the holder is obliged under this [Act][Code][Law] or regulations made under this [Act][Code][Law] to maintain,,

(b) the plans and maps covered by the mineral right prepared by the holder or at the holder’s instructions, and

(c) other documents, including in electronic format, if available, that relate to the mineral right.

(3) A person who fails to deliver, within thirty days from the date of being called upon to do so by the [Regulating Authority], a document which is required to be delivered under subsection (1) commits an offence and is liable on summary conviction to a fine not more than the cedi equivalent of US$ ten thousand or imprisonment for a term not more than three years or to both.

Example 24.10.2:

Article [_]

A prospecting permit shall expire when the specified period ends, if the holder surrenders the permit, or if it is cancelled by [the regulatory authority] for non-compliance with the obligations by which the permit-holder is bound for the reasons listed in Article [_] (on the grounds for the cancellation of mining titles) of the present mining [Code][Act][Law].

Example 24.11.1:

Article [_]

(1) The [Regulating Authority] may revoke any mining right if-

(a) the holder is convicted by any court of competent jurisdiction for an offence under this [Act][Code][Law] or its Regulations and the time for appealing against the conviction, if any, has lapsed or the appeal has been dismissed or withdrawn or struck out for want of prosecution;

(b) the holder breaches any provision of this [Act][Code][Law] or regulations made or of any terms or conditions of his mining right whether express or implied;

(c) the holder breaches any order or notice issued or given under this [Act][Code][Law] or Regulations made under it, or on being required by the [Regulating Authority] by notice to show cause within a time specified in the notice why the mining right should not be revoked, the holder fails to comply or show adequate cause;

(d) the holder is declared by a court of competent jurisdiction to be insolvent or bankrupt or goes into insolvent liquidation, except as part of a scheme for reorganisation, amalgamation or an arrangement with its creditors; or

(e) the mining right is held jointly by more than one person and the provisions of subsection (1) (a) of this section apply to any one of the joint holders unless the other joint holders are able to assume the obligations of the former and adopt measures which will guarantee the performance of these obligations.

(2) A mining right shall be revoked upon written advice of the [Regulating Authority] only after thirty days’ notice of the intention to revoke the mining right containing in detail the grounds thereof is given to the holder and during the period fixed the holder has failed to remedy the breach or remove the grounds for revocation within the required period.

(3) Any notice issued by the [Regulating Authority] and sent by registered mail to the last known address in [Country] or given in person to an authorised representative of the mining right holder in [Country] or published in the [Gazette], shall for all purposes be sufficient notice of the revocation of the mining right to the mining right holder.

Example 24.11.2:

Article [_]

(1) The [Regulating Authority] on the recommendation of the [Administrative Reviewer] may cancel a mineral right if the holder,

(a) fails to make payment on the due date, whether due to the [State] or another person, required by or under this [Act][Code][Law],

(b) becomes insolvent or bankrupt, enters into an agreement or scheme of composition with the holder’s creditors, or takes advantage of an enactment for the benefit of its debtors or goes into liquidation, except as part of a scheme for an arrangement or amalgamation,

(c) makes a statement to the [Regulating Authority] in connection with the mineral right which the holder knows or ought to have known to be materially false, or

(d) for any reason, becomes ineligible to apply for a mineral right under this [Act][Code][Law].

(2) The [Regulating Authority] shall, before cancelling a mineral right under subsection (1), give notice to the holder and shall in the notice, require the holder to remedy a breach of the condition of the mineral right within a reasonable period, being not less than sixty days in the case of a prospecting/reconnaissance right and if the breach cannot be remedied, to show cause to the reasonable satisfaction of the [Regulating Authority] why the prospecting/reconnaissance right should not be cancelled.

(3) On cancellation of a mineral right under this section, the right of the holder shall cease but without prejudice to the liabilities or obligations incurred by another person in relation to the mineral right prior to the date of the cancellation.

Example 24.12.1:

Article [_]

(1) The holder of a mining right may, upon application in the form and manner prescribed in the Regulation, and upon meeting the conditions prescribed therein, surrender the mining right.

(2) The Mining Cadastre Office shall approve an application made under subsection (1) of this section to surrender the mining right if it is satisfied that-

(a) the holder of the mining right has submitted the request for surrender in the prescribed form and manner;

(b) the surrender will not affect any liability incurred by the mining right holder before the surrender of the mining right, including environmental obligation;

(c) all rents due and fees prescribed, if any, have been paid by the holder of the mining right; and

(d) the holder of the mining right has surrendered the original title document.

Example 24.12.2:

Article [_]

(1) The holder of a mineral licence may surrender the reconnaissance area, prospecting area, retention area or mining area to which such licence relates by notice in writing addressed and delivered to the [Regulating Authority] and shall together with such notice return such mineral licence, whereupon –

(a) the [Regulating Authority] shall -

(i) cancel such mineral licence;

(ii) make an entry to that effect in the register of mineral licences referred to in

article [_] (on the register of mineral licences);

(iii) notify the person who was the holder of such mineral licence that such mineral

licence has been cancelled; and

(iv) notify the owner of the land on which such area was situated of such

surrender; and

(b) such area shall be deemed to have been surrendered on the date on which such mineral licence has been cancelled as provided in subparagraph (i) of paragraph (a).

(2) If a reconnaissance area, prospecting area, retention area or mining area is surrendered as provided in subsection (1), the holder of the mineral licence to which such area relates shall –

(a) demolish any accessory works erected or constructed by such person in such area, except in so far as the owner of the land retains such accessory, works on such conditions as may mutually be agreed upon between such owner and person, and remove from such land all debris and any other object brought onto such land;

(b) take all such steps as may be necessary to remedy to the reasonable satisfaction of the [Administrative Reviewer] any damage caused by any reconnaissance or prospecting operations and mining operations carried on by such holder to the surface of, and the environment on, the land in the area in question.

(3) The surrender of a reconnaissance area, prospecting area, retention area or mining area shall not affect any legal proceedings instituted against such holder or any obligation or liability of such holder in terms of the provisions of this [Act][Code][Law].

(4) Any person who contravenes or fails to comply with the provisions of subsection (2) shall be guilty of' an offence and on conviction be liable to a fine not exceeding [Maximum Penalty Amount] or to imprisonment for a period not exceeding 12 months or to both such fine and such imprisonment.

Example 24.13.1:

Article [_]

A prospecting/reconnaissance licence is not transferable.

Example 24.13.2:

Article [_]

(1) A prospecting right or reconnaissance permit confers on the holder an exclusive right to carry out prospecting and reconnaissance investigations for minerals belonging to the group for which said permit was issued, within the boundaries of the holder's area and with no limit as to depth.

(2) A prospecting right or reconnaissance permit is a movable indivisible right that may not be subleased. It may be assigned or transferred. To this end, a rights holder must send [the regulatory authority] any contract or agreement through which it purports confer, assign or transfer the rights and obligations arising from the prospecting permit to a third party.

The assignment or transfer of a prospecting right may only occur under the same conditions which applied for the allocation of the right and shall be subject to the assignor providing [the regulatory authority] with a report on the work carried out in accordance with the Establishment Convention. The assignment or transfer shall take effect only when the order from [the regulatory authority] comes into operation.

The assignee or heir must apply for the permit within thirty (30) days from the signing of the deed of assignment or the legal instrument in which the heirs were designated, which must have been finalised subject to the condition precedent of regulatory authority approval. The terms for assignment and transfer shall be specified in the implementing decree from the regulatory authority.

Example 24.14.1:

Article [_]

(1) The following offences shall be subject to a fine of [amount] to [amount] and a prison sentence of between eleven days and two years, or only one of these two penalties:

(a) those who analyse samples outside of the [Country] without prior authorisation from the Mining Division.

Article [_]

(1) The following offences shall be subject to a fine of [amount] to [amount] and a prison sentence of between one month and three years, or only one of these two penalties:

(a) conducting mining or prospecting activities in the absence of an appropriate mining right;

(b) those who, within the meaning of the provisions of the Criminal Code, provide aid or assistance to illegal prospectors or operators.

(2) In addition, mineral substances which are extracted illegally, as well as the means, items and instruments which contributed to offences 1) and 2) above shall be seized by and forfeited to the State.

(3) Those who have not carried out the work in accordance with Article [_] (on measures relating to preserving public health and safety, and those relating to respecting the features of the surrounding environment) above before the relevant mining right comes to an end; and

(4) Holders of mining rights who do not, within the prescribed time periods, comply with the instructions of the [the regulatory authority] relating to the measures provided for in Article [_] (on obligations relating to public health and safety, nature conservation, and the preservation of transportation routes, the sturdiness of buildings, and the use, output or quality of water of any kind) above.

