Document:

ex10-3.htm

    

    A
BILL ENTITLED

    

    THE
MINES AND MINERALS ACT, 2009

    

    ARRANGEMENT
OF SECTIONS

    

    Section
No.

    

    PART
I                      -           PRELIMINARY

    
      	
               
      

            	
              1.

            	
              Interpretation.

            

    

    

    PART
II                      -           OWNERSHIP
OF MINERALS

    
      	
               
      

            	
              2.

            	
              Ownership
      of minerals.

            

    

    

    PART
III                      -           ADMINISTRATION

    
      	
               
      

            	
              3.

            	
              Minister
      to be responsible for administration of
Act.

            

    

    
      	
               
      

            	
              4.

            	
              Director
      to be responsible for implementation of
Act.

            

    

    
      	
               
      

            	
              5.

            	
              Duties
      of the Director.

            

    

    
      	
               
      

            	
              6.

            	
              Powers
      of Director and authorised
officers.

            

    

    
      	
               
      

            	
              7.

            	
              Execution
      and delegation of functions of the
Director.

            

    

    
      	
               
      

            	
              8.

            	
              Duties
      and powers of the Director of Geological
Survey.

            

    

    
      	
               
      

            	
              9.

            	
              Execution
      and delegation of functions of the Director of Geological
      Survey.

            

    

    
      	
               
      

            	
              10.

            	
              Authorised
      officers.

            

    

    
      	
               
      

            	
              11.

            	
              Establishment
      of Minerals Advisory Board.

            

    

    
      	
               
      

            	
              12.

            	
              Responsibilities
      of the Board.

            

    

    
      	
               
      

            	
              13.

            	
              Meetings
      of the Board.

            

    

    
      	
               
      

            	
              14.

            	
              Power
      to co-opt.

            

    

    
      	
               
      

            	
              15.

            	
              Disclosure
      of interest.

            

    

    
      	
               
      

            	
              16.

            	
              Annual
      Report.

            

    

    
      	
               
      

            	
              17.

            	
              Obstruction
      of Directors or authorised
officers.

            

    

    
      	
               
      

            	
              18.

            	
              Indemnity
      of officers.

            

    

    
      	
               
      

            	
              19.

            	
              Minister
      and officers prohibited from acquiring mineral rights,
  etc.

            

    

    
      	
               
      

            	
              20.

            	
              Prohibition
      against the disclosure of
information.

            

    

    

    PART
IV                      -           ACQUISITION
OF MINERAL RIGHTS

    
      	
               
      

            	
              21.

            	
              Acquisition
      of mineral rights.

            

    

    
      	
               
      

            	
              22.

            	
              Types
      of mineral rights.

            

    

    
      	
               
      

            	
              23.

            	
              Form
      and content of mineral rights.

            

    

    
      	
               
      

            	
              24.

            	
              Power
      of the Minister to authorise mineral
  investigations.

            

    

    
      	
               
      

            	
              25.

            	
              Acquisition
      of mineral rights by public tender.

            

    

    
      	
               
      

            	
              26.

            	
              Restrictions
      on grant of mineral rights.

            

    

    
      	
               
      

            	
              27.

            	
              Priority
      of applications.

            

    

    
      	
               
      

            	
              28.

            	
              Applications
      for mineral rights.

            

    

    
      	
               
      

            	
              29.

            	
              Information,
      time etc, for disposal of
application.

            

    

    
      	
               
      

            	
              30.

            	
              Areas
      designated for artisanal and small-scale mining
  licences.

            

    

    
      	
               
      

            	
              31.

            	
              Restriction
      on exercise of rights.

            

    

     

    
 

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    PART
V                      -           MINERAL
RIGHTS AND SURFACE RIGHTS

    
      	
               
      

            	
              32.

            	
              Restrictions
      on exercise of rights under a mineral
right.

            

    

    
      	
               
      

            	
              33.

            	
              Right
      to graze stock and cultivate land.

            

    

    
      	
               
      

            	
              34.

            	
              Acquisition
      of exclusive surface rights by holder of a large-scale mining
      licence.

            

    

    
      	
               
      

            	
              35.

            	
              Compensation
      for disturbance of rights, etc.

            

    

    
      	
               
      

            	
              36.

            	
              Compulsory
      acquisition of private land.

            

    

    
      	
               
      

            	
              37.

            	
              Compensation
      for compulsory acquisition of land.

            

    

    
      	
               
      

            	
              38.

            	
              Right
      to resettlement.

            

    

    

    PART
VI                      -           REGISTRATION,
RECORDS AND CADASTRE

    
      	
               
      

            	
              39.

            	
              Mining
      Cadastre Office.

            

    

    
      	
               
      

            	
              40.

            	
              Mining
      cadastre.

            

    

    
      	
               
      

            	
              41.

            	
              Registration
      of applications.

            

    

    
      	
               
      

            	
              42.

            	
              Registration
      of licence granting a mineral
right.

            

    

    
      	
               
      

            	
              43.

            	
              Memorials
      to be made in register of mineral
rights.

            

    

    
      	
               
      

            	
              44.

            	
              Registered
      licence is conclusive evidence.

            

    

    
      	
               
      

            	
              45.

            	
              Prior
      registers.

            

    

    
      	
               
      

            	
              46.

            	
              Cadastral
      survey map.

            

    

    
      	
               
      

            	
              47.

            	
              Evidentiary
      provision.

            

    

    
      	
               
      

            	
              48.

            	
              Confidential
      reports.

            

    

    
      	
               
      

            	
              49.

            	
              Public
      access.

            

    

    

    
      	
               
      

            	
              PART
      VII

            	
              -

            	
              SURRENDER,
      SUSPENSION AND CANCELLATION OF MINERAL
RIGHTS

            

    

    
      	
               
      

            	
              50.

            	
              Withdrawal
      of application for mineral rights.

            

    

    
      	
               
      

            	
              51.

            	
              Surrender
      of area covered by mineral right.

            

    

    
      	
               
      

            	
              52.

            	
              Temporary
      suspension order.

            

    

    
      	
               
      

            	
              53.

            	
              Suspension
      and cancellation of mineral rights.

            

    

    
      	
               
      

            	
              54.

            	
              Assets
      on termination of mineral right.

            

    

    
      	
               
      

            	
              55.

            	
              Delivery
      of documents on termination of mineral
rights.

            

    

    

    PART
VIII                      -           RECONNAISSANCE
LICENCES

    
      	
               
      

            	
              56.

            	
              Eligibility
      for reconnaissance licence.

            

    

    
      	
               
      

            	
              57.

            	
              Application
      for reconnaissance licence.

            

    

    
      	
               
      

            	
              58.

            	
              Disposal
      of application for reconnaissance
licence.

            

    

    
      	
               
      

            	
              59.

            	
              Restriction
      on grant of reconnaissance licence.

            

    

    
      	
               
      

            	
              60.

            	
              Notice
      of decision on application for reconnaissance
  licence.

            

    

    
      	
               
      

            	
              61.

            	
              Contents
      of reconnaissance licence.

            

    

    
      	
               
      

            	
              62.

            	
              Size
      of reconnaissance licence area.

            

    

    
      	
               
      

            	
              63.

            	
              Duration
      and renewal of reconnaissance
licence.

            

    

    
      	
               
      

            	
              64.

            	
              Rights
      of holder of reconnaissance
licence.

            

    

    
      	
               
      

            	
              65.

            	
              Obligations
      of holder of reconnaissance
licence.

            

    

    
      	
               
      

            	
              66.

            	
              Status
      of reconnaissance licence on application for or grant of large-scale
      mining licence.

            

    

    
      	
               
      

            	
              67.

            	
              Amendment
      of programme of reconnaissance
operations.

            

    

    
      	
               
      

            	
              68.

            	
              Transfer
      of reconnaissance licence.

            

    

     

    
 

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    PART
IX                      -           EXPLORATION
LICENCES

    
      	
               
      

            	
              69.

            	
              Eligibility
      for exploration licence.

            

    

    
      	
               
      

            	
              70.

            	
              Application
      for exploration licence.

            

    

    
      	
               
      

            	
              71.

            	
              Disposal
      of application for exploration
licence.

            

    

    
      	
               
      

            	
              72.

            	
              Notice
      of decision on application for exploration
  licence.

            

    

    
      	
               
      

            	
              73.

            	
              Restriction
      on grant of exploration licence.

            

    

    
      	
               
      

            	
              74.

            	
              Contents
      of exploration licence.

            

    

    
      	
               
      

            	
              75.

            	
              Size
      of exploration licence area.

            

    

    
      	
               
      

            	
              76.

            	
              Duration
      and renewals of exploration
licence.

            

    

    
      	
               
      

            	
              77.

            	
              Rights
      of holder of exploration licence.

            

    

    
      	
               
      

            	
              78.

            	
              Obligations
      of holder of exploration licence.

            

    

    
      	
               
      

            	
              79.

            	
              Ancillary
      rights of holder of exploration
licence.

            

    

    
      	
               
      

            	
              80.

            	
              Status
      of exploration licence on application for or grant of mining
      licence.

            

    

    
      	
               
      

            	
              81.

            	
              Status
      of exploration licence areas.

            

    

    
      	
               
      

            	
              82.

            	
              Amendment
      of programme of exploration
operations.

            

    

    
      	
               
      

            	
              83.

            	
              Transfer
      of exploration licence.

            

    

    

    
      	
              PART
      X -

            	
              ARTISANAL
      MINING LICENCES

            

    

    
      	
               
      

            	
              84.

            	
              Eligibility
      for artisanal mining licences.

            

    

    
      	
               
      

            	
              85.

            	
              Application
      for artisanal mining licence.

            

    

    
      	
               
      

            	
              86.

            	
              Disposal
      of applications for artisanal mining
licences.

            

    

    
      	
               
      

            	
              87.

            	
              Restriction
      on grant of artisanal mining
licence.

            

    

    
      	
               
      

            	
              88.

            	
              Contents
      of artisanal mining licence.

            

    

    
      	
               
      

            	
              89.

            	
              Size
      of artisanal licence mining area.

            

    

    
      	
               
      

            	
              90.

            	
              Duration
      and renewal of artisanal mining
licences.

            

    

    
      	
               
      

            	
              91.

            	
              Rights
      and duties of holders of artisanal mining
  licences.

            

    

    
      	
               
      

            	
              92.

            	
              Revocation
      of artisanal mining licences.

            

    

    
      	
               
      

            	
              93.

            	
              Notice
      to remedy dangerous or defective mining
  operations.

            

    

    
      	
               
      

            	
              94.

            	
              Transfer
      of mining artisanal licences.

            

    

    

    
      	
               
      

            	
              PART
      XI

            	
              -

            	
              SMALL-SCALE
      MINING LICENCES

            

    

    
      	
               
      

            	
              95.

            	
              Eligibility
      for small-scale mining licences.

            

    

    
      	
               
      

            	
              96.

            	
              Application
      for small-scale mining licence.

            

    

    
      	
               
      

            	
              97.

            	
              Disposal
      of applications for small-scale mining
licences.

            

    

    
      	
               
      

            	
              98.

            	
              Restriction
      on grant of small-scale mining
licence.

            

    

    
      	
               
      

            	
              99.

            	
              Contents
      of small-scale mining licence.

            

    

    
      	
               
      

            	
              100.

            	
              Size
      of small-scale licence mining area.

            

    

    
      	
                   101.

            	
              Duration
      and renewal of small-scale mining
licences.

            

    

    
      	
                  
      102.

            	
              Rights
      and duties of holders of small-scale mining
  licences.

            

    

    
      	
                   103.

            	
              Revocation
      of small-scale mining licences.

            

    

    
      	
                  
      104.

            	
              Notice
      to remedy dangerous or defective mining
  operations.

            

    

    

    PART
XII                      -           LARGE-SCALE
MINING LICENCES

    
      	
                   
      105.

            	
              Eligibility
      for large-scale mining licences.

            

    

    
      	
                106.

            	
              Application
      for large-scale mining licence.

            

    

    
      	
                107.

            	
              Disposal
      of application for large-scale mining
licence.

            

    

    
      	
                108.

            	
              Restriction
      on grant of large-scale mining
licence.

            

    

    
      	
                109.

            	
              Notice
      of decision on application for large-scale mining
  licence.

            

    

    
      	
                110.

            	
              Contents
      of large-scale mining licence.

            

    

    
      	
                111.

            	
              Duration
      of large-scale mining licence.

            

    

    
      	
                112.

            	
              Renewal
      of large-scale mining licences.

            

    

    
      	
               
      

            	
              113.

            	
              Amendment
      of programme of operations of large-scale mining
  licence.

            

    

    
      	
                114.

            	
              Rights
      of holders of large-scale mining
licences.

            

    

    
      	
                115.

            	
              Obligations
      of holders of large-scale mining
licences.

            

    

    
      	
                116.

            	
              Wasteful
      mining and treatment practices.

            

    

    
      	
                117.

            	
              Co-ordination
      of mining operations.

            

    

    
      	
                118.

            	
              Termination,
      suspension or reduction of
production.

            

    

    
      	
                119.

            	
              Transfer
      of large-scale mining licences.

            

    

     

    
 

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    PART
XIII                      -           RADIOACTIVE
MINERALS

    
      	
                120.

            	
              Provisions
      relating to radioactive minerals.

            

    

    
      	
                121.

            	
              Notification
      of discovery of radioactive
minerals.

            

    

    
      	
                122.

            	
              Report
      of operation related to radioactive
minerals.

            

    

    
      	
                123.

            	
              Export
      or disposal of radioactive
minerals.

            

    

    
      	
                124.

            	
              Offences
      against this Part.

            

    

    

    PART
XIV                      -           DREDGING
FOR MINERALS

    
      	
                125.

            	
              Provisions
      relating to dredging for minerals.

            

    

    
      	
                126.

            	
              Dredging
      permit required.

            

    

    
      	
                127.

            	
              Additional
      information relating to dredging.

            

    

    
      	
                128.

            	
              Application
      for dredging permit.

            

    

    
      	
                129.

            	
              Cancellation
      of dredging permits.

            

    

    
      	
                130.

            	
              Non-compliance
      deemed as contravention.

            

    

    

    PART
XV                      -           PROTECTION
OF THE ENVIRONMENT

    
      	
                131.

            	
              Protection
      of natural resources to be taken into
account.

            

    

    
      	
                132.

            	
              General
      duty to protect environment and minimize
  pollution.

            

    

    
      	
                133.

            	
              Environmental
      impact assessment.

            

    

    
      	
                134.

            	
              Annual
      environmental report.

            

    

    
      	
                135.

            	
              Diversion
      of watercourse.

            

    

    
      	
                136.

            	
              Rehabilitation
      of damaged areas.

            

    

    
      	
               
      

            	
              137.

            	
              Direction
      to comply with conditions of mineral rights for protection of the
      environment.

            

    

    

    PART
XVI                      -           COMMUNITY
DEVELOPMENT

    
      	
                138.

            	
              General
      obligation to promote community
development.

            

    

    
      	
                139.

            	
              Where
      community development agreement is
required.

            

    

    
      	
                140.

            	
              Content
      of community development agreement.

            

    

    
      	
                141.

            	
              Approval
      of community development agreement.

            

    

    

    PART
XVII                      -           HEALTH
AND SAFETY

    
      	
                142.

            	
              Duty
      of holders of mineral right to ensure safety of
  workers.

            

    

    
      	
                143.

            	
              Duties
      of workers at mines.

            

    

    
      	
                144.

            	
              Rights
      of workers at mines.

            

    

    
      	
                145.

            	
              Protection
      from discrimination.

            

    

    
      	
                146.

            	
              Duty
      to report accidents.

            

    

    
      	
                147.

            	
              Health
      and safety regulations.

            

    

     

    
 

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    PART
XVIII                                -           FINANCIAL

    
      	
                148.

            	
              Royalties.

            

    

    
      	
                149.

            	
              Exemption
      from payment of royalties.

            

    

    
      	
                150.

            	
              Provisional
      royalties.

            

    

    
      	
                151.

            	
              Prohibition
      on disposal of minerals.

            

    

    
      	
                152.

            	
              Annual
      charge in respect of mineral
rights.

            

    

    
      	
                153.

            	
              Submission
      of financial agreements.

            

    

    
      	
                154.

            	
              Arms-length
      sales.

            

    

    
      	
                155.

            	
              Separate
      accounting for large-scale mining
licences.

            

    

    
      	
                156.

            	
              Security
      for compliance.

            

    

    
      	
                157.

            	
              Recovery
      of royalties, taxes, duties, etc.

            

    

    
      	
                158.

            	
              Minister
      may require information.

            

    

    
      	
                159.

            	
              Transparency
      in the extractive industry.

            

    

    
      	
                160.

            	
              Duty
      to report revenue payments to
Government.

            

    

    
      	
                161.

            	
              Definitions.

            

    

    
      	
                162.

            	
              Government
      equity participation.

            

    

    

    PART
XIX                      
-           MISCELLANEOUS

    
      	
                163.

            	
              Preference
      for Sierra Leone products.

            

    

    
      	
                164.

            	
              Employment
      and training of Sierra Leone
citizens.

            

    

    
      	
                165.

            	
              Removal
      of minerals.

            

    

    
      	
                166.

            	
              Preservation
      of samples and cores.

            

    

    
      	
                167.

            	
              Discovery
      of precious minerals.

            

    

    
      	
                168.

            	
              Unlawful
      possession of precious minerals.

            

    

    
      	
                169.

            	
              Smuggling
      of precious minerals.

            

    

    
      	
                170.

            	
              Miscellaneous
      offences.

            

    

    
      	
                171.

            	
              Offences
      in relation to registration.

            

    

    
      	
                172.

            	
              Failure
      to deliver documents.

            

    

    
      	
                173.

            	
              General
      penalty.

            

    

    
      	
                174.

            	
              Liability
      of employer for offences committed by his
  servants.

            

    

    
      	
                175.

            	
              Review
      of decision of Minister.

            

    

    

    PART
XX                      
-           REGULATIONS

    
      	
                176.

            	
              Regulations.

            

    

    
      	
               
      

            	
              177.

            	
              Power
      of Minister to make special regulations with regards to precious
      minerals.

            

    

    

    PART
XXI                      
-           REPEAL AND
SAVINGS

    
      	
                178.

            	
              Repeal
      and savings.

            

    

    

    

    

    

    

    

    

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    

    

    A
BILL ENTITLED

    

    Short
title.                                           The Mines and Minerals Act,
2009

    

    Being an
Act to consolidate and amend the law on mines and minerals; to promote local and
foreign investment in the mining sector by introducing new and improved
provisions for exploration, mine development and marketing of minerals and
mineral secondary processing for the benefit of the people of Sierra Leone; to
ensure that management of the minerals sector is transparent and accountable in
accordance with international best practice; to promote improved employment
practices in the mining sector; to improve the welfare of communities adversely
affected by mining; to introduce measures to reduce the harmful effects of
mining activities on the environment and to provide for other related
matters.

    

    Date
of                                                                                                [                                ]

    commencement.

    

    Enacted
by the President and Members of Parliament in this present Parliament
assembled.

    

    Part
I – PRELIMINARY

    

    
      	
              Interpretation.

            	
              1.

            	
              In
      this Act, unless the context otherwise requires
  –

            

    

    

    “annual
charge” means the annual charge payable by the holder of a mineral right under
section 152;

    

    “artisanal
mining licence” means an artisanal mining  licence granted under
section 86;

    

    “artisanal
mining licence area” means an area that is subject to an artisanal mining
licence;

    

    “artisanal
mining operations” means mining operations that does not exceed a depth of ten
metres;

    

    “associated
minerals” means any mineral which occurs in mineralogical association with, and
in the same ore deposit as the primary mineral being mined, where it is
physically impossible to mine the primary mineral without also mining the
mineral associated therewith;

    

    “authorised
officer” means a person designated as such under section 10;

    

    “body
corporate” means a company or corporation;

     

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    “capital”
means all cash contributions, plant, machinery, equipment, buildings, spare
parts, raw materials, working capital and other business assets other than good
will;

    

    “community
development agreement” means a community development agreement approved under
section 141;

    

    Act No.
3                                 “company” means a body corporate
incorporated or

    of
2009                                           registered
under the Companies Act 2009;

    

    “continental
shelf” means that part of the seabed and subsoil of the submarine area adjacent
to the coast of Sierra Leone but outside territorial waters over which the
Republic is entitled by law to exercise sovereign rights for the purpose of
exploring and exploiting natural resources;

    

    “court”
means any duly constituted court other than a local court;

    

    “declared
area” means an area declared for licensing of artisanal and small-scale mineral
operations under section 30;

    

    “Director”
means the Director of Mines referred to under section 4;

    

    “discovery”
means a discovery of a mineral deposit or a discovery of a mineral or group of
minerals occurring in quantities or circumstances that indicate the presence of
a mineral deposit;

    

    “dredging
permit” means a dredging permit granted by the minister under section
126;

    

    “environmental
impact assessment” means an

    Act No.
11                                 environmental impact
assessment fulfilling all

    
      	
               
      

            	
              of
      2008

            	
              requirements of this
      Act and the Environment Protection Agency Act,
  2008;

            

    

    

    
      	
               
      

            	
              “environmental
      management programme” means a plan

            

    

    Act No.
11                                meeting all requirements of
this Act and the Environment of
2008 Protection Agency Act,
2008;

    

    “exploration
licence” means an exploration licence granted by the Minister under section
71;

    

    “exploration
licence area” means an area that is subject to an exploration
licence;

     

     

     

    
 

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    “exploration
operations” means operations carried out to explore;

    

    “explore”
means intentionally to search for minerals and mineral deposits and includes
operations to test, the mineral bearing qualities of the land, define the extent
and determine the economic value of mineral deposits;

    

    “excavation”
means any trench, pit, shaft or other open working;

    

    “Government”
means the Government of Sierra Leone;

    

    “holder”
in relation to a mineral right means the holder of a mineral right in whose name
the mineral right is registered under this Act;

    

    “land”
includes land beneath water, the seabed and sub- soil;

    

    “large-scale mining” means
the intentional winning of minerals in mechanised operations exceeding twenty
metres in depth or involving the sinking of shafts, driving of adits or other
various underground openings exceeding twenty meters.

    

    “large-scale
mining licence” means a large-scale mining licence granted by the Minister under
section 107;

    

    “large-scale
mining licence area” means an area that is subject to a large-scale mining
licence;

    

    Act No.
1                                 “local
council” means a local council established under the

    of
2004                                           Local
Government Act, 2004;

    

    “mine”
when used as a noun, means any place, excavation or working or by which any
operation connected with mining is carried on together with all buildings,
premises, erections and appliances belonging or appertaining to it, above and
below the ground, for the purpose of winning, treating or preparing minerals,
obtaining or extracting any mineral or metal by any mode or method or for the
purpose of dressing mineral ores, and includes a quarry where minerals are
mined;

    

    “mine”
when used as a verb, means intentionally to win minerals and includes any
operations directly or indirectly necessary for or incidental to mining
operations;

     

     

    
 

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    “mineral”
means any substance, whether in solid, liquid or gaseous form, occurring
naturally in or on the earth, in or under the water or in mine residue deposits
and having been formed by or subjected to a geological process including sand,
stone, rock, gravel and clay, as well as soil but excludes water, natural oil,
petroleum, topsoil and peat;

    

    “mineral
product” means a substance derived from an ore by mining or
processing;

    

    “mineral
right” means a right to explore for or to mine minerals by holding a valid
reconnaissance licence, exploration licence, artisanal mining licence,
small-scale mining licence, or large-scale mining licence, as the context
requires;

    

    “mining
area” includes an artisanal mining licence area, small-scale mining licence
area, or a large-scale mining licence area, as the context
requires;

    

    “mining
cadastre” means the mining cadastre referred to under section 40;

    

    “Mining
Cadastre Office” means the Mining Cadastre Office established under section
39;

    

    “mining
operations” means operations carried out in the course of mining;

    

    “Minister”
means the Minister responsible for mineral resources;

     
 

    “ore”
means a natural aggregate of one or more minerals which may be mined and sold at
a profit or from which some part may be profitably extracted;

    

    “person”
includes any company or association or body of persons corporate or
unincorporated;

    

    “precious
mineral” includes-

    

    
      	
               
      

            	
              (a)

            	
              precious
      stones, namely amber, amethyst, beryl, cat’s eye, chrysotile, diamond,
      emerald, garnet, opal, ruby, sapphire, turquoise and all other
      substances  of a similar nature to any of
  them;

            

    

    

    
      	
               
      

            	
              (b)

            	
              precious
      metals, namely gold, silver, platinum, iridium, or ores containing any of
      these metals provided that they are in commercially recoverable or payable
      quantities;

            

    

     

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
 

    “prescribed”
means prescribed by regulations made under this Act;

    

    “programme
of mining operations” means such a programme approved on the grant of a
small-scale or large-scale mining licence and includes any amendments made to it
under this Act;

    

    “prospecting
licence” means a prospecting licence granted

    Act No.
5                                 by
the Minister under section 39 of the Mines and Minerals of 1994 Act 1994;

    

    “radioactive
mineral” means a mineral which contains by weight at least one twentieth of one
percent (0.05 per centum) of uranium or thorium or any combination of it, and
includes but is not limited to,

    

    
      	
               
      

            	
              (a)

            	
              monazite
      sand and other ore containing
  thorium;  and

            

    

    

    
      	
               
      

            	
              (b)

            	
              carnotite,
      pitchblende and other ores containing
uranium;

            

    

    

    “reconnaissance
licence” means a reconnaissance licence granted by the Minister under section
58;

    

    “reconnaissance
licence area” means an area that is subject to a reconnaissance
licence;

    

    “reconnaissance
operations” means operations and works to carry out the search for mineral
resources by geophysical surveys, geochemical surveys, photo-geological surveys
or other remote sensing techniques and non-invasive surface geology in
connection therewith, but excludes drilling and excavations;

    

    “register
of mineral rights applications” means the mining cadastre register of mineral
rights applications referred to under section 40;

    

    “register
of mineral rights” means the mining cadastre register of mineral rights referred
to under section 40;

    

    “regulations”
means regulations made under sections 177 and 178 of this Act;

     

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
 

    “rehabilitation”
means the restoration to the satisfaction of the Director of the reconnaissance
licence area, exploration licence area, or mining area in accordance with the
environmental management programme to, as far as is practicable, its natural
state or to a safe, stable, predetermined condition and end use which is
compatible with a healthy environment and with the principle of sustainable
development;

    

    “Republic” means the Republic of Sierra
Leone;

    

    “small-scale
mining” means the intentional winning of minerals in mechanised operations not
exceeding twenty metres in depth or involving the sinking of shafts, driving of
adits, or other various underground openings;

    

    “small-scale
mining licence” means a small-scale mining licence granted by the Minister under
section 97;

    

    “surrender”  means
the giving up of all or a portion of a mineral right;

    

    “small-scale
mining licence area” means an area that is subject to a small-scale mining
licence;

    

    “termination”
means the lapse of a mineral right by expiry of time, surrender or cancellation;
and where the surrender or cancellation is in respect of part only of the area
covered by the mineral right, then the mineral right shall be deemed to have
been surrendered or cancelled in respect of that surrendered or cancelled
area;

    

    “tributer”
means a person who directly or indirectly is permitted to win minerals receiving
in return for the minerals so won remuneration paid directly or indirectly by
the person who permitted him to win the minerals;

    

    “work for
profit” means producing a mineral  product for use or
sale.

    

    

    PART
II          -        OWNERSHIP
OF MINERALS

    

    Ownership                                           2.           (1)           All
rights of ownership in and control of minerals

    
      	
              of
    minerals.

            	
              in,
      under or upon any land in Sierra Leone and its continental shelf are
      vested in the Republic not withstanding any right of ownership or
      otherwise that any person may possess in and to the soil on, in or under
      which minerals are found or
situated.

            

    

     

     

    
 

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (2)           
The Minister shall ensure in the public interest that the mineral resources of
Sierra Leone are investigated and exploited in the most efficient effective and
timely manner.

    

    

    

    

    PART
III             –           ADMINISTRATION

    

    Minister to
be                                     3.           Subject
to this Act, the Minister shall be responsible for responsible for the general
administration of this Act.

    administration

    of
Act.

    

    Director tobe
responsible                4.           Subject
to section 3, the Director of Mines shall beresponsible
for the implementation of this Act.

    for
implementation

    of
Act.

    

    Duties of
the                                        5.           The
duties of the Director shall include-

    Director.

    
      	
               
      

            	
              (a)

            	
              promoting
      and facilitating the effective and efficient management and the
      development of mineral resources;

            

    

    

    
      	
               
      

            	
              (b)

            	
              exercising
      regulatory administration and supervision over all reconnaissance,
      exploration, and mining operations;

            

    

    

    
      	
               
      

            	
              (c)

            	
              determining
      that all conditions relating to mineral rights and the requirements of
      this Act are complied with;

            

    

    

    
      	
               
      

            	
              (d)

            	
              making
      lawful orders that are necessary to enable him to effectually perform the
      functions and duties imposed upon him under this
  Act;

            

    

    

    
      	
               
      

            	
              (e)

            	
              maintaining
      a Mining Cadastre Office and mining
cadastre;

            

    

    

    
      	
               
      

            	
              (f)

            	
              approving
      reconnaissance, exploration and mining work
  programmes;

            

    

    

    
      	
               
      

            	
              (g)

            	
              preparing
      reports (including an annual report) and other records, and providing data
      to the public, subject to any confidentiality
  restrictions;

            

    

     

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (h)

            	
              taking
      custody of any minerals resources declared by any court to be forfeited to
      the Government;

            

    

    

    
      	
               
      

            	
              (i)

            	
              with
      the prior approval of the Minister, disposing of any mineral resources
      forfeited to the Government;

            

    

    

    
      	
               
      

            	
              (j)

            	
              carrying
      out investigations and inspections necessary to ensure compliance with the
      provisions of this Act; and

            

    

    

    
      	
               
      

            	
              (k)

            	
              advising
      holders of mineral rights on proper and safe mining
    methods.

            

    

    

    Powers
of                                            
6. 
         (1)           The
Director or an authorised officer may, at all reasonable times, enter upon any
land, reconnaissance licence area, exploration licence area, mining area or
mine, or any premises or

    Director                                             workings thereon or
thereunder, for the purpose of-

    and                                

    authorised                                

    officers.

    
      	
               
      

            	
              (a)

            	
              generally
      inspecting such area, premises or workings and examining reconnaissance,
      exploration, or mining operations or the treatment of minerals being
      carried out thereat;

            

    

    

    
      	
               
      

            	
              (b)

            	
              ascertaining
      whether the provisions of this Act are being complied
  with;

            

    

    

    
      	
               
      

            	
              (c)

            	
              taking
      soil samples or specimen of rocks, ore, concentrates, tailings or minerals
      situated upon such area, premises or workings for the purpose of
      examination or assay;

            

    

    

    
      	
               
      

            	
              (d)

            	
              examining
      books, accounts, vouchers, documents or records of any kind required to be
      kept under this Act, regulations made under it or the terms and conditions
      of any mineral right, permit or licence and taking copies of such books,
      accounts, vouchers, documents or records;
or

            

    

    

    
      	
               
      

            	
              (e)

            	
              obtaining
      such other information as he may deem
necessary.

            

    

    
 

    (2)           The
Director or an authorised officer may, with respect to the health and safety of
persons employed by a holder of a mineral right, issue directions in writing to
and impose restrictions, including temporarily suspending any mining operation,
on the holder or any person so employed.

     

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
 

    (3)           In
exercising the powers under subsection (1), the Director or an authorised
officer shall ensure that as little damage or inconvenience as possible is
caused to the owner or lawful occupier of the land in respect of which the
powers are exercised.

    

    Execution
and                                      7.          
 
 (1)           Where
the Director is, due to absence or inability to act, illness or other cause,
unable to exercise and perform the functions of

    delegation
of  functions
of                                his
office, the next  most senior officer within the Department of
Mines shall exercise and perform the functions of the Director during such
absence or inability.

    the Director. 

    (2)           The
Director may, subject to the approval of the Minister, delegate any of his
functions and duties to such public officer in the Department of Mines as the
Director may deem fit.

    

    Duties andpowers of the                   8.         
    (1)           The
duties of the Director of Geological Survey shall include-

    Director
of

    Geological                                                                    (a)           the
giving of advice to the Minister on all  geological
matters;

    Survey. 

    
      	
               
      

            	
              (b)

            	
              the
      undertaking of the geological mapping of Sierra
  Leone;

            

    

     

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (c)

            	
              the
      undertaking of reconnaissance and exploration operations with a view to
      locating mineral deposits;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      compilation, publication and dissemination of data and information
      concerning the geology and mineral resources of Sierra Leone;
      and

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      maintenance of such laboratory, library and record facilities as may be
      necessary for the discharge of his
functions.

            

    

    

    (2)           For
the purposes of performing his duties, the Director of Geological Survey
may-

    

    
      	
               
      

            	
              (a)

            	
              enter
      any reconnaissance, exploration, artisanal mining, small-scale mining or
      large-scale mining licence area;

            

    

    

    
      	
               
      

            	
              (b)

            	
              take
      soil samples or specimen of rocks, ore, concentrates, tailings or minerals
      situated in any reconnaissance, exploration, artisanal mining, small-scale
      mining or large-scale mining licence area for the purpose of examination
      or assay;

            

    

    

    
      	
               
      

            	
              (c)

            	
              break
      up the surface of the land for the purpose of ascertaining the rocks or
      minerals within or under them;

            

    

    

    
      	
               
      

            	
              (d)

            	
              dig
      up any land and fix any post, stone, mark or object to be used in the
      survey of such land; and

            

    

    

    
      	
               
      

            	
              (e)

            	
              enter
      into or upon any land through which it may be necessary to pass for the
      purpose of carrying out surveys but in the case of a sacred bush any such
      entry shall be with the permission of the local authority
      concerned.

            

    

    

    Execution
and                                     9.              
(1)           Where the
Director of Geological Survey is, due to absence or inability to act, illness or
other cause, unable to exercise and

    delegation
of  functions
of                                                 
 perform the functions of his office, the next most senior officer
within    of the Department of
Geological Survey shall exercise and perform the

    the
Director Geological  Survey.                                     
functions of the Director of Geological Survey during such absence or  inability.

    

    (2)           The
Director of Geological Survey may, subject to the approval of the Minister,
delegate any of his functions and duties to such public officer in the Ministry
as the Director may deem fit.

    

    
      	
              Authorised

            	
              10.

            	
              The
      Director may, by notice in the Gazette, designate
      any

            

    

    
      	
              officers.

            	
              public
      officer to be an authorised officer for the purpose of all or any of the
      provisions of this Act.

            

    

    

    Establishment                                     11.          
 (1)           There
is hereby established a body to be known as the Minerals Advisory
Board.

    of
Minerals   Advisory

    Board.                                                                    (2)           The
Minerals Advisory Board shall be consist of-

    

    
      	
               
      

            	
              (a)

            	
              a
      Chairman, who shall be a person knowledgeable and experienced in minerals
      and the mining sector;

            

    

    

    (b)           the
Director of Mines;

    

    (c)           the
Director of Geological Survey;

    

    
      	
               
      

            	
              (d)

            	
              the
      Commissioner-General of the National Revenue
  Authority;

            

    

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (e)

            	
              a
      representative of the Attorney-General and Minister of
      Justice;

            

    

    

    
      	
               
      

            	
              (f)

            	
              a
      representative of the Ministry responsible  for local
      government;

            

    

    

    
      	
               
      

            	
              (g)

            	
              a
      representative of the Ministry responsible for the
      environment;

            

    

    

    
      	
               
      

            	
              (h)

            	
              the
      Permanent Secretary of the Ministry responsible for mineral resources;
      and

            

    

    

    
      	
               
      

            	
              (i)

            	
              two
      persons with considerable qualifications and experience in the mining
      industry generally.

            

    

    

    (3)           The
Chairman shall be appointed by the President on the recommendation of the
Minister on such terms and conditions as may be stated in his letter of
appointment.

    

    (4)           Other
members of the Minerals Advisory Board shall be appointed by the Minister on the
recommendation of the Sierra Leone Institution of Engineers on such terms and
conditions as may be stated in their letters of appointment.

