If you intend to open a mining company in Zambia, the first thing to do is to reconnoiter the legal framework of this South African country for mining. In this log post, we will provide basic information on what it takes to start a mining business in Zambia.
Legal landscape
Despite the fact that Zambia has a low environmental efficiency rating - the country ranks 133rd among the countries in the world on this indicator - but as for the subsoil, the legislation in the jurisdiction is quite strict and applies a special law on environmental protection to any natural or legal persons who intend to mine minerals in Zambia.
Permission for exploration and extraction of minerals in Zambia
The application for a license for mineral exploration is submitted to the Mining Register and the fee is paid.
- A license for exploration of mineral deposits in Zambia can only be issued for a specific area where work will be carried out. This area should not exceed 199999 hectares. Such a license is valid for four years and may be renewed. Companies that accumulate exploration space in excess of 4,999 km2 must pay additional fees.
- A mining license in Zambia grants its owner the exclusive right to conduct mining operations in a particular area for 25 years. If we are talking about large-scale mining in Zambia, the area should not exceed 24,999 hectares.
The law stipulates that to transfer the right to extract minerals in Zambia, you must obtain the approval of the local authorities and provide a certificate of tax exemption.
Permit for oil and gas production in Zambia
No one can conduct oil and gas exploration and production in Zambia without a permit from the Minister of Mining.
You can get a license for oil exploration in Zambia by applying for it and after the fee is paid.
The right to extract minerals in Zambia may only be granted to local nationals.
At least 50% of the Company's management team must be local nationals.
However, there are generally no requirements for ownership of indigenous shares in large exploration and production projects.
Royalties
The royalties are determined by the relevant mineral as follows:
- copper - 4% if the normal price is less than 4500 US dollars per ton;
- base metals (except copper) - 5% of the norm;
- precious metals - 6% of the norm;
- precious stones - 6% of the gross value;
- minerals - 5% of gross value;
- industrial minerals - 5% of gross value.
IQ Decision UK specialists provide comprehensive assistance for entrepreneurs who intend to establish a company for mining in Zambia, as well as to obtain the necessary permits. For more information, please contact us by filling out the form below.