Example 24.14.2:

Article [_]

Any person who intentionally or negligently transgresses the boundaries of his or her reconnaissance area, prospecting area, claim area, retention area or mining area while carrying on reconnaissance operations, prospecting operations or mining operations or such boundaries to be so transgressed shall be guilty of an offence and on conviction be liable to a fine not exceeding [Maximum Penalty Amount] or to imprisonment for a period not exceeding 12 months or to both such fine and such imprisonment.

Example 25.1.1:

Article [_]. Eligibility for mining and quarrying rights

(1) Subject to the provisions of Article [_] below (on persons who are not eligible), the following shall be eligible for mining and quarrying rights:

(a) any natural person who is of age and is a Congolese national as well as any legal entity under Congolese law which has its registered office and its administrative office within the National Territory and whose objects are mining activities;

(b) any natural person who is of age and is a foreign national as well as any legal entity under the law of a foreign country;

(c) any scientific body.

(2) Eligible persons referred to in (1) (b) above shall be required to elect a domicile with a representative in the mining and quarrying industry which is set up within the National Territory and to act through their intermediary.

(3) Legal entities incorporated in foreign countries and the scientific bodies cited in 1 (b) and (c) above shall only be eligible for mining and quarry prospecting rights.

Article [_]. Electing a domicile

(1) Electing the domicile referred to in the preceeding Article is to be done intentionally and may only be done in writing.

(2) All service of documents, claims and actions for the performance of an act for which the domicile was elected, may be validly done at this domicile.

Article [_] Agents in the mining and quarrying industries

(1) Agents in the mining and quarrying industries require prior approval from [the regulatory authority] as regards their respectability, ethics, skills and in-depth knowledge of mining legislation, or of the management of the mining and quarrying field.

(2) In addition to representation, part of the role of agents in the mining and quarrying industries is to advise and/or assist any interested person in the granting and exercising of mining and quarrying rights as well as in disputes relating thereto.

(3) [The regulatory authority] shall maintain and publish the list of approved agents and shall update said list on an annual basis.

(4) The Mining Regulations shall lay down the conditions for approving agents in the mining and quarrying industries.

Article [_] Persons who are not eligible

(1) The following are not eligible to apply for and obtain mining and/or quarrying rights, an artisanal miner's card or a merchant's card, as well as authorisation to purchase and sell mineral substances from artisanal operations:

(a) State officials and civil servants, judges, members of the Armed Forces, the Police and Security Services, the employees of public bodies which are authorised to carry out mining operations;

(b) any person who lacks legal capacity, as provided for in Article [_] of the [Family Code];

(c) any person who has been prohibited therefrom including:

(i) a person who has been convicted, by a final judgement, for violating mining and quarrying legislation or legislation relating to economic activities as regards their mining and quarrying rights and affiliates, and they shall have been prohibited from so acting for a period of 10 years;

(ii) a person whose artisanal miner's or merchant's card has been withdrawn, and prohibited from obtaining such a license for a period of three years;

(iii) a person whose authorisation to purchase and sell mineral substances from artisanal operators has been withdrawn, and purchases/sales prohibited for a period of five years;

Example 25.1.2:

Article [_] Eligibility for exploration licence.

A person shall not be eligible to apply for the grant of an exploration licence under this [Act][Code][Law] unless that person is a company incorporated or registered under the [Companies Act] and whose name has not been struck off the register of companies at the time of the application.

Article [_] Restrictions on grant of mineral rights

(1)No mineral right shall be granted to-

(a)an individual who-

(i)is under the age of 18 years;

(ii)is not a citizen of [Country] or has not been ordinarily resident in [Country] for a period of ten years immediately preceding his application for a mineral right;

(iii)is an un-discharged bankrupt, having been adjudged or otherwise declared bankrupt under any written law, or enters into any arrangement or scheme of composition with his creditors; or

(iv)has been convicted of an offence involving fraud or dishonesty;

(b)a co-operative society which is not registered in accordance with the laws of [Country];

(c) a body corporate-

(i)which is not registered or incorporated under the [Companies Act]; or

(ii)which is in liquidation other than a liquidation which forms part of a scheme for the reconstruction or amalgamation of such body corporate;

(iii)in respect of which an order has been made by a court of competent jurisdiction for its winding up or dissolution;

(iv)which has made a composition or arrangement with its creditors;

(v)which has among its shareholders any shareholder who holds at least a ten percent share of the company or a director, who would be disqualified in terms of subparagraphs (i) or (iv) of paragraph (a).

Example 25.2.1:

Article [_] Application for exploration licence

(1) An application may be made for an exploration licence for minerals falling under any of the following groups:

(a) metallic minerals;

(2) An application for an exploration licence including an application in respect of land in an area reserved for applications by tender for exploration licences shall be made to the [Regulating Authority] and shall be in the prescribed form and accompanied by the prescribed fee.

(3) An application for the grant of an exploration licence-

(a) shall contain-

(i) in the case of an individual, his full name and nationality, physical and postal addresses, and attach his recent passport size photograph; or

(ii) in the case of a body corporate, its Corporate name, place of incorporation, names and nationality of directors;

(iii) in the case of more than one person, particulars referred in items (i) and (ii) of each person.

(b) shall state the type of minerals and its relevant group, as indicated in subsection (1);

(c) shall state the size of the area of land over which it is sought, which shall not exceed the maximum area prescribed as provided under section [_] (stating that maximum areas are to be established by regulation), and be accompanied by a plan of the area;

(d) shall contain a statement giving particulars of the financial and technical resources available to the applicant; and

(e) shall contain a statement on the procurement plan of goods and services available in [Country];

(f) shall contain details of any mineral right previously granted to the applicant.

(4) Every application for an exploration licence made in the prescribed form by an applicant who has tendered to the licensing authority the prescribed fee, shall be registered immediately in the register maintained for such applications under this [Act][Code][Law].

(5) Each application registered under subsection (4) shall be assigned a number and the date on which it was received and shall be indicated on an official receipt handed to the applicant or his authorised agent or sent to the applicant by registered mail.

Article [_] Exploration licence by tender

(1) An application for an exploration licence in an area designated as an area for which applications for such a licence are invited by tender shall-

(a) be in the prescribed tender form and accompanied by the prescribed tender fee; and

(b) subject to the terms and conditions of the invitation to tender, include the matters required to be included in applications by section [_] (the general article on the application requirements for an exploration licence).

(2) Applications made under subsection (1) shall be submitted to the [Administrative Reviewer] for its advice.

(3) On receipt of a report from the [Administrative Reviewer], the [Regulating Authority] shall consider the competing bids and shall select the bid which is most likely to promote the expeditious and beneficial development of the mineral resources of the area having regard to

(a) the programme of exploration operations which the applicant proposes to carry out and the commitments as regards expenditure which the applicant is prepared to make;

(b) the financial and technical resources of the applicant; and

(c) the previous experience of the applicant in the conduct of exploration and mining operations, and the successful application shall be treated as an application under section [_] (on the rules governing priority in the case of competing applications) which has priority over any other application and the applicant shall be notified accordingly.

Example 25.2.2:

Article [_]

In general, mining licences shall be considered and granted according to a principle of "1st come, 1st served".

Article [_]

(1) All applications for mining rights are to be made using the prescribed form from the Ministry of Mines, a template of which shall be set out in the decree implementing the present [Code][Act][Law].

(2) After correctly completing the form, the applicant is to file their application with said office, with acknowledgement of receipt that indicates the date and time, to the hour and minute, that the application was filed, and constitutes evidence of filing.

Article [_]

(1) Prospecting licences, or "P" licences, relating to a defined area shall be granted by a decision of [the regulatory authority] or its representative, within no more than thirty (30) working days, to the first eligible person who filed an application which meets the conditions specified in Article [_] (which states that the template for application forms shall be set out in the implementing decree) above.

(2) In cases where the applicant is applying pursuant to an exclusive permit to reserve an area, they are to attach said permit, duly endorsed by the authorities for the relevant Decentralised Territorial Collectives, to their application.

Example 25.3.1:

Article [_] The end of the application assessment

(1) The assessment of an application for mining and/or quarrying rights shall come to an end on the day on which the applicant is notified of the decision to grant the application or the day of the judge's decision as provided for in Article [_] (on registration through legal channels) of the present [Code][Act][Law].

(2) In the event of a decision to refuse the application, and subject to the provisions of Article [_] (on the application of the common law appeals to a higher administrative authority) and Article [_] (on the shortening of time periods within which appeals may be brought) of the present [Code][Act][Law], the assessment of an application for mining and/or quarrying rights shall come to an end on the day on which the applicant is notified of the decision.

Article [ ] The application of the common law

Subject to the provisions of Article [_] (on registration through legal channels) and Article [_] (on matters which concern appeal proceedings) of the present [Code][Act][Law], an appeal against administrative acts decreed by administrative authorities in application of, or in violation of, the provisions of the present [Code][Act][Law], or those of the Mining Regulations shall be governed by the common law, in particular by the provisions of Articles [_] of the [Code of Judicial Organisation and Jurisdiction] and by the [relevant law] relating to procedure before the [Supreme Court], as amended and supplemented to date.