    

    (5)           The
Chairman and other members of the Minerals Advisory Board who are not ex-officio
members shall hold office for a period not exceeding three years and shall be
eligible for re-appointment.

    

    (6)           A
person shall cease to be a member of the Minerals Advisory Board on any of the
following grounds-

    

    
      	
               
      

            	
              (a)

            	
              for
      his inability to perform the functions of his office by reason of
      infirmity of mind or body;

            

    

    

    
      	
               
      

            	
              (b)

            	
              for
      proven misconduct;

            

    

    

    
      	
               
      

            	
              (c)

            	
              if  he
      becomes bankrupt or insolvent;

            

    

    

    
      	
               
      

            	
              (d)

            	
              if
      he is convicted of an offence involving fraud or dishonesty;
      or

            

    

    

    
      	
               
      

            	
              (e)

            	
              if
      he resigns his office by written notice to the
  Minister.

            

    

    

    (7)           The
Director of Mines shall be the Secretary of the Minerals Advisory
Board.

    

    Responsibilities                                 12.          
 The Minerals Advisory Board shall be responsible for-

    of the Board.

    
      	
               
      

            	
              (a)

            	
              advising
      the Minister on matters relating to minerals including reconnaissance and,
      exploration for, mining, processing, import and export and marketing of
      minerals;

            

    

     

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (b)

            	
              formulating
      recommendations of national policy on exploration for and exploitation of
      mineral resources with special reference to establishing priorities having
      due regard to the economy;

            

    

    

    
      	
               
      

            	
              (c)

            	
              advising
      the Minister on matters of the environment as they relate to
      mining;

            

    

    

    
      	
               
      

            	
              (d)

            	
              monitoring
      the implementation of every Government policy relating to minerals and
      reporting on it to the Minister;

            

    

    

    
      	
               
      

            	
              (e)

            	
              advising
      the Minister on granting of applications, and renewing, suspending,
      transferring and cancelling licences, where such Minerals Advisory Board
      participation is specifically provided for in the provisions of this
      Act;

            

    

    

    
      	
               
      

            	
              (f)

            	
              certifying
      mineral rights applications,  where such Minerals Advisory Board
      certification is specifically provided for in the provisions of this
      Act;

            

    

    

    
      	
               
      

            	
              (g)

            	
              securing
      a firm basis of comprehensive data collection on national mineral
      resources and the technologies of reconnaissance, exploration and
      exploitation for decision making;

            

    

    

    
      	
               
      

            	
              (h)

            	
              reviewing
      the provisions of this Act and regulations made hereunder and making
      recommendations to the Minister as may be considered
      necessary;

            

    

    

    
      	
               
      

            	
              (i)

            	
              such
      other functions as set out in this Act;
and

            

    

    

    
      	
               
      

            	
              (j)

            	
              such
      other functions as the Minister may assign to
  it.

            

    

    

    

    Meetings                                           
 13.           
 (1)           The
Minerals Advisory Board shall meet for the

    
      	
              of the
      Board.

            	
              dispatch
      of business at such times and in such places as the Chairman may determine
      but shall meet as frequently as necessary to respond to the time limits
      for dealing with an application for a mineral right and in any event meet
      at least quarterly.

            

    

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
 

    (2)           Subject
to this Act, the Minerals Advisory Board shall regulate its own
procedure.

    

    (3)           The
quorum at any meeting of the Minerals Advisory Board shall be six or two-thirds
of appointed members.

    

    (4)           The
Chairman shall preside at every meeting of the Minerals Advisory Board where he
is present and in his absence, the other members of the Board present shall
appoint one of their number to preside.

    

    (5)           Questions
before the Minerals Advisory Board shall be decided by a majority of the members
present and voting and in the event of an equality of votes, the Chairman or the
person presiding shall have a casting vote.

    

    (6)           The
validity of any proceedings of the Minerals Advisory Board shall not be affected
by any vacancy in its membership or any defect in the appointment of any of its
members.

    

    Power
to                                              
14.           (1)           The
Minerals Advisory Board may co-opt one or

    
      	
              co-opt.

            	
              more
      persons from a locality for its deliberations on or assessment of, an
      application for a mineral right over land situated in that
      locality.

            

    

    

    (2)           Subject
to subsection (1), the Minerals Advisory Board may co-opt any person or persons
to act as adviser or advisers at any of its meetings, as it may deem
necessary.

    

    (3)           Any
person co-opted pursuant to this section shall take part in the deliberations of
the Minerals Advisory Board but shall not be entitled to vote.

    

    
      	
              Disclosure

            	
              15.

            	
              (1)

            	
              A
      member of the Minerals Advisory Board
who

            

    

    
      	
              of
    interest.

            	
              has
      any interest, direct or indirect, in any matter to be considered by the
      Board, shall disclose the nature of his interest to the Board and such
      disclosure shall be recorded in the minutes of the Board and that member
      shall not take part in any deliberation or decision of the Board relating
      to that matter.

            

    

    

    (2)           A
member who contravenes subsection (1) shall be guilty of misconduct and liable
to be removed from the Minerals Advisory Board.

    

    
      	
              Annual

            	
              16.

            	
              (1)

            	
              The
      Minerals Advisory Board shall, not later
than

            

    

    
      	
              report.

            	
              ninety
      calendar days after the end of each year, submit to the Minister an annual
      report dealing generally with the activities and the operations of the
      Board within that year, including-

            

    

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (a)

            	
              the
      number of mineral rights granted, renewed or cancelled during that year
      and the Board’s recommendations and certifications, where required by this
      Act, in  respect thereof;
and

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (b)

            	
              recommendations
      of national policy for the ensuing year on exploration for and
      exploitation of mineral resources.

            

    

    

    (2)           The
Minerals Advisory Board shall also submit to the Minister such other reports on
its activities as the Minister may, in writing request from time to
time.

    

    (3)           The
Minister shall, as soon as possible after receiving the annual report submit to
Cabinet, a copy of the report with such statement as he may deem necessary, not
later than three months after the end of the year to which the report relates
and the President shall as soon as possible but not later than one month after
the receipt of the report, cause the report to be laid before
Parliament.

    

    Obstruction                                        17.            
Any person who, without reasonable excuse, hinders or

    of
Directors                                 obstructs
the Director of Mines, or the Director of Geological Survey,

    
      	
              or
      authorised

            	
              or
      any authorised officer or person from carrying out any of
    his

            

    

    
      	
              officers.

            	
              functions
      under this Act commits an offence and shall be liable on summary
      conviction to a fine not less than five hundred United States Dollars, or
      its equivalent in leones or to imprisonment for a term not exceeding
      twelve months or to both such fine and
  imprisonment.

            

    

    

    Indemnity                                            18.           The
Director of Mines, the Director of Geological

    
      	
              of
    officers.

            	
              Survey,
      and

            	
              an
      authorised officer or person shall not be liable for anything done, or
      omitted to be done, in good faith in the performance of any function
      vested in or delegated to him by or under this
  Act.

            

    

    

    Minister                                             
19.           (1)           No
public officer shall directly or indirectly,

    and
officers                                 acquire
any right or interest in any mineral right and any document or prohibited transaction purporting to
confer any right or interest in any such

    from
acquiring                                officer
shall be null and void.

    mineral
rights,

    
      	
              etc.

            	
              (2)

            	
              Subject
      to subsection (3), no public officer shall own or retain any shares in a
      company carrying on reconnaissance, exploration or mining operations, or
      the import, export or marketing of minerals in Sierra
    Leone.

            

    

    

                                
  (3)           Where
an officer is at the assumption of the functions of his office, the holder of
shares in such company as is mentioned in subsection (2), the officer shall
divest himself from such right or interest or dispose of the shares within
ninety calendar days after assumption of office.

     

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
 

    (4)           An
officer who contravenes this section commits an offence and shall be liable on
conviction to a fine not less than two thousand United States Dollars or its
equivalent in leones or to a term of imprisonment not exceeding twelve months or
to both such fine and imprisonment.

    

    (5)           For
the purposes of this section, “officer” means a public officer for the time
being engaged in the administration of this Act.

    

    Prohibition                                          20.           (1)           
Information obtained under this Act shall not be

    
      	
              against
    the

            	
              disclosed
      to any person who is not an official engaged in
  the

            

    

    
      	
              disclosure
      of

            	
              administration
      of this Act or

            	
              member
      of the Minerals Advisory Board

            

    

    
      	
              information.

            	
              without
      the prior written authorization of the licence holder except to the extent
      necessary-

            

    

    

    
      	
               
      

            	
              (a)

            	
              for
      or in connection with the administration of this
  Act;

            

    

    

    
      	
               
      

            	
              (b)

            	
              for
      or in connection with the preparation of statistics by or on behalf of
      Government; or

            

    

    

    (c)           for
the purpose of any legal proceedings.

    

    (2)           An
authorized officer or Board member of the Minerals Advisory Board shall not for
the purpose of his personal gain, use information disclosed under this Act that
comes to his attention in the course of, or by reason of his employment or
membership.

    

    (3)           Any
person, authorized official, or member of the Minerals Advisory Board who
contravenes the provisions of subsections (1) or (2) commits an offence and
shall be liable on conviction-

    

    
      	
               
      

            	
              (a)

            	
              in
      the case of an individual to a fine not less than two thousand United
      States Dollars, or its equivalent in leones or to imprisonment for a term
      not exceeding twelve months or to both such fine and imprisonment;
      and

            

    

    

    
      	
               
      

            	
              (b)

            	
              in
      the case of a body corporate, to a fine not less than ten thousand United
      States Dollars, or its equivalent in
leones.

            

    

    

    (4)           An
authorised officer shall ensure that the security of an unpatented process or a
process upon which research work is being carried out by the holder of mineral
right is not endangered or compromised as a result of an inspection by the
authorised officer.

    

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
 

    PART
IV                      -           ACQUISITION
OF MINERAL RIGHTS

    

    Acquisition                                         21.          
 (1) Subject to this Act, the right to explore for, to retain,

    of
mineral                                to
mine and to market minerals may be acquired and held under and in

    rights.                                accordance
with a mineral right granted under this Act notwithstanding any rightof ownership or otherwise that any
person may possess to the soil on whichminerals are found or situated.

    

    (2)           No
person shall explore for or mine minerals except under and in accordance with a
mineral right granted under this Act.

    

    
      	
               
      

            	 	 	
              (3)

            	
              Any
      person who contravenes subsection (2) commits an offence and is liable on
      conviction-

            

    

    

    
      	
               
      

            	
              (a)

            	
              in
      the case of an individual, to a fine not less than one thousand United
      States Dollars, or its equivalent in leones, or to imprisonment for a term
      not exceeding two years or to both such fine and imprisonment;
      and

            

    

    

    
      	
               
      

            	
              (b)

            	
              in
      the case of a body corporate, to a fine not less than twenty thousand
      United States Dollars, or its equivalent in
  leones.

            

    

    

    
      	
               
      

            	
              (4)

            	
              The
      court before which a person is convicted under subsection (3) may order
      the forfeiture of all minerals obtained by that person or if the minerals
      cannot be forfeited, of such sum of money as the court shall assess as the
      value of the minerals, and any minerals so forfeited shall be sold and the
      proceeds of such sales shall be paid into the Consolidated
      Fund.

            

    

    

    Types
of                                              
22.           The
following mineral rights may be granted under this Act-

    mineral
rights.                                

    (a)           a
reconnaissance licence;

    

    (b)           an
exploration licence;

    

    (c)           an
artisanal mining licence;

    

    
      	
               
      

            	
              (d)

            	
              a
      small-scale mining licence; and

            

    

    

    
      	
               
      

            	
              (e)

            	
              a
      large-scale mining licence.

            

    

    

    Form
and                                            
23.         
   (1)           A
mineral right shall be in such form as may be

    content
of  prescribed.

    mineral

    rights.                                                                  
 (2)           A
mineral right shall specify-

     

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (a)

            	
              the
      date of the grant of the mineral right and the period for which it is
      granted;

            

    

    

    
      	
               
      

            	
              (b)

            	
              a
      description of the area over which it is granted;
  and

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      conditions on which it is granted.

            

    

    

    
      	
              Power of
    the

            	
              24.

            	
              Notwithstanding
      the provisions of this Act, the
Minister

            

    

    
      	
              Minister
    to

            	
              may,
      in the public interest and subject to such conditions as he
      may

            

    

    
      	
              authorise

            	
              determine,
      authorise any person to undertake
non-commercial

            

    

    
      	
              mineral

            	
              investigations
      into the geological or mineral resources of Sierra
  Leone.

            

    

    investigations.

    

    Acquisition
of                                     25.           
 (1)           Notwithstanding
any provisions of this Act to the

    mineral
rights                                          contrary, the
Minister may by notice in the Gazette and in a
local

    by public
tender.                                       newspaper designate
any area in which minerals have been discovered

                 by a Government
survey, as an exploration area or mining area.

    

    (2)           Where
an area is designated as an exploration or mining area under subsection (1), the
Minister shall not award any mineral rights to any person in respect of such
area except by way of public tender.

    

    
      	
              Restrictions

            	
              26.

            	
              No
      mineral right shall be granted to-

            

    

    
      	
               
      

            	
              on
      grant of

            

    

    
      	
              mineral
      rights.

            	
              (a)

            	
              an
      individual who-

            

    

     
 

    
      	
               
      

            	
              (i)

            	
              is
      under the age of 18 years;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              is
      not a citizen of Sierra Leone or has not been ordinarily resident in
      Sierra Leone for a period of ten years immediately preceding his
      application for a mineral right;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              is
      an un-discharged bankrupt, having been adjudged or otherwise declared
      bankrupt under any written law, or enters into any arrangement or scheme
      of composition with his creditors;
or

            

    

    

    
      	
               
      

            	
              (iv)

            	
              has
      been convicted of an offence involving fraud or
  dishonesty;

            

    

     

     

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (b)

            	
              a
      co-operative society which is not registered in accordance with the laws
      of Sierra Leone;

            

    

    

    
      	
               
      

            	
              (c)

            	
              a
      body corporate-

            

    

    

    (i)           which
is not registered or

    incorporated
under                                under
the Companies Act; or

    

    
      	
               
      

            	
              (ii)

            	
              which
      is in liquidation other than a liquidation which forms part of a scheme
      for the reconstruction or amalgamation of such body
    corporate;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              in
      respect of which an order has been made by a court of competent
      jurisdiction for its winding up or
dissolution;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              which
      has made a composition or arrangement with its
  creditors;

            

    

    

    
      	
               
      

            	
              (v)

            	
              which
      has among its shareholders any shareholder who holds at least a ten
      percent share of the company or a director, who would be disqualified in
      terms of subparagraphs (i) or (iv) of paragraph
  (a).

            

    

    

    Priority
of                                           27.            
Subject to this Act, where two or more applicants, not

    
      	
              applications.

            	
              acting
      together, each make an application for the grant of any mineral right over
      the same area or over an overlapping area, the person whose application
      was first registered in the registry of mineral rights applications shall
      be considered for the grant of a mineral right in priority to the other
      applicants.

            

    

    

    Applications                                       28.           
 (1)           Subject
to subsection 2, an application for a

    for
mineral                                mineral
right or renewal of a mineral right-

    
      	
               
      

            	
              rights.

            

    

    
      	
               
      

            	
              (a)

            	
              shall
      be submitted to the Mining Cadastre Office, in the prescribed
      form;

            

    

    

    
      	
               
      

            	
              (b)

            	
              shall
      be accompanied by a non-refundable application
  fee;

            

    

     

     

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (c)

            	
              may
      be withdrawn by the applicant after giving to the Mining Cadastre Office a
      notice of withdrawal;

            

    

    

    
      	
               
      

            	
              (d)

            	
              shall
      upon receipt by the Mining Cadastre Office, be registered in the mining
      cadastre register of mineral rights applications in the prescribed
      form.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Subsection
      (1) shall not apply to an application for or renewal of an artisanal
      mining licence, and the application process for such an application or
      renewal shall, subject to this Act, be determined by the
      Director.

            

    

    

    
      	
              Information,

            	
              29.

            	
              (1)

            	
              The
      Director may, by notice served on an
applicant

            

    

    
      	
              time, etc,
      for

            	
              for
      the grant of a mineral right, require the applicant to furnish
      him,

            

    

    
      	
              disposal
    of

            	
              within
      such reasonable time as is specified in the notice, such
      further

            

    

    
      	
              application.

            	
              information
      relevant to the application as the Director may
  require.

            

    

    

    (2)           The
Minister may, on the advice of the Minerals Advisory Board, cause such
investigations or consultations to be made or carried out as he considers
necessary to enable him to dispose of an application for a reconnaissance
licence, exploration licence, small-scale mining licence or a large-scale mining
licence.

    

    (3)           An
application for a reconnaissance licence, exploration licence, mining licence,
small-scale mining licence or a large-scale mining licence shall be disposed of
not later than sixty calendar days after submission of the completed licence
application.

    

    (4)           An
application for an artisanal mining licence shall be disposed of not later than
fourteen calendar days after submission of the completed licence
application.

    

    
      	
              Areas

            	
              30.

            	
              (1)

            	
              Where
      the Minister considers that it is in the
public

            

    

    
      	
              designated
      for

            	
              interest
      to encourage exploration and mining of minerals in any
  area

            

    

    
      	
              artisanal
      and

            	
              by
      methods not involving substantial expenditure or the use
  of

            

    

    
      	
              small-scale

            	
              specialised
      technology, he may by notice in the Gazette, declare
      that

            

    

    
      	
              mining
      licences.

            	
              area
      for licensing of artisanal or small-scale mining operations and Part X and
      Part IX shall apply.

            

    

    

    (2)           A
notice by the Minister under subsection (1) may prescribe that particular
minerals or all minerals in the declared area are subject to the
notice.

    

    (3)           The
Minister may, by notice in the Gazette vary or revoke any
notice published under subsection (2).

     

     

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    
 

    Restrictions                                        31.           
 Where the doing of any act is regulated or prohibited by

    on
exercise                                                any statute other than this Act
nothing in this Act shall be construed as

    
      	
              of
    rights.

            	
              authorising
      the holder of a mineral right to do the act, otherwise than in accordance
      with that statute.

            

    

    

    PART
V                      –           MINERAL
RIGHTS AND SURFACE RIGHTS

    

    Restrictions                                        32.           (1)           The
holder of a mineral right shall not exercise any

    on
exercise                                of
his rights, under the mineral right-

    of
rights under

    
      	
               
      

            	
              a mineral
      right.

            	
              (a)

            	
              in
      respect of any land dedicated or set apart for any public purpose other
      than mining including any street, road, highway, or aerodrome except with
      the written consent of the responsible Minister or other authority having
      control over such land;

            

    

    

    
      	
               
      

            	
              (b)

            	
              except
      with the written consent of the owner or lawful occupier or his duly
      authorised agent, in respect of-

            

    

    

    
      	
               
      

            	
              (i)

            	
              any
      land dedicated as a place of burial or which is a place of religious or
      other  cultural significance;

            	 

    

    

    
      	
               
      

            	
              (ii)

            	
              any
      land which is the site of, or which is within two hundred metres or such
      greater distance as may be prescribed,  of any inhabited,
      occupied or temporarily unoccupied house or
  building;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              any
      land which is within fifty metres or such greater distance as may be
      prescribed, of land which has been cleared or ploughed or otherwise bona fide prepared for
      the growing of, or upon which there are  agricultural crops;
      or

            

    

    

    
      	
               
      

            	
              (iv)

            	
              any
      land which is the site of, or within one hundred metres or such greater
      distance as may be prescribed, any cattle dip, tank, dam, or other body of
      water,

            

    

    

    but where
any consent so required is, in the opinion of the Minister, being unreasonably
withheld, the Minister may, on such conditions, if any, as he may impose, direct
in writing that the need for the consent under this paragraph shall be dispensed
with and authorise the holder of the mineral right to exercise all or any of his
rights under it;

     

     

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (c)

            	
              in
      respect of any land reserved for the purpose of any railway, highway or
      waterway or which is within fifty metres or such greater distance as may
      be prescribed, of the boundaries of any land so reserved, except with the
      written consent of the responsible railway, highway or waterway authority;
      and

            

    

    

    
      	
               
      

            	
              (d)

            	
              in
      respect of any land within any township, or within two hundred metres or
      such greater distance as may be prescribed, of the boundaries of any
      township, except with the written consent of the local authority having
      control over the township.

            

    

    

    (2)           Any
consent by the Minister under paragraph (a) of subsection (1) may be given
unconditionally or subject to such conditions as may be specified in the
instrument of consent.

    

    Right
to                                            
  33.            
 (1)           The
owner or lawful occupier of any land which is within an area that is the subject
of a mineral right shall retain the right to graze stock upon or to cultivate
the 

    graze stock and cultivate
land            of such land in so far
as  such grazing or
cultivation does not interfere with the proper use of such area
for reconnaissance, exploration, or mining operations.

    

    (2)           In
the case of an artisanal mining, small-scale mining or large-scale mining
licence area, the owner or lawful occupier of any land within such area shall
not erect any building or  structure thereon without the consent
of the holder of the artisanal mining licence, small-scale mining licence, or
large-scale mining licence, as the case may be, which consent shall not be
unreasonably withheld.

    

    (3)           The
rights conferred by a mineral right shall be exercised reasonably and so as to
affect as little as possible the interests of any owner or lawful occupier of
the land on which such rights are exercised consistent with the reasonable and
proper conduct of the operations concerned.

    

    (4)           No
holder of a mineral right shall create unprotected pits, hazardous waste dumps
or other hazards such as to be likely to endanger the stock, crops or any lawful
activity of the owner or lawful occupier of the land covered by such mineral
right.

     

     

    
 

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    Acquisition                                          34.               Subject to the
provisions of any law relating to the

    
      	
              of

            	
              exclusive                                                  acquisition of
      land titles and section 38, the holder of a
  large-scale

            

    

    
      	
              surface

            	
              rights                                       mining licence
      shall obtain a land lease or other rights to use the
  land

            

    

    
      	
              by

            	
              holder
      of                                                upon such terms as
      to the rents to be paid for the licence, the
  duration

            

    

    
      	
              a

            	
              large-scale                                       or the extent
      or area of the land to which such licence shall relate,
  as

            

    

    
      	
              mining

            	
              licence.                                       may be agreed
      between such holder and such owner or lawful
  occupier

            

    

    
      	
                 

            	
                    of the land or
      failing that, such agreement as may be determined by the Minister on the
      advice of the Minerals Advisory
Board.

            

    

    

    Compensation                                     35.           (1)           The
holder of a mineral right shall on demand

    for
disturbance                                being
made by the owner or lawful occupier of any land subject to such

    
      	
              of rights,
      etc.

            	
              rights
      pay such owner or lawful occupier fair and reasonable compensation for any
      disturbance of the rights of such owner or occupier and for any damage
      done to the surface of the land by his operations and shall on demand
      being made by the owner of any crops, trees, buildings or works damaged
      during the course of such operations pay compensation for such damage
      subject to section 34 and section 38 shall be deemed to be adequate
      compensation for deprivation of the use of land to which such rent
      relates.

            

    

    

    (2)           In
assessing compensation payable under this section, account shall be taken of any
improvement effected by the holder of themineral right or by his predecessor in title
the benefit of which has or willinure to the owner or lawful
occupier.

    

    (3)           The
basis upon which compensation shall be payable for damage to the surface of any
land shall be the extent to which the market value of the land (for which
purpose it shall be deemed saleable) upon which the damage has occurred has been
reduced by reason of such damage, but without taking into account any enhanced
value due to the presence of minerals.

    

    (4)           No
compensation shall be payable to the occupier of a state grant of land in
respect of any operations under a mineral rightexisting at the date of such
grant.

    

    
      	
               
      

            	
              (5)

            	
              No
      demand made in terms of this subsection
shall

            

    

    entitle
the owner or lawful occupier to prevent or hinder the exercise bythe holder of a mineral right of his rights
there under pending thedetermination of compensation to be
paid.

    

    (6)           If
the holder of a mineral right fails to pay compensation when so demanded under
the provisions of this section, or if the owner or lawful occupier of any land
is dissatisfied with any compensation offered, such compensation may be
determined by the Minister on the advice of the Minerals Advisory
Board.

    

    (7)           A
claim for compensation under the provisions of subsection (1) shall be made
within a period of two years from the date when the compensation became due
failing which, not withstanding the provisions of any other enactment, such
claim shall not be enforceable.

     

     

    
 

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    Compulsory                                           36.           (1)           The
Minister may, by order published in the

    acquisition                                           Gazette, compulsorily acquire
private land or rights over or under

    of
private                                 private
land for use by the holder of a large- scale mining licence.

    land.

    (2)           Before
making an order under subsection (1) the

    Minister
shall be satisfied that-

    

    
      	
               
      

            	
              (a)

            	
              the
      holder of a large-scale mining licence has taken all reasonable steps to
      acquire on reasonable terms by agreement with the owner, the land which he
      wishes to use or the right which he wishes to exercise and has been unable
      to do so; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      acquisition of such land or right is necessary for mining purposes or for
      purposes ancillary to mining.

            

    

    

    (3)           The
Minister may, under such conditions as he deems fit, including the payment of
rent, permit the holder of the large-scale mining licence the use of any land or
the exercise of any right acquired under subsection (1); but that the land or
right shall not be used or exercised by the holder for any purpose other than
the purpose for which it was acquired under subsection (1).

    

    Compensation                                     37.           (1)           Subject
to section 38, when land is acquired

    for
compulsory                                compulsorily
under section 36, those persons having an interest

    acquisition
of                                           in
or rights over the land concerned shall be paid adequate

    
      	
              land.

            	
              compensation
      by the holder of the mineral right determined on the same basis as
      compensation for disturbance of rights under section
  35.

            

    

    

    (2)           The
holder of a large-scale mining licence shall, before entering into possession
for enjoyment of any land or before exercising any right over the land, make
payment of compensation as determined in accordance with subsection (1) to the
person or persons concerned or if the whereabouts of the person or persons
concerned or any of them are unknown, give such undertakings concerning the
payment of compensation as the Minister may require.

    

    
      	
              Right to

            	
              38.

            	
              (1)

            	
              The
      Minister shall ensure that all owners or
lawful

            

    

    
      	
              resettlement.

            	
              occupiers
      of land who prefer to be compensated by way of resettlement as a result of
      being displaced by a proposed mining operation are resettled on suitable
      alternate land, with due regard to their economic well-being and social
      and cultural value so that their circumstances are similar to or improved
      when compared to their circumstances before resettlement, and the
      resettlement is carried out in accordance with the relevant planning
      laws.

            

    

     

     

    
 

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    (2)           The
cost of resettlement shall be borne by the holder of the mineral
right-

    

    
      	
               
      

            	
              (a)

            	
              as
      agreed by the holder and the owner or lawful occupier of land or by
      separate agreement with the Minister,
or

            

    

     
 

    
      	
               
      

            	
              (b)

            	
              in
      accordance with a determination by the Minister, except that where the
      holder elects to delay or abandon the proposed mining operation which will
      necessitate resettlement, the obligation to bear the cost of resettlement
      shall only arise upon the holder actually proceeding with the mining
      operation.

            

    

    

    (3)           Subject
to this section, the Minister may take the necessary action to give effect to a
resettlement agreement or determination.

    

    

    PART  VI                                -           REGISTRATION,
RECORDS AND CADASTRE

    

    Mining                                                
39.           The
Director shall establish and maintain a Mining

    
      	
              Cadastre
      Office.

            	
              Cadastre
      Office which shall be accessible to the
Public.

            

    

    

    Mining                                              
 40.           (1)           The
Mining Cadastre Office shall open and

    
      	
              cadastre.

            	
              maintain
      for the purposes of this Act registers and a cadastral survey map, to be
      known collectively as the mining cadastre, comprised
  of-

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      register of mineral rights;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      register of mineral rights applications;
and

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      cadastral survey map of mineral rights and mineral rights
      applications.

            

    

    

    (2)           The
mining cadastre may include a computerised system involving a spatially related
database for registering and administering mineral rights and mineral rights
applications, but all registers shall also be maintained in paper
form.

    

    (3)           The
Mining Cadastre Office shall officially confirm mineral rights and generate
certificates as required under this Act to be issued by the
Director.

    

    Registration                                        41.           (1)           An
application for the grant of a mineral right shall

    
      	
              of
      applications.

            	
              be
      bound and serially numbered in the register of mineral rights applications
      by the Mining Cadastre Office, along with such other information as is
      required under this section and as may be
  prescribed.

            

    

     

     

    
 

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    (2)           The
register of mineral rights applications shall for every application contain a
record in sufficient detail as to show-

    

    
      	
               
      

            	
              (a)

            	
              the
      name of the applicant for the mineral right and in the case an applicant
      that is a company, the names of the principal owners and or
      shareholders;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      type of mineral right applied for;

            

    

    

    (c)           the
area to be subject to the mineral rightapplied for; and

    

    
      	
               
      

            	
              (d)

            	
              the
      date, hour and minute the application was
  registered.

            

    

    

    (3)           The
date, hour and minute of registration of any application for the grant of a
mineral right shall be the date, hour, and minute that a complete application is
registered in the register of mineral rights applications.

    

    Registration                                       42.           (1)           The
granting of a mineral right shall consist of its

    of
licence                                authentication
under the hand and seal of the Minister, or in the case

    granting
a                                of
an artisanal mining licence under the hand and seal of the Director

    
      	
              mineral
      right.

            	
              or
      any person to whom the Director has delegated the power to authenticate
      such licence.

            

    

    

    (2)           A
licence granting a mineral right shall be prepared in duplicate, one copy being
for the mineral right holder and the other retained by the Mining Cadastre
Office to be and serially numbered and bound, along with other information as
may be prescribed, in the register of mineral rights.

    

    (3)           The
register of mineral rights shall for every licence granting a mineral right
contain a record in sufficient detail as to show-

    

    
      	
               
      

            	
              (a)

            	
              the
      name of the holder of the mineral right, and if the holder is a company
      the names of the principal owners and or
  shareholders;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      type of mineral right;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      area subject to the mineral right;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      duration of the mineral right; and

            

    

     

     

    
 

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (e)

            	
              the
      date the licence was registered.

            

    

    

    (4)           The
date of registration of any licence granting a mineral right shall be the date
that the licence is bound and registered in the register of mineral
rights.

    

    (5)           For
the avoidance of doubt, it is hereby declared that, upon the registration of a
licence granting a mineral right in accordance with this Act, the granting of
such right shall take effect without the need of formal acceptance by or on
behalf of the person named therein as the licence holder.

    

    (6)           The
granting of a mineral right takes effect upon the registration date of the
licence granting the right.

    

    (7)           No
licence granting a mineral right shall be issued by the Mining Cadastre Office
until all prescribed fees payable in relation to the grant and registration of
that licence have been paid.

    

    (8)           The
Mining Cadastre Office when issuing a licence granting a mineral right shall
require an acknowledgement of the receipt of the copy of the licence from the
person accepting such licence in such form as may be prescribed.

    

    Memorials
to                                                      43.           (1)           The
Director shall enter in the register of mineral

    be made
in                                rights
a memorial of grants, renewals, area enlargements and

    register
of                                relinquishments,
transfers, surrenders, revocations, forfeitures,

    
      	
              mineral
      rights.

            	
              attachments,
      pledges, encumbrances, fees paid, discoveries, reports submitted, changes
      of address, changes of name or any other matter materially affecting the
      status of or any interest in any mineral right registered under this
      Act.

            

    

    

    (2)           Until
the memorial required under this section has been so entered in the register,
the grant, renewal, transfer, surrender, revocation, forfeiture, or change of
address shall have no effect.

    

    (3)           Where
the Director is satisfied that there has been a mistake made in, or that some
matter has been incorrectly entered in, the register of mineral rights he shall
rectify the register, by correcting that mistake or incorrect entry and shall
enter in the registry a memorial of such correction and the date the correction
was so entered.

    

    Registered                                           44.           Every
licence granting a mineral right registered under

    licence
is                                this
Act shall, subject to this Act, be conclusive evidence-

    conclusive

    evidence.

    
      	
               
      

            	
              (a)

            	
              that
      the licence and rights granted by it are vested in the person or body for
      the time being named as the
licensee;

            

    

     

     

    
 

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              of
      the conditions and other provisions subject to which the licence is for
      the time being held by the person or body, so far as the same are required
      by any provision of this Act to be specified in the
    document.

            

    

    

    
      	
              Prior
      registers.

            	
              45.

            	
              Every
      register of licences, leases and agreements pertaining to exploration and
      mining rights existing at the commencement of this Act shall be retained
      by the Director and, not withstanding that it may not thereafter be used
      for the preparation or binding up of any document, so far as the licences
      therein have not been continued into any other register, continue in use
      for all other purposes of this Act.

            

    

    

    
      	
              Cadastral

            	
              46.

            	
              (1)

            	
              The
      Director shall organize and maintain
a

            

    

    
      	
              survey

            	
              cadastral
      survey map and shall have marked on
it-

            

    

    map.

    
      	
               
      

            	
              (a)

            	
              all
      lands for which licences granting mineral rights are currently in
      force;

            

    

    

    
      	
               
      

            	
              (b)

            	
              all
      lands for which licence applications for mineral rights are pending a
      decision; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              all
      lands known or believed to be closed to mining operations under this Act
      or any other law then in force.

            

    

    

    (2)           Such
cadastral survey map may be in the form of physical maps or maps contained in an
electronic format or both.

    

    
      	
              Evidentiary

            	 	
              47.

            	
              (1)

            	
              The
      Mining Cadastre Office shall upon request
and

            

    

    
      	
              provision.

            	
              on
      payment of the prescribed fee, issue a certificate with respect to any of
      the following matters-

            

    

    

    
      	
               
      

            	
              (a)

            	
              that
      a mineral right was applied for, granted, renewed, transferred, suspended,
      cancelled or expired on, or with effect from, a date specified in the
      certificate;

            

    

    

    
      	
               
      

            	
              (b)

            	
              that
      any land, identified in the certificate is, or was on a date specified in
      the certificate, subject to a mineral
right;

            

    

    

    
      	
               
      

            	
              (c)

            	
              that
      a mineral specified in the certificate is a mineral to which an artisanal
      mining licence, a small-scale licence or a large-scale mining licence
      relates;

            

    

    

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (d)

            	
              that
      any condition specified in the certificate is, or was on a date so
      specified, a condition of a mineral
right;

            

    

    

    
      	
               
      

            	
              (e)

            	
              that
      a certificate of surrender was issued in respect of land identified, on a
      date specified in the certificate;

            

    

    

    
      	
               
      

            	
              (f)

            	
              that
      any condition specified in the certificate is a condition on which a
      certificate of surrender was issued or on which any consent or approval so
      specified was given; or

            

    

    

    
      	
               
      

            	
              (g)

            	
              that
      a person named in the certificate is, or was on a date specified in the
      certificate, the holder of a mineral
right.

            

    

    

    (2)           A
certificate of the Mining Cadastre Office on any of the matters referred to in
subsection (1) shall be admissible in proceedings before any court or tribunal
as evidence of that fact, but without prejudice to the right to adduce evidence
in rebuttal.

    

    Confidential                                           48.           (1)           Any
report submitted by the holder of a mineral

    
      	
              reports.

            	
              right
      that is defined by this Act as a confidential report, or that is
      prescribed as a confidential report, shall become non-confidential ninety
      calendar days after the expiry date of the mineral
  right.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Any
      report required to be submitted under this Act by the holder of a mineral
      right that is not defined by this Act as a confidential report and that is
      not prescribed as a confidential report is a non-confidential
      report.

            

    

    

    
      	
              Public
      access.

            	
              49.

            	
              The
      register of mineral rights, the register of mineral rights applications,
      the cadastral survey map of mineral rights and applications,
      non-confidential agreements, and non-confidential reports submitted by
      past and present holders of a mineral right shall be open to inspection by
      members of the public during normal official office hours and members of
      the public shall be permitted to take copies thereof on payment of the
      prescribed fees.

            

    

    

    

    PART  VII                                -           SURRENDER,
CANCELLATION AND SUSPENSION OF

    MINERAL
RIGHTS

    

    Withdrawal
of                                           50.           An
applicant for a mineral right or any renewal application for thereof may at any time
before the determination of his application,

    
      	
              mineral
      rights.

