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Part A: General Topics - 21. Miscellaneous Topics - 21.3 Treatment of Minerals/Materials Not Under License | 21.3(b) Reporting Requirements

This topic is used to define unified reporting requirements with which the right holders must comply when they find/discover minerals or materials not under license. It is important to include this topic to assure the flow of information to the country as it is the rightful owner of its own materials and minerals. It is also important to avoid confusion between notification and amendment of the license.

21.3(b) Example 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.

Annotation

Drawn from Sierra Leone’s mining law (2009), this provision shows the above-named important division between notification and amendment. The licensee may apply for an extension apart from the notification of the discovery itself, which shall be an obligation in all cases. If the discovering licensee does not apply for an extension, a third party can apply for it, and the regulating agency can grant it, if that is convenient for the State’s interests.

21.3(b) Example 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.

Annotation

Drawn from Uganda’s mining law (2003), this provision, in addition to distinguishing between a notification obligation and opportunity to amend an existing license to include the new discovery, addresses the case in which the discovering licensee does not wish to develop the newly discovered mineral. In such case and if it is in the public interest, the mining right can be granted to a third party.

Since this option could create risks of conflict arising from overlapping mining areas between the initial rights holder and the second rights holder, the State should ensure reasonable accommodation for the first licensee.