Article [_] The shortening of time periods

(1) Notwithstanding the provisions of the [_] Act mentioned above, the applicant's preliminary appeal, as a litigant before the Administrative Division of the [Supreme Court of Justice], to the authority which may set aside or amend the administrative act must be brought within thirty days of the date on which the decision was published or the applicant was personally notified of it. A request to set aside the decision is to be brought within twenty days from the day on which notification was given for the total or partial dismissal of the appeal.

(2) The time limit for filing the reply and the one for the administrative file shall be fifteen working days from the date of notification of the appeal. The same time limit shall apply for the opinion of the [Attorney General of the Republic]. An extension of the time limits imposed on the parties for sending in the appeal and the reply, which may possibly be decided on by a reasoned order of the President of the Administrative Division of the [Supreme Court of Justice], may not exceed 12 working days.

(3) The shortening of the time limits provided for in the preceeding paragraphs of the present Article only apply to refusals to grant mining and/or quarrying rights, and of the approval or perfection of mortgages.

(4) In all circumstances, the judgement of the [Supreme Court of Justice] shall be delivered within thirty working days of the deliberations relating to the case.

Example 25.3.2:

Article [_]

(1) Any person whose rights or legitimate expectations have been materially and adversely affected or who is aggrieved by any administrative decision in terms of this [Act][Code][Law] may appeal in the prescribed manner to –

(a) the [Regulating Authority], if it is an administrative decision by an officer of the [Regulating Authority]; or

(b) the [Administrative Reviewer], if it is an administrative decision by the [Regulating Authority].

(2) An appeal in terms of subsection (1) does not suspend the administrative decision, unless it is suspended by the [Regulating Authority], as the case may be.

(3) No person may apply to the court for the review of an administrative decision contemplated in subsection (1) until that person has exhausted his or her remedies in terms of that subsection.

(4) Sections [_] of the [Administrative Procedures Act], apply to any court proceedings contemplated in this section.

Example 25.4.1:

Article [_]

(1) Subject to the provisions of this [Act][Code][Law], an exploration licence shall cover such area, not exceeding 1000 km2, as is in accordance with the applicant’s application.

(2) Subject to the provisions of subsection (4), the exploration area shall be reduced in size to eliminate therefrom—

(a) at the end of the initial term of the exploration licence, not less than half of the initial area;

(b) at the end of each period of renewal, half of the remaining area, or such lower proportion as the [Regulating Authority] may in any case agree; and

(c) the area covered by any retention licence or mining licence granted thereon.

(3) The holder of an exploration licence shall designate, prior to the end of each of the periods referred to in subsection (2), the area or areas to be eliminated from the exploration area and, in default thereof, the designation shall be made by the [Regulating Authority].

(4) Where a person holds two or more contiguous exploration licences covering the same period and the same mineral or minerals the [Regulating Authority] shall, for the purposes of the elimination, under subsection (2), of part of any of the areas thereof, permit the areas covered thereby to be deemed to be one area, the subject of one such exploration licence.

(5) No compensation shall be payable to the holder of any exploration licence arising out of reductions in area effected in terms of subsection (2).

Example 25.4.2:

Article [_]

(1) The area covered by a prospecting licence shall be a polygon with straight sides which are oriented north-south and east-west, with geographic north as the reference, with the exception of land borders and international waters.

(2) The minimum length of each segment of the polygon shall be (1) kilometre.

(3) The area covered by a prospecting licence shall have a surface area of between one (1) square kilometre and four hundred (400) square kilometres.

(4) Each time a prospecting licence is renewed, it's surface area shall be reduced by a quarter.

(5) However, the prospecting licence holder may choose to retain the same surface area provided that they prove that work is being carried out over the entire area which is under the relevant licence. In this event, the prospecting licence holder shall be required to pay an option fee, the rates and terms of which shall be determined by decree.

Example 25.5.1:

Article [_]: Obligations for maintaining the validity of the right

(1)In order to maintain the validity of their mining or quarrying right, the holder must:

(a) commence work within the period specified in Article [_] of the present [Code][Act][Law];

(b) pay the annual surface area fees per square relating to their title, each year before the deadline set in Article [_] (on the amounts due as annual surface area fees per square) of the present [Code][Act][Law].

(2) Should one or more of these obligations not be fulfilled, the holder shall lose their right in application of the procedure provided for in Articles [_] (on failure to comply with administrative obligations, and the related penalties) of the present [Code][Act][Law].

(3) Should the holder fail to comply with the obligations listed in the following chapters, they shall be subject to fines and/or possibly with an order to suspend operations or, in the case of an offence, shall be prosecuted.

Article [_] The obligation to commence work

A Prospecting Licence holder shall be required to commence work within six months from when the title establishing their right was issued.

Article [_] The obligation to pay the annual surface area fees per square

(1) To cover costs for the services and management relating to the rights established by mining titles, annual surface area fees per square, for each mining or quarrying title which is issued, shall be collected for the Ministry of Mines which shall redistribute a portion to the departments of [the regulatory authority] responsible for the administration of the present [Code][Act][Law].

(2) Holders of Prospecting Licences, Operating Licences, Operating Licences relating to Tailings, Operating Licences for Small-Scale Mining, Permits to Prospect for Quarry Products and Permanent Quarry Operating Permits shall pay the surface area fees for the first year when the mining or quarrying title is issued.

(3) The holder is to settle the annual surface area fees per square for each following year before the end of the first quarter of the calendar year. However, annual surface area fees are to be paid pro rata to the relevant time period, when the initial title is issued, or in the last year during which the title is valid.

(4) Annual surface area fees per square are to be paid at the relevant counter at the Ministry of Mines which issued the mining or quarrying title, which shall issue the holder with a receipt when payment is made.

Article [_] Environmental protection during prospecting

(1) Before prospecting work relating to mining or quarry products may commence, the holder of a Prospecting Licence or a Permit to Prospect for Quarry Products must draw up and obtain approval for an Environmental Management Plan (Plan d’Atténuation et de Réhabilitation (PAR)) for the proposed activities.

(2) The terms of the PAR and its approval shall be laid down in the regulations.

(3) The approval of a PAR shall fall under the jurisdiction of the department responsible for environmental protection within the [the regulatory authority] in collaboration with [the regulatory authority for the environment].

Article [_] Declaration of indicators of an archaeological discovery

Article [_] The discovery of items relevant to the national cultural heritage

Article [_] The jurisdiction of [the regulatory authority]

Article [_] The declaration of an accident in a mine or quarry

Article [_] The use of explosive products

Article [_] The relationship with local authorities

Article [_] Registers and reports

Article [_] Inspections

Article [_] The commencement and closure of a prospecting or operation/s area.

Example 25.2.2:

Article [_] Legal nature of exploration right, mining right, or production right, and rights of holders thereof

(1) No person may prospect for or remove, mine, conduct, technical co-operation operations, reconnaissance operations, explore for and produce any mineral or petroleum or commence with any work incidental thereto on any area without –

(a) an approved environmental management programme or approved environmental management plan, as the case may be;

(b) a prospecting/reconnaissance permission, exploration right, permission to remove, mining right, mining permit, retention permit, technical co-operation permit, reconnaissance permit, exploration right or production right, as the case may be; and

(c) notifying and consulting with the land owner or lawful occupier of the land in question.

Article [_]. Rights and obligations of holder of exploration right

(1) The holder of an exploration right must –

(a) lodge such right for registration at the Mining Licences Office within 30 days of the date on which the right –

(i) becomes effective in accordance with the provisions of this [Act][Code][Law]; or

(ii) is renewed in accordance with the provisions of this [Act][Code][Law];

(b) commence with exploration activities within 120 days from the date on which the exploration right becomes effective or such an extended period as the [Regulating Authority] may authorise;

(c) continuously and actively conduct exploration operations in accordance with the exploration work programme;

(d) comply with the terms and conditions of the exploration right, relevant provisions of this [Act][Code][Law] and any other relevant law;

(e) comply with the requirements of the approved environmental management programme;

(f) pay the prescribed exploration fees to the State; and

(g) subject to section [_] (on the rules regarding the removal and disposition of minerals), pay the State royalties in respect of any mineral removed and disposed of during the course of exploration operations.

Article [_]. Permission to remove and dispose of minerals

(1) Subject to subsection (2), the holder of an exploration right may only remove and dispose for his or her own account any mineral found by such holder in the course of exploration operations conducted pursuant to such exploration right in such quantities as may be required to conduct tests on it or to identify or analyse it.

(2) The holder of an exploration right must obtain the [Regulating Authority]'s written permission to remove and dispose for such holder's own account of bulk samples of any other minerals found by such holder in the course of exploration operations conducted pursuant to such exploration right.