            	
              withdraw
      his application by notifying the Mining Cadastre Office in writing that he
      wishes to withdraw such
application.

            

    

     

     

     

    
 

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    Surrender
of                                       51.           (1)           Subject
to this Act and any condition of his

    area
covered                                           mineral
right, the holder of a mineral right may surrender the area

    by
mineral                                covered
by his mineral right or part of it by-

    right.                                

    
      	
               
      

            	
              (a)

            	
              giving
      the Minister, not less than ninety calendar days notice of his intention
      to surrender the whole or part of the area concerned;
  and

            

    

    

    
      	
               
      

            	
              (b)

            	
              complying
      with such conditions as may be prescribed or stated in the mineral
      right.

            

    

     
 

                                
 (2)           Upon
compliance with paragraphs (a) and (b) of subsection (1), the Minister shall
issue a certificate of surrender to the holder.

    

                               
  (3)           If
the application for a certificate of surrender is in respect of part only of the
area covered by the mineral right, the holder shall-

    (a)           in
his application-

    

    
      	
               
      

            	
              (i)

            	
              provide
      a reliable plan in a form and substance acceptable to the Minister, of the
      area to be relinquished; and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              submit
      detailed technical reports as prescribed containing all information,
      results, interpretation and data relating to the surrendered area from the
      commencement of the mineral right;

            

    

    

    
      	
               
      

            	
               (b)

            	
              if
      the application is approved, demarcate the remaining area in the
      prescribed manner.

            

    

    

    (4)           No
surrender of any area covered by a mineral right shall be effective until the
Minister has issued a certificate of surrender in respect of that area upon
payment of the prescribed fee by the holder.

    

    (5)           A
surrender of an area covered by a mineral right shall be without prejudice to
any liabilities or obligations incurred by the holder in relation to the area
surrendered prior to the date of surrender.

    

    (6)           On
the issue of a certificate of surrender the Minister shall-

    

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              if
      the surrender is in relation to the whole area covered by a mineral right,
      cancel such right; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              if
      the surrender is in relation to part only of the area covered by a mineral
      right, amend the mineral right
accordingly.

            

    

    

    Temporary                                                      52.           (1)           The
Director, or any person authorised by the

    
      	
              suspension

            	
              Director,
      may in writing order reconnaissance, exploration or
  mining

            

    

    
      	
              order.

            	
              operations
      to be temporarily suspended on an emergency basis, regardless of whether
      such operations are authorized by a mineral right, until such arrangements
      that are in Director’s opinion necessary to prevent danger to life,
      property or the environment or to comply with this Act are
      made.

            

    

    
      	
               
      

            	 

    

    (2)           The
Director may cancel or vary the terms of any temporary suspension
order.

    

    (3)           The
Minister shall have the power to confirm a temporary suspension order made by
the Director and may not delegate this power.

    

    (4)           A
temporary suspension order shall lapse after twenty-one days of its issuance,
unless it is confirmed, in writing, by the Minister.

    

    Suspension
and                                           53.           (1)           The
Minister after consultation with the Minerals

    cancellation
of                                Advisory
Board may suspend or cancel a mineral right if the holder-

    mineral rights.

    
      	
               
      

            	
              (a)

            	
              fails
      to make any of the payments required by or under this Act on the date
      due;

            

    

    

    
      	
               
      

            	
              (b)

            	
              fails
      to meet any prescribed minimum annual  programme of work or work
      expenditure requirement;

            

    

    

    
      	
               
      

            	
              (c)

            	
              grossly
      violates health and safety regulations or causes environmental
      harm;

            

    

    

    
      	
               
      

            	
              (d)

            	
              employs
      or makes use of child labourers;

            

    

    

    
      	
               
      

            	
              (e)

            	
              fails
      to submit reports required by this
Act;

            

    

    

    
      	
               
      

            	
              (f)

            	
              contravenes
      any provisions of this Act or the conditions of his mineral right or the
      provisions of any other enactment relating to mines and
      minerals;

            

    

    

    
      	
               
      

            	
              (g)

            	
              dies
      and his heir or successor in title is not qualified under this Act to hold
      the mineral right, unless an application is received from the heir or
      successor within ninety days of the death to transfer the right to a third
      party who is so qualified and accepts all duties under the
      right;

            

    

    

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (h)

            	
              becomes
      an un-discharged bankrupt or becomes of unsound
  mind;

            

    

    

    
      	
               
      

            	
              (i)

            	
              makes
      any statement to the Minister in connection with his mineral right which
      he knows or ought to have known to be
false;

            

    

    

    
      	
               
      

            	
              (j)

            	
              fails
      to substantially comply with the terms of a community development
      agreement when required by this Act to do
so;

            

    

    

    
      	
               
      

            	
              (k)

            	
              for
      any reason becomes ineligible to apply for a mineral right under section
      26.

            

    

    

    (2)           The
Minister shall, before suspending or cancelling any mineral right give notice to
the holder in such a manner as shall be prescribed and shall, in such a notice
require the holder to remedy in not less than thirty calendar days any breach of
the conditions of his mineral right.

    

    (3)           If
the holder of a mineral right fails to remedy any failure or contravention
specified in paragraphs (c), (d) and (k) of subsection (1), the Minister may, by
notice to the holder thereof, suspend or cancel the mineral right
forthwith.

    

    (4)           On
cancellation of a mineral right under this section the rights of the holder
shall cease but without prejudice to any liabilities or obligation incurred in
relation thereto prior to the date of cancellation.

    

    (5)           The
Director shall not later than seven calendar days after cancellation of a
mineral right under this section, cause the cancellation to be recorded in the
mining cadastre.

    

    (6)           The
powers of the Minister under this section shall, in relation to artisanal mining
licences, be exercised by the Director but the Director need not consult the
Minerals Advisory Board.

    

    Assets
on                                        
   54.           (1)           Where
the holder of a mineral right intends to termination cease operations either
during the period of or on termination of his

    
      	
              of mineral
      right.

            	
              mineral
      right, he shall, not less than ninety calendar days or such other period
      as the Director may allow before such cessation or termination, furnish to
      the Director, a full register of assets showing those assets which he
      intends to remove and those which he intends to leave in the area covered
      by the mineral right, and shall further notify the Director of any
      potentially hazardous substances, erections or excavations in
      that   area.

            

    

    

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    (2)           On
receipt of a notice in terms of subsection (1), the Director may, if he deems it
necessary-

    

    
      	
               
      

            	
              (a)

            	
              certify
      that specified items of fixed machinery are necessary for the care and
      maintenance of the area covered by the mineral right and such items and
      machinery shall not be removed;

            

    

    

    
      	
               
      

            	
              (b)

            	
              require
      that specified buildings and other items of fixed machinery shall be
      removed;

            

    

    

    
      	
               
      

            	
              (c)

            	
              require
      that potentially hazardous substances, erections and excavations be
      removed or made safe in such manner as he may
  direct.

            

    

     
 

    (3)           If
removal of specified assets which the holder has indicated that he wishes to
remove is prohibited under paragraph (a) of subsection (2), the Minister shall
pay reasonable compensation to the holder for such assets and any person who
acquires a mineral right over the area concerned shall reimburse the sum equal
to the compensation so paid.

    

    (4)           Upon
cessation of operations by the holder of a mineral right, the area covered by
the mineral right shall revert to the owner thereof provided that if the
Director determines that the area should be retained, it shall be so retained by
the Minister subject to payment of fair compensation to the owner for such
retention.

    

    (5)           Any
fresh water dam and the waters impounded thereby shall be left intact on
cessation of operations or termination of a mineral right.

    

    Delivery
of                                           55.           (1)           Upon
termination of any mineral right, the holder documents on thereof shall deliver to
the Director-

    termination

    
      	
               
      

            	
              of mineral
      rights.

            	
              (a)

            	
              all
      records which the holder is obliged under the provisions of this Act to
      maintain including full and detailed reports as prescribed containing all
      information, results, interpretation, data and other related information
      pertaining to the exploration and mining of minerals under the mineral
      right;

            

    

    

    
      	
               
      

            	
              (b)

            	
              all
      plans or maps of the area subject to the mineral right prepared by the
      holder or at his instructions; and

            

    

    

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (c)

            	
              except
      for the holder of an artisanal mining licence, a final report which shall
      be a summary of previous annual reports plus a detailed report on
      containing all information, results, interpretation and data relating to
      all activities carried out in the final period of the licence since the
      previous annual report.

            

    

    

    (2)           Where
the former holder of a mineral right fails to deliver any document required to
be delivered under subsection (1), the Director shall call upon such former
holder to comply with subsection (1).

    

    PART
VIII                                –           RECONNAISSANCE
LICENCES

    

    Eligibility
for                                      56.           Notwithstanding
section 26, a person shall not be eligible

    reconnaissance                                to
apply for the grant of a reconnaissance licence under this Act
unless

    
      	
              licence.

            	
              that
      person is a company incorporated or registered under the Companies Act and
      whose name has not been struck off the register of companies at the time
      of the application.

            

    

    

    Application
for                                   57.  An
application for the grant of a reconnaissance reconnaissance licence shall be
submitted to the Mining Cadastre Office in the

    licence.                                prescribed
form and-

    

    
      	
               
      

            	
              (a)

            	
              shall
      contain the registered name and place of incorporation of the company, its
      certificate of incorporation and certified copy of its memorandum and
      articles of association, the names and nationalities of its directors and
      the name of every shareholder who is the beneficial owner of five percent
      or more of the issued share
capital;

            

    

    

    
      	
               
      

            	
              (b)

            	
              shall
      contain the company profile and history of reconnaissance and exploration
      operations in Sierra Leone and
elsewhere;

            

    

    

    
      	
               
      

            	
              (c)

            	
              shall
      identify the name and qualifications of the person responsible for
      supervising the proposed programme of reconnaissance
      operations;

            

    

    

    
      	
               
      

            	
              (d)

            	
              shall
      be accompanied by a plan of the proposed reconnaissance licence area over
      which the licence is sought, drawn in such a manner and showing such
      particulars as prescribed;

            

    

    

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (e)

            	
              shall
      be accompanied by a description of the contiguous blocks comprising the
      proposed reconnaissance licence area, identified in the prescribed manner,
      which shall be considered definitive should there be any discrepancy with
      the plan submitted under paragraph
(d);

            

    

    

    
      	
               
      

            	
              (f)

            	
              shall
      be accompanied by a statement giving particulars of the technical and
      financial resources available to the applicant, and a certified copy of
      its audited accounts for the year immediately preceding the
      application;

            

    

    

    
      	
               
      

            	
              (g)

            	
              shall
      be accompanied by a proposed programme of reconnaissance operations as
      prescribed setting out in detail the work intended over the next twelve
      month period together with the estimated cost, with details of the
      equipment expected to be used in connection with it and the names and
      particulars of the persons to be responsible for the conduct
      thereof;

            

    

    

    
      	
               
      

            	
              (h)

            	
              shall
      state the period applied for which shall be no longer than one
      year;

            

    

    

    
      	
               
      

            	
              (i)

            	
              shall
      give details of any mineral right held within Sierra Leone by the
      applicant or by any person controlling, controlled by or under joint or
      common control with the applicant;

            

    

    

    
      	
               
      

            	
              (j)

            	
              shall
      provide details of any significant adverse effects which the carrying out
      of the programme of reconnaissance operations would be likely to have on
      the environment and on any monument or relic in the proposed
      reconnaissance area and an estimate of the cost of combating such adverse
      effects;

            

    

    

    
      	
               
      

            	
              (k)

            	
              shall
      give or be accompanied by a statement giving particulars of the
      applicant’s proposals with regard to the employment of Sierra Leone
      citizens; and

            

    

    

    
      	
               
      

            	
              (l)

            	
              may
      set out any other matter which the applicant wishes the Minister to
      consider.

            

    

    

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

    Disposal
of                                           58.           Subject
to section 59, an application for a

    application
for                                reconnaissance
licence may be granted or rejected by the Minister.

    reconnaissance

    licence.

    

    Restriction
on                                    59.           (1)           An
application for a reconnaissance licence shall

    grant
of                                not
be granted to an applicant-

    reconnaissance

    licence.                                                                        
        (a)           where
the applicant is disqualified from

    holding a
reconnaissance licence under section 26; or

    

    
      	
               
      

            	
              (b)

            	
              where
      the applicant is in default of any of the provisions of this
      Act.

            

    

    

    (2)           Where
the proposed reconnaissance area is the same as or overlaps with, an existing
exploration licence area or an existing mining area or an area closed to
exploration and mining such exploration licence area or mining area shall be
deemed to be excluded from the application.

     
 

    (3)           The
reconnaissance area granted in a reconnaissance licence shall consist of
contiguous blocks that are of such shape, orientation and dimension as may be
prescribed.

    

           (4)           
Where it is necessary to fly over any land for the purpose of the exercise of
any right under a reconnaissance licence nothing in this section shall operate
to prevent any such flight from being undertaken provided it is in accordance
with section 31.

    

    Notice
of   application for                 60.           (1)           The
Minister shall cause the applicant to be decision on notified in writing of
his decision on the application and if the application is refused, the Minister
shall give reasons for reconnaissance licence.

    (2)  An
applicant shall within thirty calendar days of receipt of notification of the
Minister’s decision to grant the applicant a reconnaissance licence under
subsection (1), notify   the     Minister of his
willingness to accept the proposed licence, failing which the application shall
lapse.

    

    (3)           An
applicant who is aggrieved by a refusal of the Minister to grant a
reconnaissance licence may appeal to the court against the
decision.

    

    Contents
of                                           61.           (1)           A
reconnaissance licence in the prescribed form

    reconnaissance                                shall-

    
      	
              licence.

            	
              (a)

            	
              state
      the period for which it is granted;

            

    

     

     

    
 

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              include
      a description of the blocks and plan of the area of land over which it is
      granted; and

            

    

    

    (c)           state
the conditions on which it is granted.

    

    (2)           There
shall be appended to a reconnaissance licence the programme of reconnaissance
operations approved by the Director which shall form part of the terms and
conditions of the reconnaissance licence.

    

    Size
of                                                 
62.           A
reconnaissance licence area shall not exceed ten

    reconnaissance                                thousand
(10,000) square kilometres.

    
      	
               
      

            	
              licence
      area.

            

    

     
 

    Duration
and                                       63.           (1)           A
reconnaissance licence shall be valid for a renewal of period not exceeding one
year.

    reconnaissance

    licence.                                                               
 (2)           The
holder of a reconnaissance licence may, not later
than ninety calendar days before the expiry of the licence apply to the Mining
Cadastre Office for renewal of the licence.

     
 

    (3)           An
application for renewal of a reconnaissance licence-

    (a)           shall
be accompanied by-

    

    
      	
               
      

            	
              (i)

            	
              a
      report on reconnaissance operations carried out so far and the direct
      costs incurred thereby;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              a
      proposed programme of reconnaissance operations to be carried out during
      the period of renewal and the estimated cost
  thereof;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              a
      plan identifying that part of the reconnaissance area for which renewal is
      sought; and

            

    

    

    
      	
               
      

            	
              (iv)

            	
              a
      description of the blocks comprising the reconnaissance area for which
      renewal is sought, identified in the prescribed
  manner;

            

    

    

    
      	
               
      

            	
              (b)

            	
              shall
      give particulars of any alteration in the matters stated in the
      application for the grant of the licence pursuant to paragraph (a) of
      section 57.

            

    

    

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

    (4)           The
Mining Cadastre Office shall forward an application for the renewal of a
reconnaissance licence to the Minerals Advisory Board after the application is
complete.

    

    (5)           Where
the Minerals Advisory Board has determined that an application for the renewal
of a reconnaissance licence has met all requirements under this Act for such
licence the Board shall certify to the Minister in the prescribed form that it
advises that the application be approved, and such certification shall be
recorded in the mining cadastre registry of mineral rights
applications.

    

    (6)           Subject
to sections 26 and 59 the Minister may on the certified advice of the Minerals
Advisory Board, renew the licence with or without variation of the conditions of
the initial licence, for a period not exceeding one year with no option for a
further renewal.

    

    (7)           The
applicant shall be notified in writing of the decision on the application and if
the application is refused, the Minister shall give reasons for such
refusal.

     
 

    Rights
of                                    
        64.           (1)           Subject
to this Act and the conditions of a

    holder
of                                reconnaissance
licence granted under this Act, the holder of a reconnaissance reconnaissance licence,
his employees, servants or agents shall

    licence.                                have
the non-exclusive right to carry on reconnaissance operations in

    the
reconnaissance area.

    

    (2)           For
the purpose of exercising the right conferred under subsection (1), the holder
of a reconnaissance licence may-

    

    
      	
               
      

            	
              (a)

            	
              enter
      on or fly over the reconnaissance area to carry on approved reconnaissance
      operations on a non-exclusive
basis;

            

    

    

    
      	
               
      

            	
              (b)

            	
              take
      and remove specimens and samples from the reconnaissance area not
      exceeding such limit as is reasonably required for reconnaissance
      purposes;

            

    

    

    
      	
               
      

            	
              (c)

            	
              sell,
      with the prior written permission of the Director, mineral specimens and
      samples obtained from  reconnaissance
  operations;

            

    

    

    
      	
               
      

            	
              (d)

            	
              subject
      to any law then in force, take timber and water from any lake or
      watercourse for the purposes of reconnaissance
  operations;

            

    

    

    
      	
               
      

            	
              (e)

            	
              erect
      camps and temporary buildings, including installations in any water
      forming part of the reconnaissance  area provided that the
      erection of any camp or building under this paragraph shall not be
      construed as conferring any right, title or interest in the
      land;

            

    

    

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (f)

            	
              remove
      on or before the termination of the reconnaissance operations, any camps,
      temporary buildings or installations which the holder may have
      erected.

            

    

    

    Obligations
of                                           65.           (1)           The
holder of a reconnaissance licence shall-

    holder
of

    reconnaissance                                                                (a)           commence
reconnaissance operations

    
      	
              licence.

            	
              within
      ninety calendar days of the date of issue of the reconnaissance
      licence;

            

    

    

    
      	
               
      

            	
              (b)

            	
              carry
      out reconnaissance operations in accordance with his approved programme of
      reconnaissance operations;

            

    

    

    
      	
               
      

            	
              (c)

            	
              not
      engage in drilling, excavation or other subsurface exploration
      techniques;

            

    

    

    
      	
               
      

            	
              (d)

            	
              not
      remove any mineral from the reconnaissance area except for the purpose of
      having such mineral analysed, valued or
tested;

            

    

    

    
      	
               
      

            	
              (e)

            	
              be
      subject to all taxes, royalty and other fees relating to a sale of
      minerals as authorized in paragraph (c) of subsection (2) of section 64 as
      if the minerals sold were obtained under a mining
  licence;

            

    

    

    
      	
               
      

            	
              (f)

            	
              compensate
      users of land for damage to land and property resulting from
      reconnaissance operations in the licence
area;

            

    

    

    
      	
               
      

            	
              (g)

            	
              maintain
      and restore, from any damage resulting from reconnaissance operations, the
      land subject to the licence to a safe state and in compliance with
      environmental laws and standards;

            

    

    

    
      	
               
      

            	
              (h)

            	
              unless
      the Director otherwise stipulates, remove within sixty calendar days of
      the expiration of the reconnaissance licence, any camps, temporary
      buildings or machinery erected or installed by the holder and repair or
      otherwise make good any damage to the surface of the ground occasioned by
      such removal to the satisfaction of the
  Director;

            

    

    

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (i)

            	
              subject
      to the conditions of the reconnaissance licence and the provisions of
      section 67, expend on reconnaissance operations in accordance with his
      programme of reconnaissance operations, not less than such amount as may
      be specified in the reconnaissance
licence;

            

    

    

    
      	
               
      

            	
              (j)

            	
              annually
      submit to the Director and the Director of Geological Survey, a
      confidential report containing the information required under the licence
      in such form as may be prescribed, which shall include, but not be limited
      to copies of the records required under subsection
  (2);

            

    

    

    
      	
               
      

            	
              (k)

            	
              provide
      the full results, data and interpretation as prescribed of any airborne
      geophysical survey done in connection with the reconnaissance licence area
      within six months of acquisition;

            

    

    

    
      	
               
      

            	
              (l)

            	
              employ
      and train Sierra Leoneans in accordance with the approved proposals the
      particulars of which have been appended to the licence;
  and

            

    

    

    
      	
               
      

            	
              (m)

            	
              keep
      and maintain in Sierra Leone an address to be registered with the Minister
      and to which all communications and notices may be
    addressed.

            

    

    

               (2)           The
holder of a reconnaissance licence shall keep at the address referred to in
paragraph (m) of subsection (1), full and accurate records, to the satisfaction
of the Minister, of its reconnaissance operations which shall show, among other
things-

    

    
      	
               
      

            	
              (a)

            	
              minerals
      discovered;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      results of any geochemical or geophysical
  analysis;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      results of any analysis or identification of minerals removed for such
      purposes;

            

    

    

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (d)

            	
              the
      geological interpretation of the records maintained under paragraphs (a)
      to (c);

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      number and particulars of persons
employed;

            

    

    

    
      	
               
      

            	
              (f)

            	
              other
      work done in connection with the reconnaissance licence;
    and

            

    

    

    
      	
               
      

            	
              (g)

            	
              such
      other matters as may be prescribed.

            

    

    

    (3)           The
holder of a reconnaissance licence shall submit to the Director and the Director
of Geological Survey not later than ninety calendar days after the end of each
year of the licence, an audited statement of expenditure directly incurred under
the licence.

    

              
    (4)           Any
person who fails to keep any record or information required to be kept under
subsection (2) or fails to supply any record or information to the Director or
the Director of Geological Survey or who supplies any false or misleading record
or information commits an offence.

    

    Status
of                                           
  66.           Where
any area of land becomes an exploration licence

    reconnaissance                                area
or mining area, or becomes closed to exploration or mining

    
      	
              licence
      areas.

            	
              operations
      under this or any other law, it ceases to be subject to any reconnaissance
      licence.

            

    

    

    Amendment
of                                    67.           The
holder of a reconnaissance licence may from time

    
      	
              programme
    of

            	
              to
      time, notify the Director of amendments he wishes to make to
      his

            

    

    
      	
              reconnaissance

            	
              programme
      of reconnaissance operations and such amendments
  shall,

            

    

    
      	
              operations.

            	
              unless
      the Director rejects them within one month after being notified, have
      effect after such period.

            

    

    

    Transfer
of                                           68.           A
reconnaissance licence is not transferable. reconnaissance

    licence.

    

    

    PART
IX                                –           EXPLORATION
LICENCES

    

    

    Eligibility
for                                      69.           Notwithstanding
the section 26, a person shall not be

    exploration                                be
eligible to apply for the grant of an exploration licence under this
Act

    
      	
              licence.

            	
              unless
      that person is a company incorporated or registered under the Companies
      Act and whose name has not been struck off the register of companies at
      the time of the application.

            

    

    

    Application
for                                   70.         
 An application for the grant of an exploration licence exploration shall be submitted to the
Mining Cadastre Office in the prescribed form

    licence.                                and-

    

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              shall
      contain the registered name and place of incorporation of the company, its
      certificate of incorporation and certified copy of its memorandum and
      articles of association, the names and nationalities of its directors and
      the name of every shareholder who is the beneficial owner of five percent
      or more of the issued share
capital;

            

    

    

    
      	
               
      

            	
              (b)

            	
              shall
      contain the company profile and history of exploration operations in
      Sierra Leone and elsewhere;

            

    

    

    
      	
               
      

            	
              (c)

            	
              shall
      identify the name and qualifications of the person responsible for
      supervising the proposed programme of exploration
    operations;

            

    

    

    
      	
               
      

            	
              (d)

            	
              shall
      be accompanied by a plan of the proposed exploration licence area over
      which the licence is sought, drawn in such a manner and showing such
      particulars as prescribed;

            

    

    

    
      	
               
      

            	
              (e)

            	
              shall
      be accompanied by a description of the contiguous blocks comprising the
      proposed exploration licence area, identified in the prescribed manner,
      which shall be considered definitive should there be any discrepancy with
      the plan submitted under paragraph
(d);

            

    

    

    
      	
               
      

            	
              (f)

            	
              shall
      be accompanied by a statement giving particulars of the technical and
      financial resources available to the applicant, and a certified copy of
      its audited accounts for the year immediately preceding the
      application;

            

    

    

    
      	
               
      

            	
              (g)

            	
              shall
      be accompanied by a proposed programme of exploration operations as
      prescribed setting out in detail the work intended over the next twelve
      month period together with the estimated cost, plus an indicative
      programme for the remainder of the period applied for, together with
      details of the equipment expected to be used in connection with it and the
      names and particulars of the persons to be responsible for the conduct
      thereof (such programme should be adequate and appropriate in relation to
      existing knowledge, describe the known geology and mineral prospectivity,
      and set out a plan that is likely to significantly build on the existing
      knowledge or the further definition of a known mineral
      deposit);

            

    

    

    
      
         

      

      
        46

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (h)

            	
              shall
      state the period applied for;

            

    

    

    
      	
               
      

            	
              (i)

            	
              shall
      give details of any mineral right held within Sierra Leone by the
      applicant or by any person controlling, controlled by or under joint or
      common control with the applicant;

            

    

    

    
      	
               
      

            	
              (j)

            	
              shall
      provide details of any significant adverse effects which the carrying out
      of the programme of exploration operations would be likely to have on the
      environment and on any monument or relic in the proposed exploration
      licence area and an estimate of the cost of combating such adverse
      effects;

            

    

    

    
      	
               
      

            	
              (k)

            	
              shall
      give or be accompanied by a statement giving particulars of the
      applicant’s proposals with regard to the employment and training of Sierra
      Leone citizens; and

            

    

    

    
      	
               
      

            	
              (l)

            	
              may
      set out any other matter which the applicant wishes the Minister to
      consider.

            

    

    

    Disposal
of                                         71.           (1)           The
Mining Cadastre Office shall forward an application for application for the grant
of an exploration licence to the Minerals exploration licence. Advisory Board
after the application is complete.

    

    (2)           Where
the Minerals Advisory Board has determined that an application for the grant of
an exploration licence has met all the requirements under the Act for such
licence the Board shall certify to the Minister in the prescribed form that it
advises that the application be approved, and such certification shall be
recorded in the mining cadastre register of mineral rights
applications.

    

    (3)           Subject
to section 73, an application for an exploration licence certified by the Board
and meeting all the criteria set out in section 70 and prescribed in regulations
shall be granted or refused by the Minister.

    

    
      
         

      

      
        47

        
          

        

      

      
         

      

    

    Notice
of                                           
 72.           (1)           The
Minister shall cause the applicant to be decision on notified in writing of
his decision on the application and if the application for application is refused,
the Minister shall give reasons for such exploration refusal.

    licence.

    (2)           An
applicant shall within thirty calendar days of receipt of notification of the
Minister’s decision to grant the applicant an exploration licence under
subsection (1), notify the Minister of his willingness to accept the proposed
licence, failing which the application shall lapse.

    

    (3)           Where
the Minister has refused an application for an exploration licence and the cause
given by the Minister for such refusal can be remedied by the applicant, if the
cause has been remedied within thirty calendar days of receiving the notice
under subsection (2), the licence holder may on a priority basis reapply for the
licence within such thirty day period, but if the Minister still judges the
application to be unacceptable, he shall notify the applicant within a further
thirty days, whereupon the Minister’s decision shall be final.

    

    (4)           An
applicant who is aggrieved by a refusal of the Minister to grant an exploration
licence may appeal to the court against the decision.

    

    Restriction
on                                    73.           (1)           An
application for an exploration licence shall not

    grant
of                                be
granted to an applicant-

    exploration

    
      	
               
      

            	
              licence.

            	
              (a)

            	
              where
      the applicant is disqualified from holding an exploration licence under
      section 26;

            

    

    

    
      	
               
      

            	
              (b)

            	
              where
      the proposed exploration licence area is the same as or overlaps with, an
      existing exploration licence area or an existing mining area; or an area
      closed to exploration and mining;

            

    

    

    
      	
               
      

            	
              (c)

            	
              where
      the proposed exploration licence area is the same or overlaps with any
      area the subject of an earlier registered  application for an
      exploration, artisanal mining, small-scale mining, or large-scale
      mining  licence that has not yet been granted or rejected;
      or

            

    

    

    
      	
               
      

            	
              (d)

            	
              where
      the applicant is in default of any of the provisions of this
      Act.

            

    

    

    (2)           The
exploration licence area granted in an exploration licence shall consist of
blocks that are of such shape, orientation and dimension as may be
prescribed.

    

    
      
         

      

      
        48

        
          

        

      

      
         

      

    

           (3)           
Where it is necessary to fly over any land for the purpose of the exercise of
any right under an exploration licence nothing in this section shall operate to
prevent any such flight from being undertaken provided it is in accordance with
section 31.

    

    

    Contents
of                                         74.           (1)           An
exploration licence in the prescribed form shall-

    exploration

    
      	
              licence.

            	
              (a)

            	
              state
      the period for which it is granted;

            

    

    

    
      	
               
      

            	
              (b)

            	
              include
      a description and plan of the area of land over which it is granted;
      and

            

    

    

    (c)           state
the conditions on which it is granted.

    

    (2)           There
shall be appended to an exploration licence the programme of exploration
operations approved by the Director and the prescribed minimum expenditure
obligation which shall form part of the terms and conditions of the exploration
licence.

    

    Size
of                                             
   75.           An
exploration licence area shall not exceed two hundred exploration and fifty square
kilometres.

    licence
area.

    

    Duration
and                                       76.           (1)           An
exploration licence shall be valid for an renewals of initial period not
exceeding four years.

    exploration

    
      	
              licence.

            	
              (2)

            	
              The
      holder of an exploration licence may, not later than ninety calendar days
      before the initial expiry of the licence apply to the Mining Cadastre
      Office for a first renewal of the licence in respect of not more than one
      hundred and twenty-five square kilometres of the exploration licence area,
      except that where the results of exploration to date strongly indicate the
      presence of widespread mineralisation such that a surrender to one hundred
      and twenty-five square kilometres would result in some highly prospective
      areas being surrendered, the Minister, on the advice of the Minerals
      Advisory Board, may exceptionally allow such areas constituting more than
      one hundred and twenty five square kilometres to be
    retained.

            

    

     
 

    (3)           An
application for the first renewal of an exploration licence-

    

    (a)           shall
be accompanied by-

    

    
      	
               
      

            	
              (i)

            	
              a
      detailed annual report as prescribed describing all operations carried out
      in the previous year together with an annual financial report for the same
      period, plus a surrender report as prescribed, covering in detail all work
      carried out over any portion of the ground to be surrendered and
      accompanied by all results, data, information and interpretation since the
      grant of the exploration licence;

            

    

    

    
      
         

      

      
        49

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (ii)

            	
              a
      proposed programme of exploration operations to be carried out during the
      period of first renewal and the estimated cost
  thereof;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              a
      plan identifying that part of the exploration licence area for which
      renewal is sought;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              a
      description of the contiguous blocks comprising the exploration licence
      area for which renewal is sought, identified in the prescribed manner;
      and

            

    

    

    
      	
               
      

            	
              (b)

            	
              shall
      give particulars of any alteration in the matters stated in the
      application for the grant of the licence under paragraphs (a), (f), (h),
      (j) and (k) of section 70.

            

    

    

    (4)           The
Mining Cadastre Office shall forward an application for the first renewal of an
exploration licence to the Minerals Advisory Board.

    

    (5)           Upon
receipt of a completed application for the renewal of an explorations licence
from the Mining Cadastre Office, where the Minerals Advisory Board has
determined that an application for the renewal of an exploration licence has met
all the criteria for such licence the Board shall certify to the Minister in the
prescribed form that it advises that the application be approved, and such
certification shall be recorded in the mining cadastre registry.

    

    (6)           The
Minister shall, subject to all prescribed criteria of this Act and of the
regulations, on the certified advice of the Minerals Advisory Board, renew the
licence for the reduced area applied for with or without variation of the
conditions of the initial licence, for a period not exceeding three
years.

    

    (7)           The
holder of an exploration licence may, not later than ninety calendar days before
the expiry of a once-renewed licence apply to the Mining Cadastre Office for a
second renewal of the licence.

     
 

    
      
         

      

      
        50

        
          

        

      

      
         

      

    

    (8)           An
application for the second renewal of an exploration licence-

    

    (a)           shall
be accompanied by-

    

    
      	
               
      

            	
              (i)

            	
              a
      report on exploration operations carried out so far and the direct costs
      incurred thereby;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              a
      proposed programme of exploration operations, feasibility studies, and
      environmental impact assessments to be carried out during the period of
      second renewal and the estimated cost
thereof;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              a
      plan identifying that part of the exploration licence area for which
      renewal is sought, which shall not be greater than one hundred and
      twenty-five square kilometres unless it can be conclusively demonstrated
      that to do so would unavoidably exclude part of an economically
      recoverable mineral deposit;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              a
      description of the blocks comprising the exploration licence area for
      which renewal is sought, identified in the prescribed
    manner;

            

    

    

    
      	
               
      

            	
              (b)

            	
              shall
      give particulars of any alteration in the matters stated in the
      application for the grant of the licence under paragraphs (a), (f), (h),
      (j) and (k) of section 70; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              shall
      provide evidence that a mineral discovery has been made that may be of
      commercial value.

            

    

    

    (9)           The
Mining Cadastre Office shall forward an application for the second renewal of an
exploration licence to the Minerals Advisory Board.

    

    (10)           Upon
receipt of a completed application for the second renewal of an explorations
licence from the Mining Cadastre Office, where the Minerals Advisory Board has
determined that an application for the second renewal of an exploration licence
has met all the criteria and where the holder of an exploration licence who has
made and reported a discovery of possible commercial value, the Board shall
certify to the Minister in the prescribed form that it advises that the
application be approved, and such certification shall be recorded in the mining
cadastre registry.

    

    
      
         

      

      
        51

        
          

        

      

      
         

      

    

    (11)           The
Minister shall on the certified advice of Minerals Advisory Board confirming all
prescribed criteria of this Act and of the regulations have been met, renew the
licence for a period not exceeding two years.

    

    (12)            The
applicant shall be notified in writing of the decision on renewal applications,
and if an application is refused, the Minister shall give reasons for such
refusal.

    

    (13)            Where
the Minister has refused an application to renew an exploration licence that is
renewable and the cause given by the Minister for such refusal can be remedied
by the holder of the licence, if the cause has been remedied with thirty
calendar days of receiving the notice under subsection (12), the licence holder
may reapply for a renewal of the licence within such thirty day
period.

     
 

    Rights
of                                          
   77.           (1)           Subject
to this Act and the conditions of an

    holder
of                                exploration
licence granted under this Act, the holder of an

    exploration                                exploration
licence, his employees, servants or agents shall have the

    
      	
              licence.

            	
              exclusive
      right to carry on approved exploration operations in the exploration
      licence area.

            

    

    

    (2)           For
the purpose of exercising the right conferred under subsection (1), the holder
of an exploration licence may enter upon the exploration licence area together
with his employees, servants or agents and may-

    

    
      	
               
      

            	
              (a)

            	
              explore
      thereon for all minerals;

            

    

    

    
      	
               
      

            	
              (b)

            	
              drill
      boreholes and make such excavations as may be
  necessary;

            

    

    

    
      	
               
      

            	
              (c)

            	
              take
      and remove specimens and samples from the exploration licence area not
      exceeding such limit as is reasonably required for
      exploration;

            

    

    

    
      	
               
      

            	
              (d)

            	
              sell,
      with the prior written permission of the Director, mineral specimens and
      samples obtained from  exploration
  operations;

            

    

    

    
      	
               
      

            	
              (e)

            	
              subject
      to any law then in force, take timber and water from any lake or
      watercourse for the purposes of
exploration;

            

    

    

    
      
         

      

      
        52

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (f)

            	
              erect
      camps and temporary buildings, including installations in any water
      forming part of the exploration licence area provided that the erection of
      any camp or building under this paragraph shall not be construed as
      conferring any right, title or interest in the land;
  and

            

    

    

    
      	
               
      

            	
              (g)

            	
              remove
      on or before the termination of the exploration operations, any camps,
      temporary buildings or installations which the holder may have
      erected.

