SLIDE 1 INTOSAI/WGEI WORKSHOP
24TH – 26TH August 2016 Mombasa, Kenya
Ministry of Mining
The Overview of Mining Law
Presenter: Eng. Ngigi Colin
SLIDE 2 Mining Bill 2014
- The Mining Bill was published in the Kenya
Gazette on 17 March 2014 (National Assembly Bill No. 8 of 2014)
- It was passed by the National Assembly on
29th October, 2014
- 16th September 2015 it was passed by the
Senate with amendments and referred to the National Assembly
SLIDE 3 The Mining Act 2016
- The Bill was assented to on 6th May 2016
and came into effect on 27th May 2016 as The Mining Act, 2016 – No. 12 of 2016
- Purpose of the Act is ‘...... to give effect to
Articles 60, 62 (1)(f), 66 (2), 69 and 71 of the Constitution in so far as they apply to minerals; provide for prospecting, mining, processing, refining, treatment, transport and any dealings in minerals and for related purposes’
SLIDE 4
Licensing Regimes
Mining Act Cap 306 Mining Act 2016
Prospecting Right Reconnaissance Permit None Artisanal Mining Permit Mining Location Prospecting Permit Mining Permit Exclusive Prospecting Licence Reconnaissance Licence Prospecting Licence Special Licence None None Retention Licence Mining Lease Mining Licence
SLIDE 5
Mineral Dealings Regimes
Mining Act Cap 306 Mining Act 2016
Dealers Licence (Unwrought Precious Metals Act, Cap 309) Dealers Licence (Cap 306, 309) Reprocessing, Value Addition as new additions (Diamond Industry Protection Act, Cap 310) Diamond Dealers Licence
SLIDE 6 Administration of the Mining Act 2016
Mining Act Cap 306 Mining Act 2016
Commissioner of Mines and Geology Scrapped and functions shared between Directors of Mines and Geological Surveys; and Cabinet Secretary Licensing advisory committee (administrative) Mineral Rights Advisory Board (legal) None Representative of Director
- f Mines (Artisanal mining)
SLIDE 7
Benefits Sharing
Mining Act Cap 306 Mining Act 2016
Royalty Sharing: National 100% (Consolidated Fund) Royalty sharing: National-70%, County - 20%, Community – 10% None State Participation: 10% free carry interest in large scale mining
SLIDE 8
Local Content
Mining Act Cap 306 Mining Act 2016
Voluntary Community Social Responsibility (CSR) Goods and Services Employment and training Community Development Agreement
SLIDE 9
State Control of Mineral Resources
Mining Act Cap 306 Mining Act 2016
None Strategic Mineral No framework Mineral Agreements (Article 71 of Constitution) None Assets on Termination None Tender for Mineral Rights
SLIDE 10 Brief on Artisanal Mining
- The Mining Act, 2016 recognized the need to
formalize artisanal mining and made provisions through sections 92 to 100
- Only Kenyan citizens are eligible for artisanal
mining permit
- Artisanal mining permit is limited by permit
area, mining thoroughput, technology allowed
- Permitting processed at county level
SLIDE 11 Brief on Artisanal Mining
- An authorized officer representing the
Director of Mines shall work with a committee in processing of artisanal mining permits
- The holder of an artisanal mining permit has
- bligations to submit monthly reports on his
- peration and to conduct his operations in
accordance with mine safety, health and environment regulations