Article [_] Information and data in respect of prospecting/reconnaissance and exploration

(1) The holder of an exploration right or prospecting/reconnaissance permission must –

(a) keep proper records, at the registered office or place of business, of exploration operations and the results and expenditure connected therewith, as well as borehole core data and core-log data, where appropriate; and

(b) submit progress reports and data, in the prescribed manner and at the prescribed intervals, to the [Regulating Authority] regarding the exploration operations.

(2) No person may dispose of or destroy any record, borehole core data or core-log data contemplated in subsection (1)(a) except in accordance with written directions of the relevant [Officer of the Regulating Authority].

Article [_] Environmental management principles

(1) The principles set out in section [_] of the [National environmental legislation ] –

(a) apply to all exploration and mining operations, as the case may be, and any matter or activity relating to such operation; and

(b) serve as guidelines for the interpretation, administration and implementation of the environmental requirements of this [Act][Code][Law].

(2) Any exploration or mining operation must be conducted in accordance with generally accepted principles of sustainable development by integrating social, economic and environmental factors into the planning and implementation of exploration and mining projects in order to ensure that exploitation of mineral resources serves present and future generations.

Article [_] Integrated environmental management and responsibility to remedy

(1) The holder of a reconnaissance permission, exploration right, mining right, mining permit or retention permit –

(a) must at all times give effect to the general objectives of integrated environmental management laid down in the [relevant environmental legislation];

(b) must consider, investigate, assess and communicate the impact of his or her exploration or mining on the environment as contemplated in the [relevant environmental legislation];

(c) must manage all environmental impacts –

(i) in accordance with his or her environmental management plan or approved environmental management programme, where appropriate; and

(ii) as an integral part of the prospecting/reconnaissance, exploration or mining operation, unless the [Regulating Authority] directs otherwise;

(d) must as far as it is reasonably practicable, rehabilitate the environment affected by the exploration or mining operations to its natural or predetermined state or to a land use which conforms to the generally accepted principle of sustainable development; and

(e) is responsible for any environmental damage, pollution or ecological degradation as a result of his or her prospecting/reconnaissance, exploration or mining operations and which may occur inside and outside the boundaries of the area to which such right, permit or permission relates.

(2) Notwithstanding the [Companies Act], or the [other relevant legislation], the directors of a company or members of a close corporation are jointly and severally liable for any unacceptable negative impact on the environment, including damage, degradation or pollution.

Article [_] Financial provision for remediation of environmental damage

(1) The holder of an exploration right, mining right or mining permit must annually assess his or her environmental liability and increase his or her financial provision to the satisfaction of the [Regulating Authority].

(2) If the [Regulating Authority] is not satisfied with the assessment and financial provision contemplated in this section, the [Regulating Authority] may appoint an independent assessor to rehabilitate the closed mining or exploration operation in respect of latent or residual environmental impacts.

Example 26.6.1:

Article [_]

(1) A prospecting licence confers on the holder an exclusive right to prospect for mining materials, within the boundaries of the holder's area, including surface area and depth of the right, as well as an exclusive right to dispose of any products extracted as part of said prospecting.

(2) It confers on the holder an exclusive right to request and obtain an operating licence, at any time during term of validity for the prospecting licence, if they have performed their obligations under the present Act, in the the event they discover one or more mineral deposits within the area under the prospecting licence.

(3) A prospecting licence constitutes a movable, indivisible right and, may not be subleased, subject of a pledge or a mortgage.

Article [_]

(1) A prospecting licence holder shall have the right to freely dispose of products extracted during the prospecting and assaying, provided that the prospecting work does not in fact constitute operating work.

(2) Disposals shall only be possible under the following conditions:

(a) the prospecting licence holder has made a prior declaration relating to the products extracted, to the Mining Department (Administration des Mines);

(b) the prospecting licence holder has paid the mining taxes relating to said extracted products, unless an exemption has been granted for the samples by the Mining Department and the Department for the Economy and Finance (Administration de l'Economie et des Finances).

(3) The maximum quantities of samples which may be collected shall be specified by decree.

Article [_]

The rights of a mining right holder shall relate to the entire extent of the demarcated area under the mining title, with no limit as to depth, extending down within vertical lines based on the defined area on the surface.

Article [_]

(1) A mining right may be assigned or transferred subject to the prior written approval from [the regulatory authority] and under the conditions provided for by decree.

(2) Any agreement for the transfer or assignment of a mining right must be subject to the condition precedent of said authorisation.

(2)The approval of [the regulatory authority] shall be automatic where the mining right holder has fulfilled their obligations under the [Code][Act][Law].

Example 25.6.2:

Article [_]

(1) Subject to the provisions of this [Act][Code][Law] and the Regulations, an exploration licence confers on the holder the exclusive right to carry on exploration operations in the exploration area for minerals to which the licence applies.

(2) In the exercise of the rights conferred by this section, the holder may, subject to section [_] (on restrictions on the right of a mineral licence holder to enter land), either himself or by his employees or agents, enter upon the exploration area and erect camps and temporary buildings and may erect installations in any water forming part of the exploration area.

(3) The holder of an exploration licence for gemstones who in the course of carrying out exploration operations under the exploration licence recovers gemstones, may dispose of the gemstones by sale to a licenced dealer and shall promptly following any such sale submit particulars thereof to the [Regulating Authority], showing the name and business address of the dealer, a description of the stones, their weight and a copy of a receipt given by the purchaser for the price received.

(4) The holder of a an exploration licence for gemstones who recovers gemstones in the course of exploration operations shall for the purpose of holding the gemstones and selling them pursuant to subsection (3) be deemed to be a mineral right holder.

(5) The exploration licence holder is authorized to apply for a retention licence.

(6) The exploration licence holder is entitled to apply for and obtain a special mining licence or a mining licence, subject to compliance with the application requirements specified in other articles.

Example 25.7.1:

Article [_]

(1) Where an applicant is entitled to the grant of an exploration licence under the terms and conditions of this [Act][Code][Law], the [Regulating Authority] shall issue to the applicant the exploration licence as provided in that section and the licence so issued shall subsist for the following periods-

(a) for the initial exploration period for which the applicant has applied, a period not exceeding four years;

(2) In determining the date for the commencement of the period for which the licence is granted, the licensing authority may take account of any period not exceeding six months from the date of the grant which is required by the applicant to make any necessary preparations for exploration operations.

Example 25.7.2:

Article [_]

(1) Where the [Regulating Authority] is satisfied that an initial period is required to make the necessary preparations to carry on exploration operations he may, in an exclusive exploration licence, specify a period (not exceeding three months) as the preparation period.

(2) The term of an exclusive exploration licence is the period for which the licence is granted, not exceeding three years, stated in the licence, and any preparation period specified in the licence.

(3) The term of an exclusive exploration licence commences on and includes the date of the grant of the licence, as stated in the licence.

Example 25.8.1:

Article [_]

(1) Where an applicant is entitled to the grant of an exploration licence, the [Regulating Authority] shall issue to the applicant the exploration licence as provided in that section and the licence so issued shall subsist for the following periods-

(a) for the initial exploration period for which the applicant has applied, a period not exceeding four years;

(b) where application for renewal has been made by the holder in the prescribed form, for the first period of renewal for which the applicant has applied, a period not exceeding three years;

(c) where application for renewal has been made by the holder in the prescribed form, for the second period of renewal for which the applicant has applied, a period not exceeding two years;

(d) where the holder is not in default and at the end of the second period of renewal a further period is required to complete a feasibility study, already commenced by the holder, for such further period as may be reasonably required for that purpose, but not exceeding two years.

(2) A holder of the licence who intends to renew the licence shall, not later than one month before expiry date of the licence, submit an application for renewal of the exploration licence.

(3) The [Regulating Authority] shall, on application of the holder of a licence granted under subsection (1) of this section and on payment of prescribed fees for renewal, renew the exploration licence-

(a) at the end of the initial exploration period or, as the case may be, at the end of the first renewal period, for the period referred to in paragraphs (b) and (c) of subsection (1);

(b) at the end of the second renewal period, in a case falling under paragraph (d) of subsection (1), for the period required to complete the feasibility study.

(4) The obligation of the [Regulating Authority] to renew an exploration licence is subject to the condition that-

(a) the holder is not in default except that the [Regulating Authority] shall not reject an application to renew an exploration licence on the grounds that the holder is in default, without first serving on the holder a notice giving particulars of the default and requiring the holder within a reasonable time specified in the notice to remedy the default; and

(b) the holder, on renewal under paragraph (a) of subsection (3), has relinquished in the case of a first renewal fifty per centum of the area held during the initial exploration period and in the case of a second renewal fifty per centum of the balance, and has by notice in writing to the [Regulating Authority] given a sufficient description of the areas he is relinquishing.