            

    

    

    Obligations
of                                           78.           (1)           The
holder of an exploration licence shall-

    holder
of

    exploration                                                                (a)           commence
exploration operations within

    
      	
              licence.

            	
              ninety
      calendar days of the date of issue of the exploration
    licence;

            

    

    

    
      	
               
      

            	
              (b)

            	
              carry
      out exploration operations within the exploration licence area in
      accordance with his approved programme of exploration
      operations;

            

    

    

    
      	
               
      

            	
              (c)

            	
              comply
      with such annual programme of exploration operations expenditure
      requirements as prescribed;

            

    

    

    
      	
               
      

            	
              (d)

            	
              not
      remove any mineral from the exploration licence area except for the
      purpose of having such mineral analysed, valued or
  tested;

            

    

    

    
      	
               
      

            	
              (e)

            	
              be
      subject to all taxes, royalty and other fees relating to a sale of mineral
      specimens and samples as authorized in paragraph (d) of subsection (2) of
      section 77 as if the minerals sold were obtained under a mining
      licence;

            

    

    

    
      	
               
      

            	
              (f)

            	
              inform
      landowners and users of land within the exploration licence area about
      exploration operations in such manner as prescribed and as directed by the
      Director;

            

    

    

    
      	
               
      

            	
              (g)

            	
              compensate
      users of land for damage to land and property resulting from exploration
      operations in the licence area;

            

    

    

    
      
         

      

      
        53

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (h)

            	
              notify
      the Minister of the discovery of any mineral deposit of possible economic
      value within a period of thirty calendar days of such
      discovery;

            

    

    

    
      	
               
      

            	
              (i)

            	
              backfill
      or otherwise make safe any boreholes or excavations made during the course
      of exploration operations to the reasonable satisfaction of the
      Director;

            

    

    

    
      	
               
      

            	
              (j)

            	
              unless
      the Director otherwise stipulates, remove within sixty calendar days of
      the expiration of the exploration licence, any camps, temporary buildings
      or machinery erected or installed by the holder and repair or otherwise
      make good any damage to the surface of the ground occasioned by such
      removal to the satisfaction of the
Director;

            

    

    

    
      	
               
      

            	
              (k)

            	
              semi-annually
      submit to the Director and the Director of Geological Survey, a
      confidential report summarizing progress against the approved work
      programme in such form as may be
prescribed;

            

    

    

    
      	
               
      

            	
              (l)

            	
              annually
      submit to the Director and the Director of Geological Survey, a
      confidential report containing the information required under the licence
      in such form as may be prescribed, which shall include, but not be limited
      to copies of the records required under subsection
  (2);

            

    

    

    
      	
               
      

            	
              (m)

            	
              provide
      the full results, data and interpretation as prescribed of any airborne
      geophysical survey done in connection with the exploration licence area
      within six months of acquisition;

            

    

    

    
      	
               
      

            	
              (n)

            	
              employ
      and train Sierra Leoneans in accordance with the approved proposals the
      particulars of which have been appended to the
  licence;

            

    

    

    
      	
               
      

            	
              (o)

            	
              keep
      and maintain in Sierra Leone an address to be registered with the Minister
      and to which all communications and notices may be addressed;
      and

            

    

    

    
      
         

      

      
        54

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (p)

            	
              notify
      the Director whenever there has been a change in the ownership of the
      licence holder and any single interest exceeds forty percent interest in
      the licence holder.

            

    

    

               (2)           The
holder of an exploration licence shall keep at the address referred to in
paragraph (o) of subsection (1), full and accurate records, to the satisfaction
of the Minister, of its exploration operations which shall show, among other
things-

    

    
      	
               
      

            	
              (a)

            	
              boreholes
      drilled;

            

    

    

    
      	
               
      

            	
              (b)

            	
              strata
      penetrated, with detailed logs of such
strata;

            

    

    

    
      	
               
      

            	
              (c)

            	
              minerals
      discovered;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      results of any geochemical or geophysical
  analysis;

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      results of any analysis or identification or minerals removed for such
      purposes;

            

    

    

    
      	
               
      

            	
              (f)

            	
              the
      geological interpretation of the records maintained under paragraphs (a)
      to (e);

            

    

    

    
      	
               
      

            	
              (g)

            	
              the
      number and particulars of persons
employed;

            

    

    

    
      	
               
      

            	
              (h)

            	
              other
      work done in connection with the exploration
  licence;

            

    

    

    
      	
               
      

            	
              (i)

            	
              all
      expenditures made that satisfy annual prescribed programme of exploration
      operations expenditure requirements;
and

            

    

    

    
      	
               
      

            	
              (j)

            	
              such
      other matters as may be prescribed.

            

    

    

    (3)           The
holder of an exploration licence shall submit to the Director and the Director
of Geological Survey not later than ninety calendar days after the end of each
year of the licence, an audited statement of itemized expenditure directly
incurred under the licence in respect to acceptable exploration activities as
prescribed, and any moneys required to be spent under the provisions of
paragraph (c) of subsection (1) and which are not so spent shall be a debt due
to the Government recoverable in a court of competent jurisdiction.

    

           
      (4)           Any
person who fails to keep any record or information required to be kept under
subsections (1), (2) or (3) or fails to supply any record or information to the
Director or the Director of Geological Survey or who supplies any false or
misleading record or information commits an offence and shall be liable to a
fine not less than two thousand United States Dollars or its equivalent in
leones.

    

    
      
         

      

      
        55

        
          

        

      

      
         

      

    

    Ancillary
rights                                 79.           (1)           The
holder of an exploration licence shall have,

    of holder
of                                subject
to the provisions of this Act, the exclusive right to apply for a

    an
exploration                                small-scale
or large-scale mining licence over any part of or the entire

    licence.                                exploration
licence area.

    

    (2)           An
application under subsection (1) shall be made in accordance with the provisions
of this Act and not later than ninety calendar days before expiration of the
exploration licence.

    

    Status
of                                      
      80.           (1)           Where
an exploration licence is due to expire

    exploration                                pending
determination of an application for a small-scale or large-

    licence
on                                scale
mining licence made by the holder of the exploration licence, the

    application
for                                exploration
licence shall continue to have effect over the exploration

    or grant
of                                area
until the application is finally disposed of in accordance with
this

    mining
licence.                                Act.

    

    (2)           Upon
the grant of a small-scale or large-scale mining licence the exploration licence
held by the holder of the small-scale or large-scale mining licence shall cease
to have effect in the mining licence area.

    

    (3)           An
exploration licence shall continue to have effect notwithstanding that the
exploration licence area has ceased to be in the shape or to have the dimensions
prescribed in respect of exploration licence area.

    

    Status
of                                         
    81.           Where
any area of land becomes closed to exploration or

    exploration                                 mining
operations under this or any other law, such closure shall be

    
      	
              licence
      areas.

            	
              deemed
      not applicable to any exploration licence area, or any area applied for in
      an application for a small-scale or large-scale mining licence emergent
      from such exploration licence area, registered prior to such
      closure.

            

    

    

    Amendment                                        82.           The
holder of an exploration licence may from time to

    of
programme                                time,
notify the Minister of amendments he wishes to make to his

    
      	
              of
      exploration

            	
              programme
      of exploration operations and such amendments
  shall,

            

    

    
      	
              operations.

            	
              unless
      the Minister rejects them within sixty calendar days after being notified,
      have effect after such period.

            

    

    

    Transfer
of                                         83.           (1)           An
application for transfer of an exploration

    exploration                                 licence
shall be made to the Mining Cadastre Office in the prescribed

    
      	
              licence.

            	
              form
      and shall state details of the transfer as may be prescribed together with
      such other information as the Minister on the advice of the Minerals
      Advisory Board, may require.

            

    

    

    
      
         

      

      
        56

        
          

        

      

      
         

      

    

    (2)           The
Mining Cadastre Office shall forward an application for transfer of an
exploration licence to the Minerals Advisory Board after the application is
complete.

    

    (3)           Where
the Minerals Advisory Board has determined that an applicant for the transfer of
an exploration licence and the transferee have met all requirements under this
Act for such transfer the Board shall certify to the Minister in the prescribed
form that it advises that the application be approved, and such certification
shall be recorded in the mining cadastre.

    

         (4)           The
Minister shall on the certified advice of the Minerals Advisory Board following
an application under subsection (1), give or refuse to give his approval in
writing, subject to such conditions as he deems necessary in the circumstances,
to impose.

    

    (5)           The
Minister shall cause the applicant to be notified in writing of his decision on
the application and if the application is refused, the Minister shall give
reasons for such refusal.

    

    (6)           A
transfer, assignment, pledge, or other encumbrance of an exploration licence
shall not take effect unless and until it is registered in the mining cadastre
under section 43.

    

         (7)           Upon
the registration of the transfer of an exploration licence, the transferee shall
assume and be responsible for all rights, liabilities and duties of the
transferor under the exploration licence.

    

    

    
      	
            	
                    
                PART
      X - 

                ARTISANAL
      MINING LICENCES

              

            

    

    

    Eligibility
for                                      84.           (1)           Any
person who wishes to carry out artisanal

    
      	
              artisanal

            	
              mining
      operations shall apply for an artisanal mining
  licence.

            

    

    
      	
               
      

            	
              mining
      licences.

            

    

         (2)           An
artisanal licence shall be granted to-

    

    
      	
               
      

            	
              (a)

            	
              an
      individual person who is a citizen of Sierra
  Leone;

            

    

    

    
      	
               
      

            	
              (b)

            	
              a
      co-operative society registered in Sierra Leone comprising citizens of
      Sierra Leone exclusively;

            

    

    

    
      	
               
      

            	
              (c)

            	
              a
      joint-venture or partnership registered in Sierra Leone comprising
      citizens of Sierra Leone exclusively;
or

            

    

    

    
      	
               
      

            	
              (d)

            	
              a
      body corporate that is incorporated or registered in Sierra Leone having
      one hundred percent of its shares held by citizens of Sierra
      Leone.

            

    

    

    
      
         

      

      
        57

        
          

        

      

      
         

      

    

    (3)           All
such co-operatives and partnerships shall register with the Director and shall
provide such documentation as the Director may require.

    

    Application
for                                   85.  
         (1)           An
application for the grant of an artisanal mining

    artisanal                                 licence
shall be made to the Director in such form as may be

    mining
licence.                                prescribed.

    

    (2)           An
application for the grant of an artisanal mining licence shall-

    

    
      	
               
      

            	
              (a)

            	
              be
      accompanied by a statement giving particulars of the capital and
      experience available to the applicant to conduct exploration and mining
      operations of the mineral efficiently and
  effectively;

            

    

    

    
      	
               
      

            	
              (b)

            	
              be
      accompanied by a plan of the area over which the licence is sought drawn
      in such manner as the Director may
require;

            

    

    

    
      	
               
      

            	
              (c)

            	
              be
      accompanied by documentary evidence that consent to use the land for
      mining purposes has been given to the applicant by the Chiefdom Mining
      Allocation Committee or rightful occupiers or owners of the land for
      mining purposes;

            

    

    

    
      	
               
      

            	
              (d)

            	
              shall
      state the period applied for;

            

    

    

    
      	
               
      

            	
              (e)

            	
              give
      or be accompanied by a statement giving particulars of the programme of
      proposed mining operations, including a statement
  of-

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      likely effects of the proposed mining operations on the environment and on
      the local population and proposals for mitigation and compensation
      measures;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              any
      particular risks (whether to health or otherwise) involved in mining the
      minerals, particularly radioactive minerals, and proposals for their
      control or elimination;

            

    

    

    
      
         

      

      
        58

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (iii)

            	
              the
      proposed marketing arrangements for the sale of the mineral production;
      and

            

    

    

    
      	
               
      

            	
              (f)

            	
              set
      out any other matter which the applicant wishes the Director to
      consider.

            

    

    

    Disposal
of                                           86.           (1)           The
Director may, subject to sections 26 and 87, application  grant or refuse to grant
an artisanal mining licence.

    for artisanal

    
      	
              mining
      licence.

            	
              (2)

            	
              Any
      person aggrieved by the refusal of the Director to grant that person an
      artisanal mining licence may appeal to the Minister, whose decision shall
      be final.

            

    

    

    Restriction                                           87.           (1)           No
person other than the holder of an exploration

    on grant
of                                licence
shall be granted an artisanal mining licence in respect of land

    artisanal                                which
constitutes the exploration licence area or part of the

    
      	
              mining
      licence.

            	
              exploration
      licence area, except with the consent of the exploration licence
      holder.

            

    

    

    
      	
               
      

            	
              (2)

            	
              No
      artisanal mining licence shall be granted to an applicant in an area
      designated under section 30 for small-scale mining
    operations.

            

    

    

    Contents
of                                          88.           (1)           An
artisanal mining licence in the prescribed form

    artisanal                                shall-

    
      	
              mining
      licence.

            	
              (a)

            	
              state
      the period for which it is granted;

            

    

    

    
      	
               
      

            	
              (b)

            	
              include
      a description and plan of the area of land over which it is granted;
      and

            

    

    

    (c)           state
the conditions on which it is granted.

    

    (2)           There
shall be appended to an artisanal mining licence a certified copy of the
agreement between the applicant and the Chiefdom Mining Allocation Committee or
the rightful occupiers or owners of the land over which the artisanal mining
licence is granted which shall form part of the terms and conditions of the
artisanal mining licence.

    

    Size
of                                    
            89.           (1)           An
artisanal mining licence area shall not be more

    artisanal                                than
one half hectare.

    mining
licence

    
      	
              area.

            	
              (2)

            	
              Every
      artisanal mining licence area shall be demarcated by an authorised officer
      in such manner as may be prescribed or as the authorised officer may, in
      the circumstances consider
appropriate.

            

    

     
 

    Duration
and                                                      90.           (1)           Subject
to subsection (2), an artisanal mining

    renewal
of                                licence
shall be valid for a period of  one year and may be renewed
for

    artisanal                                for
up to three further periods not exceeding one year at a time.

    mining licences.

    (2)           An
artisanal mining licence shall not be renewed pursuant to subsection
(1)-

    

    
      
         

      

      
        59

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              if
      the artisanal mining licence area has ceased to be an area declared for
      artisanal mining operations;

            

    

    

    
      	
               
      

            	
              (b)

            	
              in
      respect of any mineral which has ceased to be a mineral prescribed for
      artisanal mining operations;

            

    

    

    
      	
               
      

            	
              (c)

            	
              unless
      the Director is satisfied that the applicant has carried on, in good
      faith, within the limits of its competence and resources, mining
      operations in the artisanal mining licence area and intends to continue
      doing so;

            

    

    

    
      	
               
      

            	
              (d)

            	
              if
      the applicant has not carried out effective rehabilitation and reclamation
      of the applicant’s mined out areas to the satisfaction of the Director and
      authorities responsible for the protection of the environment or paid the
      prescribed fee;

            

    

    

    
      	
               
      

            	
              (e)

            	
              if
      the applicant has not reported diligently on its mining operations;
      or

            

    

    

    
      	
               
      

            	
              (f)

            	
              if
      the applicant is in default and the Director is not prepared to waive
      the  default.

            

    

    

    Rights and
duties                               91.           (1)           Subject
to the provisions of this Act or any

    of holders
of                                           other
law and any condition of an artisanal mining licence, the holder

    artisanal                                of
an artisanal licence shall have the exclusive right to carry on

    
      	
              mining
      licences.

            	
              exploration
      and mining operations in the licensed
area.

            

    

    

    (2)           The
holder of an artisanal mining licence may, in the exercise of the right
conferred under subsection (1), enter the licensed area and remove minerals from
the area and dispose of the mineral in respect of which the licence was
issued.

    

      
           (3)           The
holder of an artisanal mining licence shall-

    

    
      	
               
      

            	
              (a)

            	
              within
      the limits of its competence and resources, carry on in good faith, in the
      licensed area, exploration or mining
operations;

            

    

    

    
      
         

      

      
        60

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              furnish
      the Director with such information relating to its exploration or mining
      operations as the Director may reasonably require or as may be
      prescribed;

            

    

    

    
      	
               
      

            	
              (c)

            	
              carry
      out promptly any directives relating to its exploration or mining
      operations which may be given to the holder by the Director for the
      purposes of ensuring safety or good mining
  practices;

            

    

    

    
      	
               
      

            	
              (d)

            	
              if
      not personally supervising the exploration or mining operations under the
      licence, employ a Mines Manager for the purpose of supervising its
      exploration or mining operations provided that all such Mines Managers
      must be approved by the Director and shall carry with them such means of
      identification as the Director may
direct;

            

    

    

    
      	
               
      

            	
              (e)

            	
              employ
      in the area in respect of which the licence is issued not more than fifty
      labourers or tributers per artisanal mining
  licence;

            

    

    

    
      	
               
      

            	
              (f)

            	
              sell
      the minerals obtained in the artisanal mining licence area as
      prescribed;

            

    

    

    
      	
               
      

            	
              (g)

            	
              carry
      out rehabilitation and reclamation of mined out
  areas;

            

    

    

    
      	
               
      

            	
              (h)

            	
              keep
      accurate records of winnings from the artisanal mining licence area and
      such records shall be produced for inspection on demand by the Director or
      a duly authorised officer; and

            

    

    

    
      	
               
      

            	
              (i)

            	
              submit
      such reports are may be prescribed.

            

    

    

    Revocation
of                                       92.           The
Director may revoke an artisanal mining   

    artisanal                                licence
if he is satisfied in respect of the licence that-

    mining
licence.

    
      	
               
      

            	
              (a)

            	
              the
      holder of the licence, including any member of a cooperative or a
      partnership or a shareholder of a body corporate, is not a Sierra Leone
      citizen; or

            

    

    

    
      
         

      

      
        61

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              no
      mining operations have commenced within a period of one hundred and eighty
      calendar days from the date of registration or renewal of the
      licence.

            

    

    

    Notice to
remedy                                93.           (1)           Where
an authorised officer considers any dangerous or mining operation under an
artisanal mining licence or anything, matter

    defective
mining                                or
practice in or connected with any such mining operation to be so

    
      	
              operations.

            	
              dangerous
      or defective as in his opinion to be likely to cause bodily injury to any
      person, he may give notice in writing of it to the holder of the
      licence.

            

    

    

    (2)           A
notice issued pursuant to subsection (1) may require the danger or defect to be
remedied or removed, either immediately or within such time as may be specified,
and if the authorised officer considers it necessary, order the mining
operations to be suspended until the danger is removed or the defect remedied to
his satisfaction.

    

    (3)           The
holder of an artisanal mining licence to whom notice has been given under
subsection (1), shall comply with the notice.

    

      
           (4)           If
the holder of an artisanal mining licence intends to object to any requirement
or order given by the authorised officer, he shall forthwith cease the mining
operations or that part of the operations affected by the notice and appeal to
the Director against the order.

    

      
           (5)           On
an appeal made to the Director pursuant to subsection (4), the Director shall
inquire into the matter and his decision thereon shall be final.

    

    Transfer
of                                           94.           An
artisanal mining licence is not transferable.

    artisanal
mining

    licence.

    

    

    
      	
               

            	
               

            	
                    
                PART
      XI
SMALL-SCALE MINING
LICENCES

            

    

    

    Eligibility
for                                      95.           (1)           Any
person who wishes to carry out small-scale

    
      	
              small-scale

            	
              mining
      operations shall apply for a small-scale mining
  licence.

            

    

    
      	
               
      

            	
              mining
      licences.

            

    

         (2)           A
small-scale mining licence shall be granted to-

    

    
      	
               
      

            	
              (a)

            	
              a
      body corporate that is incorporated or registered in Sierra Leone and
      having a minimum of twenty-five percent of its shares held by citizens of
      Sierra Leone; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              a
      co-operative society registered in Sierra Leone having a minimum of
      twenty-five percent of its member being citizens of Sierra
      Leone.

            

    

    

    
      
         

      

      
        62

        
          

        

      

      
         

      

    

    (3)           All
such co-operatives and bodies corporate shall register with the Director and
shall provide such documentation as the Director may require.

    

    Application
for                                           96.           (1)           An
application for the grant of a small-scale

    small-scale                                 mining
licence shall be submitted to the Mining Cadastre Office in the

    mining
licence.                                prescribed
form.

    
      	
               
      

            	 

    

    (2)           An
application for the grant of a small-scale mining licence shall-

    

    
      	
               
      

            	
              (a)

            	
              be
      accompanied by a plan of the area over which the licence is sought drawn
      in such manner as prescribed;

            

    

    

    
      	
               
      

            	
              (b)

            	
              be
      accompanied by documentary evidence that consent to use the land for
      mining purposes has been given to the applicant by the Chiefdom Mining
      Allocation Committee or the rightful occupiers or owners of the land for
      mining purposes;

            

    

    

    
      	
               
      

            	
              (c)

            	
              identify
      the minerals in respect of which the licence is
  sought;

            

    

    

    
      	
               
      

            	
              (d)

            	
              state
      the period applied for;

            

    

    

    
      	
               
      

            	
              (e)

            	
              be
      accompanied by a technological report on mining and treatment
      possibilities and the intention of the applicant in relation to
      them;

            

    

    

    
      	
               
      

            	
              (f)

            	
              give
      or be accompanied by a statement giving particulars of the proposed
      programme of mining operations, including a statement
  of-

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      likely effects of the proposed mining operations on the environment and on
      the local population and proposals for mitigation and compensation
      measures;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              any
      particular risks (whether to health or otherwise) involved in mining the
      minerals, particularly radioactive minerals, and proposals for their
      control or elimination;

            

    

    

    
      
         

      

      
        63

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Act
      No. 11 of 2008

            	
              (g)

            	
              be
      accompanied by an environmental impact assessment licence as may be
      required by the Minister under subsection (2) of section
    131;

            

    

    

    
      	
               
      

            	
              (h)

            	
              give
      or be accompanied by a statement giving a detailed forecast of capital
      investment, operating costs and revenues and the anticipated type and
      source of financing;

            

    

    

    
      	
               
      

            	
              (i)

            	
              give
      or be accompanied by a report on the goods and services required for the
      mining operations which can be obtained within Sierra Leone  and
      the applicant’s proposals with respect to the procurement of those goods
      and services;

            

    

    

    
      	
               
      

            	
              (j)

            	
              give
      or be accompanied by a statement giving particulars of the applicant’s
      proposals with respect to the employment and training of citizens of
      Sierra Leone;

            

    

    

    
      	
               
      

            	
              (k)

            	
              be
      accompanied by details of the applicant’s proposals for insurance cover
      including health and life insurance for its
  employees;

            

    

    

    
      	
               
      

            	
              (l)

            	
              give
      or be accompanied by a statement giving particulars of expected
      infrastructure requirements;

            

    

    

    
      	
               
      

            	
              (m)

            	
              be
      accompanied by a report on the proposed marketing arrangements for the
      sale of the mineral production;

            

    

    

    
      	
               
      

            	
              (n)

            	
              give
      details of any mineral rights held in Sierra Leone, by the applicant or by
      any person controlling, controlled by or under joint or common control
      with the applicant;

            

    

    

    
      	
               
      

            	
              (o)

            	
              set
      out any other matter which the applicant wishes the Minister to consider;
      and

            

    

    

    
      	
               
      

            	
              (p)

            	
              be
      accompanied by the prescribed non-refundable
  fee.

            

    

    

    
      
         

      

      
        64

        
          

        

      

      
         

      

    

               (3)           Where
an application for the grant of a small-scale mining licence is made by a person
who is not the holder of an exploration licence to which the proposed mining
area relates, the application shall, in addition to the matters referred to
under subsection (2), give or be accompanied by a statement giving particulars
of the financial and technical resources available to the
applicant.

    

    Disposal
of                                           97.           (1)           The
Mining Cadastre Office shall forward an

    application
                                application
for the grant of a small-scale mining licence to the

    for
small-scale                                Minerals
Advisory Board after the application is complete.

    mining licence.

    (2)           Where
the Minerals Advisory Board has determined that an applicant for the grant of a
small-scale mining licence has met all requirements under this Act for such
licence the Board shall certify to the Minister in the prescribed form that it
advises that the application be approved, and such certification shall be
recorded in the mining cadastre register of mineral rights
applications.

    

    (3)           Subject
to sections 26 and 98, the Minister shall on the certified advice of the
Minerals Advisory Board, grant or refuse to grant a small-scale mining
licence.

    

    (4)           The
Minister shall cause the applicant for a small-scale mining licence to be
notified in writing of his decision on the application, and if the application
is refused, the Minister shall give reasons for such refusal.

    

    (5)           Any
person aggrieved by the refusal of the Minister to grant that person a
small-scale mining licence may appeal to the Court, whose decision shall be
final.

    

    
      	
              Restriction

            	
              98.

            	
              (1)

            	
              No
      small-scale mining licence shall be granted
to

            

    

    
      	
              on grant
    of

            	
              an
      applicant in an area designated under section 30 for artisanal
      mining

            

    

    
      	
              small-scale

            	
              operations.

            

    

    mining
licence.

    
      	
               
      

            	
              (2)

            	
              No
      person other than the holder of an exploration licence shall be granted a
      small-scale mining licence in respect of land which constitutes the
      exploration licence area or part of the exploration area.

            

    

    

    (3)           No
small-scale mining licence shall be granted to

    an applicant unless-

    

    
      	
               
      

            	 	
              (a)

            	
              a
      proposed programme of mining operations is submitted and approved by the
      Director and is accompanied by an environmental impact assessment licence
      as may be required by the Minister under subsection (2) of section
      131;

            

    

    

    
      
         

      

      
        65

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              the
      area of land over which the licence is sought is not in excess of the area
      reasonably required to carry out the programme of mining
      operations;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      applicant has adequate financial resources, technical competence and
      experience to carry on effective mining
  operations;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      application contains proposals for insurance including life and health
      insurance cover for its employees;

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      applicant is able and willing to comply with the terms and conditions
      applicable to the small-scale mining licence;
  and

            

    

    

    
      	
               
      

            	
              (f)

            	
              the
      applicant is not in material default of any of the provisions of this
      Act.

            

    

    

    (4)           The
Minister shall not refuse to grant a small-scale mining licence on any ground
referred to in subsection (3) unless he has-

    

    
      	
               
      

            	
              (a)

            	
              given
      to the applicant, notice of his intention not to grant the small-scale
      mining licence giving full particulars of the ground for refusal;
      or

            

    

    

    
      	
               
      

            	
              (b)

            	
              specified
      in the notice a date before which the applicant may make appropriate
      proposals to remove the ground for refusal, and the applicant has not,
      after that date made any such
proposals.

            

    

    

    Contents
of                                         99.           (1)           A
small-scale mining licence in the prescribed

    small-scale                                form
shall-

    
      	
               
      

            	
              mining
      licence.

            

    

    (a)           state
the period for which it is granted;

    

    
      	
               
      

            	
              (b)

            	
              include
      a description and plan of the area of land over which it is granted;
      and

            

    

    

    (c)           state
the conditions on which it is granted.

    

    (2)           There
shall be appended to a small-scale mining licence-

    

    
      
         

      

      
        66

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              the
      programme of mining operations approved by the
  Director;

            

    

    

    
      	
               
      

            	
              (b)

            	
              a
      certified copy of the agreement between the applicant and the owners of
      the land over which the small-scale mining licence is
    granted;

            

    

    

    
      	
               
      

            	
              (c)

            	
              particulars
      of the programme for the employment and training of citizens of Sierra
      Leone;

            

    

    

    
      	
               
      

            	
              (d)

            	
              a
      certified copy of the approved environmental management programme;
      and

            

    

    

    
      	
               
      

            	
              (e)

            	
              particulars
      of the applicant’s proposals with respect to the procurement of goods and
      services obtainable within Sierra
Leone,

            

    

    

    
      	
               
      

            	
              which
      shall form part of the terms and conditions of the small-scale mining
      licence.

            

    

    

    Size
of                                                
100.           (1)           A
small-scale mining licence area shall not be less

    small-scale                                than
one hectare and not more than one hundred hectares.

    mining
licence

    
      	
              area.

            	
              (2)

            	
              Every
      small-scale mining

            	
              area
      shall be demarcated by an authorised officer in such manner as may be
      prescribed or as the authorised officer may, in the circumstances consider
      appropriate.

            

    

     
 

    Duration
and                                                      101.           (1)           Subject
to subsection (2), a small-scale mining

    renewal
of                                licence
shall be valid for a period not exceeding three years and may

    small-scale                                be
renewed for further periods not exceeding three years at a time.

    mining licences.

    (2)           A
small-scale mining licence shall not be renewed pursuant to subsection
(1)-

    

    
      	
               
      

            	
              (a)

            	
              if,
      in the case where the licence area at the time the licence was issued was
      an area declared for small-scale mining operations, the small-scale mining
      licence area has ceased to be an area declared for small-scale mining
      operations;

            

    

    

    
      	
               
      

            	
              (b)

            	
              in
      respect of any mineral which has ceased to be a mineral prescribed for
      small-scale mining operations;

            

    

    

    
      	
               
      

            	
              (c)

            	
              unless
      the Director is satisfied that the applicant has carried on, in good
      faith, within the limits of its competence and resources, mining
      operations in the mining area and intends to continue doing
      so;

            

    

    

    
      
         

      

      
        67

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (d)

            	
              if
      the applicant has not carried out effective rehabilitation and reclamation
      of the applicant’s mined out areas to the satisfaction of the Director and
      authorities responsible for the protection of the environment or paid the
      prescribed fee;

            

    

    

    
      	
               
      

            	
              (e)

            	
              if
      the applicant has not reported as prescribed on the mining operations;
      or

            

    

    

    
      	
               
      

            	
              (f)

            	
              if
      the applicant is in default and the Director is not prepared to waive the
      default.

            

    

    

    Rights and
duties                                           102.           (1)           Subject
to the provisions of this Act or any other

    of holders
of                                           law
and any condition of a small-scale mining licence, the holder of a

    small-scale                                small-scale-mining
licence shall have the exclusive right to carry on

    
      	
              mining
      licences.

            	
              exploration
      and mining operations in the licensed area and may in the exercise of his
      rights enter upon any land to which his small-scale mining licence relates
      together with his servants and agents and
may-

            

    

    

    
      	
               
      

            	
              (a)

            	
              take
      reasonable measures on or under the surface of his small-scale mining
      licence area to mine and process the minerals to which his licence
      relates;

            

    

    

    
      
         

      

      
        68

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              erect
      the necessary equipment, plant, machinery and buildings for the purpose of
      mining, transporting, dressing, treating, smelting and refining the
      minerals or mineral products recovered by the holder during his mining
      operations;

            

    

    

    
      	
               
      

            	
              (c)

            	
              dispose
      of any mineral products recovered;

            

    

    

    
      	
               
      

            	
              (d)

            	
              stack
      or dump any mineral or waste product in a manner approved by the Director
      in consultation with the health and environmental authorities;
      and

            

    

    

    
      	
               
      

            	
              (e)

            	
              utilise
      the water and timber as necessary for mining
  operations.

            

    

    

    (2)           The
holder of a small-scale mining licence shall-

    

    
      	
               
      

            	
              (a)

            	
              within
      the limits of its competence and resources, carry on in good faith, in the
      licensed area, exploration or mining
operations;

            

    

    

    
      	
               
      

            	
              (b)

            	
              furnish
      the Director with such information relating to its exploration or mining
      operations as the Director may reasonably require or as may be
      prescribed;

            

    

    

    
      	
               
      

            	
              (c)

            	
              carry
      out promptly any directives relating to its exploration or mining
      operations which may be given to the holder by the Director for the
      purposes of ensuring safety or good mining
  practices;

            

    

    

    
      	
               
      

            	
              (d)

            	
              if
      not personally supervising the exploration or mining operations under the
      licence, employ a Mines Manager for the purpose of supervising its
      exploration or mining operations provided that all such Mines Managers
      must be approved by the Director and shall carry with them such means of
      identification as the Director may
direct;

            

    

    

    
      	
               
      

            	
              (e)

            	
              before
      beginning or ceasing any exploration or mining operations notify the
      appropriate local government authority or local authority  and
      an authorised officer, of the intention to begin or cease exploration or
      mining, as the case may be;

            

    

    

    
      	
               
      

            	
              (f)

            	
              substantially
      comply with any community development agreement required under this
      Act;

            

    

    

    
      	
               
      

            	
              (g)

            	
              sell
      the minerals obtained in the mining area as
  prescribed;

            

    

    

    
      	
               
      

            	
              (h)

            	
              carry
      out rehabilitation and reclamation of mined out
  areas;

            

    

    

    
      	
               
      

            	
              (i)

            	
              keep
      accurate records of winnings from the mining area and such records shall
      be produced for inspection on demand by the Director or a duly authorised
      officer; and

            

    

    

    
      	
               
      

            	
              (j)

            	
              submit
      all reports as prescribed.

            

    

    

    Revocation
of                                                      103.           The
Minister may revoke a small-scale mining  

    small-scale                                licence
if he is satisfied in respect of a small-scale mining licence

    mining
licence.                                that-

    

    
      
         

      

      
        69

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              citizens
      of Sierra Leone hold less than  twenty-five percent of the
      shares of the holder; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              no
      mining operations have commenced within a period of one hundred and eighty
      calendar days from the date of issue or renewal of the
      licence.

            

    

    

    Notice to
remedy                                           104.           (1)           Where
an authorised officer considers any dangerous or mining operation under a
small-scale mining licence or anything,

    defective
mining                                matter
or practice in or connected with any such mining operation to

    
      	
              operations.

            	
              be
      so dangerous or defective as in his opinion to be likely to cause bodily
      injury to any person, he may give notice in writing of it to the holder of
      the licence.

            

    

    

    (2)           A
notice issued pursuant to subsection (1) may require the danger or defect to be
remedied or removed, either immediately or within such time as may be specified,
and if the authorised officer considers it necessary, order the mining
operations to be suspended until the danger is removed or the defect remedied to
his satisfaction.

    

    (3)           The
holder of a licence to whom notice has been given under subsection (1), shall
comply with the notice.

    

                
  (4)           If
the holder of a licence intends to object to any requirement or order given by
the authorised officer, he shall forthwith cease the mining operations or that
part of the operations affected by the notice and appeal to the Director against
the order.

    

             
     (5)           On
an appeal made to the Director pursuant to subsection (4), the Director shall
inquire into the matter and his decision thereon shall be final.

    

    

    

    PART
XII                      -           LARGE-SCALE
MINING LICENCES

    

    

    Eligibility
for                                      105.           Notwithstanding
the provisions of section 26, a person

    large-scale                                shall
not be eligible to apply for the grant of a large-scale mining

    
      	
              mining
      licence.

            	
              licence
      under this Act unless that person is a company incorporated or registered
      under the Companies Act and whose name has not been struck off the
      register of companies at the time of the
  application.

            

    

    

    Application
for                                   106.           (1)           An
application for the grant of a large-scale

    large-scale                                 mining
licence shall be submitted to the Mining Cadastre Office in

    mining
licence.                                the
prescribed form.

