Mining (Strategic Minerals) Regulations, Legal Notice no. 149 of 2017

2. In these Regulations, unless the context otherwise requires- Interpretation. "Act" means the Mining Act, 2016 No. l2 of 2016. "agency" means a Ministry, Department or any public institution of the Government or any authority or body established by the State under the Constitution; "Corporation" means the National Mining Corporation established in sectton 22 of Act; "holder" has the meaning assigned to in the Act; "strategic mineral" has the meaning assigned to it in the Act; and "strategic mineral deposit" means a mineral deposit declared to be strategic under these Regulations.

3 . The purpose of these Regulations is to - Purpose of the Regulations. (a) provide a framework for declaring minerals and mineral deposits as strategic; Kenya Subsidiary Legislation, 20 I 7 1801 (b) regulate the manner in which strategic minerals may be explored, mined, processed, marketed, exported and imported; and (c) ensure it ut the exploration and mining of strategic minerals is carried out in a manner that benefits the country and protects the environment.

4. These Regulations shall Application of the - Regulations. (a) apply to all minerals and mineral deposits declared as sffategic by the Cabinet Secretary; (b) apply to the export and import of a strategic mineral for purposes of controlling its sale, marketing or use; (c) apply to all radioactive minerals; (d) not apply to a holder of a licence or permit for a mineral which is declared as strategic during the term of the licence or permit; and (e) not apply to a reconnaissance or prospecting permit or licence that is to be converted to a mining permit or licence at the time the mineral is declared strategic.

5. (1) In the event that a holder of an existing mineral right Discovery under a pre-existing discovers within its licence or permit area a mineral with potential mineral right. economic value that has been declared strategic but not included in the holder's licence or permit, the holder shall immediately report the discovery to the Cabinet Secretary. (2) The holder shall have the right to continue with all activities or operations within the licence or permit area in accordance with the approved work programme or programme of mining operations. (3) The Cabinet Secretary shall within thirty days of receipt of the report under sub regulation (1), send a team to assess and submit a report on the discovery. (4) The Cabinet Secretary shall, based on the report submitted under sub regulation (3), determine whether the mineral br the deposit, may be explored or mined. (5) Any decision to explore or mine the mineral shall take into consideration the rights of the holder. (6) Under no circumstances shall the discovery or declaration of strategic minerals be treated as a nationalisation or expropriation of the mineral right of the holder

6. (l) Subject to the Act, the Cabinet Secretary may, on the Approvals and regulatory advice of the Mineral Rights Board and with the approval of the oversight. Cabinet, declare_. (a) a mineral or mineral deposit to be strategic; or (b) areas to-be restricted or excluded from operations under a mineral right. 1 802 Kenya Subsidiary Legislation, 2017 (2) The Cabinet Secretary shall, in consultation with National Environment Management Authority or other relevant agency, determine whether the exploration or mining of a strategic mineral would significantly affect the natural environment or human health as provided under the relevant laws. (3) A regulatory authority that is tasked with regulating the use of specific strategic minerals, shall serve as the lead institution in the regulation of the mineral for any use that is included under the mandate of that regulatory authority. (4) A11 mining regulations and guidelines shall apply to strategic thinerals and strategic mineral deposits. '7 . ( 1) Subject to section 22I of the Act, the Cabinet Secretary Power of the hay, from time to time publish and disseminate guidelines for - Cabinet Secretary to publish (a) the exploration for and reporting of exploration results for guidelines. sffategic minerals; (b) mining, processing and beneficiation of strategic minerals; (c) the import, export and marketing of strategic minerals; (d)li?,:lgl"if ':"i',",1,,1";ii"f f; i:rT'l,'Ti,HJi.l:ffi :d'1: strategic; (e) or a Lii:lf,'#rffiT:',:H'":i:::n:T:: ix":[iill,*t (f) any other matter that the Cabinet Secretary may consider necessaty. . (2) The guidelines under sub regulation (l) shall be published in fllt Gazette.

8. (l) The Corporation, either on its own or in association with Role of the tlt) other person or company, shall be responsible for the exploration NationalMining corporation' mit -irirg oiar .trut"gii minerats or depoiits. ,6u Q) Without limiting the scope of sub regulation (l), the EElporation shall be responsible for - (a) engaging in the reconnaissance, prospecting and mining of a strategic mineral or strategic mineral deposit or any other related mineral activity; (b) the processing, refining or smelting of a strategic mineral; (c) the marketing or sale of a strategic mineral; (d) import and export of a strategic mineral; and (e) any other functions that the Cabinet Secretary with the approval of the Cabinet may assign to the Corporation in respect of strategic minerals. (3) Where it is determined by the Cabinet Secretary that the GOrpoiuiion does not have the nec.sury technical, financial or other 0lpicity to effectively explore, min., ,.-fin., smelt, process or market Kenya Subsidiary Legislation, 2017 1 803 the strategic mineral or mineral deposit, the Cabinet Secretary with the approval of the Cabinet may authorise the Corporation to seek private sector participation.

9. An agency may, submit a request to the Cabinet Secretary to Submission of declare a mineral or mineral deposit as strategic. request to declare a mineral or mineral deposit as strategic.

10. (l) Where the Cabinet Secretary deems it necessary for a Procedure to mineral or mineral deposit to be declared strategic, the Cabinet declare a mineral or mineral deposit Secretary shall submit to the Cabinet a request together with a as strategic. memorandum detailing - (a) the area in which the mineral or deposit is located; (b) the reasons why it is in Kenya's interests that the mineral or mineral deposit be declared as strategic; (c) information about the relevant market for the mineral including its uses; (d) the economic significance of the mineral to the country; (e) the safety or health dangers of the exploration and mining of the mineral; (0 estimated current market value of the mineral; and (e) any other reasons why the mineral or mineral deposit should be declared as strategic. (2) Where the Cabinet approves the request, the Cabinet Secretary shall - (a) publish the declaration in the Kenya Gazette and the website of the Ministry; and (b) record in the mining cadastre, the location of any declared strategic mineral or declared strategic mineral deposits. (3) Where the Cabinet rejects the request, the Secretary to the Cabinet shall furnish the Cabinet Secretary with the decision in writing within seven days thereof. Dated the 19th June,2017 . DAN KAZUNGU, Cabinet Secretary, Ministry of Mining.