Webber Wentzel's Mining Sector Round Up 2024

Zambia’s Minerals Bill

• The Minerals Bill limits the number of mining rights one can have to 5. Exceptions if person complies with existing mining rights and financially capable to support additional rights. For investors, restriction could limit expansion and calls for a more strategic approach to acquiring and managing mining rights. • Section 13 (2) of the Bill allows Commission, on prescribed conditions, to deviate from processing mining and non-mining right applications strictly based on their order of receipt. Likely to have impact owing to uncertainty surrounding the prescribed conditions particularly if the same are not prescribed in subsidiary legislation. • Minerals Bill provides for the Mines Appeal Tribunal. Individuals aggrieved with the decision of the Commission may appeal to the Tribunal. Significant shift from the Current Act which provides that appeals must be heard by the Minister first. • Once the Mines Appeal Tribunal is established, it will provide more specialized and efficient mechanism for resolving disputes related to mining licenses and decisions. This shift enhances the fairness of the appeal process and is likely to contribute to greater stability in the mining sector.

• It proposes to repeal and replace the Current Act.

• It is not a complete overhaul of the current mining regime, but rather a series of targeted adjustments designed to refine and enhance the current system.

• The Minerals Bill intends to move regulation of the mining sector to a dedicated regulatory body, Minerals Regulation Commission (“Commission”). The Commission will have perpetual succession and will have the right to sue and be sued. • The introduction of the Commission is intended to provide a more stable, focused, and efficient regulatory environment with minimal pollical interference. This enhances regulatory predictability, improves investor confidence, and supports more effective management and enforcement of mining regulations. • Section 15 proposes acquisition of mining interest by Government by acquiring an interest in a proposed exploration area before granting an exploration licence to an applicant. Once minerals are discovered, the Bill states that the Minister of Finance shall maintain the interest acquired under the exploration area.

• This new requirement does not impact existing rights.

• Unclear what an “interest” is and unclear how much of an interest the Minister of Finance may be entitled to own and what rights the interest may come with. Investors need to be aware of these requirements to manage risks effectively, comply with regulations, and align their business strategies with Government expectations.

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