    

    
      
         

      

      
        70

        
          

        

      

      
         

      

    

    (2)           An
application for the grant of a large-scale mining licence shall-

    

    
      	
               
      

            	
              (a)

            	
              contain
      the registered name and place of incorporation of the company, its
      certificate of incorporation and certified copy of its memorandum and
      articles of association, the names and nationalities of its directors and
      the name of every shareholder who is the beneficial owner of five percent
      or more of the issued share
capital;

            

    

    

    
      	
               
      

            	
              (b)

            	
              contain
      the company profile and history of exploration operations in Sierra Leone
      and elsewhere;

            

    

    

    
      	
               
      

            	
              (c)

            	
              identify
      the name and qualifications of the person responsible for supervising the
      proposed programme of exploration
operations;

            

    

    

    
      	
               
      

            	
              (d)

            	
              be
      accompanied by a plan of the area over which the licence is sought drawn
      in such manner as prescribed;

            

    

    

    
      	
               
      

            	
              (e)

            	
              state
      the period applied for;

            

    

    

    
      	
               
      

            	
              (f)

            	
              identify
      the minerals in respect of which the licence is
  sought;

            

    

    

    
      	
               
      

            	
              (g)

            	
              give
      or be accompanied by a statement giving details of the mineral deposits in
      the area of land over which the licence is sought, including details of
      all known minerals proved, estimated or inferred, ore reserves and mining
      conditions;

            

    

    

    
      	
               
      

            	
              (h)

            	
              be
      accompanied by a technological report on mining and treatment
      possibilities and the intention of the applicant in relation to
      them;

            

    

    

    
      	
               
      

            	
              (i)

            	
              give
      or be accompanied by a statement giving particulars of the proposed
      programme of mining operations, including a statement
  of-

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      estimated date by which the applicant intends to work for
      profit;

            

    

    

    
      
         

      

      
        71

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (ii)

            	
              the
      estimated capacity of production and scale of
  operations;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      estimated overall recovery of ore and mineral
  products;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              the
      nature of the products;

            

    

    

    
      	
               
      

            	
              (v)

            	
              proposals
      for the progressive reclamation and rehabilitation of land disturbed by
      mining and for the minimisation of the effects of mining on surface water
      and ground water and on adjoining or neighbouring
  lands;

            

    

    

    
      	
               
      

            	
              (vi)

            	
              the
      effects of the mining operations on the environment and on the local
      population and proposals for mitigation, compensation and resettlement
      measures;

            

    

    

    
      	
               
      

            	
              (vii)

            	
              any
      particular risks (whether to health or otherwise) involved in mining the
      mineral, in particular a radioactive mineral, and proposals for their
      control or elimination;

            

    

    

    
      	
               
      

            	
              (j)

            	
              give
      or be accompanied by a statement giving a detailed forecast of capital
      investment, operating costs and revenues and the anticipated type
      and  source of financing;

            

    

    

    
      	
               
      

            	
              (k)

            	
              contain
      the identification of interested and affected parties including land
      owners and lawful occupiers of the proposed mining
  area;

            

    

    

    
      	
               
      

            	
              (l)

            	
              contain
      details of consultation with interested and affected parties and the
      results thereof;

            

    

    

    
      	
               
      

            	
              (m)

            	
              be
      accompanied by a report on the goods and services required for the mining
      operations which can be obtained within Sierra Leone and the applicant’s
      proposals with respect to the procurement of those goods and
      services;

            

    

    

    
      
         

      

      
        72

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (n)

            	
              give
      or be accompanied by a statement giving particulars of the applicant’s
      proposals with respect to the  employment and training of
      citizens of Sierra Leone;

            

    

    

    
      	
               
      

            	
              (o)

            	
              be
      accompanied by details of the applicant’s proposals for insurance
      including life and health cover for its
  employees;

            

    

    

    
      	
               
      

            	
              (p)

            	
              give
      or be accompanied by a statement giving particulars of expected
      infrastructure requirements;

            

    

    

    
      	
               
      

            	
              (q)

            	
              be
      accompanied by a report on the proposed marketing arrangements for the
      sale of the mineral production;

            

    

    

    
      	
               
      

            	
              (r)

            	
              give
      details of any mineral rights held in Sierra Leone, by the applicant or by
      any person controlling, controlled by or under joint or common control
      with the applicant;

            

    

    

    
      	
               
      

            	
              (s)

            	
              be
      accompanied by an environmental impact assessment licence as may be
      required by the Minister under subsection (2) of section
    131;

            

    

    

    
      	
               
      

            	
              (t)

            	
              set
      out any other matter which the applicant wishes the Minister to consider;
      and

            

    

    

    
      	
               
      

            	
              (u)

            	
              be
      accompanied by the prescribed non-refundable
  fee.

            

    

    

    (3)           Where
an application for the grant of a large-scale mining licence is made by a person
who is not the holder of an exploration licence to which the proposed mining
area relate, there shall be provided in addition to the matters referred to in
subsection (1), a statement giving particulars of the financial and technical
resources available to the applicant for the proposed mining
operations.

    

    Disposal
of                                           107.           (1)           The
Mining Cadastre Office shall forward a

    application
                                application
for the grant of a large-scale mining licence to the

    for
large-scale                                the
Minerals Advisory Board after the application is complete.

    mining licence.

    (2)           Subject
to sections 26 and 108, where the Minerals Advisory Board has determined that an
applicant for the grant of a large-scale mining licence has met all requirements
under this Act for such licence the Board shall certify to the Minister in the
prescribed form that it advises that the application be approved, and such
certification shall be recorded in the mining cadastre register of mineral
rights applications.

    

    
      
         

      

      
        73

        
          

        

      

      
         

      

    

    (3)           Subject
to this section and to subsection (1) of section 108, the Minister on the advice
and certification of the Minerals Advisory Board may grant, on such conditions
as he may determine, or refuse to grant, the large-scale mining licence applied
for.

    

    (4)           To
enable him to dispose of an application for the grant of a large-scale mining
licence, the Minister may, by notice given to the applicant, require the
applicant, at the applicant’s own expense, to commission an independent study by
consultants and under terms of reference acceptable to the Minister for the
purpose of-

    

    
      	
               
      

            	
              (a)

            	
              assessing
      the feasibility of the programme of mining operations proposed in the
      application; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              assessing
      or making recommendations about such other matters arising out of or in
      connection with the application, as the Minister may specify in the
      notice.

            

    

    
      	
               
      

            	 

    

    (5)           Any
person aggrieved by the refusal of the Minister to grant that person a
large-scale mining licence may appeal to the Court, whose decision shall be
final.

    

    Restriction                                         108.           (1)           Subject
to this Act, no person other than the holder on grant of of an exploration licence
shall be granted a large-scale mining licence large-scale in respect of land which
constitutes the exploration licence area or part

    mining
licence.                                of
which falls within the exploration licence area.

    

    (2)           Where
at the commencement of this Act, there is more than one prospecting licence
subsisting wholly or partly over the same area of land, no large-scale mining
licence shall be granted to the holder of any such prospecting licence over that
area of land unless-

    

    
      	
               
      

            	
              (a)

            	
              every
      holder of such prospecting licence (other than the applicant) consents in
      writing to the grant of the large-scale mining licence;
  or

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      Minister on the advice of the Minerals Advisory Board is
      satisfied-

            

    

    

    
      	
               
      

            	
              (i)

            	
              that
      the rights of the holder of any prospecting licence would not be
      substantially prejudiced by the grant of the large-scale mining licence;
      or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              that
      the public interest requires that the large-scale mining licence be
      granted.

            

    

    

    
      
         

      

      
        74

        
          

        

      

      
         

      

    

    (3)           No
large-scale mining licence shall be granted to an applicant unless-

    

    
      	
               
      

            	
              (a)

            	
              a
      programme of proposed development and mining operations is submitted and
      approved by the Director and is accompanied by an environmental impact
      assessment licence as may be required by the Minister under subsection (2)
      of section 131;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      area of land over which the licence is sought is not in excess of the area
      reasonably required to carry out the programme of mining operations and
      does not exceed the area allowable under an exploration
      licence;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      applicant has adequate financial resources, technical competence and
      experience to carry on effective mining
  operations;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      application includes a programme for employment and training of citizens
      of Sierra Leone;

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      application includes proposals with respect to the procurement of goods
      and services obtainable within Sierra
Leone;

            

    

    

    
      	
               
      

            	
              (f)

            	
              the
      application contains proposals for insurance including life and health
      insurance cover for its employees;

            

    

    

    
      	
               
      

            	
              (g)

            	
              the
      application is able and willing to comply with the terms and conditions
      applicable to the large-scale mining licence;
  and

            

    

    

    
      	
               
      

            	
              (h)

            	
              the
      applicant is not in material default of any of the provisions of this
      Act.

            

    

    

    (4)           The
Minister shall not refuse to grant a large-scale mining licence on any ground
referred to in subsection (3) unless he has-

    

    
      
         

      

      
        75

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              given
      to the applicant, notice of his intention not to grant the large-scale
      mining licence giving full particulars of the ground for refusal;
      or

            

    

    

    
      	
               
      

            	
              (b)

            	
              specified
      in the notice a date before which the applicant may make appropriate
      proposals to remove the ground for refusal, and the applicant has not,
      after that date made any such
proposals.

            

    

    

    Notice
of                                         
   109.           (1)           The
Minister shall cause the applicant to be decision on notified of, the decision
on the application and-

    application
for

    large-scale                                                                          
 (a)           if
the application is granted, of the details of

    mining
licence.                                                                           the
proposed large-scale mining licence; or

    

    
      	
               
      

            	
              (b)

            	
              if
      the application is refused, of the detailed reasons for such
      refusal.

            

    

    .

    (2)           An
applicant shall within sixty calendar days of notification of the Minister’s
decision to grant a large-scale mining licence notify the Minister of his
willingness to accept the proposed large-scale mining licence, failing which the
application shall lapse.

    

    Contents
of                                         110.           (1)           A
large-scale mining licence in the prescribed form

    large-scale                                shall-

    
      	
              mining
      licence.

            	
              (a)

            	
              state
      the period for which it is granted;

            

    

    

    
      	
               
      

            	
              (b)

            	
              include
      a description and plan of the area of land over which it is granted;
      and

            

    

    

    (c)           state
the conditions on which it is granted.

    

    (2)           There
shall be appended to a large-scale mining licence-

    

    
      	
               
      

            	
              (a)

            	
              the
      programme of mining operations approved by the
  Director;

            

    

    

    
      	
               
      

            	
              (b)

            	
              a
      certified copy of the agreement between the applicant and the owners of
      the land over which the large-scale mining licence is
    granted;

            

    

    

    
      	
               
      

            	
              (c)

            	
              particulars
      of the programme for the employment and training of citizens of Sierra
      Leone;

            

    

    

    
      
         

      

      
        76

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (d)

            	
              a
      certified copy of the approved environmental management programme;
      and

            

    

    

    
      	
               
      

            	
              (e)

            	
              particulars
      of the applicant’s proposals with respect to the procurement of goods and
      services obtainable within Sierra
Leone,

            

    

    

    
      	
               
      

            	
              which
      shall form part of the terms and conditions of the large-scale mining
      licence.

            

    

    

    Duration
of                                         111.           Subject
to section 112, the period for which a large-scale

    large-scale                                mining
licence is granted shall be stated in the licence and shall not

    
      	
              mining
      licence.

            	
              exceed
      twenty-five years or the estimated life of the ore body proposed to be
      mined, which ever is shorter.

            

    

    

    

    Renewal
of                                           112.           (1)           The
holder of a large-scale mining licence may large-scale apply to the Minister for subsequent
renewals of his licence in respect

    
      	
              mining
      licence.

            	
              of
      all or part of the large-scale mining licence area at any time not later
      than one year before the expiry of such
licence.

            

    

    

    (2)           An
application under subsection (1), in the prescribed form, shall be submitted to
the Mining Cadastre Office and shall-

    

    
      	
               
      

            	
              (a)

            	
              state
      the period, not exceeding fifteen years, for which each renewal is
      sought;

            

    

    

    
      	
               
      

            	
              (b)

            	
              be
      accompanied by a statement giving details
of-

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      latest proved, estimated and inferred ore
  reserves;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      capital investment to be made in, and production costs and revenue
      forecasts in respect of the period of
renewal;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              mining
      operations proposed to be carried out in the period of renewal if
      substantially different from the previous
  operations;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              any
      expected changes in the method of mining and
  treatment;

            

    

    

    
      	
               
      

            	
              (v)

            	
              any
      likely social impact and effects on the environment and proposals for
      mitigation and compensation
measures;

            

    

    

    
      
         

      

      
        77

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (vi)

            	
              such
      further information as the Minister may require;
  and

            

    

    

    
      	
               
      

            	
              (c)

            	
              shall,
      if renewal of the licence is sought in respect of part only of the
      large-scale mining licence area, be accompanied by a plan and description
      identifying that part of the large-scale mining licence
    area.

            

    

    

    (3)           Upon
receipt of a completed application for the renewal of a large-scale mining
licence from the Mining Cadastre Office, where the Minerals Advisory Board has
determined that the applicant has met all requirements under this Act for such
renewal the Board shall certify to the Minister in the prescribed form that it
advises that the application be approved, and such certification shall be
recorded in the mining cadastre register.

    

    (4)           Subject
to subsection (5), on application duly made for the renewal of a large-scale
mining licence, the Minister may renew the licence with or without variation of
the conditions of the licence, for a period not exceeding fifteen
years.

    

    (5)           The
Minister shall on the advice of the Minerals Advisory Board certifying that the
holder of a large-scale mining applying for licence renewal has met all
conditions for such renewal under this Act, grant an application for renewal of
a large-scale mining licence if he is satisfied that-

    

    
      	
               
      

            	
              (a)

            	
              the
      applicant is not in default of any of the provisions of this Act or any of
      the conditions of the large-scale mining
  licence;

            

    

    

    
      	
               
      

            	
              (b)

            	
              development
      of the large-scale mining licence area has proceeded with reasonable
      diligence; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      proposed programme of mining operations will ensure the most efficient and
      beneficial use of the mineral resources in the large-scale mining licence
      area.

            

    

    

    (6)           The
Minister shall not reject an application on the

    grounds
that he is not satisfied with a matter referred to in-

    

    
      	
               
      

            	
              (a)

            	
              paragraph
      (a) of subsection (5) unless the applicant has been given details of the
      default and has failed to remedy the same within ninety calendar days of
      such notification;

            

    

    

    
      
         

      

      
        78

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              paragraph
      (b) of subsection (5) unless the applicant has been given reasonable
      opportunity to make written representations thereon to the Minister;
      or

            

    

    

    
      	
               
      

            	
              (c)

            	
              paragraph
      (c) of subsection (5) unless the applicant has been so notified and has
      within ninety calendar days of such notification, failed to propose
      amendments to his proposed programme of mining operations satisfactory to
      the Minister.

            

    

    

    (7)           The
applicant shall be notified in writing of the decision on a renewal application,
and if an application is refused, the Minister shall give reasons for such
refusal.

    

    Amendment
of                                    113.           (1)           Subject
to this section, the holder of a large- programme of scale mining licence may
make amendments to-

    operations
of

    large-scale                                                                        
  (a)           the
programme of mining operations;

    mining
licence.

    
      	
               
      

            	
              (b)

            	
              the
      environmental management programme appended to the large-scale mining
      licence; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      programme of employment and training of citizens of Sierra
      Leone.

            

    

    

    (2)           Particulars
of the proposed amendments, including

    where
appropriate, particulars of any significant impacts to the environment that any
amendment could entail, shall be served on the Minister and, subject to
subsections (3) and (4), the amendment shall have effect when so
served.

    

    (3)           Any
proposed amendment which substantially alters any provision which forms part of
the conditions of the large-scale mining licence, or will adversely affect the
environmental management programme, shall not take effect without the written
approval of the Minister, and where any such amendment appears to the Minister
to make such a substantial alteration, he shall refer the amendment to the
Minerals Advisory Board for its advice.

    

    (4)           On
receiving the advice of the Minerals Advisory Board, the Minister shall
determine whether or not to approve the amendment and, if he decides to approve
the amendment, he may impose such terms and conditions if any, as he may deem
necessary.

    

    
      
         

      

      
        79

        
          

        

      

      
         

      

    

    (5)           If
in the course of exercising his rights the holder

    of a
large-scale mining licence discovers-

    

    
      	
               
      

            	
              (a)

            	
              any
      further deposits of the mineral for which he holds the licence;
      or

            

    

    

    
      	
               
      

            	
              (b)

            	
              any
      other mineral to which such licence does not
  relate,

            

    

    

    he shall,
within thirty calendar days after such discovery, notify the Director giving
particulars of the deposits or the mineral discovered, and the site and
circumstances of the discovery, and may apply to the Minister to have the mining
of such deposits or such mineral included in his large-scale mining licence,
giving in the application a proposed programme of mining operations in respect
of that discovery.

    

    (6)           If
the Minister is satisfied with a proposed programme of mining operations
submitted under subsection (5), he may, on the advice of the Minerals Advisory
Board, approve such application on such terms and conditions as he may determine
and shall amend the large-scale mining licence accordingly.

    

    (7)           The
holder of a large-scale mining licence may apply to the Minister for enlargement
of his large-scale mining licence area and the Minister may, subject to
subsection (8), approve such application if he is satisfied that such approval
will ensure the most efficient and beneficial use of the mineral resources of
Sierra Leone.

    

    (8)           A
large-scale mining licence area shall not be enlarged so as to include any area
over which the applicant could not by reason of this Act, be granted a
large-scale mining licence.

    

    Rights
of                                           
  114.           Subject
to the provisions of this Act and any other law

    holders
of                                 and  any
condition of the large-scale mining licence, the holder of a

    large-scale                                large-scale
mining licence shall have the exclusive right to carry on

    
      	
              mining
      licences.

            	
              exploration
      and mining operations in the large-scale mining licence area and may in
      the exercise of his rights enter upon any land to which his large-scale
      mining licence relates together with his servants and agents and
      may-

            

    

    

    
      	
               
      

            	
              (a)

            	
              take
      reasonable measures on or under the surface of his large-scale mining
      licence area to mine and process the minerals to which his licence
      relates;

            

    

    

    
      	
               
      

            	
              (b)

            	
              erect
      the necessary equipment, plant, machinery and buildings for the purpose of
      mining, transporting, dressing, treating, smelting and refining the
      minerals or mineral products recovered by the holder during his mining
      operations;

            

    

    

    
      
         

      

      
        80

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (c)

            	
              dispose
      of any mineral products recovered;

            

    

    
      	
               
      

            	 	 

    

    
      	
               
      

            	
              (d)

            	
              stack
      or dump any mineral or waste product in a manner approved by the Director
      in consultation with the health and environmental authorities;
      and

            

    

    

    
      	
               
      

            	
              (e)

            	
              utilize
      the water and timber as necessary for mining
  operations.

            

    

    

    Obligations                      of               115.           (1)           Subject
to the provisions of this Act, the holder of a

    holders
of                                 large-scale
mining licence shall-

    large-scale

    
      	
               
      

            	
              mining
      licences.

            	
              (a)

            	
              develop
      and mine the mineral deposits covered by the licence in accordance with
      the approved programme of mining operations and the environmental
      management programme;

            

    

    

    
      	
               
      

            	
              (b)

            	
              commence
      mine development within one hundred and eighty calendar days of the
      registration of the licence;

            

    

    

    
      	
               
      

            	
              (c)

            	
              demarcate
      and keep demarcated the large-scale mining licence area in such a manner
      as may be prescribed;

            

    

    

    
      	
               
      

            	
              (d)

            	
              keep
      and maintain in Sierra Leone an address which shall be registered with the
      Director and to which all communications and notices may be
      addressed;

            

    

    

    
      	
               
      

            	
              (e)

            	
              notify
      the Minister as soon as the holder commences work for profit in the
      large-scale mining licence area;
and

            

    

    

    
      	
               
      

            	
              (f)

            	
              substantially
      comply with any community development agreement required under this
      Act.

            

    

    

    (2)           The
holder of a large-scale mining licence shall-

    

    
      	
               
      

            	
              (a)

            	
              maintain
      at the address kept in accordance with paragraph (d) of subsection
      (1)-

            

    

    

    
      
         

      

      
        81

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (i)

            	
              complete
      and accurate technical records of its operations in the large-scale
      mining  licence area in such form as the Minister may
      approve;

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (ii)

            	
              copies
      of all maps, geological reports, including interpretations, mineral
      analysis, aerial photographs, core logs, analyses, tests and all other
      data obtained and compiled by the holder in respect of the large-scale
      mining licence area;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              accurate
      and systematic financial records of its operations in the large-scale
      mining licence area and such other books of accounts and financial records
      as the Minister may require; and if such holder is engaged in any activity
      not connected with its operation under the large-scale mining licence, the
      holder shall maintain separate books of accounts of its operations under
      such licence;

            

    

    

    
      	
               
      

            	
              (b)

            	
              permit
      an authorised officer at any time to inspect the books and records
      maintained in pursuance of paragraph (a) and shall deliver to the
      Minister, without charge copies of any part of such books and records as
      the Minister may from time to time require and shall every six months
      deliver to the Director, without charge copies of records kept pursuant to
      subparagraphs (i) and (ii) of paragraph (a) of subsection
    (2);

            

    

    

    
      	
               
      

            	
              (c)

            	
              furnish
      the Director with a copy of every annual financial report within ninety
      calendar days of the end of each financial year showing the profit or loss
      for the year and the state of financial affairs of the holder at the end
      of each financial year; and

            

    

    

    
      	
               
      

            	
              (d)

            	
              submit
      all reports as prescribed.

            

    

    

    Wasteful                                           
  116.           (1)           If
the Director considers that the holder of a

    mining
and                                large-scale
mining licence is using wasteful mining and treatment

    treatment                                 practices
which are contrary to the approved programme of mining

    
      	
              practices.

            	
              operations
      or conducts its operations otherwise than in accordance with good mining
      practice or contrary to the regulations, he shall notify such holder
      accordingly and require the holder to show cause, within such period as
      the Director may specify, why it should not cease to use such
      practices.

            

    

    

    
      
         

      

      
        82

        
          

        

      

      
         

      

    

    (2)           If,
within the period specified in any notice issued under subsection (1) the holder
of a large-scale mining licence fails to satisfy the Director that it is not
using wasteful mining or treatment practices, or that the use of such practices
is justified, the Director may order the holder to cease using such practices
within such period as he may specify.

    

    (3)           If
the holder of a large-scale mining licence fails, after being so ordered, to
cease using such wasteful mining or treatment practices, the Minister may cancel
the licence or may suspend such licence for such period as he deems
fit.

    

    Coordination                                       117.           (1)           Except
where the coordination would result in

    of
mining                                criminal
or civil liability under any applicable laws, if the Minister

    
      	
              operations.

            	
              considers
      that the public interest or the interests of the holders of large-scale
      and/or small-scale mining licences covering neighbouring or contiguous
      mining areas would best be served with regard to the efficient and
      economic exploitation of minerals by the co-ordination of all or part of
      the mining operations of such holders, he may direct such orders to effect
      such coordination by such holders entering into an agreement for his
      approval to effect the co-ordination within such time as he may
      specify.

            

    

     

                                                                      
            
(2)           Before
giving any directions under subsection (1), the Minister shall afford the
holders of the mining licences concerned reasonable opportunity to make
representations to him in writing.

    

    (3)           No
direction shall be given under subsection (1) the effect of which shall be to
cause financial gain by one party at the expense of another.

    

    Termination,                                       118.           (1)           The
holder of a large-scale mining licence shall

    suspension,
or                                notify
the Minister-

    reduction of

    
      	
               
      

            	
              production.

            	
              (a)

            	
              one
      year in advance, if it proposes to permanently terminate production from
      its mine;

            

    

    

    
      	
               
      

            	
              (b)

            	
              six
      months in advance, if it proposes to temporarily suspend production from
      its mine (not to exceed twenty-four
months);

            

    

    

    
      	
               
      

            	
              (c)

            	
              three
      months in advance, if it proposes to reduce the level of
      production,

            

    

    

    
      
         

      

      
        83

        
          

        

      

      
         

      

    

    and
shall, in all cases, give reasons for such termination, temporary suspension or
reduction.

    

    (2)           If
for reasons beyond its control, the holder of a large-scale mining licence
terminates, suspends or reduces production from its mine, the holder shall
within fourteen calendar days of such termination, suspension or reduction
notify the Minister.

    

    (3)           On
receiving the notification under subsection (1) or (2), or if the holder of a
large-scale mining licence otherwise becomes aware of any termination, temporary
suspension or reduction of production, the Minister shall cause the matter to be
investigated and shall subject to any relevant requirement contained in the
large-scale mining licence, give his approval to such termination, temporary
suspension or reduction.

    

    (4)           Approval
of termination, temporary suspension or reduction may be given subject to such
conditions, including a date of resumption of production in the case of
temporary suspension, as the Minister may impose, on the advice of the Minerals
Advisory Board.

    

    (5)           The
Minister shall approve the termination, temporary suspension  or
reduction if, assuming the continuance of the approved programme of mining
operations, it appears that the estimated revenues from mining operations for
the succeeding twelve months will not exceed the estimated operating expenses
for that period.

    

    (6)           The
Minister shall cancel a large-scale mining licence whose production has been
terminated, or whose production has been suspended for a continuous period of
twenty-four months.

    

    Transfer
of                                         119.           (1)           An
application for transfer of a large-scale mining large-scale licence shall be made to
the Mining Cadastre Office in the prescribed

    
      	
              mining
      licences.

            	
              form
      and shall state details of the transfer as may be
    prescribed.

            

    

    

    (2)           The
Mining Cadastre Office shall forward an application for transfer of a
large-scale mining licence to the Minerals Advisory Board after the application
is complete.

    

    (3)           Where
the Minerals Advisory Board has determined that an applicant for the transfer of
a large-scale mining licence and the transferee have met all requirements under
this Act for such transfer the Board shall certify to the Minister in the
prescribed form that it advises that the application be approved and such
certification shall be recorded in the mining cadastre.

    

    (4)           The
Minister shall on the certified advice of the Minerals Advisory Board following
an application under subsection (1), give or refuse to give his approval in
writing, subject to such conditions as he deems necessary in the circumstances,
to impose.

    

    
      
         

      

      
        84

        
          

        

      

      
         

      

    

    (5)           The
Minister shall cause the applicant to be notified in writing of his decision on
the application and if the application is refused, the Minister shall give
reasons for such refusal.

     
 

    (6)           A
transfer, assignment, pledge, or other encumbrance of a large-scale mining
licence shall not take effect unless and until it is recorded under section
43.

    

    (7)           Upon
the registration of the transfer of a large-scale mining licence, the transferee
shall assume and be responsible for all rights, liabilities and duties of the
transferor under the large-scale mining licence.

    

    

    PART  XIII                                -           RADIOACTIVE
MINERALS

    

    Provisions                                            120.           The
provisions of this Act relating to exploration,

    relating
to                                           and
mining of minerals shall apply to radioactive minerals with such

    radioactive                                           modifications
as are provided in this Part and as may be prescribed.

    minerals.

    

    Notification                                         121.           (1)           Where
any radioactive mineral is discovered in the

    of
discovery                                course
of exercising any right under this Act or any authority under

    of
radioactive                                any
other enactment, the holder of the mineral right or such other

    
      	
              minerals.

            	
              authority
      shall immediately notify the Minister, but in any case not later than
      seven calendar days after the
discovery.

            

    

    

    (2)           Where
any radioactive mineral is discovered on any land other than land subject to a
mineral right, the owner or lawful occupier of the land shall as soon after he
is aware of such discovery notify the Minister.

    

    Report
of                                            122.           The
holder of a mineral right in respect of a radioactive

    operation                                 mineral
shall, within the first week of every month, furnish the

    related
to                                 Director
with a report, in writing, of the exploration and mining radioactive  operations conducted by
him in the immediately preceding month.

    minerals.

    

    Export
or                                            123.           (1)           No
person shall explore for or mine or treat or

    disposal
of                                 possess
or export or import or otherwise dispose of any radioactive radioactive  mineral except under and
in accordance with the terms and conditions minerals. of a permit granted by
the Minister.

    

    
      	
               
      

            	
              (2)

            	
              A
      permit issued under subsection (1) shall be
in

            

    

    such form
and shall be subject to the payment of such fee as the

    Minister
may prescribe.

    

    Offences                                            124.           (1)           Any
person who contravenes any of the provisions against  of this Part or who
obtains a permit referred to in section 123 by

    this
Part.                                means
of any false statement or representation commits an offence and

    shall, on
conviction, be liable in the case of a body of persons to a fine not less than
one hundred thousand United States Dollars, or its equivalent in leones and in
the case of an individual to a fine not less than twenty thousand United States
Dollars, or its equivalent in leones, or to imprisonment for a term not
exceeding ten years or to both such fine and imprisonment.

    

    
      
         

      

      
        85

        
          

        

      

      
         

      

    

    (2)           The
court before which any person is convicted of an offence under subsection (1)
shall order the forfeiture of any radioactive minerals which may have been
obtained by the person convicted.

    

    (3)           Any
police officer not below the rank of an Assistant Superintendent and any
authorised officer, may, without warrant, for the purposes of enforcing an
offence under this Part -

    

    
      	
               
      

            	
              (a)

            	
              enter
      and search any place where he has reasonable grounds to  suspect
      that an offence under this Part has been or is about to be
      committed;

            

    

    

    
      	
               
      

            	
              (b)

            	
              search
      and arrest any person whom he has reasonable grounds to suspect to have
      committed, or is about to commit an offence under this
    Part;

            

    

    

    
      	
               
      

            	
              (c)

            	
              seize
      any radioactive mineral which he suspects to have been obtained contrary
      to the provisions of this Part; or

            

    

    

    
      	
               
      

            	
              (d)

            	
              close
      any reconnaissance, exploration or mining operations which are being used
      or are about to be used in the commission of an offence under this
      Part.

            

    

    

    

    PART
XIV                                -           DREDGING
FOR MINERALS

    

    Provisions                                           125.           This
Part shall be in addition to the provisions of this Act relating to relating to exploration
for and mining of minerals.

    dredging for

    minerals.

    

    Dredging                                           
126.           (1)           No
holder of a mineral right shall dredge any river, permit stream, watercourse,
pond, lake or waters of the continental shelf or required. undertake any activity
preparatory to or relating to dredging including

    flooding
of an area without a dredging permit granted by the Minister.

    

    (2)           Any
person who contravenes the provisions of subsection (1) commits an offence and
shall be liable on conviction to a fine not less than three hundred United
States Dollars, or its equivalent in leones for every day during which the
offence is committed.

    

    
      
         

      

      
        86

        
          

        

      

      
         

      

    

    Additional                                           127.           (1)           On
an application for an exploration licence, the

    information                                applicant
shall indicate-

    relating
to

    
      	
               
      

            	
              dredging.

            	
              (a)

            	
              in
      its proposed programme of dredging operations, whether its exploration
      operations will entail dredging and if so, whether the type or method of
      dredging would entail flooding;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      types of machines or equipment intended to be used in the dredging
      operations; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              whether
      dredging is the only economically viable process of exploration, in other
      words that that there is no other safe method of exploration in terms of
      damage to the environment and cost
  effectiveness.

            

    

    

    (2)           On
an application for an artisanal mining, small-scale mining, or large-scale
mining licence, the applicant shall indicate-

    

    
      	
               
      

            	
              (a)

            	
              in
      its proposed programme of dredging operations, whether its mining
      operations will entail dredging and if so, whether the type or method of
      dredging would entail flooding;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      types of machines or equipment intended to be used in the dredging
      operations; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              whether
      dredging is the only economically viable process of mining, in other words
      that that there is no other safe method of mining in terms of damage to
      the environment and cost
effectiveness;

            

    

    

    Application
for                                   128.           (1)           An
application for a dredging permit shall be made dredging permit. to the Mining Cadastre
Office in the prescribed form.

    

    (2)           An
application for a dredging permit shall-

    

    
      	
               
      

            	
              (a)

            	
              state
      the consequences of dredging including the destruction of monuments and
      relics, sacred places and burial
grounds;

            

    

    

    
      
         

      

      
        87

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              be
      accompanied by a performance bond as security for rehabilitation of mined
      out areas; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              be
      accompanied by the prescribed non-refundable application
    fee.

            

    

    

    (3)           A
dredging permit shall be issued on payment of such fee as may be prescribed and
shall be separate and distinct from a mineral right.

    

    (4)           A
dredging permit may be issued with such conditions or restrictions as the
Minister, may on the advice of the Minerals Advisory Board, think fit and
endorse on the licence.

    

    (5)           Any
person who acts in contravention of any condition or restriction endorsed on a
dredging permit commits an offence, and shall be liable on conviction to a fine
not less than two thousand dollars, or its equivalent in leones, and the holder
of the licence shall be liable for any damage which may have arisen in
consequence of such contravention.

    

    
      	
              Cancellation

            	
              129.

            	
              On
      the conviction of any person under subsection (5)
  of

            

    

    
      	
              of
    dredging

            	 	
              section
      128, the Minister may cancel the dredging
  permit.

            

    

    
      	
              permits.

            	 

    

    

    
      	
              Non-compliance

            	
              130.

            	
              Non-compliance
      with any lawful order, direction or

            

    

    
      	
              deemed
as

            	
              notice
      given by the Minister under and by virtue of the conditions
    or

            

    

    
      	
              contravention.

            	
              restrictions
      endorsed upon the permit under subsection (4) of section 128 shall be
      deemed a contravention of such conditions or
  restrictions.

            

    

    

    

    
      	
              PART
      XV

            	
              -

            	
              PROTECTION
      OF THE ENVIRONMENT

            

    

    

    
      	
              Protection of

            	
              131.

            	
              (1)

            	
              In
      deciding whether or not to grant a mineral
  right,

            

    

    
      	
              natural

            	
              the
      Minister shall take into account the need to conserve the
      natural

            

    

    
      	
              resources to be

            	
              resources
      in or on the land over which the mineral right is sought, or
      in

            

    

    
      	
              taken into

            	
              or
      on neighbouring land.

            

    

    
      	
               
      

            	
              account.

            

    

    
      	
               
      

            	
              (2)

            	
              The
      Minister shall require an environmental
impact

            

    

    Act No.
11                      assessment
licence as prescribed under with the Environment Protection

    
      	
               
      

            	
              of 2008.

            	
              Agency
      Act, 2008 as a condition for granting a small-scale mining licence or a
      large-scale mining licence.

            

    

    

    General
duty                                       132.           (1)           Every
holder of a mineral right shall carry on its

    to
protect                                operations
in a manner that is reasonably practicable in order to

    environment
and                                minimize,
manage and mitigate any environmental impact including

    minimize                                but
not limited to pollution resulting from such operations.

    pollution.

    (2)           Notwithstanding
the generality of subsection (1), a holder of a mineral right shall be subject
to all laws of the Republic concerning the protection of the
environment.

    

    
      
         

      

      
        88

        
          

        

      

      
         

      

    

    Environmental                                    133.           (1)           In
addition to any requirements set out in the

    impact                                           Environment
Protection Agency Act, 2008 an environmental impact

    
      	
              assessment.

            	
              assessment
      prepared by a small-scale or large-scale mining licence applicant shall be
      based on environmental baseline assessment work, and shall contain the
      types of information and analysis reflecting international mining best
      practice which shall include-

            

    

    

    
      	
               
      

            	
              (a)

            	
              a
      detailed description of the environment backed up with applicable
      measurements (air quality, water quality, etc.) to present a detailed
      documentation of the licence area environment prior to any mining
      operations;

            

    

    

    
      	
               
      

            	
              (b)

            	
              a
      detailed description of the project including all phases of development,
      operations, reclamation and closure including but necessarily limited
      to:

            

    

    

    
      	
               
      

            	
              (i)

            	
              data
      including detailed resource requirements and
  emissions;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              identification
      of the likely major environmental impacts, including but not limited to
      pollution;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              a
      review of residual and immitigable environmental
  impacts;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              a
      broad objective regarding each major environmental
  impact;

            

    

    

    
      	
               
      

            	
              (v)

            	
              detailed
      objectives regarding each environmental impact so as to minimize or
      mitigate such impact;

            

    

    

    
      	
               
      

            	
              (vi)

            	
              the
      means of achieving such broad and detailed environmental
      objectives;

            

    

    

    
      	
               
      

            	
              (vii)

            	
              the
      means of achieving broad and detailed environmental and social
      objectives;

            

    

    

    
      	
               
      

            	
              (viii)

            	
              the
      predicted or expected effect of each environmental mitigation
      activity;

            

    

    

    
      	
               
      

            	
              (ix)

            	
              timetables
      for implementation;

            

    

    

    
      	
               
      

            	
              (x)

            	
              projected
      budget and budget timetable to achieve environmental
      objectives;

            

    

    

    
      
         

      

      
        89

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (xi)

            	
              identification
      of employee position responsible for implementation of environmental
      mitigation;

            

    

    

    
      	
               
      

            	
              (xii)

            	
              identification
      of the likely major social impacts;

            

    

    

    
      	
               
      

            	
              (xiii)

            	
              mitigation
      measures for each major negative social
impact;

            

    

    

    
      	
               
      

            	
              (xiv)

            	
              the
      person or agency responsible for monitoring, the methodologies to be used
      for monitoring of potential negative impacts and the effectiveness of
      mitigation, and the source of funding for monitoring;
  and

            

    

    

    
      	
               
      

            	
              (xv)

            	
              an
      environmental management programme.

