Mines and Minerals Development (General) (Amendment) Regulations, 2013 (S.I. No. 17 of 2013)

1. These Regulations may be cited as the Mines and Minerals Title Development (General) (Amendment) Regulations, 2013 and shall be read as one with the Mines and Minerals Development (General) Regulations, 2008, in these Regulations referred to as the principal S. I. No. 84 Regulations. of 2008

2. Regulation 2 of the principal Regulations is amended by the Amendment of insertion, in the appropriate place, of the following new definition: regulation 2 “minimum annual prospecting expenditure” means the minimum amount of money, set out in the Sixth Schedule, which a holder of a prospecting licence shall expend directly on prospecting operations in a year, excluding administrative and overhead expenses;

3. The principal Regulations are amended by the deletion of Deletion and Part VI and the substitution therefor of the following Part: substitution of Part VI PART VI TRANSFER OR ASSIGNMENT OF SHARE IN, OR CONTROL OF, COMPANY, MINING RIGHT OR MINERAL PROCESSING LICENCE

34. (1) An application for consent to— Application for (a) register the transfer of a share or shares in a company consent to which holds a mining right or mineral processing licence; transfer or (b) transfer control of a company which holds a mining right assign or mineral processing licence; or (c) transfer or assign a mining right or mineral processing licence; shall be in Form XXXIX set out in the Fifth Schedule. Copies of this Statutory Instrument can be obtained from the Government Printer, P.O. Box 30136, 10101, Lusaka, Price K4.00 each 72 Statutory Instruments 8th February, 2013 (2) An application under paragraph (c) of subregulation (1) shall be— (a) made by an assignor at any time during the validity of a mining right but not less than one hundred and twenty days before the date of expiry of the mining right; and (b) accompanied by an application for a mining right or mineral processing licence, as the case may be, made by the prospective assignee. Grant of 35. (1) The Minister, Director or Director of Geological Survey, consent to as the case may be, shall seek the advice of the Mining Advisory transfer Committee prior to granting the consent to — (a) register the transfer of a share or shares in a company which holds a mining right or mineral processing licence; (b) transfer control of a company which holds a mining right or mineral processing licence; or (c) transfer or assign a mining right or mineral processing licence. (2) The Minister, Director or Director of Geological Survey, as the case may be, shall, where an application meets the requirements of the Act and these Regulations grant consent under this Regulation in Form XIV set out in the Second Schedule. Amendment 4. Regulation 39 of the principal Regulations is amended by of regulation the insertion, immediately after sub-regulation (2), of the following 39 new sub-regulations: (3) The minimum annual prospecting expenditures are set out in the Sixth Schedule. (4) A holder of a mining right or mineral processing licence shall pay the prescribed area charges on or before the anniversary of the grant of the mining right or mineral processing licence. (5) A holder of a prospecting licence, large-scale mining licence, large scale gemstone licence or mineral processing licence who defaults on payment of the prescribed area charges commits an offence and is liable, upon conviction, to a fine of fifteen thousand penalty units for each day that the holder of a licence referred to in this sub-regulation is in default. (6) A holder of a prospecting permit, small-scale mining licence, small-scale gemstone licence or artisan’s mining right who defaults on payment of the prescribed area charges commits an offence and is liable, upon conviction, to a fine of one thousand five hundred penalty units for each day that the holder of a mining right referred to in this sub-regulation is in default. 8th February, 2013 Statutory Instruments 73

5. The Fourth Schedule to the principal Regulations is amended Amendment in paragraph B by the— of Fourth Schedule (a) insertion of the following new sub-paragraph:

2. The holder shall — (a) expend on prospecting operations each year, not less than the minimum annual prospecting expenditure set out in the Sixth Schedule, failing which the holder commits an offence and is liable, upon conviction, to a fine — (i) equal to the difference between the minimum annual prospecting expenditure and the amount actually expended on prospecting operations in that year if less than five hundred thousand penalty units; or (ii) of five hundred thousand penalty units if the difference between the minimum annual prospecting expenditure and the amount actually expended on prospecting operations in that year exceeds the equivalent of five hundred thousand penalty units; and (b) submit annual prospecting expenditure statements accompanied by copies of relevant transaction documents to the Director of Geological Survey; and (b) the re-numbering of sub-paragraphs (2) (3) and (4) as sub-paragraphs (3), (4) and (5) respectively.

6. The Fifth Schedule to the principal Regulations is amended Amendment of Fifth by the deletion of Form XXXIX and the substitution therefor of Schedule Form XXXIX set out in Appendix I to these Regulations.

7. The principal Regulations are amended by the repeal of the Repeal and Sixth Schedule and the substitution therefor of the Sixth Schedule replacement of Sixth set out in Appendix II to these Regulations. Schedule 74 Statutory Instruments 8th February, 2013

APPENDIX I (Regulation 6)