(5) The relinquished areas shall be displayed on the notice board at the [[Regulating Authority] headquarters and local offices on a monthly basis.

(6) An exploration licence for gemstones other than kimberlitic diamonds, and an exploration licence for building materials shall subsist for one year from the date of grant and shall not be subject to renewal.

(7) The obligations of the [Regulating Authority] under paragraph (b) of subsection (4) shall not apply in the case where the exploration area is not more than twenty square kilometres.

Example 25.8.2:

Article [_]

(1) The holder of an exploration licence may, not later than ninety calendar days before the initial expiry of the licence, apply to the Mining Cadastre Office for a first renewal of the licence in respect of not more than one hundred and twenty-five square kilometres of the exploration licence area, except that where the results of exploration to date strongly indicate the presence of widespread mineralisation such that a surrender to one hundred and twenty-five square kilometres would result in some highly prospective areas being surrendered, the [Regulating Authority], on the advice of the Minerals Advisory Board, may exceptionally allow such areas constituting more than one hundred and twenty five square kilometres to be retained.

(2) An application for the first renewal of an exploration licence-

(a)shall be accompanied by-

(i)a detailed annual report as prescribed describing all operations carried out in the previous year together with an annual financial report for the same period, plus a surrender report as prescribed, covering in detail all work carried out over any portion of the ground to be surrendered and accompanied by all results, data, information and interpretation since the grant of the exploration licence;

(ii)a proposed programme of exploration operations to be carried out during the period of first renewal and the estimated cost thereof;

(iii)a plan identifying that part of the exploration licence area for which renewal is sought; (iv)a description of the contiguous blocks comprising the exploration licence area for which renewal is sought, identified in the prescribed manner; and

(b)shall give particulars of any alteration in the matters stated in the application for the grant of the licence under paragraphs [_] of section [_] (on the required elements of an application for an exploration licence).

(3) The Mining Cadastre Office shall forward an application for the first renewal of an exploration licence to the Minerals Advisory Board.

(4) Upon receipt of a completed application for the renewal of an explorations licence from the Mining Cadastre Office, where the [statutory advisory board] has determined that an application for the renewal of an exploration licence has met all the criteria for such licence the [statutory advisory board] shall certify to the [Regulating Authority] in the prescribed form that it advises that the application be approved, and such certification shall be recorded in the mining cadastre registry.

(5) The [Regulating Authority] shall, subject to all prescribed criteria of this [Act][Code][Law] and of the regulations, on the certified advice of the Minerals Advisory Board, renew the licence for the reduced area applied for with or without variation of the conditions of the initial licence, for a period not exceeding three years.

(6) The holder of an exploration licence may, not later than ninety calendar days before the expiry of a once-renewed licence apply to the Mining Cadastre Office for a second renewal of the licence.

(7) An application for the second renewal of an exploration licence-

(a)shall be accompanied by-

(i)a report on exploration operations carried out so far and the direct costs incurred thereby;

(ii)a proposed programme of exploration operations, feasibility studies, and environmental impact assessments to be carried out during the period of second renewal and the estimated cost thereof;

(iii)a plan identifying that part of the exploration licence area for which renewal is sought, which shall not be greater than one hundred and twenty-five square kilometres unless it can be conclusively demonstrated that to do so would unavoidably exclude part of an economically recoverable mineral deposit;

(iv)a description of the blocks comprising the exploration licence area for which renewal is sought, identified in the prescribed manner;

(b)shall give particulars of any alteration in the matters stated in the application for the grant of the licence under paragraphs [_] of section [_] (on the required elements of an application for an exploration licence); and

(c)shall provide evidence that a mineral discovery has been made that may be of commercial value.

(8) The Mining Cadastre Office shall forward an application for the second renewal of an exploration licence to the Minerals Advisory Board.

(9) Upon receipt of a completed application for the second renewal of an explorations licence from the Mining Cadastre Office, where the Minerals Advisory Board has determined that an application for the second renewal of an exploration licence has met all the criteria and where the holder of an exploration licence who has made and reported a discovery of possible commercial value, the Board shall certify to the [Regulating Authority] in the prescribed form that it advises that the application be approved, and such certification shall be recorded in the mining cadastre registry.

(10) The [Regulating Authority] shall on the certified advice of Minerals Advisory Board confirming all prescribed criteria of this [Act][Code][Law] and of the regulations have been met, renew the licence for a period not exceeding two years.

(11) The applicant shall be notified in writing of the decision on renewal applications, and if an application is refused, the [Regulating Authority] shall give reasons for such refusal.

(12) Where the [Regulating Authority] has refused an application to renew an exploration licence that is renewable and the cause given by the [Regulating Authority] for such refusal can be remedied by the holder of the licence, if the cause has been remedied with thirty calendar days of receiving the notice under subsection (11), the licence holder may reapply for a renewal of the licence within such thirty day period.

Example 25.9.1:

Article [_]

(1) The [Regulating Authority}, or any person authorised by the [Regulating Authority], may, in writing, order reconnaissance, exploration or mining operations to be temporarily suspended on an emergency basis, regardless of whether such operations are authorized by a mineral right, until such arrangements are made that are in the Regulating Authority’s opinion necessary to prevent danger to life, property or the environment or to comply with this [Act][Code][Law].

(2) The Regulating Authority may cancel or vary the terms of any temporary suspension order.

(3) The [Administrative Reviewer] shall have the power to confirm a temporary suspension order made by the [Regulating Authority] and may not delegate this power.

(4) A temporary suspension order shall lapse after twenty one days of its issuance, unless it is confirmed, in writing, by the [Administrative Reviewer].

(5) The [Administrative Reviewer] after consultation with the [statutory advisory body] may suspend a mineral right if the holder-

(a) fails to make any of the payments required by or under this [Act][Code][Law] on the date due;

(b) fails to meet any prescribed minimum annual programme of work or work expenditure requirement;

(c) grossly violates health and safety regulations or causes environmental harm;

(d) employs or makes use of child labourers;

(e) fails to submit reports required by this act;

(f) contravenes any of the provisions of this [Act][Code][Law] or the conditions of his mineral right or the provisions of any other enactment relating to mines and minerals;

(g) dies and his heir or successor in title is not qualified under this [Act][Code][Law] to hold the mineral right, unless an application is received from the heir or successor within ninety days of the death to transfer the right to a third party who is so qualified and accepts all duties under the right;

(h) becomes an un-discharged bankrupt or becomes of unsound mind;

(i) makes any statement to the [Administrative Reviewer] in connection with his mineral right which he knows or ought to have known to be false;

(j) fails to substantially comply with the terms of a community development agreement when required by this [Act][Code][Law] to do so;

(k) for any reason becomes ineligible to apply for a mineral right under section [_] (on eligibility rules).

(2) The [Administrative Reviewer] shall, before suspending any mineral right give notice to the holder in such a manner as shall be prescribed and shall, in such a notice require the holder to remedy in not less than thirty calendar days any breach of the conditions of his mineral right.

(3) If the holder of a mineral right fails to remedy any failure or contravention specified in paragraphs (c), (d) and (k) of subsection (1), the [Regulating Authority] may, by notice to the holder thereof, suspend the mineral right forthwith.

(4) The powers of the [Regulating Authority] under this section shall, in relation to artisanal mining licences, be exercised by the Regulating Authority but the Regulating Authority need not consult the [statutory advisory board].

Example 25.9.2:

Article [_]

(1) Any serious offence, as defined in the Mining Regulations, which is committed by the holder shall be penalised with the immediate suspension of work, decided on by [the regulatory authority], subject to prior written notice having been given.

(2) The duration of the suspension shall be set in the regulations, according to the seriousness of the offence and its impact on the environment, public health and/or safety.

(3) To remedy said serious offence, [the regulatory authority] may, ex officio or at the request of the local authorities concerned, require that the holder carry out such works which it deems necessary in order to protect public health, the environment, workers or neighbouring mines. Should the holder fail to perform within the required time period, [the regulatory authority] may have said work carried out by a third party, at the holder's expense.

Article [_]

(1) Should it be duly found that the required documents prescribed by the present [Code][Act][Law] have not been kept in proper order, [the regulatory authority] shall send a written warning to the mining operator concerned, if this failure to comply does not constitute an offence.

(2) Should the holder repeat the offence, their activities may be suspended by the Minister, after notice to comply has been given, for a period of three months, and the holder fails to comply.

(3) At the end of the suspension period, [the regulatory authority] shall carry out an audit. If it is found that the holder is now compliant, the suspension shall be lifted. If not, it shall be renewed for a further period of three months.

(4) If the holder remains in default on expiry of the second suspension period, the holder shall be subject to a penalty, the total amount of which, in [national currency], shall be equivalent to [_] [currency] per day or part thereof, until the procedural defect has been cured.