            

    

    

    (2)           Any
mining licence applicant or mining licence holder required by this or any other
law to submit an environmental impact assessment shall-

    

    
      	
               
      

            	
              (a)

            	
              undertake
      to consult the public to introduce the project to the public and to verify
      possible impacts of the project from stakeholders’ perspectives,
      and

            

    

    

    
      	
               
      

            	
              (b)

            	
              submit
      an updated environmental management programme for approval whenever
      required by any law, and whenever it proposes to make a change in its
      mining operations that would cause a need for a material change in such
      plan.

            

    

    

    (3)           A
copy of any environmental impact assessment and environmental management
programme submitted by a mining licence applicant or a mining licence holder
shall be considered non-confidential and shall be made available to the public
at the Mining Cadastre Office.

    

    Annual                                        
       134.           (1)           Any
mining licence-holder who is required to

    environmental                                prepare
an environmental management programme shall in each

    
      	
              report.

            	
              calendar
      year after the first year in which commercial production first occurs
      submit in triplicate to the Director an “Environmental Management
      Programme Report” covering each of the items listed in paragraph (b) of
      subsection (1) of section 133 indicating their current
    status.

            

    

    
      	
               
      

            	 

    

    (2)           An Environmental Management
Programme Report shall be sufficiently detailed so that the Director can
determine whether the environmental management programme is succeeding, and if
the Director determines that the plan is not succeeding, the Minister may
suspend the licence until such time as measures are taken to insure its
success.

    
      
         

      

      
        90

        
          

        

      

      
         

      

    

    

    (3)           The
Director shall provide a copy of any report submitted under subsection (1) to
the Environmental Protection Agency.

    

    (4)           Environmental
Management Programme Reports shall be considered non-confidential and shall be
made available to the public at the Mining Cadastre Office.

    

    
      	
              Diversion
    of

            	
              135.

            	
              (1)

            	
              The
      holder of a mining right shall not divert
any

            

    

    
      	
              watercourse.

            	
              watercourse
      unless such diversion is part of a reconnaissance, exploration or mining
      programme approved by the Environmental Protection
  Agency.

            

    

    

    (2)           Any
person who contravenes subsection (1) commits an offence and shall be liable to
a fine not less than four thousand United States Dollars or its equivalent in
leones or to a term of imprisonment not exceeding twelve months or to both such
fine and imprisonment.

    

    Rehabilitation                                     136.           (1)           There
may be included in a mineral right granted

    of
damaged                                under
this Act such conditions relating to-

    areas.

    
      	
               
      

            	
              (a)

            	
              the
      rehabilitation, reinstatement, levelling, regressing, reforesting and
      contouring of any part of the exploration, artisanal mining, small-scale
      mining or large-scale mining licence area that may have been damaged or
      deleteriously affected by exploration or mining operations;
      and

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      filling in, sealing or fencing off, of excavations, shafts and tunnels, as
      may be prescribed, or as the Minister may, in any particular case,
      determine, or as may be agreed.

            

    

    

    (2)           Pursuant
to section 133 the Minister shall require all small-scale and large-scale mining
licence-holders to provide, within such time as prescribed, financial assurance
for the performance against any obligations deriving from an environmental
impact assessment and management plan.

    

    (3)           The
amount of financial assurance required under subsection (2) will be determined
by the environmental impact assessment and management plan and may be varied
from time–to-time to take into consideration the changing costs of performance
of any condition.

    

    
      
         

      

      
        91

        
          

        

      

      
         

      

    

    (4)           The
forms of financial assurance acceptable under this section may be any or a
combination of the following-

    

    (i)           surety
bond;

    (ii)           trust
fund with pay-in period;

    (iii)           insurance
policy;

    (iv)           cash
deposit;

    (v)           annuities.

    

    (5)           Where
a licence-holder is obligated to provide a financial assurance under this
section and fails to do so, The Director shall-

    

    
      	
               
      

            	
              (a)

            	
              cause
      to be served, on the licence-holder a notice of demand;
  and

            

    

    

    
      	
               
      

            	
              (b)

            	
              cause
      a note of the service of the notice to be endorsed in the mining cadastre
      register.

            

    

    

    (6)           If
by the end of the period specified in the notice of demand under subsection (5)
the financial assurance required from the licence-holder under this
section-

    

    
      	
               
      

            	
              (a)

            	
              has
      been provided, the notice shall thereupon cease to have effect, and the
      Director shall cause the registry endorsement to be
    cancelled;

            

    

    

    
      	
               
      

            	
              (b)

            	
              has
      not been provided, the mining licence shall be liable to cancellation by
      the Minister.

            

    

    

    Direction
to                                         137.           (1)           Where
a mineral right over any land is wholly or

    comply
with                                partly
determined or cancelled, or expires, the Minister may by notice

    conditions
of                                           served
on the person who is or was the last holder of the mineral right,

    mineral
rights                                direct
him to take such steps within such time as may be specified in

    for
protection                                           the
notice, to give effect, in relation to the land which is no longer

    of
the                                subject
to the mineral right, to any conditions included in the mineral

    environment.                                           right.

    

    (2)           Any
person to whom a direction is given under subsection (1) who, without reasonable
excuse, fails or neglects to comply with the direction commits an offence and is
liable on conviction-

    

    
      
         

      

      
        92

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              in
      the case of an individual, to a fine not less than three thousand dollars,
      or its equivalent in leones, or to imprisonment for a term of two years,
      or to both; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              in
      the case of a body corporate to a fine not less than thirty thousand
      dollars or its equivalent in
leones.

            

    

    

    (3)           If
a person to whom a direction is given under subsection (1) does not comply with
the direction, the Minister may cause to be taken any steps specified in the
notice containing the direction.

    

    (4)           Costs
and expenses incurred pursuant to subsection (3) in taking any steps referred to
in that subsection are a debt due to the Republic and are recoverable in a court
of competent jurisdiction.

    

    (5)           In
any proceedings instituted for the recovery from a person to whom a direction
was given under subsection (1) of a debt due by that person to the Republic
under subsection (4), a certificate of the Minister that a specified amount is
the amount of the debt due shall be admissible as evidence of that fact; but
without prejudice to the right to adduce evidence in rebuttal.

    

    (6)           A
debt due by any person to the Republic under subsection (4) is recoverable
notwithstanding that person is convicted of an offence under subsection
(2).

    

    (7)           Where
two or more persons constitute, or constituted, the holder of a mineral right,
those persons are jointly and severally liable for the payment of any costs and
expenses which may be recovered under this section from the person who is or was
the last holder of the mineral right, but without prejudice to any right to
contribution existing between them.

    

    PART  XVI                                -           COMMUNITY
DEVELOPMENT

    

    
      	
              General 

            	
              138.

            	
              The
      holder of a small-scale or large-scale mining
  licence

            

    

    obligation
to                                           shall
assist in the development of mining communities affected by its promote operations to promote
sustainable development, enhance the general community welfare and the quality
of life of the inhabitants, and shall recognize and development. respect the rights,
customs, traditions and religion of local communities.

    

    Where                                                 139.           (1)           The
holder of a small-scale or large-scale mining community licence is required to
have and implement a community development development agreement with the
primary host community if its approved mining agreement isoperation will or
does exceed any of the following limits-

    
      	
               
      

            	
              required.

            

    

    
      	
               
      

            	
              (a)

            	
              in
      the case of extraction of minerals from primarily alluvial deposits, where
      annual throughput is more than one million cubic metres per
      year;

            

    

    

    
      
         

      

      
        93

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              in
      the case of underground mining operations, where annual combined
      run-of-mine ore and waste production is more than one hundred thousand
      tonnes per year (waste material not exiting mine mouth to be
      excluded);

            

    

    

    
      	
               
      

            	
              (c)

            	
              in
      the case of open-cast mining operations extracting minerals from primarily
      non-alluvial deposits, where annual combined run-of-mine ore, rock, waste
      and overburden production is more than two hundred and fifty thousand
      tonnes per year; or

            

    

    

    
      	
               
      

            	
              (d)

            	
              where
      the licence holder employs or contracts more than one hundred employees or
      workers at the mine site on a typical working day (including all
      shifts).

            

    

    

    (2)           The
primary host community is the single community of persons mutually agreed by the
holder of the small-scale or large-scale mining licence and the local council,
but if there is no community of persons residing within thirty kilometres of any
boundary defining the large-scale mining licence area, the primary host
community shall be the local council.

    

    (3)           If
the holder of the small-scale or large-scale mining licence and local council
cannot agree on which community is the primary host community, the
licence-holder may notify the Minister requesting clarification, and the
Minister shall notify the licence-holder and local council within sixty calendar
days from the date of such notice, specifying which community is the primary
host community.

    

    (4)           The
holder of the small-scale or large-scale mining licence shall expend in every
year that the community development agreement is in force no less than one tenth
of one percent of the gross revenue amount earned by the mining operations in
the previous year to implement the agreement, and such amount and a breakdown of
expenditures shall be reported to the Minister annually as may be
prescribed.

    

    Content
of                                           140.           (1)           The
holder of a small-scale or large-scale mining community licence who is required to have a
community development agreement development shall negotiate with the primary host
community the terms of the agreement. agreement, and such
agreement shall include the following-

    

    
      
         

      

      
        94

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              the
      person, persons or entity who represent the primary host community for the
      purposes of the community development
agreement;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      objectives of the community development
  agreement;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      obligations of the licence-holder with regard to the primary host
      community including but not necessarily limited
  to-

            

    

    

    
      	
               
      

            	
              (i)

            	
              undertakings
      with respect to the social and economic contributions that the project
      will make to the sustainability of the
  community;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              assistance
      in creating self-sustaining, income-generating activities, such as but not
      limited to, production of goods and services needed by the mine and the
      community;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              consultation
      with the community in the development of mine closure measures that seek
      to prepare the community for the eventual closure of the mining
      operations;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      obligations of the primary host community with regard to the
      licence-holder;

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      means by which the community development agreement shall be reviewed by
      the licence-holder and primary host community every five calendar years,
      and the commitment to be bound by the current agreement in the event that
      any modifications to the agreement sought by one party cannot be mutually
      agreed with the other party;

            

    

    

    
      	
               
      

            	
              (f)

            	
              the
      consultative and monitoring frameworks between the licence-holder and the
      primary host community, and the means by which the community may
      participate in the planning, implementation, management and monitoring of
      activities carried out under the agreement;
and

            

    

    

    
      
         

      

      
        95

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (g)

            	
              a
      statement to the effect that both the licence-holder and primary host
      community agree that any dispute regarding the agreement shall in the
      first instance be resolved by consultation between the licence-holder and
      the primary host community representative(s), and if this fails to resolve
      the dispute, either party may submit the matter for the Minister, in
      consultation with the local council, to decide, and the decision of the
      Minister shall be final and binding on the licence-holder and the primary
      host community.

            

    

    

    (2)           A
community development agreement shall take into account the unique circumstances
of the licence holder and primary host community, and the issues to be addressed
in the agreement may include the following issues-

    

    
      	
               
      

            	
              (a)

            	
              educational
      scholarship, apprenticeship, technical training and employment
      opportunities for the people of the
community;

            

    

    

    
      	
               
      

            	
              (b)

            	
              financial
      or other forms of contributory support for infrastructural development and
      maintenance such as education, health or other community services, roads,
      water and power;

            

    

    

    
      	
               
      

            	
              (c)

            	
              assistance
      with the creation, development and support to small-scale and micro
      enterprises;

            

    

    

    
      	
               
      

            	
              (d)

            	
              agricultural
      product marketing;

            

    

    

    
      	
               
      

            	
              (e)

            	
              methods
      and procedures of environment and socio-economic management and local
      governance enhancement; and

            

    

    

    
      	
               
      

            	
              (f)

            	
              other
      matters as may be agreed.

            

    

    

    (3)           A
community development agreement may not address any of the following
matters-

    

    
      	
               
      

            	
              (a)

            	
              the
      imposition of any additional rent, fee, or tax for the benefit of the
      primary host community;

            

    

    

    
      
         

      

      
        96

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              the
      provision of any passenger car, truck, or four-by-four vehicle to any
      individual of the host community or to the host community, other than a
      specialized purpose vehicle such as an ambulance, fire engine, or
      bus;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      provision of any monetary amount, service, good, or facility for the sole
      benefit of an individual or single family
unit.

            

    

    

    Approval
of                                           141.           (1)           A
community development agreement agreed and

    community                                signed
by the authorized representatives of a small-scale or large-scale development mining licence and its
primary host community shall be submitted for

    
      	
              agreement.

            	
              approval
      to the Minister who shall, if the agreement meets the requirements set out
      in this Part, approve such agreement within forty-five calendar days of it
      being submitted.

            

    

    

    (2)           If
the community development agreement is not approved, the Minister shall notify
the holder of the small-scale or large-scale mining licence and the primary host
community representative and such notice shall contain the specific reasons for
denial and the means or directions by which such reasons may be
corrected.

    

    (3)           The
holder of the small-scale or large-scale mining licence and host community
representatives may submit any number of revised agreements.

    

    (4)           If
the holder of the small-scale or large-scale mining licence and its primary host
community fail after reasonable attempts to conclude a community development
agreement by the time the licence-holder is ready to commence development work
on the mining licence area, the licence-holder or the primary host community may
refer the matter, jointly or individually, by notification to the Minister for
resolution, and the decision of the Minister, in consultation with the local
council, thereon shall be final.

    

    (5)           A
notification under subsection (4) from either or both parties shall include the
draft community development agreement proposed by the party, description of the
efforts to negotiate an agreement, issues that have been agreed, issues which
have not been agreed, and proposals to resolve issues, and the Minister shall
determine the matter within sixty calendar days of such
notification.

    

    (6)           The
holder of the small-scale or large-scale mining licence shall provide a copy of
the community development agreement approved by the Minister to the Director
within thirty calendar days of the date on which such agreement was approved,
and the agreement shall be considered non-confidential and available to the
public at the Mining Cadastre Office.

    

    

    
      
         

      

      
        97

        
          

        

      

      
         

      

    

    PART
XVII                                -           HEALTH
AND SAFETY

    

    Duty
of                                           142.           Every
holder of a mineral right shall-

    holders of

    mineral
right                                                                           (a)           provide
and promote conditions for safe

    to
ensure                                                                           operation
and a healthy working

    safety of
workers.                                                                           environment;

     

    
      	
               
      

            	
              (b)

            	
              institute
      measures necessary to secure, maintain and enhance health and
      safety;

            

    

     

    
      	
               
      

            	
              (c)

            	
              ensure,
      as far as reasonably practicable, that the mine is commissioned, operated,
      maintained and decommissioned in such a way that workers can perform their
      work without endangering the health and safety, of themselves or of any
      other person;

            

    

     

    
      	
               
      

            	
              (d)

            	
              ensure
      that persons who are not employees, but who may be directly affected by
      the activities at the mine are not exposed to any hazards to their health
      and safety;

            

    

     

    
      	
               
      

            	
              (e)

            	
              ensure
      that all persons working at the mine have the necessary skills, competence
      and resources to undertake their work safely and to ensure the safety of
      others;

            

    

     

    
      	
               
      

            	
              (f)

            	
              if
      the mine is not being worked, take all reasonable steps to continuously
      prevent injury, ill-health, loss of life and damage of any kind from
      occurring at or because of the mine;
and

            

    

     

     

    
      	
               
      

            	
              (g)

            	
              establish
      a policy for the compensation of injured
  workers.

            

    

     

    Duties
of                                           143.           Every
person who works at a reconnaissance,

    workers
at                                exploration
or mining operation shall-

    mines.

    
      	
               
      

            	
              (a)

            	
              comply
      with all measures and procedures prescribed or instituted by or on behalf
      of the holder of a mineral right to ensure health and safety at the
      mine;

            

    

    

    
      	
               
      

            	
              (b)

            	
              take
      reasonable care to protect their own health and safety and the health and
      safety of other persons who may be affected by any act or omission of that
      person;

            

    

    

    
      
         

      

      
        98

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (c)

            	
              use
      and take proper care of all health and safety facilities and equipment
      provided for the protection, health and safety of that person and other
      workers;

            

    

    

    
      	
               
      

            	
              (d)

            	
              report
      promptly to his immediate supervisor, if any, or to the relevant
      authority, any situation which he believes could present a risk to health
      and safety and which is not within his competence to
    control;

            

    

    

    
      	
               
      

            	
              (e)

            	
              co-operate
      with any person to permit compliance with the duties and responsibilities
      placed on that person in terms of this Act;
and

            

    

    

    
      	
               
      

            	
              (f)

            	
              comply
      with such health and safety measures as may be
  prescribed.

            

    

    

    Rights
of                                        
    144.           Every
person who works at a mine shall have a right to

    workers
at                                leave
the mine when circumstances arise which appear to him, with

    
      	
              mines.

            	
              reasonable
      justification to pose a serious danger to the health or safety of that
      person.

            

    

     

    Protection
from                                  145.           (1)           No
person may discriminate against any discrimination. employee
for-

     

    
      	
               
      

            	
              (a)

            	
              exercising
      a right in terms of this Act or in terms of a collective agreement under
      this Act or under any other law;

            

    

    

    
      	
               
      

            	
              (b)

            	
              doing
      anything that the employee is entitled to do in terms of this Act or in
      terms of a collective agreement under this Act or under any other
      law;

            

    

    

    
      	
               
      

            	
              (c)

            	
              refusing
      to do anything that the employee is entitled to refuse to do in terms of
      this Act or in terms of a collective agreement under this Act or under any
      other law; or

            

    

     

    
      	
               
      

            	
              (d)

            	
              refusing
      to do anything that the employee is prohibited from doing in terms of this
      Act or in terms of a collective agreement under this Act or under any
      other law;

            

    

     

    
      
         

      

      
        99

        
          

        

      

      
         

      

    

     

    (2)           For
the purposes of this section-

     

     

    
      	
               
      

            	
              (a)

            	
              “discriminate”
      means to dismiss an employee or to engage in any other conduct which has
      the effect of prejudicing or disadvantaging the employee, or which
      prejudices or disadvantages the employee relative to other employees;
      and

            

    

     

     

    
      	
               
      

            	
              (b)

            	
              “employee”
      includes any applicant for employment who has previously been employed at
      a mine.

            

    

     

    Duty to
report                                     146.           (1)           Where
there is an accident in connection with any accidents. operations under a
mineral right involving the loss of life or serious

    injury to
any person the holder of the mineral right shall report to the Director or an
authorised officer as soon as possible.

    

                               
  (2)           For
the purposes of subsection (1), the expression serious injury means injury
likely to result in the injured person being incapacitated from doing his usual
work for at least fourteen calendar days.

    

    (3)           Every
holder of a mineral right shall keep and maintain records of every report made
pursuant to subsection (1) for at least five years.

    

    (4)           Every
person who contravenes subsection (1) commits an offence.

    

    Health
and                                           147.           (1)           The
Minister shall by statutory instrument make

    safety                                regulations
for securing as far as practicable the health  and safety
of

    
      	
              regulations.

            	
              employees
      and other persons at reconnaissance, exploration and mining
      operations.

            

    

    

    (2)           Without
prejudice to the generality of subsection (1),  regulations may
provide for-

     

    
      	
               
      

            	
              (a)

            	
              promoting
      a culture of health and safety;

            

    

     

     

    
      	
               
      

            	
              (b)

            	
              providing
      for the enforcement of health and safety
  measures;

            

    

     

     

    
      	
               
      

            	
              (c)

            	
              giving
      effect to international legal obligations of the Republic relating to
      mining health and safety;

            

    

     

     

    
      	
               
      

            	
              (d)

            	
              providing
      for appropriate systems of employee, employer and government participation
      in health and safety matters;

            

    

     

    
      
         

      

      
        100

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (e)

            	
              providing
      for effective monitoring systems and inspections, investigations and
      inquiries to improve health and safety in the mining
    sector;

            

    

     

     

    
      	
               
      

            	
              (f)

            	
              promoting
      training and human resources
development;

            

    

     

     

    
      	
               
      

            	
              (g)

            	
              regulating
      employers' and employees' duties to identify hazards and eliminate,
      control and minimise the risk to health and
  safety;

            

    

     

     

    
      	
               
      

            	
              (h)

            	
              entrenching
      the right to refuse to work in dangerous
  conditions;

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      safety of the public and the safety and welfare of persons employed in
      mines and the carrying on of mineral operations in a safe proper and
      effective manner;

            

    

    

    
      	
               
      

            	
              (j)

            	
              the
      reporting of accidents;

            

    

    

    
      	
               
      

            	
              (k)

            	
              the
      protection of shafts, pits, tunnels, excavations and such other dangerous
      places in mines; and

            

    

    

    
      	
               
      

            	
              (l)

            	
              the
      examination of mines by authorised
officers.

            

    

    

    

    PART
XVIII                                           -           FINANCIAL

    

    Royalties.                                           148.           (1)           Subject
to this Act, the holder of a mineral right

    right
shall pay to the Government royalty in respect of any mineral obtained by him
pursuant to his mineral right.

    

    (2)           Royalty
is payable pursuant to subsection (1) shall be the following percentages of
market value as defined in subsection (3) below-

    

    
      	
               
      

            	
              (a)

            	
              15%
      for special stones, defined as those precious stones whose market value is
      above five-hundred thousand United States
  Dollars;

            

    

    

    
      	
               
      

            	
              (b)

            	
              6.5%
      for precious stones;

            

    

    

    
      	
               
      

            	
              (c)

            	
              5%
      for precious metals;

            

    

    

    
      	
               
      

            	
              (d)

            	
              3%
      for all other minerals.

            

    

    

    
      
         

      

      
        101

        
          

        

      

      
         

      

    

    (3)           The
term “market value” shall for the purposes of calculation of royalty be the sale
value receivable in an arms length transaction without discount, commissions or
deductions for the mineral or mineral products on disposal as defined in
regulations.

    

    Act No.
8                                       (4)           Subject
to the Income Tax Act, 2000, royalty

    
      	
               
      

            	
              2000

            	
              payable
      in pursuance of subsection (1) shall constitute an operating cost of the
      mineral right holder and shall be allowed as a deductible expense in
      ascertaining his net chargeable income for income tax purposes provided
      that royalty shall not be imputed as part-payment of any tax on
      income.

            

    

    

    Exemption
from                                  149.           The
Director may exempt from liability with respect to

    payment                                royalty
for samples of minerals acquired for the purpose of assay,

    of
royalties.                                           analysis
or other examination or testing.

    

    Provisional                                           150.           (1)           Where
for any reason it is impracticable to assess royalties.  the amount of any royalty
due, the Minister may assess a

    provisional
royalty.

    

    (2)           Where
any royalty due has been ascertained, the holder of the mineral right concerned
shall pay any sum which may be required to complete such ascertained royalty or
be entitled to be repaid any sum paid in excess of the ascertained
value.

    

    Prohibition                                           151.           (1)           If
the holder of a mineral right fails to pay any

    on
disposal                                royalty
on or before the due date or any extension allowed by the

    of
minerals.                                Minister,
the Minister may order, by notice served on the holder of the

    mineral
right, prohibit the disposal of any mineral in the possession of such holder
until all outstanding royalty has been paid or until an arrangement has been
made, acceptable to the Minister for the payment of the royalty, and the holder
shall comply with the notice.

    

    (2)           Any
holder of a mineral right who contravenes or fails to comply with the provisions
of an order given under subsection (1) and any person who, knowing of such an
order and contrary to it receives any mineral from the holder or from the area
that is subject to the mineral right, commits an offence and shall on conviction
be liable to a fine not less than two thousand United States Dollars or the
equivalent in leones or to a term of imprisonment not exceeding two years or to
both, in the case of an individual, or a fine not less than twenty thousand
United States Dollars, or the equivalent in leones, in the case of a body of
persons or body corporate.

    

    Annual                                           
    152.           (1)           There
shall be payable to the Government by the charge in holder of any mineral
right an annual charge of such amount as may respect of be
prescribed.

    mineral
rights.

    (2)           The
annual charge payable pursuant to subsection (1) shall be payable on the grant
of a mineral right and after that annually on the anniversary of the grant until
the termination of the mineral right.

    

    
      
         

      

      
        102

        
          

        

      

      
         

      

    

    Submission                                         153.           (1)           A
holder of a large-scale mining licence shall

    
      	
              of
    financial

            	
              deliver
      to the Director and the Commissioner-General of
  the

            

    

    
      	
              agreements.

            	
              National
      Revenue Authority, certified copies of all sales, management, commercial
      and other financial agreements in excess of fifty thousand United States
      Dollars or equivalent concluded with any other person, including
      affiliates of the holder and relating to mining  operations
      carried on by such holder.

            

    

    

    (2)           The
agreements referred to in subsection (1) shall be submitted to the Director and
the Commissioner-General of the National Revenue Authority within thirty
calendar days after the execution of such agreements, and shall be kept
confidential.

    

    Arms-length                           154.           (1)           Subject
to subsection (3), the holder of a mineral

    sales.                                right
shall sell mineral products obtained under its mining operations-

    

    
      	
               
      

            	
              (a)

            	
              in
      accordance with generally accepted international business
      practices;

            

    

    

    
      	
               
      

            	
              (b)

            	
              for
      exported minerals, at the best available international market prices at
      the time the contract for sale is
made;

            

    

    

    
      	
               
      

            	
              (c)

            	
              for
      exported minerals, on the best international terms compatible with world
      market conditions and conditions obtainable in the
      circumstances.

            

    

    

             
    (2)           Subject
to subsection (3), the holder of a mineral right shall make sales commitments to
affiliates only at prices based on or equivalent to arms length sales to
non-affiliated purchasers and in accordance with such terms and conditions on
which agreements would be made if the parties had not been
affiliated.

    

             
    (3)           The
provisions of this section shall apply to holders of large-scale mining licences
having a capital expenditure of not less than US$5 million.

    

            
    (4)           Where
the Minister considers the realised price does not comply with subsections (1)
and (2) the Minister, on the advice of the Minerals Advisory Board, shall
determine the appropriate price.

    

    Separate                                        
     155.           (1)           The
chargeable income for any year of assessment

    accounting
for                                of
a holder of a large-scale mining licence shall be calculated
separately

    all
large-scale                                           for
each large-scale mining licence under which licence such holder
shall

    
      	
              mining
      licences.

            	
              maintain
      separate balance sheets, statements and books of accounts for each
      large-scale mining licence under which mining operations are carried
      on.

            

    

    

    
      
         

      

      
        103

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (2)

            	
              A
      holder of a mineral right, other than a large-scale mining licence may
      elect, by informing the Commissioner of Income Tax in writing, to have the
      provisions of the subsection (1) apply to him in respect of his mineral
      right.

            

    

    

    
      	
               
      

            	
              (3)

            	
              A
      holder of a mineral right to whom this Act applies may, on application for
      the relevant mining licence, elect to maintain his accounts and be
      assessed for taxation and other Government impositions in United States
      Dollars and such holder shall, for the duration of the licence, account
      in, and make all payments to the Government in that
    currency.

            

    

    

    
      	
               
      

            	
              (4)

            	
              Notwithstanding
      the provisions of subsection (1), a holder of a large-scale mining licence
      may, with the Minister’s approval, deduct exploration expenditure in
      determining chargeable income attributable to any large-scale mining
      licence provided the expenditures were incurred by the licence holder on
      reconnaissance and exploration licences within Sierra
    Leone.

            

    

    

    Security
for                                        156.           The
Minister may from time to time, on the advice of the

    
      	
              compliance.

            	
              Minerals
      Advisory Board, make such arrangements as appear appropriate to secure
      that the holder of a mineral right complies with this Act, and in
      particular may accept guarantees, whether from shareholders or otherwise,
      in respect of such compliance.

            

    

    

    Recovery
of                                         157.           (1)           Royalties,
import duty and any annual charge

    
      	
              royalties,

            	
              payable
      under this Part, are debts due to the Government and
  are

            

    

    
      	
              taxes,

            	
              recoverable
      in a court of competent
jurisdiction.

            

    

    
      	
               
      

            	
              duties,
      etc.

            

    

    
      	
              (2)

            	
              In
      proceedings pursuant to subsection (1),
a

            

    

    certificate
of the Minister certifying that a charge of a specified amount, is payable by an
identified person shall be received as evidence of the fact but without
prejudice to the right to adduce evidence in rebuttal.

    

    (3)           Where
two or more persons constitute the holder of a licence when royalty becomes
payable, those persons are jointly and severally liable for the payment of
royalty or any annual charges but without prejudice to any right to contribution
pursuant to any agreement, express or implied, existing between
them.

    

    Minister
may                                     158.           (1)           Where
the Minister has reason to believe that a

    require                                person
is capable of giving information or producing or making

    information                                available
books or documents relating to minerals obtained, or the

    
      	
              to be
      furnished.

            	
              value
      of minerals obtained, he may by instrument in writing served on that
      person, order the person-

            

    

    

    
      
         

      

      
        104

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              to
      furnish to him in writing, within the period and in the manner specified
      in the instrument, any such
information;

            

    

    

    
      	
               
      

            	
              (b)

            	
              to
      attend before him or a person specified in the instrument, at such time
      and place as is so specified and there to answer questions relating to
      minerals obtained, or the value of minerals obtained;
  or

            

    

    

    
      	
               
      

            	
              (c)

            	
              to
      produce or make available to a person specified in the instrument, at such
      time and place as is so specified, books or documents in his custody,
      power or control relating to minerals obtained or the value of minerals
      obtained.

            

    

    

    (2)           A
person is not excused from furnishing information, answering a question or
producing or making available books or documents when required to do so under
this section, on the ground that the information so furnished, the answer to the
question or the production or making available of any books or documents might
tend to incriminate him or make him liable to a penalty but the information so
furnished is not admissible in evidence against him in any proceeding other than
proceedings for an offence against this section.

    

    (3)           Where
books or documents are made available pursuant to the requirement under
paragraph (c) of subsection (1) the person to whom the books or documents are
made available may make copies of or take extracts from, the books or
documents.

    

    
      	
              (4)

            	
              No
      person shall-

            	 	 

    

    

    
      	
               
      

            	
              (a)

            	
              refuse
      or fail to comply with a requirement under subsection (1) to the extent to
      which he is capable of complying with
it;

            

    

    

    
      	
               
      

            	
              (b)

            	
              in
      purported compliance with such a requirement, knowingly furnish
      information that is false or misleading in a material particular;
      or

            

    

    

    
      	
               
      

            	
              (c)

            	
              when
      attending before the Minister or any person in pursuance of such a
      requirement knowingly make a statement or produce books which are, false
      or misleading in a material
particular.

            

    

    

    (5)           Any
person who contravenes subsection (4) commits an offence and shall be liable on
conviction to a fine of not less than five hundred United States Dollars or its
equivalent in leones or imprisonment for a term of two years, or to both such
fine and imprisonment.

    

    Transparency                                    159.           For
the purpose of realising its objectives under this Act,

    in the
extractive                                the
Minister shall-

    industry.

    
      	
               
      

            	
              (a)

            	
              develop
      a framework for transparency in the reporting and disclosure by persons
      engaged in the extractive industry, of revenue due to or paid to
      Government;

            

    

    

    
      
         

      

      
        105

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              request,
      as may be deemed necessary, from any person engaged in the extractive
      industry, an accurate record of the cost of production and volume of sale
      of minerals extracted by such person at any
  period;

            

    

    

    
      	
               
      

            	
              (c)

            	
              request
      from any person engaged in the extractive industry, an accurate account of
      money paid by and received from such person at any period, as revenue
      accruing to the Government for that
period;

            

    

    

    
      	
               
      

            	
              (d)

            	
              ensure
      that all payments due to the Government from a person engaged in the
      extractive industry, including taxes, royalties, dividend, bonuses,
      penalties, levies and such like, are duly made;
  and

            

    

    

    
      	
               
      

            	
              (e)

            	
              disseminate
      by way of publication or otherwise, records, reports or any information
      concerning the revenue of the Government from the extractive industry, at
      least annually.

            

    

    

    Duty to
report                                    160.           (1)           A
person engaged in the extractive industry shall

    revenue                                submit
to the Minister not later than fifteen calendar days after the end

    payments
to                                           of
each quarter of a year-

    Government.

    
      	
               
      

            	
              (a)

            	
              a
      general report on his activities and revenue payments made to the
      Government, including taxes, royalties, dividends, bonuses, penalties,
      levies and such like for that period;
and

            

    

    

    
      	
               
      

            	
              (b)

            	
              a
      report on payments made to landowners, lawful occupiers, Paramount Chiefs,
      or Chiefdom Committees, including surface rents, development project
      contributions, material contributions towards vehicles, buildings or other
      civil works.

            

    

    

    (2)           A
person engaged in the extractive industry who-

    

    
      	
               
      

            	
              (a)

            	
              fails
      to comply with subsection (1); or

            

    

    

    
      	
               
      

            	
              (b)

            	
              gives
      false or misleading information or report regarding its volume of
      production, sales and income; or

            

    

    

    
      	
               
      

            	
              (c)

            	
              renders
      a false statement of account resulting in the underpayment of revenue
      accruable to Government,

            

    

    

    commits
an offence and shall be liable on conviction to a fine not less than ten
thousand United States Dollars or its equivalent in leones or to imprisonment
for a term not exceeding one year in the case of an individual, to a fine not
less than twenty thousand United States Dollars or its equivalent in leones, in
the case of a co-operative, and to a fine not less than forty thousand United
States Dollars or its equivalent in leones in the case of a body
corporate.

    

    Definitions.                                           161.           For
the purposes of sections 159 and 160, “a person

    engaged
in the extractive industry” includes any agency or body responsible for payment
or reporting of payment of extractive industry revenues to Government; and
“extractive industry” includes the business of reconnaissance, exploration,
mining, extracting, processing and distributing minerals and gas.

    

    

    Government                                           162.           (1)           The
Government of Sierra Leone shall have the participation. option to acquire on such terms as shall
be agreed upon between the

    holder of
a large-scale   mining licence and the Government, shareholding
interest in any large-scale mining operations.

    

    (2)           Any
agreement concluded under subsection (1) shall be done with the advice of the
Minerals Advisory Board and with the concurrence of the Minister of
Finance.

    

    

    
      
         

      

      
        106

        
          

        

      

      
         

      

    

    PART   XIX                                -           MISCELLANEOUS

    

    Preference
for                                   163.           The
holder of a mineral right shall in the conduct of

    Sierra
Leone                                           his
mining operations give preference to-

    products.

    
      	
               
      

            	
              (a)

            	
              materials
      and products made in Sierra Leone;

            

    

    

    
      	
               
      

            	
              (b)

            	
              service
      agencies located in Sierra Leone and owned
by-

            

    

    

    (i)           Sierra
Leoneans;

    

    
      	
               
      

            	
              (ii)

            	
              companies
      or partnerships incorporated or registered in  Sierra Leone;
      and

            

    

    

    (iii)           Public
Corporations.

    

    Employment                                        164.           (1)           Citizens
of Sierra Leone possessing the necessary

    and training
of                                qualifications
and experience shall be given preference for employment

    Sierra
Leone                                in
all phases of operations under a mineral right, and in accordance
with

    citizens.                                
the national labour laws.

    

    
      	 	
              (2)

            	
              A
      holder of a mineral right shall not import unskilled labour for the
      carrying out of any of its operations undertaken under the mineral
      right.

            

    

    

    (3)           A
holder of a mineral right shall not employ or in any way use child
labour.

    

    
      	
               
      

            	 	
              (4)

            	
              A
      holder of a small-scale mining licence or large-scale mining licence shall
      carry out a scheme of training and employment of local employees in each
      phase and level of operations taking into account the requirements of
      safety and the need to maintain acceptable standards of efficiency in the
      conduct of the operations.

            

    

    

    
      	
               
      

            	
              (5)

            	
              The
      training programme shall provide appropriate instruction and training to
      ensure the advancement of Sierra Leonean employees in the skilled
      technical, supervisory, administrative and managerial
      categories.

            

    

    

    
      	
               
      

            	 	
              (6)

            	
              A
      holder of a small-scale mining licence or large-scale mining licence shall
      submit an annual written report to the Director describing the number of
      personnel employed, their nationality, their positions and the status of
      training programmes for citizens of Sierra
  Leone.