FIFTH SCHEDULE (Regulations 24, 25, 26, 31(1), 34(1), 36, 37 and 38) FORM XXXIX (Regulation 34(1)) (To be completed in triplicate) REPUBLIC OF ZAMBIA The Mines and Minerals Development Act, 2008 (Act No. 7 of 2008) The Mines and Minerals Development (General) Regulations, 2008 APPLICATION FOR CONSENT TO TRANSFER A MINING RIGHT, MINERAL PROCESSING LICENCE, OR REGISTER TRANSFER OF SHARES IN, OR TRANSFER CONTROL OF, COMPANY HOLDING MINING RIGHT OR MINERAL PROCESSING LICENCE Shaded fields for Licence code official use only Date and Time Information Required Information Provided 1 Mining Right or licence No: 2 Holder of mining right or licence 3 Proposed assignee or transferee 4 (a) Name(s) of applicant(s) Individual Company Co-operative Partnership (b) Type of applicant 5 (a) Date of Birth or Registration (dd/mm/yyyy) (b) Nationality or country of registration (c) Identity (National registration Card No. or Passport No.) or Company registration No. –Attach copies 6 Applicant’s Address Tel: Fax: E-mail: 8th February, 2013 Statutory Instruments 75 7 Appendices Appendix No. 1 Minutes of company board meeting Appendix No. 2 Resolution of the company’s board meeting Appendix No. 3 Reasons for transferring or assigning mining right, mineral processing licence, share or shares or control of company which holds a mining right or mineral processing licence Appendix No. 4 Application form for a mining right completed by proposed transferee Appendix No. 5 Tax clearance certificate by holder of mining right .................................................. ....................................................... Applicant Date .................................................. ....................................................... Officer Date FOR OFFICIAL USE ONLY Received by:………………………………...... …………….............. Officer (Name and Signature) Date Amount Received:………………………………………………………………… Serial No. of application:……………………………………...............…………. 76 Statutory Instruments 8th February, 2013

APPENDIX II (Regulation 7)

SIXTH SCHEDULE (Regulations 31 (3) and 39) PRESCRIBED FEES, AREA CHARGES, MAXIMUM AREAS AND MINIMUM ANNUAL PROSPECTING EXPENDITURE 1. FEES FOR MINING RIGHTS Type of Mining Right or Application Fee Units Prospecting Licence 10000 Renewal of Prospecting Licence 10000 Large-Scale Mining Licence 160000 Renewal of Large-Scale Mining Licence 160000 Large-Scale Gemstone Licence 160000 Renewal of Large-Scale Gemstone Licence 160000 Prospecting Permit 3000 Small-Scale Mining Licence 15000 Renewal of Small-Scale Mining Licence 15000 Small-Scale Gemstone Licence 15000 Renewal of Small-Scale Gemstone Licence 15000 Artisan’s Mining Right 3000 Transfer of Prospecting , Large-Scale Mining or Large-Scale Gemstone Licences 160000 Transfer of Small-Scale Mining Licence, Prospecting Permit or Small-Scale Gemstone Licence 15000 Alteration of Prospecting, Large-Scale Mining or Large-Scale Gemstone icences 3000 Alteration of Small-Scale Mining Licence, Prospecting Permit or Small-Scale Gemstone Licence 2500 Alteration of Artisan’s Mining Right 500 Transfer of control of company which holds Prospecting, Large Scale Mining or Large Scale Gemstone Licences 160000 Transfer of control of company which holds Prospecting Permit, Small-Scale mining or Small Scale Gemstone Licences 15000 2. FEES FOR NON-MINING RIGHTS/OTHER CATEGORIES Type of Licence, Certificate, Permit or Consent Fee Units Mineral Processing Licence 160000 Renewal of Mineral Processing Licence 160000 Transfer of Mineral Processing Licence 160000 Alteration of Mineral Processing Licence 3000 8th February, 2013 Statutory Instruments 77 Transfer of control of company which holds Mineral Processing Licence 160000 Annual Operating Permit (large-Scale) 5000 Annual Operating Permit (Small-Scale) 1500 Gemstone Sales Certificate 3500 Mineral Import Permit 3500 Mineral Export Permit 750 Application for consent to acquire, store, transport or export radioactive minerals 3500 Geological or Mining Consultancy Permit 2750 Mineral Analysis Laboratory Permit 2750 Mineral Analysis Certificate 750 Valuation Certificate 1000 3. AREA CHARGES Type of licence or Permit Fee Units per hectare per year Year 1 – 2 Year 3 -4 Year 5 - 6 Year 7 and later years where applicable Large Scale Prospecting licence 4 12 16 22 Prospecting Permit 2 5 8 — Large-Scale Mining Licence 56 56 56 56 Artisan’s Mining Right 14 14 — — Mineral Processing Licence 56 56 56 56 Large-Scale Gemstone Licence 200 200 200 200 Small-Scale Gemstone Licence 50 50 50 50 Small-Scale Mining Licensee 28 28 28 28 4. PRESCRIBED MAXIMUM AREAS Mining Right or Licence Maximum Area Hectare Square Cadastre Kilometers Units Large-Scale Prospecting 100000 1000 29940 Large-Scale Mining licence or Large-Scale Gemstone 25000 250 7485 Prospecting Permit 1000 10 300 Small Scale Mining Licence 400 4 120 Small-Scale Gemstone Licence 400 4 120 Mineral Processing Licence — — — Artisan’s Mining right 6.68 0.0668 2 78 Statutory Instruments 8th February, 2013 5. MINIMUM ANNUAL PROSPECTING EXPENDITURE PER HECTARE Type of Licence Fee Units per hectare per year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Prospecting Licence 40 40 120 120 160 160 220 Y. MUKANGA, LUSAKA Minister of Mines, 1st February, 2013 Energy and Water Development [MMMD/101/3/6] 8th February, 2013 Statutory Instruments 00