Example 25.10.1:

Article [_]

(1) Any right, permit, permission or licence granted or issued in terms of this [Act][Code][Law] shall lapse, whenever –

(a) it expires;

(b) the holder thereof is deceased and there are no successors in title;

(c) a company or close corporation is deregistered in terms of the relevant acts and no application has been made or was made to the [Regulating Authority] for the consent in terms of section [_] (requiring the consent of the Administrative Reviewer for transfers of mineral rights) or such permission has been refused;

(d) save for cases referred to in section [_] (establishing an exception to the consent requirement for certain mortgages and security interests), the holder is liquidated or sequestrated;

(e) it is cancelled in terms of section [_] (concerning the Administrative Reviewer’s authority to cancel mineral rights); or

(f) it is abandoned.

Example 25.10.2:

Article [_]

(1) A mining right or authorisation expires at the end of the period for which it was granted (including subsequent renewals thereof), by relinquishment or by revocation. At the end of the term of a mining right or authorisation, the rights conferred on its holder revert to the State free of charge.

(2) Rights granted by the holder to third parties over substances and within the zone covered by the right, automatically lapse at the end of the term of such right.

(3) However, the holder of a mining right or mining operation permit for quarry substances remains liable for the payment of outstanding duties and taxes and for the obligations incumbent upon it with respect to the environment and rehabilitation of the developed sites, as well as for all the other obligations contemplated under this [Code][Act]Law], its implementing regulations and in the terms of reference or the mining agreement.

(4) Furthermore, the mining rights holder shall provide the [Regulating Authority] of a detailed report on the work carried out in five (5) copies. All information provided shall become the property of the State.

Example 25.11.1:

Article [_]

(1) The following shall be considered as failure to comply with administrative obligations by a rights holder: non-payment of annual surface area fees per square and failure to commence work within the time period provided for in the articles on these respective obligations.

(2) Subject to the provisions of Articles [_] of the present [Code][Act][Law] (on offences and penalties), the failures to comply as listed in Article [_] (on the non-payment of annual surface area fees and failure to commence work within the legal time period) shall constitute grounds for the Prospecting Licence, as well as [their Permanent Quarry Operating Permit] to be revoked.

(3) The Ministry of Mines shall immediately notify the holder of the decision to revoke the licence or permit and shall post an announcement in a room indicated in the Mining Regulations.

(4) Notification of the decision to revoke the licence or permit creates a right to appeal as provided for in Articles [_] (on arbitration appeal) of the present [Code][Act][Law].

(5) Such appeals must be brought within thirty days of the decision being posted in the Ministry of Mines with jurisdiction over the revoked right.

(6) Should an appeal not be brought within the time period given above, the decision to revoke the licence or permit shall be registered in the appropriate register and published in the [Official Gazette].

(7) Where an appeal is brought against a decision to revoke a licence or permit, the mining or quarrying right concerned shall remain valid for the duration of the proceedings. However, there shall be notice of the decision and the appeal proceedings which have been brought, in the register of granted licences and permits.

(8) The mining rights and [the permanent quarry operating permit] shall be cancelled by [the regulatory authority] when the holder has not brought an appeal against the decision to withdraw the licence or permit and when the time period for an appeal has lapsed or the appeal has been dismissed.

(9) The decision to cancel a licence or permit shall be made on the day the appeal is dismissed or the last day of the period within which the appeal should have been brought.

(10) The Ministry of Mines shall be notified of the decision of the to cancel the licence or permit and shall register it in the register of cancelled titles.

(11) The area which is the subject of a mining or quarrying right which has been cancelled shall return to and be held by the State.

(12) Holders of mining rights and [a permanent quarry operating permit] who have lost their rights and whose titles have been cancelled may not obtain new mining rights or a new [permanent quarry operating permit] for a period of five years from the date on which the cancellation was registered in the register kept by the Mining Cadastre.

(13) In addition, the cancellation of mining rights or [a permanent quarry operating permit] does not relieve the holder from their environmental and tax obligations.

Example 25.11.2:

Article [_]

(1) Subject to subsections (2), (3) and (4), the [Regulating Authority] may cancel or suspend any prospecting/reconnaissance permission, exploration right, mining right, mining permit or retention permit if the holder thereof –

(a) is conducting any prospecting/reconnaissance, exploration or mining operation in contravention of this [Act][Code][Law];

(b) breaches any material term or condition of such right, permit or permission;

(c) is contravening the approved environmental management programme; or

(d) has submitted inaccurate, incorrect or misleading information in connection with any matter required to be submitted under this [Act][Code][Law].

(2) Before acting under subsection (1), the [Regulating Authority] must –

(a) give written notice to the holder indicating the intention to suspend or cancel the right;

(b) set out the reasons why he or she is considering suspending or cancelling the right;

(c) afford the holder a reasonable opportunity to show why the right, permit or permission should not be suspended or cancelled; and

(d) notify the mortgagor, if any, of the exploration right, mining right or mining permit concerned of his or her intention to suspend or cancel the right or permit.

(3) The [Regulating Authority] must direct the holder to take specified measures to remedy any contravention, breach or failure.

(4) If the holder does not comply with the direction given under subsection (3), the [Regulating Authority] may act under subsection (1) against the holder after having –

(a) given the holder a reasonable opportunity to make representations; and

(b) considered any such representations.

(5) The [Regulating Authority] may by written notice to the holder lift a suspension if the holder –

(a) complies with a directive contemplated in subsection (3); or

(b) furnishes compelling reasons for the lifting of the suspension.

Example 25.12.1:

Article [_]

(1) The holder of a mining right may, upon application in the prescribed form and manner, and upon meeting prescribed conditions, surrender the mining right.

(2) The Mining Cadastre Office shall approve an application made under subsection (1) of this section to surrender the mining right if he is satisfied that-

(a)the holder of the mining right has submitted the request for surrender in the prescribed form and manner;

(b)the surrender will not affect any liability incurred by the mining right holder before the surrender of the mining right, including environmental obligation;

(c)all rents due and fees prescribed, if any, have been paid by the holder of the mining right; and

(d) the holder of the mining right has surrendered the original title document.

Article [_]

(1) The holder of a mining right may at any time during the period of the validity of such mining right, upon application to the Mining Cadastre Office in the prescribed form and manner and upon meeting prescribed conditions, relinquish the area or part of area covered by the mining right; provided, the geometry and dimensions of each surrendered area shall satisfy the prescriptions of this [Act][Code][Law] and its Regulations.

(2) Upon relinquishment of the area or part of the area covered by the mining right in accordance with the provisions of subsection (1) of this section, the fees payable on the basis of the area covered by the mining right shall be adjusted proportionally taking into account the area relinquished.

(3) The relinquishment of the area or part of the area covered by the mining right shall not affect the duration of the mining right.

(4) The relinquishment of the area or part of the area shall not affect any liability incurred by the mining right holder in respect of the area relinquished prior to the relinquishment, including environmental obligations.

Example 25.12.2:

Article [_]

(1) A holder of a mineral right who wishes to surrender all or a part of the land subject to the mineral right shall apply to the [Regulating Authority] for a certificate of surrender not later than two months before the date on which the holder wishes the surrender to take effect.

(2) An application under subsection (1) shall be in accordance with prescribed Regulations.

(3) Subject to subsection (4), upon an application duly made under subsection (1), the [Regulating Authority] shall issue a certificate of surrender in respect of the land to which the application relates.

(4) The [Regulating Authority] shall not issue a certificate of surrender

(a) to an applicant who is in default,

(b) to an applicant who fails to give records and reports in relation to the applicant’s mineral operations,

(c) where the [Regulating Authority] is not satisfied that the applicant will surrender the land in a condition which is safe and accords with good mining practice, or

(d) in respect of land, if the remaining area of the land after the surrender would be less than one block.

(5) Where a certificate of surrender is issued under this section, the [Regulating Authority] shall, where only part of the land subject to the mineral right is surrendered, amend the relevant licence accordingly or cancel the mineral right where the surrender is in respect of the whole area covered by the mineral right.

(6) Land in respect of which a certificate of surrender is issued, shall be treated as having been surrendered with effect from the date on which the certificate of surrender is issued under subsection (3).

(7) The surrender of land under this section shall not affect a liability incurred by a person in respect of that land before the date on which the surrender took effect.

Example 25.13.1:

Article [_].

(1) Subject to this section, an exploration licence or any interest therein or any controlling interest in the holder thereof may be transferred to any other person provided that the [Regulating Authority] is notified not less than 30 days before the intended transfer.

(2) In such notification, the applicant shall give to the [Regulating Authority] such details of the transferee as would be required in the case of an application for an exploration licence.

(3) Where the [Regulating Authority] is satisfied that the transferee is not disqualified under any provision of this act from holding an exploration licence, he shall notify the applicant of his approval of the transfer of the prospecting licence or an interest therein.

(4) Upon the transfer of an exploration licence, the transferee shall assume and be responsible for all rights, liabilities and duties of the transferor under the prospecting licence.

