MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT MINERAL RESOURCES DEVELOPMENT POLICY(2013) 14th February 2014 1 PRESENTATION OUTLINE • Background( Historical perspective) • 1995 Mining Policy(Repealed and replaced) • Overview of the Mineral Resources Development Policy (2013) • Policy Measures and Strategies • Implementation Framework 2 1. BACKGROUND (Historical Perspective) • Zambian large scale mining industry commenced in the 1930s under private ownership • Mines were Nationalized in the 70s • In 1997 the Zambian Government initiated reprivatization of the mining industry which ended in 2000 • Privatization of the mining sector was necessitated by the poor performance of the sector and the need to attract private investment 3 BACKGROUND (Cont.) • The development of the private driven mining sector was carried out within the frame work of the Mining Policy which was put in place in 1995 • Hastily done and lack detail 4 2. 1995 MINING POLICY(REPLACED) The 1995 Mining Policy failed to address the following: • Inefficiency in the administration of the mining rights • Undeveloped small scale mining and gemstone subsectors • Low revenues from the mining sector to the treasury • Lack of financing for small scale miners 5 1995 MINING POLICY(REPLACED) (Cont.) • Poor marketing and mainstreaming of the gemstone and small scale mining industry • Non participation by Zambians in ownership of large scale mines Therefore, to address these challenges, the Mineral Resources Development Policy of 2013 was formulated 6 3. OVERVIEW OF THE MINERAL RESOURCES DEVELOPMENT POLICY OF 2013 GUIDING PRINCIPLES • Government’s commitment to ensure sustainable exploitation of mineral resources • Government’s commitment to a free market enterprise economy • The application of modern principles in administration of mining laws and regulations • Adherence to regional and international conventions • Promotion of Citizen Economic Empowerment (CEE) 7 OBJECTIVES Policy objectives of the Government for the mining sector are to: • Attract and encourage local and foreign private sector participation. • Facilitate the empowerment of Zambians to become owners/shareholders in the mining industry • Promote the development of a mining industry that is integrated in the domestic economy • Encourage sustainable development of small scale mining sub-sector 8 OBJECTIVES(Cont.) • Promote the development of a mining industry that is integrated in the domestic economy • Achieve acceptable safety, health and environmental standards • Promote research and development (R&D) in the mining industry • Encourage mining companies to develop a participatory and collaborative approach to mine planning development and decommissioning taking into account the needs and concerns of local communities 9 4. POLICY MEASURES AND STRATEGIES The following sub-sections give policy measures and strategies intended to achieve the outlined objectives: Exploration and Mining • Expedite geological mapping of the remaining unmapped parts of the country, through non-tax incentives • Promote exploration of energy minerals • Promote exploration and marketing of uranium in accordance with national and international mining law 10 POLICY MEASURES AND STRATEGIES (CONT.) • Spread the benefits of mining across Zambia Mining Rights Administration •Maintain an efficient computerised mining cadastre system The Legal Framework • Regularly update the legislative framework for the mining sector in line with the changing environment. 11 POLICY MEASURES AND STRATEGIES (CONT.) Safety, Health, Environment and Quality • Government ensuring that exploration, mining and processing of minerals comply with safety, health and environmental legislation • Maintaining Environmental Protection Fund(EPF) • Government shall ensure that exploration and mining activities within protected areas comply with the environmental legislation 12 POLICY MEASURES AND STRATEGIES (CONT.) Large and Small Scale Mining Government shall : • Promote development of at least one large scale mine in provinces with economical mineral deposits • Collaborate with large prospecting and mining associations • Disseminate information to raise awareness on safety, health and environmental risks to small-scale miners • Facilitate small-scale miners’ access to finance for the development of the sub-sector 13 POLICY MEASURES AND STRATEGIES, (CONT.) Citizen Economic Empowerment in the Mining Sector • Promote Zambian ownership of large scale mines through the Citizen Economic Empowerment Act • Encourage mining companies to float their shares on the Lusaka Stock Exchange 14 POLICY MEASURES AND STRATEGIES (CONT.) Human Resource Development • Regularly identifying skills deficiencies and promoting measures to address them • Encourage mining companies to support training through provision of bursaries, in-house training and apprenticeships Regional and International Co-operation • Government will explore and engage in regional initiatives to facilitate the development of the sector and also cooperate with other Governments 15 POLICY MEASURES AND STRATEGIES, (CONT.) Marketing of Gemstones • Government will devise mechanisms of auctioning gemstones within the country Value Addition • Government shall promote and facilitate the development of downstream processing capacities for minerals 16 5. IMPLEMENTATION FRAMEWORK The implementation framework will be as follows: • Institutional Arrangement • Legal framework • Monitoring and Evaluation • Resource mobilization and financing. 17 END. 18