            

    

    

    
      	
               
      

            	
              (7)

            	
              Failure
      by a holder of a mineral right to comply with the provisions of subsection
      (3), (4) or (5) shall be regarded as a material breach and if such person
      is the holder of a small-scale mining licence or large-scale mining
      licence, the licence may be suspended or
  cancelled.

            

    

    

    
      
         

      

      
        107

        
          

        

      

      
         

      

    

    
      	
              Removal
    of

            	
              165.

            	
              (1)

            	
              Minerals
      shall not be removed from any land
from

            

    

    
      	
              minerals.

            	
              which
      they have been obtained, nor disposed of, in any manner,
      except-

            

    

    

    
      	
               
      

            	
              (a)

            	
              subject
      to subsection (2), by the holder of a mineral right for the purpose of
      sampling or analysis;

            

    

    

    
      	
               
      

            	
              (b)

            	
              by
      the holder of a mineral right in  accordance with the terms of
      the mineral right concerned;

            

    

    

    
      	
               
      

            	
              (c)

            	
              as
      authorised by the Minister for scientific or research purposes;
      and

            

    

    

    
      	
               
      

            	
              (d)

            	
              as
      otherwise permitted by this Act.

            

    

    

                           
      (2)           The
holder of a mineral right shall not, pursuant to paragraph (a) of subsection (1)
take or send out of the country samples without the written consent of the
Minister.

    

    (3)           Any
person who contravenes subsection (1) or (2) commits an offence and is liable on
conviction to a fine not exceeding two thousand dollars or its equivalent in
leones or to a term of imprisonment not exceeding twelve months or to both such
fine and imprisonment.

    

    Preservation                                       166.          (1)           The
holder of a mineral right shall preserve all

    of samples
and                                cores
and drilling samples, except for such amounts as may be

    
      	
              cores.

            	
              required
      for assaying and testing and, at such time as he no longer requires them,
      or upon the expiry, surrender or cancellation of the right, to advise the
      Director and the Director of Geological
Survey.

            

    

    

    (2)           On
receiving such advice, the Director or the Director of Geological Survey may
within thirty days request that the cores and drilling samples (or such of them
as are required) to be provided to him, and the holder of the tenement shall
comply with such a request at his own cost.

    

    Discovery                                           167.           (1)           Any
person who finds any precious mineral in a

    of
precious                                mining
area shall forthwith deliver such precious mineral to the holder

    minerals.                                of
the mineral right in respect of that area.

    

    (2)           Where
the holder of the mineral right referred to in subsection (1) is unidentifiable
or cannot be found, the finder of the precious mineral shall forthwith surrender
the precious mineral to the Director or a duly authorised officer, but in any
event not later than seventy two hours after finding the precious
mineral.

    

    (3)           Any
person who finds any precious mineral in or on any land which is not the subject
of a mineral right, the finder shall forthwith report to the Director and
surrender the precious mineral but in any event not later than seventy two hours
after finding the precious mineral.

    

    (4)           Any
person who fails to comply with any of the  provisions of subsections
(1), (2) and (3) shall be presumed to be in unlawful possession of precious
minerals and unless the contrary is proved, shall be proceeded against and
punished in accordance with this Act.

    

    (5)           A
finder of a precious mineral who complies with the provisions of this section
shall be entitled to forty percent of the value of the precious mineral and
shall be presumed to be in lawful possession of the precious
mineral.

    

    
      	
              Unlawful

            	
              168.

            	
              (1)

            	
              Any
      person who is in possession of any
precious

            

    

    
      	
              possession
      of

            	
              mineral
      and who fails to prove that he is in lawful possession of
    such

            

    

    
      	
              precious

            	
              mineral
      commits an offence.

            

    

    
      	
               
      

            	
              minerals.

            

    

    
      	
               
      

            	
              (2)

            	
              For
      the purpose of subsection (1)-

            

    

    

    
      	
               
      

            	
              (a)

            	
              a
      labourer or tributer employed by the holder of an artisanal, small-scale
      or large-scale mining licence shall not be deemed to be in lawful
      possession of a precious mineral unless such mineral is in his possession
      within the actual workings in the mineral right
  area;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      holder of an artisanal, small-scale or large-scale mining licence or its
      duly authorised agent as the case may be, shall not be deemed to be in
      lawful possession of the precious mineral unless such mineral is in its
      possession-

            

    

    

    
      
         

      

      
        108

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (i)

            	
              within
      the actual workings of its  mineral right
  area;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              within
      its registered place of business;
or

            

    

    

    
      	
               
      

            	
              (iii)

            	
              any
      other place used to exercise the rights vested in it in respect of such
      minerals by virtue of the licence.

            

    

    

    (3)           Subject
to section 167 and this section, no other person shall be deemed to be in lawful
possession of a precious mineral unless such mineral is in his possession under
and in accordance with the terms of a valid mineral right or minerals licence
issued under this Act.

    

    (4)           Any
person who commits an offence under this section shall be liable on conviction
to imprisonment for a term not less than three years.

    

    (5)           In
addition to the penalty imposed in subsection (4) for an offence committed under
this section, any precious minerals in connection with which the offence was
committed shall be forfeited to the State.

    

    
      	
              Smuggling
    of

            	
              169.

            	
              (1)

            	
              No
      person shall smuggle any precious minerals
out

            

    

    
      	
              precious

            	
              of
      Sierra Leone.

            

    

    
      	
               
      

            	
              minerals.

            

    

    
      	
               
      

            	
              (2)

            	
              A
      person smuggles precious minerals if
he-

            

    

    

    
      	
               
      

            	
              (a)

            	
              exports
      any precious mineral the exportation of which is prohibited by any
      enactment; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              exports
      any precious mineral the exportation of which is subject to any licence,
      permit or condition, whether or not such condition is endorsed on any
      licence or permit or where such exportation is effected without or in
      contravention of such licence or permit or contrary to or without
      fulfilling such condition.

            

    

    

    (3)           Any
person who contravenes subsection (1) commits an offence and is liable on
conviction to imprisonment for a term of not less than five years.

    

    (4)           In
addition to any other penalty imposed in subsection (3), where an offence is
committed under this section-

    

    
      	
               
      

            	
              (a)

            	
              any
      precious minerals in connection with which the offence was committed shall
      be forfeited to the State; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              any
      licence or permit held by the person convicted shall be revoked by the
      Court.

            

    

    

    (5)           For
the avoidance of doubt, the provisions of this section shall not prevent the
accused or any precious mineral or other article or thing involved in the
commission of any act referred to in subsection (1) from being dealt with under
any other enactment; and the provisions of this section shall be deemed to be in
addition to any other enactment relating to the matter.

    

    (6)           Nothing
in subsection (5) shall be construed to permit the accused person being punished
more than once in criminal proceedings in respect of the same act.

    

    
      	
              Miscellaneous

            	
              170.

            	
              (1)

            	
              Any
      person who places or deposits or is
an

            

    

    
      	
              offences.

            	
              accessory
      to the placing or depositing of any mineral in any spot
  or

            

    

    place for
the purpose of misleading any person as to the nature naturally occurring at
such spot or place, or who shall mingle with any sample of metal, mineral or ore
any substance which will increase or decrease the value or in any way change the
nature of the said metal, mineral or ore, with intent to defraud any person,
commits an offence and shall be liable to a fine not less four thousand United
States Dollars or its equivalent in leones or to a term of imprisonment not
exceeding two years.

    

    
      
         

      

      
        109

        
          

        

      

      
         

      

    

              (2)           Any
person who falsely represents that he has obtained the grant of a mineral right
and thereby induces or attempts to induce any person to invest capital in any
company or syndicate connected therewith shall in addition to any possible
liability to civil action or criminal prosecution, be liable to forfeit any
claim to the grant of such mineral right.

    

              (3)           Any
person who without lawful authority wilfully breaks, defaces or removes, or in
any way interferes with any boundary mark, beacon, pillar, peg or post erected
for any of the purposes of this Act or under any regulations made under it, or
removes or alters any such mark, beacon, pillar peg or post after it has been
delineated on a plan or survey, commits an offence and is liable to a fine not
less than two thousand United States Dollars or its equivalent in leones or to
imprisonment for a term not exceeding twelve months or to both such fine and
imprisonment.

    

    (4)           The
holder of a large-scale mining licence who fails to notify the Director of any
further deposits of the mineral or associated mineral for which he holds the
licence or of the discovery of any other mineral as required by this Act commits
an offence and shall be liable on conviction to a fine not less than ten
thousand United States Dollars or its equivalent in leones.

                          (5)           Any
person who-

    

    
      	
               
      

            	
              (a)

            	
              interferes
      with any reconnaissance, exploration or mining operations authorised by or
      under this Act;

            

    

    

    
      	
               
      

            	
              (b)

            	
              obstructs
      any holder of a mineral right or permit in the exercise of any right
      conferred by or under this Act;

            

    

    

    
      	
               
      

            	
              (c)

            	
              interferes
      with any machinery plant, works or property established on, in under or
      over any land in exercise of a right conferred by or under this Act;
      or

            

    

    

    
      	
               
      

            	
              (d)

            	
              commits
      any breach of any of the provisions of this Act for which breach a penalty
      is not expressly provided,

            

    

    

    commits
an offence and shall be liable on conviction to a fine not less than four
thousand United States Dollars or its equivalent in leones or to imprisonment
for a term not exceeding twelve months or to both such fine and
imprisonment.

    

    (6)           Any
holder of a mineral right that employs or uses child labour commits an offence
and shall be liable on conviction to a fine not less than eight thousand United
States Dollars or its equivalent in leones or to a term of imprisonment not
exceeding twenty four months or to both such fine and imprisonment.

    

    Offences
in                                           171.           A
person who wilfully-

    relation
to

    
      	
               
      

            	
              registration.

            	
              (a)

            	
              makes,
      or causes to be made or concurs in making, a false entry in the mining
      cadastre; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              produces
      or tenders in evidence a document falsely purporting to be a copy of or
      extract from an entry in the mining cadastre or of or from an instrument
      lodged with the Director,

            

    

    

    commits
an offence and shall be liable on conviction to a fine not less than two
thousand United States Dollars or its equivalent in leones or to imprisonment
for a term not exceeding six months, or to both.

     

    
 

    
      
         

      

      
        110

        
          

        

      

      
         

      

    

    Failure
to                                            172.           Any
person who fails to deliver any document required

    deliver                                 to
be delivered under this Act within fourteen calendar days
of   documents.  being called upon to do
so by the Director, commits an offence and shall be liable on conviction
shall be on conviction to a fine not less than two thousand United States
Dollars or its equivalent in leones or to imprisonment for a term not exceeding
six months, or to both.

    

    General                                             
 173.           (1)           Any
person who commits an offence under this Act penalty. for which no penalty is
expressly provided shall, on conviction be liable

    to a fine
not less than two thousand United States Dollars or its equivalent in leones or
to a term of imprisonment not exceeding twelve months or to both such fine and
imprisonment.

    

    (2)           Where
an offence under this Act is committed by a body of persons then-

    

    
      	
               
      

            	
              (a)

            	
              where
      the body of persons is a body corporate other than a partnership, every
      member of the governing body of that body corporate and every director,
      manager or similar officer of that body shall also be guilty of the
      offence; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              where
      the body of persons is a partnership, every partner shall also be guilty
      of the offence.

            

    

    

    (3)           No
person shall be guilty of an offence by virtue of subsection (1) if he proves
that the act in respect of which he is charged was committed by some other
person without his consent or connivance and that he exercised all due diligence
to prevent the commission of the offence, as he ought to have exercised having
regard to all the circumstances.

    

    Liability
of                                           174.           Whenever
it is proved to the satisfaction of a court having

    employer
for                                           jurisdiction
that an offence against this Act has been committed by

    offences                                a
person employed by the holder of a mineral right, such holder of
the

    committed                                mineral
right shall also be held liable for such offence and subject to

    by
his                                           the
penalty provided for it, unless the holder proves to the
satisfaction

    
      	
              servants.

            	
              of
      such court that the offence was committed without his knowledge or consent
      and that he had taken all reasonable measures to prevent the commission of
      the offence (except that nothing in this section shall be deemed to exempt
      the person who commits the offence from any penalty prescribed for
      it).

            

    

    

    Review
of                                           175.           With
the exception of subsection (2) of section 86 any  decision of decision or order of the
Minister under this Act may be reviewed upon the

    
      	
              Minister.

            	
              application
      of any affected party to the High Court  which shall hear and
      determine the issue de novo but such application must be made within sixty
      calendar days of the date of such decision or
  order.

            

    

    

    

    
      
         

      

      
        111

        
          

        

      

      
         

      

    

    PART  XX                      –           
REGULATIONS

    

    Regulations.                                      176.           (1)           The
Minister may make regulations for the

    conservation
and development of mines and minerals and for the purpose of giving effect to
the provisions of Act.

    

    (2)           Without
prejudice to the generality of subsection (1) regulations may provide for or
with respect to-

    

    
      	
               
      

            	
              (a)

            	
              prescribing
      anything which in terms of this Act is to or may be
      prescribed;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      manner in which applications under this Act shall be made, form of
      documents required and information to be supplied by
      applicants;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      shape and size of blocks and areas over which mineral rights may be
      granted;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      mining cadastre;

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      manner in which areas and boundaries shall be marked, beaconed and
      surveyed and the fees payable in respect of such
  surveys;

            

    

    

    
      	
               
      

            	
              (f)

            	
              the
      renewal, transfer, assignment and surrender of mineral
    rights;

            

    

    

    
      	
               
      

            	
              (g)

            	
              the
      form and required content of applications, mineral rights, and
      reports;

            

    

    

    
      	
               
      

            	
              (h)

            	
              the
      returns to be rendered and the nature of the accounts, books and plans to
      be kept by the holders of mineral
rights;

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      valuation, sampling, weighing and testing of
  minerals;

            

    

    

    
      	
               
      

            	
              (j)

            	
              the
      method of calculation of the amount of royalties and the manner and time
      of payment thereof;

            

    

    

    
      	
               
      

            	
              (k)

            	
              the
      fees to be paid in respect of any matter or thing done under this
      Act;

            

    

    

    
      	
               
      

            	
              (l)

            	
              the
      examination of mines by authorised
officers;

            

    

    

    
      	
               
      

            	
              (m)

            	
              the
      proper and efficient working of reconnaissance licence areas, exploration
      licence areas, mining areas and
mines;

            

    

    

    
      	
               
      

            	
              (n)

            	
              the
      avoidance of wasteful mining practices or wasteful metallurgical
      practices;

            

    

    

    
      	
               
      

            	
              (o)

            	
              the
      penalties for offences against the regulations and anything which is to be
      prescribed.

            

    

    

    
      
         

      

      
        112

        
          

        

      

      
         

      

    

    (3)           The
Minister shall, in consultation with the Board of the Environmental Protection
Agency, make regulations restricting or prohibiting exploration or mining
operations for environmental reasons and setting out terms and conditions of
environmental impact assessment required under this Act.

    

    (4)           Regulations
under paragraph (j) of subsection (2) may-

    

    
      	
               
      

            	
              (a)

            	
              prohibit
      the export of any mineral unless or until the royalty payable on it has
      been paid or secured;

            

    

    

    
      	
               
      

            	
              (b)

            	
              specify
      the person or persons by whom royalty shall be payable and may specify
      whether two or more persons are jointly and severally liable to pay such
      royalty;

            

    

    

    
      	
               
      

            	
              (c)

            	
              provide
      for the examination of mineral consignments and the issue of export
      permits in respect thereof;

            

    

    

    
      	
               
      

            	
              (d)

            	
              provide
      for the remission or refund of royalty or any part thereof in any case or
      class of case and the manner in which and conditions on which such
      remission or refund may be made;

            

    

    

    
      	
               
      

            	
              (e)

            	
              confer
      upon any public offer specified in it such powers of inspection and
      enquiry as may be reasonably
necessary.

            

    

    

    Power
of                                    
         177.           
(1)           With
regards to mining operations for precious

    Minister
to                                minerals
the Minister may make regulations-

    make
special

    regulations                                                                (a)           empowering
the holder of the mineral right

    with regards
to                                                                           right
to demarcate by a fence, or by precious minerals. pillars of posts,
any one or more portions of

    the area
included in his mineral right not exceeding in each case a prescribed size, but
not including any dwelling without the occupier’s consent, and to keep such
portion or portions so demarcated while mining operations for the precious
minerals are in progress on it;

    

    
      	
               
      

            	
              (b)

            	
              empowering
      the holder of the mineral right who has complied with the provisions of
      any regulations made under paragraph (a) to prohibit and prevent any
      persons, other than those absolutely or conditionally exempted, from
      entering such demarcated portions;

            

    

    

    
      	
               
      

            	
              (c)

            	
              prohibiting
      any persons, other than those absolutely or conditionally exempted, from
      entering any town, village or camp which is situated within the area of a
      mining right and the whole or the greater part having been built or set up
      by the holder of the mineral right;

            

    

    

    
      	
               
      

            	
              (d)

            	
              conferring
      on such persons as may be specified in it the power of searching persons,
      buildings and articles within such demarcated portions and such towns,
      villages and camps.

            

    

    

    
      
         

      

      
        113

        
          

        

      

      
         

      

    

    (2)           Regulations
made under this section may apply to any particular mineral right or to any
particular town, village or camp.

    

    PART
XXI                                -           REPEAL
AND SAVINGS

    

    Repeal
and                                           178.           (1)           The
following enactments are repealed-

    savings.

    
      	
               
      

            	
              (a)

            	
              the
      Mines and Minerals Act, 1994; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      Commission for the Management of Strategic Resources, National
      Reconstruction and Development Act,
1999.

            

    

    

    (2)           Notwithstanding
the repeal of the enactments referred to in subsection (1), any regulations made
under the repealed enactments shall in so far as they are consistent with this
Act continue in force as if they were regulations made under sections 176 and
177 until such time as they are revoked by the Minister.

    

    (3)           Subject
to subsections (4) and (5), notwithstanding the repeal of the enactments
referred to in subsection (1), any mineral right or mineral permit granted under
any of the those enactments and subsisting immediately before the commencement
of this Act shall continue in force until expiration by passage of
time.

    

    (4)           A
holder of a mineral right granted prior to this Act may apply, subject to this
Act, for a mineral right covering the area subject to its existing right on a
priority basis.

    

    (5)           No
mineral right granted prior to this Act shall be extended or renewed but where
the prior granted mineral right provided a right to apply for a renewal or
extension of the right, the holder of that mineral right may apply, subject to
this Act, for a similar type of licence as provided for under this Act on a
priority basis.

    

    (6)           Any
act done, executed or issued under the repealed Act and in force and operative
before the commencement of this Act shall, so far as it could have been done,
executed or issued under this Act have effect as if done, executed or issued
under this Act.

    

    (7)           Any
fund kept under the repealed Act shall be deemed to be part of a fund kept under
the corresponding provision of this Act.

    

    

              Alhaji
Alpha S.B. Kanu

             Minister
of Mineral Resources and Political Affairs

    FREETOWN

        SIERRA
LEONE

          OCTOBER,
2009

    

    
      
         

      

      
        114ex10-4.htm

    EXHIBIT 10.4

     

     

     

    

    

     

    Government
of Sierra Leone

     Ministry
of Mineral Resources and Political Affairs

    

    

    

    

    

    

     

    A Guide
to the Mines and Minerals Act

     

    2009

     

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    Purpose of this
Guide

     

    The Mines
and Minerals Act 2009 represents a new era for minerals development in Sierra
Leone. Replacing the Act of 1994, it includes major changes to how the sector is
to be governed. It is more comprehensive with respect to the issues it
addresses; more balanced between the interests of investors and communities; and
more rigorous in terms of governance and oversight. Making Sierra Leone a leader
in West Africa in terms of mining legislation, it is intended to bring important
benefits to the economy, local communities and the country.

    

     

    The
purpose of this Guide is to explain the main provisions in the law, differences
from the previous law, rationale behind the changes, and implications for
affected stakeholders. Each section of the law is summarised, followed by a
presentation of key provisions. The Guide is part of a broad information
campaign designed to sensitise stakeholders and citizens in order to ensure the
law is effectively implemented and its intended benefits are
realised.

    

     

    Development
of the Mines and Minerals Act 2009 is the final step of a multi-year
consultation process which began in 2005. This includes three years of effort by
the Law Reform Commission which engaged stakeholders throughout the country, and
intensive Government input throughout 2009.

    

    

    

    

     

    For
more information about the law, please contact:

    

     

    Ministry
of Mineral Resources and Political Affairs

     

    Permanent
Secretary:    Umaru Wurie

     

    Email:                                           uwurie@yahoo.com

    Telephone:                                   +232
76 671 200

    

     

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    Mines and
Minerals Act 2009: Contents Addressed in this Guide

    

     

    
      	
              Part
      III

            	
              Administration

            
	
              Part
      IV

            	
              Acquisition
      of Mineral Rights

            
	
              Part
      V

            	
              Mineral
      Rights and Surface Rights

            
	
              Part
      VI

            	
              Registration,
      Records and Cadastre

            
	
              Part
      VII

            	
              Surrender,
      Suspension and Cancellation of Mineral Rights

            
	
              Part
      VIII

            	
              Reconnaissance
      Licences

            
	
              Part
      IX

            	
              Exploration
      Licences

            
	
              Part
      X

            	
              Artisanal
      Mining Licences

            
	
              Part
      XI

            	
              Small-Scale
      Mining Licences

            
	
              Part
      XII

            	
              Large-Scale
      Mining Licences

            
	
              Part
      XIII

            	
              Radioactive
      Minerals

            
	
              Part
      XIV

            	
              Dredging

            
	
              Part
      XV

            	
              Protection
      of the Environment

            
	
              Part
      XVI

            	
              Community
      Development

            
	
              Part
      XVII

            	
              Health
      and Safety

            
	
              Part
      XVIII

            	
              Financial

            
	
              Part
      XIX

            	
              Miscellaneous

            
	
              Part
      XX

            	
              Regulations

            
	
              Part
      XXI

            	
              Repeal

            

    

    

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Key Objectives of the
Law

     

    The Mines
and Minerals Act 2009 has four main objectives:

    

     

    
      	
               
      I. 

            	
                 Addresses
      several issues not previously covered by the law including health and
      safety, environmental protection and community
  development.

            

    

    

     

    
      	
               
      II.

            	
                Tightens
      rules for administrators and mineral rights holders including application
      and reporting requirements.

            

    

     

    
      	
              III.  

            	
               
      Promotes investment and minerals sector development by ensuring security
      of tenure and preventing companies from holding land under license for too
      long without demonstrable
activities.

            

    

     

    
      	
              IV.  

            	
               
      Rebalances fiscal benefits — including higher royalty rates for precious
      stones and precious minerals - between companies, communities and
      government.

            

    

    

     

    How
does the law compare with international best practice?

    

     

    International
and regional best practice was a major contributor in to many of the law's
provisions. For example, royalty rates were compared with regional and
international levels; establishing a maximum allowable area for an exploration
license is common, introducing escalating minimum expenditure requirements for
exploration licence holders are increasingly being adopted elsewhere; providing
holders of exploration licences to explore for all minerals, not just specific
ones, is typicalpractice.

    

     

    The
law is consistent with all the main ECOWAS principles and policies governing the
mining sector, including the acquisition of mineral rights, respecting the
rights of landowners, protection of the environment, financial terms and
conditions and company reporting, access to information, state participation in
mining operations, respecting the rights of local communities, and providing
Government the right to acquire an interest in large-scale mining
operations.

    

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Administration

     

    Summary

    The Act
provides greater detail on the specific duties, responsibilities and conduct of
those charged with administering the Act, namely:

    • The
Minister responsible for mineral resources;

    • The
Director of Mines;

    • The
Director of Geological Survey;

    
      	
              •  

            	
              The
      Minerals Advisory Board (MAB), which has been given substantial new
      responsibilities.

            

    

    

     

    Key
Provisions

    The
Director of Mines exercises regulatory administration and supervision over all
reconnaissance, exploration and mining operations. This includes ensuring
compliance by holders of mineral rights with all provisions of the
Act.

    

     

    The
Director of Geological Survey is responsible for geological mapping as well as
compiling and disseminating data about the geology and mineral resources of the
country.

    

     

    The Minerals Advisory Board
(MAB)

    

     

    
      	
               
      ü

            	
               The
      revised MAB will advise the Minister on issues associated with the
      sector's development as well as certify that applications and renewals for
      mineral rights are fully compliant with the
law.

            

    

    
      	
               
      ü

            	
              The
      MAB will also advise the Minister on suspending, transferring and
      cancelling licences.

            

    

    
      	
               
      ü

            	
              The
      MAB will consist of representatives of the Ministry of Mineral Resources,
      selected other Government Ministries, and two persons with considerable
      qualifications and experience in the mining industry. It shall meet at
      least quarterly.

            

    

    
      	
               
      ü

            	
              A
      separate Chairman of the MAB will be appointed. Previously the MAB was
      chaired by the Director of Mines; the Director will now be the Secretary
      to the MAB.

            

    

    
      	
               
      ü

            	
              The
      MAB will also have new powers to co-opt persons from localities relevant
      to an application for a mineral right for deliberation
      purposes.

            

    

    
      	
               
      ü

            	
              The
      MAB must submit to the Minster an annual report of its activities and
      operations.

            

    

    

     

    The
Minister and other public officers are prohibited from acquiring mineral
rights.

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    The
Minister will have the authority to approve an application once it has been
certified compliant by the MAB. The Act will also require the Minister to
provide reasons for any refusals.

    

     

    
      	 
      	
              Composition
      of the Minerals Advisory Board

            
	 
      ●	
              Chairman

            
	 
      ●	
              Director
      of Mines

            
	 
      ●	
              Director
      of Geological Survey

            
	 
      ●	
              Commissioner-General
      of National Revenue Authority

            
	 
      ●	
              Representative
      of Attorney-General and Minister of Justice

            
	 
      ●	
              Representative
      of the Ministry responsible for local government

            
	 
      ●	
              Representative
      of the Ministry responsible for the environment

            
	 
      ●	
              Permanent
      Secretary, Ministry of Mineral Resources

            
	 
      ●	
              Two
      persons with considerable qualifications and experience in the mining
      industry

            

    

    

     

    Acquisition of Mineral
Rights 

     

    Summary

    The Act
creates clearer and more logical categories for mineral rights, addressing some
of the confusion previously created with prospecting and exploration and
exclusive and non-exclusive licences. The Act more clearly defines that
applications for mineral rights will be considered on a first come- first serve
basis, and based on strict financial and technical criteria. The Act also
enables Government to award mineral rights through a public tender
process.

    

     

    
      	
              Act
      of 1994

            	
              Act
      of 2009

            
	
              Non-Exclusive
      Prospecting

            	
              Reconnaissance
      Licence (non-

            	 
      
	
              Licence

            	
              exclusive)

            	 
      
	
              Exclusive
      Prospecting Licence

            	
              Exploration
      Licence (exclusive)

            	 
      
	
              Exploration
      Licence

            	
              Artisanal
      Mining Licence

            	 
      
	
              Artisanal
      Mining Licence

            	
              Small-Scale
      Mining Licence

            	 
      
	
              Mining
      Lease

            	
              Large-Scale
      Mining Licence

            	 
      
	 
      	 
      

    

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    Key
Provisions

    No person
may explore for or mine minerals except as part of a mineral right granted under
this law. Any person who violates this provision faces a fine and/or a prison
sentence.

    

     

    No
mineral right shall be granted to:

     

    
      	
              •  

            	
              an
      individual (i) under the age of 18; (ii) who is not a citizen of Sierra
      Leone or who has not been a resident of Sierra Leone for a period of ten
      years immediately preceding the application; (iii) who is bankrupt; or
      (iv) has been convicted of fraud;

            

    

     

    • a
co-operative society which is not legally registered in Sierra
Leone;

     

    
      	
              •  

            	
              a
      corporate body which is (i) not registered or incorporated in Sierra
      Leone; (ii) in liquidation; (iii) being liquidated; (iv) has a shareholder
      holding at least ten percent of the company or has a director which
      violates one of the requirements for individuals as listed
      above.

            

    

    

     

    All
applications for mineral rights or renewals of mineral rights shall be submitted
to the Mining Cadastre Office.

    

     

    The
decision on an application for a reconnaissance licence, exploration licence,
small-scale mining licence or large-scale mining licence shall be made no later
than 60 days after submission of the application.

    

     

    The
decision on an application for an artisanal mining licence shall be made no
later than 14 days after submission of the application.

    

     

    The
Minister may designate specific areas as areas for either artisanal mining or
small-scale mining activity.

    

    

     

    Mineral Rights and Surface
Rights                                                                                                                                      

     

    Summary

    The Act
more clearly defines the relationship between land owners/occupiers and holders
of mineral rights.

    

     

    Key
Provisions

    
      	
            	
            	
              The
      Act restricts the ability of a mineral right holder to exercise their
      rights on:

               

                 • land dedicated
      for other public purposes (e.g. cemetery, parks, roads etc.) unless
      written consent is given by the responsible authority over such
      land;

            

    

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
              •  

            	
              land
      reserved for a railway, highway or waterway within 50 metres unless
      written consent is given by the responsible
  authority;

            

    

     

    
      	
              •  

            	
              land
      within 200 metres of the boundaries of any township unless written consent
      is given by the relevant local
authority.

            

    

    

     

    Written
Consent from Landowners/Occupiers

    

     

    To
exercise mineral rights, the holder of a mineral right must obtain written
consent from the Landowner or Occupier for:

    

     

    ü Land
dedicated as a place of burial or which is a place of religious or cultural
significance; 

    ü    
Land on or within 200 metres of any inhabited, occupied or temporarily
unoccupied dwelling; 

    ü Land within 50
metres of land which has been cleared or ploughedfor agriculture including the
growing of crops;

    
      	
               
      

            	
              ü     Land
      which is the site of or is within 100 metres of any cattle dip, tank, dam,
      or other body of water.

            

    

    

     

    The
Minister may judge that consent is being unreasonably withheld and allow the
holder of a mineral right to exercise those rights.

    

    

    

    

    

     

    The Act
makes provisions for rights to graze stock and cultivate land as long as this
activity does not interfere with the use of the area for reconnaissance,
exploration or mining operations.

    

     

    No holder
of a mineral right shall create unprotected pits, hazardous waste dumps or other
hazards that may endanger the stock, crops or other activity of the land owner
or occupier.

    

     

    As in the
past, the Act requires mining companies to enter into surface lease arrangements
with the Government or landowners. If agreement cannot be reached between the
parties, the Minister may determine the agreement upon the advice of the
Minerals Advisory Board.

    

     

    Compensation

    The
Act provides for payment offair and reasonable compensation for disturbances
foreseen by operations and damage done to the surface of the land. If the holder
of a mineral right fails to pay compensation when demanded, or if the
owner/occupier of the land is dissatisfied with any compensation offered, such
compensation may be determined by the Minister on the advice of the Minerals
Advisory Board.

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    The Act
introduces an explicit sub-section on the right to resettlement for affected
parties by clarifying the rights and responsibilities of communities and mining
companies.

    

     

    Resettlement

     

    
      	
               
      ü

            	
               The Minister shall ensure that
      all owners or lawful occupiers are resettled on suitable alternate land
      should they prefer to be compensated by way of resettlement as a result of
      being displaced by a mining
operation.

            

    

    
      	
               
      ü

            	
               The circumstances
      of those being resettled must be at least equal to their circumstances
      before resettlement.

            

    

     ü     
The resettlement must
be carried out according to relevant planning laws.

       ü      
The cost of
resettlement must be paid by the holder of the mineral
right.

    

    

    

    

     

    Registration, Records and
Cadastre                                                                                                                                     

     

    Summary

    The Act
substantially strengthens provisions associated with the registration of mineral
rights. It legitimises the role of a Mining Cadastre Office and stipulates the
procedures associated with registering an application and a licence. The new
provisions provide clearer guidance on the management of records, clarifying
what information is to be held in confidence and what shall be available to the
public.

    

     

    Key
Provisions

    The
Mining Cadastre Office will maintain:

    • the
register of mineral rights;

    • the
register of mineral rights applications;

    • the
cadastral survey map of mineral rights and mineral rights
applications.

    

     

    The
Cadastral Survey Map shall have marked on it:

    • All lands
for which licences granting mineral rights are in force;

    • All lands
for which licence applications for mineral rights are pending;

    • All lands
closed to mining operations.

     

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    The
public may access the following information at the Mining Cadastre
Office

    

     

    ü  Register of mineral
rights

    ü  Register
of mineral rights applications

    üCadastral
survey map of mineral rights and applications

    ü Non-confidential
agreements and reports submitted by past or present holders of mineral
rights

    

     

    
      	
               
      

            	
              Confidential
      information submitted by a holder of a mineral right shall become
      non-confidential 90 days after the expiry of the mineral
      right.

            

    

    

    

    

    

    

    

     

    Surrender, Suspension and
Cancellation of Mineral
Rights                                                                                                                                      

     

    Summary

    The Act
specifies the processes and conditions under which a mineral right can be
suspended and/or cancelled. New provisions have been included explicitly
requiring companies to submit reports, meet minimum expenditure requirements,
comply with community development obligations and not employ child labour; this
is in addition to previous provisions associated with health and safety,
protection of the environment and qualifications of mineral rights
holders.

    

     

    The Act
introduces the authority to temporarily suspend an operation under certain
conditions and provides greater detail on the issuance of notices and the
provision of documentation from a mineral right holder.

    

     

    As with
the existing law, the Act also provides clarity on the treatment of assets at
termination of a mineral right.

    

     

    Key
Provisions

    The
holder of a mineral right may surrender the area covered by the mineral right by
providing the Minister not less than 90 days notice. In such a case the Minister
shall issue a certificate of surrender.

    

     

    The
Director of Mines may in writing order reconnaissance, exploration or mining
operations to be temporarily suspended until such arrangements are made that are
considered necessary to prevent danger to life, property or the environment, or
to comply with the law. The Minister shall confirm a temporary suspension
order.

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
              The
      Minister may suspend or cancel a mineral right if the
    mineral

            
	 
      	
              right
      holder:

            
	 
      ●	
              Fails
      to make any required payments

            
	 
      ●	
              Fails
      to meet any minimum annual programme of work or required work
      expenditure

            
	 
      ●	
              Grossly
      violates health and safety regulations or causes environmental
      harm

            
	 
      ●	
              Employs
      child labourers

            
	 
      ●	
              Fails
      to submit required reports

            
	 
      ●	
              Violates
      any provision of this Bill

            
	 
      ●	
              Dies
      and his heir or successor is not qualified to hold a mineral
      right

            
	 
      ●	
              Becomes
      bankrupt or of unsound mind

            
	 
      ●	
              Knowingly
      makes andfalse statement to the Minister

            
	 
      ●	
              Fails
      to substantially comply with the terms of the community development
      agreement

            

    

    

     

    Before
suspending or cancelling the mineral right, the Minister shall provide the
opportunity for the holder to remedy the breach in not less than 30
days.

    

     

    The
Director of Mines shall exercise the same powers for artisanal mining licences
but for this need not consult the Minerals Advisory Board.

    

     

    Where the
holder of a mineral right intends to cease operations, he shall furnish to the
Director a full register of assets showing which assets he intends to remove and
which assets he intends to leave in the area. Upon ending of operations by the
holder of a mineral right, the area so covered shall revert to the
owner.

    

     

    Upon
termination of a mineral right the holder shall deliver to the Director of Mines
all records and reports, plans or maps of the area, and a final
report.

    

    

     

    Reconnaissance
Licences

     

    Summary

    The Act
provides for the creation of a Reconnaissance Licence which will effectively
replace the current prospecting licence category. The objective of this new and
short non-exclusive licence is to provide potential investors an opportunity to
identify specific areas for more extensive exploration. It provides a logical
entry point for companies while not locking up large areas to individual
companies.

    

     

    As with
all applications covered within the law, the Act provides clearer guidelines on
what needs to be included in an application, the necessary prerequisites for a
licence to be approved and the process associated with disposing of an
application and issuing a licence.

     

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    Key
Provisions

    An
application for a reconnaissance licence shall be submitted to the Mining
Cadastre Office and may be granted or rejected by the Minister.