Example 25.13.2:

Article [_]. The deed of assignment

(1) Mining rights and [permanent quarry operating permits] may be the subject of a total or partial assignment. Said assignment shall be final and irrevocable. In the absence of provisions to the contrary, the common law relating to assignment shall apply.

(2) Any partial assignment must comply with the provisions of Articles [_] (on the shape and location of mining areas) of the present [Code][Act][Law].

(3) In addition, any partial assignment of an operating right or a [permanent quarry operating permit] shall be effective only from when the amended mine or quarry operating right is granted.

(4) It is a prerequisite that the assignee must be a person who is eligible to hold the mining rights or the [permanent quarry operating permits].

(5) The deed of assignment must contain a commitment on the part of the assignee to assume all of the holder's obligations with regard to the State which arise from the mining right or [the permanent quarry operating permit] concerned.

Article [_]. The assessment of an assignment application. The assessment of an assignment application is to be done in accordance with the provisions of Article [_] (on cadastral surveys) and Article [_] (on the assessment of a subleasing application) of the present [Code][Act][Law].

Article [_]. The registration and enforceability of the deed of assignment (1) In the event of the partial assignment of a mining or quarrying right for prospecting, the Ministry of Mines shall issue a new mining or quarrying title.

(2) In the event of the partial assignment of an operating right or a [permanent quarry operating permit], the partial assignment shall be registered when the new right is granted.

(3) In order to be binding on third parties, the registration of the deed of assignment is to be done in accordance with the provisions of Article [ ] (on the registration and enforceability of mortgage deeds) of the present [Code][Act][Law].

Article [_]. The transfer of a right

(1) Subject to the provisions of Article [_] (on cadastral surveys) and Article [_] (on the assessment of a subleasing application) of the present [Code][Act][Law], the technical assessment of the application file for the transfer of a mining right or a [permanent quarry operating permit] into the transferee's name is to be carried out within twenty working days of the date on which the application file was sent to the [Technical Division] by the Ministry of Mines.

(2)The technical assessment shall consist of:

a) verifying the transferee's financial ability;

b) verifying that the transferee has assumed the transferor's obligations;

c) determining, where appropriate, that any changes proposed by the transferee to the original documents which were the basis for the mining right or [permanent quarry operating permit] being granted do not alter the technical findings for the project.

(3) Should the transfer of a mining right or a [permanent quarry operating permit] be refused, written reasons must be given and said refusal gives the right to appeal as provided for in the provisions of Articles [_] and [_] (on appeal proceedings) of the present [Code][Act][Law].

(4) The transfer of a mining right or a [permanent quarry operating permit] shall be registered in the appropriate registry kept by the Ministry of Mines in accordance with Article [ ] (on the registration and enforceability of mortgage deeds) immediately after the transferor and transferee have been notified of the decision to approve the transfer.

(5) A transfer may only take place if it relates to mining rights or [Permanent Quarry Operating Permits] which are currently valid.

Article [_]. The obligations of the assignor after assignment

Notwithstanding any clause to the contrary, a transfer does not relieve the original holder of their obligations, with regard to the State, to pay the fees and charges which relate to their mining or quarrying title during the period in which they were the holder, nor does it relieve the holder of their obligations relating to environmental rehabilitation.

Article [_] Deeds of transfer

(1) Mining rights and [permanent quarry operating permits] may be transferred in whole or in part under the terms of a merger agreement and on account of death of the holder to his beneficiaries. In the absence of provisions to the contrary, common law relating to transfers shall apply.

(2) It is a prerequisite that the person to whom the right is to be transferred must be eligible to hold mining or quarrying rights.

Article [_] Deeds of partial transfer

The partial transfer of mining rights and [permanent quarry operating permits] is to be done in compliance with the provisions of Articles [_] and [_] (on the shape and location of mining areas) of the present [Code][Act][Law].

Article [_]

The registration and enforceability of deeds of transfer

In order to be binding on third parties, the registration of deeds of transfer is to be done in accordance with the provisions of Article [ ] (on the registration and enforceability of mortgage deeds) and Article [ ] (on the registration and enforceability of a deed of assignment) of the present [Code][Act][Law].

Article [_] A deed of transfer under the terms of a merger agreement and on account of death

The terms and procedures for the admissibility and assessment of deeds of transfer under a merger agreement and on account of death shall be those provided for for deeds of assignment relating to mining rights organised under the present [Code][Act][Law].

Article [_]. The obligations of the person to whom the right is transferred

Notwithstanding any clause to the contrary, the person to whom the right is transferred shall remain liable with regard to the State and third parties to fulfil all of the obligations of the original holder of the mining right or [permanent quarry operating permit].

Article [_]. Option contracts

A prospecting licence may be the subject of an option contract. Such a contract may be freely concluded between the parties and gives the recipient the right to obtain an interest in the enjoyment of an operating right following on from a Prospecting Licence or in the total or partial alteration of it if a certain investment is realised and/or specific work is completed as part of the mining activities relating to the Prospecting Licence in question.

Article [_]. The registration of option contracts

The registration of option contracts is to be done in accordance with the provisions of Article [ ] (on the registration and enforceability of mortgage deeds) of the present [Code][Act][Law].

Example 25.14.1:

Article [_]

(1) The following offences shall be penalised with imprisonment for a period of between two months and three years and with a fine of between [x] and [y] [national currency] or with only one of these two penalties: whoever is engaged in prospecting or mining work relating to a mine or quarry without a title, or outside of the limits for their title, or whoever undertakes mining work with a prospecting licence.

(2) The above fine shall be between [2x] and [2y] [national currency] if the related substance is diamond or another gemstone.

(3) A conviction shall result in the State seizing the fraudulently mined products and the relevant instruments used for this.

(4) Should the offence be repeated, the fine shall be tripled and the prison sentence doubled.

Example 25.14.2:

Article [_].

(1) A person who--

(a) conducts exploration or mines minerals or carries out quarrying operations otherwise than in accordance with the provisions of the [Act][Code][Law];

(b) in making an application for mining rights, knowingly makes a statement which is false or misleading in any material particular;

(c) in any report, return or affidavit submitted in pursuance of the provisions of this [Act][Code][Law], knowingly gives any information which is false or misleading or fails to declare in any material particular;

(d) removes, possesses or disposes of any mineral contrary to the provisions of this [Act][Code][Law], commits an offence.

(2) A mining rights holder who is guilty of an offence under section [_] (on illegal mining, false and misleading statements, false or non-declaration and smuggling) is liable to have his licence revoked and on conviction at the first instance, to a fine not less than [x][national currency]; and imprisonment of not less five years, if the offence is a continuing one, whether or not it is a first offence, the person convicted shall, in addition, be liable to a fine of [x] [national currency] in respect of each day during which the offence continues.

(3) A person who-

(a) places or deposits, or causes to be placed or deposited in a place any minerals, with the intention to mislead any other person as to the mineral possibilities of the place; or

(b) mingles or causes to be mingled, with samples or ore, any substances which may enhance the value or in any way change the nature of the ore, with the intention to cheat, deceive or defraud; or engages in the business of milling, leaching, sampling, concentrating, reducing, assaying, transporting, or dealing in ores, metals or minerals, contrary to the provisions of this [Act][Code][Law] commits an offence under this [Act][Code][Law] and is liable on conviction to a fine of not less than [x][national currency] or to imprisonment for a term not exceeding 2 years or to both fine and imprisonment.

Example 26.1.1:

Article [_]

(1) Mines may be operated only under an operating licence or a small-scale mining licence.

(2 An operating licence may only be allocated to a juristic person under Mauritanian law, and in accordance with the terms provided for in the present Act. It may only apply within the area for its existing prospecting licence and shall be granted automatically if the holder of the prospecting licence has fulfilled their obligations.

(3) Once the operating licence has been allocated, the prospecting licence shall remain valid outside the area for the operating licence.

Article [_]

(1) No person may engage in mining activities if they do not have the technical and financial ability required to meet the provisions of Articles [_] (on the duty to comply with best practices for a going concern and the duty to respect obligations relating to workers' health and safety, public health and safety, and respect for the essential features of the surrounding environment) of the present Act and to meet the environmental requirements provided for in the implementing regulations.

(2) Any prospecting licence holder, insofar as they have fulfilled their obligations, shall be granted an operating licence.

(3) Once the operating licence has been granted, [the Regulatory Authority] shall evaluate the financial and technical capacity of the holder before giving authorisation for operations to commence.

(4) In the event that the operating licence holder does not meet the required criteria for operating, the operating right may be subject to:

(a) the holder forming a partnership with a legal entity which meets the required criteria for operating, in a new entity under Mauritanian law, to which the operating licence shall be transferred;

(b) the assignment of the operating licence to a juristic person under Mauritanian law which meets the required criteria for operating

(5) One of these solutions must be implemented within six (6) months from when [the Regulatory Authority] notifies the operating licence holder that they do not meet the required criteria. During this period, the operating licence shall remain valid.

