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MINERAL RESOURCES DEVELOPMENT POLICY(2013)

14th February 2014

MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

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PRESENTATION OUTLINE

• Background( Historical perspective)• 1995 Mining Policy(Repealed and replaced)• Overview of the Mineral Resources Development

Policy (2013)• Policy Measures and Strategies• Implementation Framework

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1. BACKGROUND (Historical Perspective)

• Zambian large scale mining industry commenced in the 1930s under private ownership

• Mines were Nationalized in the 70s• In 1997 the Zambian Government initiated

reprivatization of the mining industry which ended in 2000

• Privatization of the mining sector was necessitated by the poor performance of the sector and the need to attract private investment

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BACKGROUND (Cont.)

• The development of the private driven mining sector was carried out within the frame work of the Mining Policy which was put in place in 1995

• Hastily done and lack detail

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2. 1995 MINING POLICY(REPLACED)

The 1995 Mining Policy failed to address the following:

• Inefficiency in the administration of the mining rights

• Undeveloped small scale mining and gemstone subsectors

• Low revenues from the mining sector to the treasury• Lack of financing for small scale miners

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1995 MINING POLICY(REPLACED)(Cont.)

• Poor marketing and mainstreaming of the gemstone and small scale mining industry

• Non participation by Zambians in ownership of large scale mines

Therefore, to address these challenges, the Mineral Resources Development Policy of 2013 was formulated

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3. OVERVIEW OF THE MINERAL RESOURCES DEVELOPMENT POLICY OF 2013

GUIDING PRINCIPLES• Government’s commitment to ensure sustainable

exploitation of mineral resources • Government’s commitment to a free market

enterprise economy• The application of modern principles in

administration of mining laws and regulations• Adherence to regional and international conventions• Promotion of Citizen Economic Empowerment (CEE)

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OBJECTIVES

Policy objectives of the Government for the mining sector are to:• Attract and encourage local and foreign private

sector participation.• Facilitate the empowerment of Zambians to become

owners/shareholders in the mining industry• Promote the development of a mining industry that

is integrated in the domestic economy• Encourage sustainable development of small scale

mining sub-sector

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OBJECTIVES(Cont.)

• Promote the development of a mining industry that is integrated in the domestic economy

• Achieve acceptable safety, health and environmental standards

• Promote research and development (R&D) in the mining industry

• Encourage mining companies to develop a participatory and collaborative approach to mine planning development and decommissioning taking into account the needs and concerns of local communities

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4. POLICY MEASURES AND STRATEGIESThe following sub-sections give policy measures and strategies intended to achieve the outlined objectives:Exploration and Mining• Expedite geological mapping of the remaining

unmapped parts of the country, through non-tax incentives

• Promote exploration of energy minerals • Promote exploration and marketing of uranium in

accordance with national and international mining law

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POLICY MEASURES AND STRATEGIES (CONT.)

• Spread the benefits of mining across Zambia

Mining Rights Administration•Maintain an efficient computerised mining cadastre system

The Legal Framework• Regularly update the legislative framework for the mining sector in line with the changing environment.

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POLICY MEASURES AND STRATEGIES (CONT.)

Safety, Health, Environment and Quality• Government ensuring that exploration, mining and

processing of minerals comply with safety, health and environmental legislation

• Maintaining Environmental Protection Fund(EPF)• Government shall ensure that exploration and mining

activities within protected areas comply with the environmental legislation

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POLICY MEASURES AND STRATEGIES (CONT.)

Large and Small Scale MiningGovernment shall :• Promote development of at least one large scale mine

in provinces with economical mineral deposits• Collaborate with large prospecting and mining

associations • Disseminate information to raise awareness on safety,

health and environmental risks to small-scale miners• Facilitate small-scale miners’ access to finance for the

development of the sub-sector

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POLICY MEASURES AND STRATEGIES, (CONT.)

Citizen Economic Empowerment in the Mining Sector

• Promote Zambian ownership of large scale mines through the Citizen Economic Empowerment Act

• Encourage mining companies to float their shares on the Lusaka Stock Exchange

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POLICY MEASURES AND STRATEGIES (CONT.)

Human Resource Development • Regularly identifying skills deficiencies and

promoting measures to address them• Encourage mining companies to support training

through provision of bursaries, in-house training and apprenticeships

Regional and International Co-operation• Government will explore and engage in regional

initiatives to facilitate the development of the sector and also cooperate with other Governments

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POLICY MEASURES AND STRATEGIES, (CONT.)

Marketing of Gemstones• Government will devise mechanisms of auctioning

gemstones within the country

Value Addition• Government shall promote and facilitate the

development of downstream processing capacities for minerals

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5. IMPLEMENTATION FRAMEWORK

The implementation framework will be as follows:• Institutional Arrangement• Legal framework• Monitoring and Evaluation • Resource mobilization and financing.

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END.