    

     

    The
application for a reconnaissance licence shall include:

    

     

    ü Name, place of
incorporation, information about directors and certain shareholders S  Company profile
and history of reconnaissance and exploration operations in Sierra Leone and
elsewhere

    üA plan for the reconnaissance
licence area S A description of the contiguous
blocks S  Technical and financial resources
available

    üProposed
programme of reconnaissance operations including details of the equipment to be
used S Details of any
mineral rights held in Sierra Leone

    üDetails of any
significant adverse effects which the carrying out of the programme
of

    reconnaissance
operations would have on the environment and the estimated cost of addressing
such adverse effects

    ü Details about
the employment of Sierra Leone citizens

    

    

    

     

    An
applicant may appeal to the court against a decision by the Minister not to
grant a reconnaissance licence.

    

     

    Reconnaissance
Licence: Key Features

    

     

    
      	
               
      ü

            	
              All reconnaissance licences
      will be non-exclusive and validfor 1 year, with only the possibility of a
      further 1year renewal

            

    

     

    ü Limited
in size to 10,000sq km, not transferrable

    

     

    
      	
               
      ü

            	
              While
      the initial one year licence non-exclusive license can be issued quickly
      by the Minister (based on meeting a strict set of conditions) any
      applications for a further 1 year renewal will need to be certified by the
      Minerals Advisory Board.

            

    

    

    

    

    

     

    The
holder of a reconnaissance licence may, with specific permission and under
strict conditions:

    • Enter on
or fly over the area;

    • Take and
remove specimens and samples;

    • Sell
mineral specimens and samples;

    • Take
timber or water from any lake or watercourse;

    • Erect
camps and temporary buildings.

     

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    All
reconnaissance licence holders shall:

    

     

    ü Begin operations within 90 days of the
date of issue of the licence 

    üNot engage in drilling, excavation,
or other subsurface exploration techniques 

    ü Be subject to all taxes, royalty and
otherfees relating to a sale of minerals 

    ü Compensate users of landfor damage
to land and property

    
      	
               
      ü

            	
              Maintain
      and restore from any damage the land to a safe state and in compliance
      with environmental laws

            

    

    ü Within 60 days
of the licence's expiration remove camps, temporary buildings or machinery
and
repair any damage to the surface of the ground 

    ü Expend on
reconnaissance operations according to the programme of reconnaissance
operations

    ü Submit a
confidential annual report to the Director of Mines 

    üProvide
the full results of any airborne geophysical survey 

    ü Employ and train
Sierra Leoneans

    

    

    

    

     

    Exploration
Licences

     

    Summary

    The draft
Act proposes substantial changes to the exploration licence category. The
cadastre and licensed areas are changed to a square block system, making it
easier to map areas and calculate fees.

    

     

    Key
Provisions

    An
application for an exploration licence shall be submitted to the Mining Cadastre
Office which will forward the application to the Minerals Advisory Board which
certifies that each company has complied with the requisite conditions of the
licence. The application shall be granted or refused by the Minister. If the
application is refused, the Minister shall provide reasons for the
refusal.

     

    
 

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    The
application for an exploration licence shall include:

    

     

    üName,
place of incorporation, information about directors and certain shareholders

    ü Company profile and history of
exploration operations in Sierra Leone and elsewhere 

    ü A plan for the exploration licence
area S A description of the contiguous
blocks 

    ü Technical and financial resources
available

    üProposed
programme of exploration operations including details of the equipment to be
used 

    ü
Details of any mineral rights held in Sierra Leone

    ü
Details of any significant adverse effects which the carrying out of the
programme of reconnaissance
operations would have on the environment and the estimated cost of addressing
such adverse effects

    ü
Details about the employment of Sierra Leone citizens

    

    

    

     

    An
applicant may appeal to the court against a decision by the Minister not to
grant an exploration licence.

    

     

    Exploration
Licence: Key Features

    

     

    ü An exploration licence shall not
exceed 250 sq km for an individual licensed area.

     

    
      	
               
      ü

            	
               Companies may
      apply for an initial 4 year licence, after which companies will be
      required to relinquish down to 125sq km of the area under licence (a
      special provision allows an exception, but will lead to an escalation in
      licence fee) and apply for a 3 year renewal period; this can be further
      renewed once more for 2

            

    

    years.

    
      	
               
      ü

            	
              Companies
      will be able to retain an exclusive exploration licence for a maximum of 9
      years (over three licensed periods), reduced from 11 years previously
      (over six licensed periods — combining prospecting and
      exploration).

            

    

    
      	
               
      ü

            	
               The Bill
      introduces an escalating minimum expenditure requirement for exploration
      licence holders.

            

    

    

    

    

    

    

    

     

    The
holder of an exploration licence may, with specific permission and under strict
conditions:

    • Explore
for all minerals on the area;

    • Drill
boreholes and make necessary excavations;

    • Take and
remove specimens and samples;

    • Take
timber or water from any lake or watercourse;

    • Erect
camps and temporary buildings.

     

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    Holders
of exploration licences shall...

     

    üBegin operations within 90 days of
the date of issue of the licence

    üCarry out exploration according to the
approved exploration programme and comply with the annual
programme of expenditures 

    ü
Not remove any mineral from the area except to be analysed, valued or
tested S Be subject to
all taxes, royalty and other fees relating to a sale of minerals S Inform landowners and users
of land about exploration operations üCompensate
users of landfor damage to land and property

    ü
Maintain and restore from any damage the land to a safe state and in
compliance with environmental
laws 

    ü
Notify the Minister of any discovery within 30 days 

    ü
Backfill or otherwise make safe any boreholes or excavations

    üS  Within 60 days of the licence's
expiration remove camps, temporary buildings or machinery and repair
any damage to the surface of the ground S Submit a confidential
semi-annual annual report to the Director of Mines and Director of Geological
Survey 

    üProvide the
full results of any airborne geophysical survey S Employ and train Sierra
Leoneans

    

    

    

    Exploration
licences shall give the holder the right to explore for all minerals, w hich is
different from the previous regime where licences were issued for specific
minerals.

    

    

     

    Artisanal
Mining Licences

     

    Summary

    The Act
makes a number of small changes to artisanal mining licence provisions. It
further strengthens the obligations of miners to rehabilitate mined out areas,
maintain records, submit reports, and respect worker rights.

    Ultimately,
the improvements to managing the artisanal mining sector will come through
regulations, where far greater detail will be provided. Within these regulations
there will be explicit reference to the supporter-miner relationship and tools
will be put in place to clarify the relationship and better protect each party's
interests. While most of the nation's artisanal mining has been focused on
alluvial diamonds, the law and associated regulations have been drafted in the
context of other minerals being exploited.

    

     

    Key
Provisions

    Only
individuals, partnerships, co-operative societies and incorporated companies
comprising of Sierra Leonean citizens will be eligible for artisanal mining
licences which are issued by the Director of Mines.

     

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
      	
              The
      application for an artisanal mining licence shall
  include:

            
	
                    
                ü

              

            	
              details
      on the experience and capital available to the applicant (declaring
      any

            
	 
      	
              supporter/finance
      relationship);

            
	
                    
                ü

              

            	
              a
      plan of the area;

            
	
                    
                ü

              

            	
              documentary
      evidence that consent to use the landfor mining purposes has been given
      by

            
	 
      	
              the
      Chiefdom Mining Allocation Committee or the rightful owners/occupiers of
      the

            
	 
      	
              land;

            
	
                    
                ü

              

            	
              details
      of the proposed mining operations, including potential effect on the
      environment

            
	 
      	
              or
      other risk — including proposals to mitigate them;

            
	
                    
                ü

              

            	
              details
      over the marketing arrangements for the produced
  minerals.

            

    

    

     

    The
holder of an artisanal mining licence shall have the exclusive right to carry on
exploration and mining operations in the licensed area. The holder of an
artisanal mining licence may enter the licensed area and remove mineral from the
area.

    

     

    Artisanal
Mining Licence: Key Features

    

     

    
      	
               
                      
                ü

              

            	
               

                  Artisanal
      mining licences will be issued for half hectare plots (harmonizing the use
      of metric)

            

    

     

    
      	
               
                      
                ü

                 

              

            	
               

                  Artisanal
      mining licences will be validfor one year, and renewable up to three times
      each not exceeding a period of one
year.

            

    

     

    
      ü
 The depth of an artisanal mine is limited to 10
meters.

    

     

    
      ü
Artisanal mining licences are not
transferable.

    

    

    

    

     

    Holders
of artisanal mining licences shall...

    ü  Carry out exploration or mining
operations in good faith

    ü
Provide relevant information to the Director of Mines

    üPromptly carry
out directives to ensure safety or good mining practices

    üIf not
personally supervising exploration or mining operations, employ a Mines Manager
as approved
by the Director of Mines for this purpose 

    ü
Employ not more than 50 labourers per licence 

    ü
Sell the minerals obtained as prescribed S  Carry out
rehabilitation and reclamation of mined out areas 

    ü
Keep accurate records of winnings 

    ü
Submit all relevant reports

     

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    The
Director may revoke an artisanal mining licence if the holder is not a Sierra
Leonean citizen or no mining operations have begun within a period of 180 days
from the date of registration or licence renewal.

    

    

     

    Small-Scale Mining
Licences

     

    Summary

    Although
there are mineral deposits that would be more effectively exploited through
mechanised methods at a scale larger than artisanal mining, these would clearly
not justify all of the investment required to develop a large 25 year mine. By
creating a middle category of small-scale mining licences, the Government will
be better able to match obligations with scale of operations.

    

     

    Regarding
the potential conflict between artisanal and small-scale mining, it must be
noted that not all small-scale mines operate in alluvial diamond fields (where
most of the tension arises); some operate quarries servicing road construction
and building material, and others operate small scale gold mines. However, any
potential for conflict in the mineral sector should be taken seriously and the
Act empowers the Minister to declare specific areas for exclusive use by
artisanal miners.

    

     

    Similarly,
the Minister can declare other areas for exclusive use by small-scale miners. In
order for this provision to be effective it will be important for the Government
to consult with stakeholders and assess deposits to best balance the interests
of the communities with accelerated mineral production.

    

     

    Under the
Act the applicant will be required to produce an Environmental Impact Assessment
and Management Plan, and hold an Environment Licence.

    

     

    Key
Provisions

    All small
scale mining licence applications must first be submitted to the Mining Cadastre
Office, then certified legally compliant by the Minerals Advisory Board, and
then given to the Minister for approval.

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    Small-scale
licence holders will be required to provide the Government with some form of
financial assurance against its environmental obligations.

     

    An
application for a small-scale mining shall include:

    üPlan of the
area

    üEvidence that
consent to use the land has been given by the Chiefdom Mining Allocation
Committee or the rightful landowners
or occupiers 

    ü
Identification of the
minerals for which the licence is sought 

    üA
technological report on mining and treatment possibilities

    üProposedprogramme of mining operations, including the
likely effects on the environment and on the
local population and the proposals for mitigation and compensation measures

    üAn
environmental impact assessment licence

    
      	
               
      

            	
              üA
      detailed forecast of capital investment, operating costs and revenues, and
      the anticipated type and source of
financing

            

    

     

    
      	
               
      

            	
              üA report
      on the goods and services required for the mining operations which can be
      obtained within Sierra Leone

            

    

     

    ü
Proposals for the employment and training of citizens of Sierra
Leone

    ü
Proposals for insurance cover including health and life insurance cover
for employees

    üExpected
infrastructure requirements

    ü
Proposed marketing arrangements for the sale of the mineral production
S Details of any mineral
rights held in Sierra Leone

    

    

    

    

    

    

     

    No
small-scale mining licence shall be granted to an applicant for an area
designated for artisanal mining operations.

    

     

    Small-Scale
Mining Licence: Key Features

    

     

    
      	
               
      

            	
              üLicences
      are issuedfor three year periods, renewable upon application. The relative
      short period provides more opportunities for the Minerals Advisory Board
      to review performance and
compliance.

            

    

     

    
      	
               
      

            	
              ü
      A requirementfor licence holder (companies, partnerships or
      cooperatives) to be 25% owned by Sierra Leonean
  citizens.

            

    

     

    • Issued
over a maximum area of 1 sq km (down from 5 sq km previously used).

     

    
      	
              •  

            	
              May
      excavate up to 20 meters below the surface and prohibitedfrom tunnelling,
      driving adits or other underground
openings.

            

    

    

    

    

    

     

    The
Minister may revoke a small-scale mining licence if citizens of Sierra Leone
hold less than 25% of the shares of the holder, or no mining operations have
begun within a period of 180 days from the date of registration or licence
renewal.

     

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    All
holders of small-scale mining licences shall...

     

    ü  Carry out exploration or mining
operations in good faith

    ü
Provide relevant information to the Director of Mines

    üPromptly carry
out directives to ensure safety or good mining practices

    ü
If not personally supervising exploration or mining operations, employ a
Mines Manager as approved
by the Director of Mines for this purpose 

    ü
Notify the appropriate local government authority of the intention to
begin or cease exploration 

    üSubstantially
comply with any community development agreement 

    üSell the minerals obtained as prescribed

    üCarry out rehabilitation and reclamation of
mined out areas 

    üKeep accurate
records of winnings 

    üSubmit all
relevant reports

    

    

    

    

    

     

    Large-Scale Mining
Licences

     

    Summary

    The
application for a large-scale mining licence now requires far more information
than previously.

    

     

    The Act
establishes the mine plan, community agreement, employment and training
programme, environmental management plan, and procurement proposal as binding
obligations on a large scale mining licence holder — thus forming the terms and
conditions of the licence. The Act also goes further to define additional rights
and obligation of licence holders, the process through which to renew a licence,
the authority of the Director to address wasteful and harmful practises, the
process and conditions associated with terminating, suspending or reducing
operations, and transferring of a large scale mining licence.

    

     

    Key
Provisions

    All
large-scale mining licence applications must be submitted to the Mining Cadastre
Office, then considered and certified legally compliant by the Minerals Advisory
Board, and then given to the Minister for approval.

     

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    An
application for a large-scale mining shall include:

    

     

    ü
Information about the company, its directors and
shareholders

    üCompany profile and history of exploration
operations in Sierra Leone and elsewhere

    üPlan of the
area

    üIdentification
of the minerals for which the licence is sought S Details of the mineral
deposits in the area S  Technological
report on mining and treatment possibilities 

    üProposed programme of mining operations,
including:

    o   Estimated
date by which the applicant intends to work for profit

    o   Estimated
capacity of production and scale of operations

    o   Estimated
overall recovery of ore and mineral products

    o   Nature
of the products

        o   Proposals
for the progressive reclamation and rehabilitation of land disturbed by mining

        o   Effects
of the mining operations on the environment and on the local population and the
proposals for mitigation, compensation and resettlement measures 

    ü
A detailedforecast of capital investment, operating costs and revenues,
and the anticipated type and source of financing

    üIdentification
of interested and affected parties including land owners and occupiers of the
area 

    ü
Details of consultation with interested and affected parties

    
      	
               
      

            	
              ü
      A report on the goods and services required for the mining
      operations which can be obtained within Sierra
  Leone

            

    

     

    ü
Proposals for the employment and training of citizens of Sierra
Leone

    ü
Proposals for insurance cover including health and life insurance
coverfor employees

    ü
Expected infrastructure requirements

    üProposed
marketing arrangements for the sale of the mineral production 

    ü
Details of any mineral rights held in Sierra Leone 

    ü
Environmental impact assessment licence

    

     

    

    Any
person impacted by the decision may appeal the Minister's decision in court if
they so wish.

    

     

    Subject
to Minister approval, the holder of a large-scale mining licence may make
amendments to:

    • the
programme of mining operations;

    • the
environment management programme;

    • the
programme of employment and training of Sierra Leone citizens.

     

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    Large-Scale
Mining Licence: Key Features

     

    

     

    üInitial maximum 25 year licence, option to renew
in 15 year periods. 

    üMaximum area of250 sq km per licence (an upper
limit is new.

    üRequirement to complete an Environmental Impact
Assessment and acquire an Environment Licence.

    üRequirement to enter into a binding Community
Development Agreement with affected communities.

    üRequirement to develop a programme for employing
and training citizens of Sierra Leone

    üLicences are issuedfor three year periods,
renewable upon application. The relative short period

     

     

     

    

    

     

    All
holders of large-scale mining licences shall.

     

    üDevelop and mine the mineral deposits according
to the approved programme of mining operations and the environmental management
programme

    üCommence mine development within 180 days of
registration of the licence 

    üProperly demarcate the large-scale mining
licence area 

    üMaintain complete and accurate technical and
financial records 

    üNotify the Minister as soon as the holder begins
work forprofit 

    üSubstantially comply with any community
development agreement 

    üCease the carrying out of wasteful mining and
treatment practices if requested 

    üNotify the Minister:

    o   one
year in advance if it proposed to permanently terminate production 

    o   6
months in advance if it proposes to temporarily suspend production 

    o   3
months in advance if it proposes to reduce the level of production

    

     

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    Comparison
of Mining Licence Categories

     

    
    

     

    
      	 	 Artisanal
      Mining	 Small-Scale
      Mining	 Large Scal
      Mining
	
               Application

            	
               Apply to
      director of Mines, or delegated official in the region

               

              Approval based on complying with clear requirements

               

              Only Sierra Leioncean citizens can  hold licence (individuals,
      partnerships, cooperatives, or body corporates)

               

              Must specify mining method

               

              Environment Management Plan

               

              Proof of financial and technical capacity

               

            	
               Must specify
      mining method, environmental impact, forecast investment procurement,
      infrastructure requirements

               

              Application certified as legally compliant by MAB and approved by
      Minister

               

              Applicant must acquire environmental licence 9requireing EIA and
      EMP)

               

              Companies, partnerships, and cooperatives must have 25% Sierra
      Leioncean ownership

            	
               Must define
      resource, perepare full financial plan, specify mining method,
      environmental impact, forecast, investment procurement, infrastructure
      requirements

               

              Application cerified as legally compliant by MAB and aproved by
      Minister

               

              Applicant must acquire environmental licence (requiring EIA and
      EMP)

               

              Locally incorporated companies (no restriction on nationality of
      owners)

            
	 Maximum
      Area	
               1/2
      hectares (5,000sqm)

               

            	 100 hectares
      (1 sq km)	 250 sq
      km
	 Duration	
               1
      year, renewable 3 times

               

            	 3 years,
      renewable for 3 year periods	 25 years,
      renewable for 15 year periods
	Operation	
               Open pit, up
      to 10 meters deep

               

            	 up to 20
      meters deep, no underground operations	 Any safe and
      responsible mining method
	 Obligations	
               Geneeral duty
      to protect environment, and workers health and safety

               

              Rehabilitation fee

            	
               Must compy
      with conditions of environmental licence

               

              Must provide financial assurance for environmental compliance 
      

               

              May be rquired to enter into Community Development Agreement

            	
               Must comply
      with conditions of environmental licence

               

              Must provide financial assurance for environmental compliance

               

              Required to enter into Community Development Agreements with affected
      communities

            

    

     

    Radioactive Minerals

     

    Summary

    The objective of this section is to more closely control any readioactive
minerals discovered or exploited in the country.

    
 

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    Key
Provisions

    The Act
requires mineral rights holders notify the Minister upon discovery of any
radioactive minerals.

    

     

    Mineral
rights holders must apply for, and acquire, separate permits for the
exploitation and export of radioactive minerals - contravening these provisions
will be considered an offence.

    

     

    The Act
also empowers the police to search premises and seize radioactive minerals
without warrant.

     

    Fines
and Penalties

    Those
who violate any provisions concerning radioactive minerals shall be fined not
less than $100,000 USD in the case of companies, and $20,000 USD in the case of
individuals who also face prison sentences of up to ten years.

    

    
 

     

    Dredging of Minerals Summary

    Mineral
right holders will require additional approval to dredge any river, stream,
watercourse, pond, lake or continental shelf for minerals. The objective of this
additional permission is to allow Government to more closely assess the mining
method and its potential environmental impact. A dredging permit places more
specific conditions on operating than normally provided for within the general
provisions associated with the protection of the environment.

    

     

    Key
Provisions

     

    As part
of an application for a licence, the applicant shall indicate:

     

    
      	
              •  

            	
              whether
      its exploration or mining operations will entail dredging and if so,
      whether the type of dredging will include
  flooding;

            

    

     

    • the types
of machines or equipment to be used in dredging;

     

    • whether
dredging is the only economically viable process of exploration.

    

     

    The application for
a dredging permit shall. .

     

    ü    State the consequences of
dredging including the destruction of monuments,sacred
places and burial grounds; 

    ü Be accompanied by a performance bond as
security for rehabilitation of mined out areas

     

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    Protection
of the Environment

     

    Summary

    The
provisions dealing with protection of the environment have been substantially
expanded.

    

     

    Key
Provisions

    The Act
requires all small-scale and large-scale mining licence holders to acquire
environmental impact assessment licences, in accordance with the Environmental
Protection Act 2000.

     

    
      	
               
      

            	
              The
      Environmental Impact Assessment must include the following
      information...

            

    

     

    • Detailed
description of the environment supported by relevant measurements

     

    
      	
              •  

            	
              Detailed
      description of the project including all phases of development,
      operations, reclamation and closure, and
  including:

            

    

    o   Detailed
resource requirements and emissions

    o   Identification of the likely major
environmental impacts

    o   Review
of residual and immitigable environmental impacts

    o   Broad
and detailed objectives regarding each environmental impact and
means

    for
achieving them o   Predicted effect of each environmental
mitigation activity o   Budget and timetables for
implementation

    o   Identification
of likely major social impacts and mitigation measures for each
o   Methodologies to be used for monitoring potential negative
impacts and the

    source
of funding for monitoring o   An environmental management
programme

    

    

    

    

    

     

    An
applicant for a mining licence that is required to submit an environmental
impact assessment must consult the public to introduce the project and verify
possible impacts.

    

     

    A mining
licence holder that is required to submit an environmental management programme
submit an annual environmental report to the Director of Mines and on this basis
the Director may suspend the licence if it is decided that the programme is not
succeeding.

    

     

    Any water
diversion must be approved as part of an environmental management
programme.

    

     

    All
small-scale and large-scale licence holders must provide financial assurance for
the performance against any obligations originating from an environmental impact
assessment and management plan.

     

    
 

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    Eligible
Forms of Financial Assurance

     

    • Surety
bond

    • Trust
fund with pay-in period

    • Insurance
policy

    • Cash
deposit

    • Annuities

    

    

     

    To
strengthen the Government's ability to manage environmental issues associated
with mining, the Act empowers the Minister to make specific rehabilitation
activities a condition of a mineral right.

    

     

    If the
company does not comply and the Government has to undertake work to remedy, the
amount expended will be considered a debt to the Government and recoverable in
court.

    

     

    Artisanal
mining licence holders are expected to submit a simple environmental management
plan detailing expected impacts and plans for mitigation and management of
impacts.

    

     

    Community
Development Summary

    The
Community Development Part of the Act is completely new. The Act creates an
obligation on large-scale mining licence holders to promote community
development and establishes the framework through which companies and
communities enter into formal agreements.

    

     

    Key
Provisions

    The Act
establishes the conditions under which a Community Development Agreement will be
required, as follows:

     

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    When
is a Community Development Agreement required?

    

     

    The
following criteria are used to determine when a Community Development Agreement
is required.

    

     

    1.     Mine
throughput:

    o
In the case of extraction of minerals from alluvial deposits: where annual
throughput is
greater than 1,000,000 cubic metres per year; 

    o
In the case of underground mining operations, where annual combined run-of-mine
ore and
waste production is greater than 100,000 tonnes per year; 

    o
In the case of open-cast mining operations extracting minerals from primarily
non-alluvial
deposits, where annual combined run-of-mine ore,  rock, waste
and

    overburden
production is greater than 250,000 tonnes per year.

    

     

        2.     Employment
— where the licence holder employs or contracts more than 100 employees or
workers
on a typical day.

    

    

    

     

    The
primary host community is the single community of persons mutually agreed by the
holder of the small-scale or large-scale mining licence and the local council.
However, if there is no community of persons residing within thirty kilometres
of any boundary defining the mining licence area, the primary host community
shall be the local council.

    

     

    While a
Community Development Agreement is formed between the mining company and
community, the Minister is required to approve the plan.

    

     

    The Act
establishes a minimum expenditure requirement for the holder of the mineral
right of 0.1% of gross annual revenue for the implementation of the
agreement.

    

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    A
Community Development Agreement must
include                                                                                                   

    • The
person, persons or entity who represents the community

    • Objectives
of the community development agreement

     

    • Obligations
of licence holder which include:

    
      	
               
      

            	
              o   defining the social and
      economic contributions that the project will make to the sustainability of
      the community;

            

    

    
      	
               
      

            	
              o   assistance
      in creating self-sustaining, income generating activities — including
      local procurement for the mine;

            

    

    
      	
               
      

            	
              o   consultation
      and the development of a mine closure plan that prepares community for the
      eventual closure of the mine;

            

    

     

    • Obligations
of the host community with regard to the licence holder

     

    
      	
              •  

            	
              The
      means by which the agreement will be reviewed by both parties every five
      years and that modification must be mutually agreed
  upon

            

    

     

    
      	
              •  

            	
              Define
      the consultation and monitoring framework by which the community can
      participate in the planning, implementation, management and monitoring of
      activities undertaken through the
agreement

            

    

     

    
      	
              •  

            	
              Statement
      defining the process through which disputes will be resolved (including
      the involvement of the local authority and the
  Minister).

            

    

    

    

     

    In terms
of projects to be undertaken through the agreement, the following projects
should be considered:

     

    
      	
              •  

            	
              Educational
      scholarship, apprenticeship, technical training and employment
      opportunities for the community;

            

    

     

    
      	
              •  

            	
              Financial
      and other forms of contributions towards infrastructural development and
      maintenance involving education, health, roads, water, power and other
      community services;

            

    

     

    
      	
              •  

            	
              Assistance
      towards the creation and development of small and micro sized
      enterprises;

            

    

     

    • Agricultural
product marketing;

     

    
      	
              •  

            	
              Methods
      and procedures of environment and socio-economic management and local
      governance enhancement.

            

    

    

     

    All
agreements entered into by large-scale mining licence holders and communities
shall be approved by the Minister and the Act empowers the Minister to make
determinations where parties cannot come to agreement.

    

     

    The
Community Development Agreement will form part of a licence holder's obligations
and does not in any way replace other plans or agreements associated with
resettlement or community compensation obligations.

     

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    Health and
Safety

     

    Summary

    The Act
introduces a full Part on health and safety. Key Provisions

    The
duties of both holders of mineral rights and workers are clearly spelled
out.

    

     

    Health
& Safety: Duties of Mineral Rights Holders

    

     

    üS
Provide and promote conditions for safe operation and a healthy working
environment

    üInitiate
measures necessary to secure, maintain and enhance health and
safety;

    üEnsure the
mine is operated and maintained in such a way that workers can perform their
work
without endangering the health and safety of themselves or others 

    üEnsure that
persons who are not employees but who may be directly affected by activities at
the
mine are not exposed to any health and safety hazards 

    üEnsure that
all persons working at the mine have the necessary skills and resources to
undertake
their work safely 

    üS  Take all reasonable steps to
continuously prevent injury or loss of life when the mine is not being
worked

    üEstablish a
policy for the compensation of injured workers.

    

    

    

     

    Health
and Safety: Duties of Workers

    

     

    üComply with
all measures and procedures established by the mineral right holder to ensure
health
and safety at the mine. 

    üS  Take reasonable care to protect their
own health and safety and that of other persons. 

    üTake proper care of all health and safety
facilities and equipment. 

    üS
Report promptly any situation which he believes could present a risk to
health and safety.

    

     

    Any
worker shall have the right to leave the mine if he believes that circumstances
pose a serious danger to their own health and safety.

    

    No person
can discriminate against (dismiss, prejudice or disadvantage)an employee if they
are exercising their rights under the Act or under a collective agreement, or
for refusing to do anything they are entitled to refuse under the Act or a
collective agreement.

    

     

    The
holder of a mineral right must report any accident that results in the loss of
life or serious injury (serious injury-defined as incapacitated from doing usual
job for fourteen days). Failure to do so will be considered an
offence.

     

    
 

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    The Act
obligates the Minister to make regulations for securing, as far as possible, the
health and safety of employees involved in any operation associated with a
mineral right.

    

    

     

    Financial

     

    Summary

    In terms
of financial provisions, the objective of the Act is to create a balanced, clear
and level playing field for all those involved in the development of mineral
deposits.

    

     

    All
individuals and companies in Sierra Leone are subject to the Income Tax Act 2000
and its amendments. Within the Income Tax Act there is a specific schedule
dealing with the treatment of mining companies. The Act has been drafted with
the recognition of the Income Tax Act and where possible defers most tax issues
to the Income Tax Act. For example, royalty payments are considered an operating
cost of the mineral right holder and can be deducted as an operating expense in
calculating net income.

    

     

    To
promote transparency in the minerals sector, the Act has a section dedicated to
reporting, disclosure, disseminations of information related to revenues and
payments by both mineral right holders and Government. The Act goes quite far to
make this an obligation of the licence and contravening this provision will be
considered a prosecutable office.

    

     

    However,
there are a series of financial issues that are addressed directly by the Mines
and Minerals Act.

    

     

    Key
Provisions

    Defining
royalties for minerals (precious stones, precious minerals and all other
minerals). These are to be calculated based on market value (rather than ex-mine
price).

     

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    New
Royalty Rates

    

     

    
      	
               
      

            	
              ü Special Stone 15°% (new category for those
      precious stones that are valued at more than
  $500,000)

            

    

     

    üPrecious stones 65°%

    üPrecious metals 5°%

    üAll other minerals 3°%

    

    

     

    Exemption
from royalties may be given for samples exported for testing and
analysis.

    

     

    The Act
empowers the Minister to charge an annual amount for a mineral right, details of
which will be provided in regulations.

    

     

    Large-scale
mining licence holders are required to submit, to the Commissioner-General of
the National Revenue Authority, certified copies of all sales, management,
commercial and other financial agreement in excess of $50,000.

    

     

    All
transactions between companies are to be based on or equivalent to arms length
prices and in accordance to accepted international business
practices.

    

     

    The
chargeable income for any year of a holder of a large-scale mining licence is to
be calculated separately for each large-scale mining licence.

    

     

    The
Minister may secure financial guarantees from a mineral right holder for their
compliance with the Act.

    

     

    All
royalties, import duties, annual charges or other fees are considered as debt to
the Government and are recoverable in a court of competent
jurisdiction.

    

     

    The
Minister may order a person to provide information, or answer questions in
person, associated with the minerals obtained or value of minerals obtained.
Non-compliance will be considered an offence.

     

     

    
      
         

      

      
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    Transparency: Disclosure of Revenues
and Payments The Minister shall:

    
      	
              •  

            	
              develop
      a framework for transparency in the reporting and disclosure of revenue
      due to or paid to Government

            

    

     

    
      	
              •  

            	
              request,
      from any person engaged in the extractive industry, an accurate record of
      the cost of production and volume of sale of minerals
      extracted

            

    

     

    
      	
              •  

            	
              request,
      from any person engaged in the extractive industry, an accurate account of
      money paid by and received from such person at any
  period

            

    

     

    
      	
              •  

            	
              ensure
      that all payments due to the Government from a person engaged in the
      extractive industry, including taxes, royalties, dividends, bonuses,
      penalties, and levies, are made

            

    

     

    
      	
              •  

            	
              disseminate
      information concerning the revenue of the Governmentfrom the extractive
      industry at least annually.

            

    

    

    

    

    

    

     

    A person
engaged in the extractive industry must submit quarterly to the
Minister:

     

    
      	
              •  

            	
              a
      general report on his activities and revenue payments made to Government;
      and

            

    

     

    
      	
              •  

            	
              a
      report on payments made to landowners, occupiers, Paramount Chiefs, or
      Chiefdom Committees, including surface rents, development project
      contributions, material contributions towards vehicles, buildings or other
      civil works.

            

    

    

     

    The Act
does not provide a Customs Duty exemption on mineral rights holders. The
importation of equipment will be in accordance with provisions of the Customs
Duty Act — which already provides for a substantially reduced rate for equipment
utilised for exploration and mining companies.

    

     

    Government
is given an option to acquire an interest in large-scale mining operations on
such terms that will be mutually agreed between the Government and the licence
holder.

    

    

     

    Miscellaneous

     

    Summary

    The
miscellaneous section of the Act covers a range of issues associated with the
governance of the minerals sector as follows.

    

     

    Holders
of mineral rights shall give preference to Sierra Leonean products, services and
companies.

     

    
 

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

     

    Companies
shall give employment preference to Sierra Leonean citizens; holders of small
and large scale mining licences must undertake a scheme of training to ensure
the advancement of Sierra Leoneans in skilled, technical, supervisory,
administrative and managerial positions Small- and large-scale mining licence
holders are also required to submit annual reports on employment and training,
failure to do so shall be considered material breach of licence.

    

     

    Mineral
samples cannot be removed from the country without the written consent of the
Minister. Failure to do so will be considered an offence.

    

     

    Finders
of precious minerals must deliver the find to the holder of the mineral right or
the Director of Mines; failure to do so will be considered an
offence.

    

     

    A person
in unlawful possession of precious minerals or who carries out smuggling of
precious minerals is guilty of a criminal offence.

    

     

    Unlawful
Possession and Smuggling

    

     

    The
penalty for unlawful possession of a precious mineral is a minimum of 3 years in
prison.

    

     

    The
penalty for smuggling of a precious mineral is a minimum of 5 years in
prison.

     

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

     

    Offences

    

     

    Misrepresentation
of a mineral deposit — fine of not less than $4,000 or a prison term of up to 2
years.

    

     

    Interfering
with the delineation of a mineral right — fine of not less than $2,000 USD or a
prison term of up to 12 months, or both

    

     

    Holder
of large-scale mining licence who fails to notify the Director of any further
deposits — fine of not less than

     

    $10,000
USD.

    

     

    Any
person who interferes with other mineral right holders' activities — fine of not
less than $4,000 USD or a prison term up to 12 months, or both.

    

     

    Any
holder of a mineral right who uses child labour — a fine of not less than $8,000
USD or a prison term of up to 24 months, or both.

    

     

    False
entry into the Mining Cadastre — fine of not less than $2,000 USD or prison term
of up to 6 months, or both.

    

     

    Failure
to deliver documents within 14 days of being called upon to do so — fine of not
less than $2,000 USD or prison term of up to 6 months, or both.

    

     

    General
penalty — fine of not less than $2,000 USD or prison term of up to 12 months, or
both.

    

     

    The
holder of a mineral right shall be liable for an offence committed by an
employee unless it can be proven that the offence was committed without his
knowledge or consent.

    

    

    

    

     

    The Act
also defines the Court as the avenue through which a Minister's decision can be
reviewed.

    

    

     

    Regulations

     

    Summary

    The Act
empowers the Minister to make regulations for the conservation and development
of mines and minerals and for the purpose of giving effect to the provisions of
the Act.

     

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    Regulations
may address any aspect contained in the law including the
following:

     

    ü    Shape and size of blocks or areas
over which mineral rights may be granted

    ü     The mining
cadastre

    ü    The manner in which areas and
boundaries shall be marked and surveyed

    ü     The renewal, transfer,
assignment and surrender of mineral rights

    ü     The form and
required contents of applications, mineral rights and reports

    ü    The nature of the accounts, books
and plans to be kept by holders of mineral rights

    ü    The valuation, sampling, weighing
and testing of minerals

    ü    The method of calculating the
amount of royalties and the manner and time of payment

    ü    The fees to be paid

    ü    The examination of mines by
authorised officers

    
      	
               
      

            	
              ü

            	
              The
      working of reconnaissance licence areas, exploration licence areas, mining
      areas and mines

            

    

    ü     The avoidance of wasteful
mining practices

    ü    The penalties for offences
against the regulations

    

     

    The
Minister shall, in consultation with the Chairman of the Environmental
Protection Agency, make regulations restricting or prohibiting exploration or
mining operations for environmental

    reasons.

    

    

    

     

    Repeal

     

    The Mines
and Minerals Act 1994 is hereby repealed.

    

    

     

    Any
mineral right or permit granted under prior laws or amendments shall continue to
be valid until its expiry by passage of time.

    

     

    A
holder of a mineral right granted prior to this Act may apply for a mineral
right covering the same area on a priority basis.

     

     

    
      
         

      

      
        34

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