Example 26.1.2:

Article [_]

(1) The following may mine or quarry in terms of the present Act:

(a) any natural person, or public or private sector juristic person under Guinean law which demonstrates their financial and technical ability to undertake the requested operations;

(2) A decree of the [Head of Government] shall specify what is meant by "technical and financial ability".

(3) Persons or companies which are subject to international sanctions or criminal investigations related to fraud, corruption or money laundering may not obtain Mining Titles or Permits.

Article [_]

(1) No natural person may obtain or hold a Mining Title or Permit in the event that:

(a) their status is incompatible with carrying out business activities;

(b) they have received a prison sentence for violating the provisions of the present [Code][Act][Law] and its implementing regulations;

(c) their application does not comply with the requirements of the of the present [Code][Act][Law] and its implementing regulations.

Article [_]

During the period in which a Prospecting Licence is valid, only the holder has the right to apply for an Operating Licence or a Mining Concession for Deposits which are revealed within the area for the Prospecting Licence. This right comes into effect once the holder has produced the complete results as from the date of the Prospecting, reassigned half of the original area to the State, and has produced the file of relevant documents in accordance with Article [_] (on the allocation of an Operating Licence) and Article [_] (on the allocation of a mining concession) of the present [Code][Act][Law].

Article [_]

(1) As regards a company under Guinean law, a Mining Concession shall be given automatically, to the holder of a Prospecting Licence which has complied with their obligations under the Mining Code, by decree of the Cabinet, on a proposal from [the Regulatory Authority], after receiving approval from [the Advisory Commission]. This application must be submitted at least three months before the end of the period of validity for the Prospecting Licence in respect of which it is brought.

(2) The following shall be eligible for the Mining Concession system established by the present [Code][Act][Law]: investments of an amount equal to or greater than a billion (1,000,000,000) USD for substances in categories 1 (bauxite) and 5 (radioactive materials).

(3) This threshold shall be set at five hundred million (500,000,000) USD for substances in categories 2 (precious materials), 3 (metallic materials), 4 (non-metallic materials and rare earths) and 6 (mineral water and thermal springs).

Article [_]

(1) For a deposit which has been revealed, where there is no valid Prospecting Licence, a Mining Concession shall be granted following the procedure for a competitive and transparent invitation to tender according to rules to be defined in the regulations.

(2) The invitation to tender shall be implemented by the [relevant technical committee] together with the [Advisory Commission].

Example 26.2.1:

Article [_]

(1) As regards a company under [national] law, a Mining Concession shall be given automatically, to the holder of a prospecting licence which has complied with their obligations under the Mining Code, by decree of the Cabinet, on a proposal from [the Regulatory Authority], after receiving approval from [the Advisory Commission]. This application must be submitted at least three months before the end of the period of validity for the prospecting licence in respect of which it is brought.

(2) The following shall be eligible for the Mining Concession system established by the present [Code][Act][Law]: investments of an amount equal to or greater than one (1) billion United States dollars (USA).

(3) An application for a mining concession must be given in together with a file, as detailed in the mining regulations, and which must include each of the following:

(a) a copy of the prospecting licence, which must still be valid, and proof of payment for any taxes and fees due;

(b) a report on the results from the prospecting, with regard to the type, quality, volume and geographic location of the mineral resource which was identified;

(c) the plan for the first or second reassignment, as the case may be, together with the results from the prospecting work, and corresponding to half of the previous surface area;

(d) a feasibility study which is to include:

(i) a detailed environmental and social impact assessment, together with an Environmental and Social Management Plan, including a Hazard Plan, a Risk Management Plan, a Health and Safety Plan, a Rehabilitation Plan, a Plan for the Resettlement of Affected Population Groups, for those affected by the project, and the measures for mitigating the negative impact and optimising the positive impact;

(ii) an economic and financial analysis of the project and the plan for obtaining the necessary licences and permits;

(iii) the plans and estimates for the industrial infrastructure;

(iv) a plan to support Guinean businesses, for creating and/or strengthening the capacities of [SMEs/SMIs] or businesses owned or controlled by Guineans, for the provision of the required goods and services for their activities, and a plan for promoting the employment of Guineans, which must at least comply with the quotas set in the present [Code][Act][Law];

(v) a detailed timetable for the work which is to be carried out;

(vi) a community development plan annexed to the Local Development Agreement, which is to include, among other things, aspects such as training, medical, social, educational and road infrastructure as well as the infrastructure for supplying water and electricity; this Agreement shall be signed and the development shall be carried out once the title has been obtained; and

(vii) an architectural blueprint of the registered office for the company, together with an application addressed to the relevant administration for the allocation of a plot of land; with regard to the allocation of concessions for iron ore, bauxite, gold and diamond, the registered office must be completed within no more than three years from when the concession is allocated.

(4) The allocation of a mining concession shall entail the cancellation of the prospecting licence within the area for the mining concession.

(5) Prospecting related to the operations may continue. Should a mineral of a different category to the one for which the concession was allocated be discovered as part of this prospecting, the holder shall have a pre-emptive right to the relevant operating right. This right must be exercised within no more than eighteen (18) months from the date on which the State is notified of said discovery.

(6) [The Regulatory Authority] shall ensure that the assessment of an application and the cadastral survey are carried out.

(7) The technical evaluation and the environmental and social impact assessment as well as the related opinions shall be matters for [the Regulatory Authority] in conjunction with [the Regulatory Authority].

(8) The decision to approve or refuse the mining title, notify the party concerned and ensure it is published shall be matters for [the Regulatory Authority].

(9) An Agreement determining the operating terms for the Concession shall be negotiated and signed in accordance with the provisions of Article [] of the present [Code][Act][Law].

(10) For a deposit which has been revealed, where there is no valid prospecting licence, a Mining Concession shall be granted following the procedure for a competitive and transparent invitation to tender according to rules to be defined in the regulations.

(11) The invitation to tender shall be implemented by [the Regulatory Authority] together with the [Advisory Commission].

(12) The legal instruments which sanction the allocation, extension, renewal, transfer, subleasing, withdrawal or surrender of a mining concession must be published in the Official Gazette and on the official web site for [the Regulatory Authority].

(13) When areas which have already been prospected are put on the market in order to grant a mining concession, through an invitation to tender, this must be published in at least two widely-circulated newspapers, and this must be done at least forty-five (45) days before the deadline for the submission of tenders.

Example 26.2.2:

Article [_]

(1) An application for the grant of a large-scale mining licence shall be submitted to the Mining Cadastre Office in the prescribed form.

(2) An application for the grant of a large-scale mining licence shall–

(a)contain the registered name and place of incorporation of the company, its certificate of incorporation and certified copy of its memorandum and articles of association, the names and nationalities of its directors and the name of every shareholder who is the beneficial owner of five percent or more of the issued share capital;

(b)contain the company profile and history of exploration operations in Sierra Leone and elsewhere;

(c)identify the name and qualifications of the person responsible for supervising the proposed programme of mining operations;

(d)be accompanied by a plan of the area over which the licence is sought drawn in such manner as prescribed;

(e)state the period applied for;

(f)identify the minerals in respect of which the licence is sought;

(g)give or be accompanied by a statement giving details of the mineral deposits in the area of land over which the licence is sought, including details of all known minerals proved, estimated or inferred, ore reserves and mining conditions;

(h)be accompanied by a technological report on mining and treatment possibilities and the intention of the applicant in relation to them;

(i)give or be accompanied by a statement giving particulars of the proposed programme of mining operations, including a statement of-

(i)the estimated date by which the applicant intends to work for profit;

(ii)the estimated capacity of production and scale of operations;

(iii)the estimated overall recovery of ore and mineral products;

(iv)the nature of the products;

(v)proposals for the progressive reclamation and rehabilitation of land disturbed by mining and for the minimisation of the effects of mining on surface water and ground water and on adjoining or neighbouring lands;

(vi)the effects of the mining operations on the environment and on the local population and proposals for mitigation, compensation and resettlement measures;

(vii)any particular risks (whether to health or otherwise) involved in mining the mineral, in particular a radioactive mineral, and proposals for their control or elimination;

(j)give or be accompanied by a statement giving a detailed forecast of capital investment, operating costs and revenues and the anticipated type and source of financing;

(k)contain the identification of interested and affected parties including land owners and lawful occupiers of the proposed mining area;

(l)contain details of consultation with interested and affected parties and the results thereof;

(m)be accompanied by a report on the goods and services required for the mining operations which can be obtained within Sierra Leone and the applicant’s proposals with respect to the procurement of those goods and services;

(n)give or be accompanied by a statement giving particulars of the applicant’s proposals with respect to the employment and training of citizens of Sierra Leone;