SOMALI DEMOCRATIC REPUBLIC
Law 7 Of 9 January 1984 Approving
And Containing The Mining Code
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XEER L -. ---TIX , ,_ .. ,.
U.JEEDDO: •
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••~•~•••••·• ••T•••
,>,i~-. _;"· ·_-;_.JAMHUURIYADDA DIMUQRAADIGA SOOMAALIYA .:f:\:: _;, <t MADAXTOOY ADA
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·t···, \., ... · .-·< .. ·. .. . \:=·:· .. ...,-;
.... : •\:'..NAi°riAX-WtvNAHA
. • \.7: ..... i·::.:-::<;/·· .. ~i :SIDEN~ .
[ OF.i!EE SOMALI DEMOCR.A!rIC REPUBLIC
..· ... ... · ..... -·~
CONS!DER!NG./ the çproval of the' Standing Comm:i ttee of
_ ~ ~eople •s tsembly;
BEEEEY l'ROMrJLGA:BS
Article I
!ha M1 ni ng Cod.e whic.h ia amin: J. to this Law, is here bJ'
approve4 and shal.1 :!ont. en integral. par-: hereof.
Ar1iicl.e 2
1 • !hia Law a.hall be incluiea. in the Official Coiçilation
of L81t'S of ths So. aJ.1 ·De.m.ocratic Republic and eb.all. be
published in the Official Bulletin.
2. It sb.aJ.1 coma into force upon signature 07 the Presiient
of ths So~ali Democratic Republic.
3. Al1 :persons shal1 be obllged. to observe i t as a· Law
of the Republic.
Mogaiishu,
1 9
Article
Article
Article
Article
Article
Article
Article
Article
Article
Article
.ANNEX A
MINING CODE
OF THE
SOMALI DEMOCRATIC REPUBLIC
(Law No. 7 of 9 January 1984 )-
1.
2.
3.
4.
S.
6.
7.
8.
9.
10.
TABLE OF CO~ENTS
P arf_)ç:j;;~~~-----Pkô~"î"S10NS
·:~ ·\).~\ ·•.. - .· \-.>~-. ....... ·.. .
9-~ f\1:n.1·t ions • ,~ •• •., ;•.-•••••.•••••.••••••••••••
P.j·qperty fn:··ap4_. .. 2ontrol of miner als ••.•
Delegat ~Ori\ oJ.: power s .••••••••....•••.••
Immun.t ty\·f r··oin Suit ••••••.••••.•.••.••.•
Pm~ei:.~~-~·-tt.o·· 7lose ar ';a~ to
...... pro~pect1ng or m1n1ng .....•..••....•.
(Ar_~~--··7xcluded from prospecting or
· .......... ·m1 n 1 ng ..•.•.••••.....•.•..••.•...••.•
Land required for a public purpose .•...
Government rights to take minerals
for public purpose •••••••••••••••••••
Revocation of permits, licenses or
leases in cases of fraud, etc •.•....•
Revocation of permits, licenses or
leases for breacbes of this Code
and Regulations, etc ••.•..••.•••.••••
Article 11. Certain ~ersons probibited from
acquir1ng rights .•• : ••••••••.....••.•
Article 12.
Article 13.
Article 14.
Article 15.
Article 16.
Part II - RIGHTS AND OBLIGATIONS OF
HOLDERS OF PROSPECTING AND
MINING RIGHTS
Section 1 - General rights
Rights of entry, access, etc. . ......•..
Amalgamation of permi ts, etc. . ..•.••..•
Holder may remove plant, etc. on
termination of permit, license
or lea$e •••••••..•••••••.•••..••.....
Right of passageway •••.•.. · ••••.•...•.•.
Duration of right of passageway .•.•....
20
Article 17.
Article 18.
Article 19.
Article 20.
Article 21.
Articel 22 .•
Article 23.
Article 24.
Article 25.
Article 26.
Article 27.
Article 28.
Article 29.
Article 30.
Article 31.
Article 32.
Article 33.
Article 34.
Article 35.
Article 36.
Article 37.
Article 38.
Article 39.
Article 40.
Article 41.
Article 42.
Article 43.
Article 44.
Section 2 - General Obligations
-
S urvey ................ # ••••••••••••••• • •
Holder to produce permit, license,
etc . .................................. .
Notice and security for
compensation •..•••• , •..••••.••••••. • •••
Payment of compensation ••••••••••••••••
Depos-i ts •. , ..... ,., ............................... .
R.eco_rds ·of /prospecting and m"ining ·
Qperations ··········~•·••·····~······
Obligations on termination of a
permit, license or lease ••••.•••••••••
Liability incurred before terminat
ion of permi ts, etc. • .•••••••.••••
Appointment of agents .••••••••••••••••
Part III - PROSPECT.gt~Cim MIN;ING FOR
MINERAL·s. ·o.THER THAN\HYDROCARBONS
Se C t ion -,n·;;_:h•o·t pe C t-.fri~ \,.~:;~-;~
No p(OI! t:~:~-~~g .. w~Jh;~~:,. p-~-rm i t ..•......
Gr ant·• ... 0f. pro~p.~·çtjn-g permit ...••••••••
Duration and: ... rei-i'ewal ••.••••.•..••.•.••
Prospec~J~_g.\p-ermit not
tranif~ttable •.••.••......•...•••.••
Rigbts :··and obligations under a
pi: -~-~-P e c t i ng pe rm i t . . • . . . • . • • . . • . • . • .
Section 2 - Exclusive Prospecting License
Grant of an exclusive prospecting
1 icense ............................ .
License area •.••••..•••••.•.••...•..•.
Duration and renewal ••••..•..•.•.•..••
Rights and obligations under
an exclusive prospecting license ...•.
Transf er of license .•••..• -.•...•••.••.
Surrender of license ......•....•.•..•.
Section 3 - Mining Permit
No mining without mining permit
or lease ........................... .
Grant of mining permit ...........•..••
Duration and renewal •..........•......
Conversion to lease ..•.....•.....•..•.
Rights and obligations of the
holder of a mining permit .......... .
Transfer of permit or shares •.•••••••.•
Surrender pf · permi.t •.•...•.... ~ ••••.•.
Revocat ion· of -permit •••.••.•..•..•.••.
2 1
Article 45.
Article 46.
Article· 47.
Article 48.
Article 49.
Article 50.
Article 51.
Article 52.
Article 53.
Article 54.
Article 55.
Article 56.
Article 57.
Article 58.
Article 59.
Article 60.
Article 61.
Article 62.
Article 63.
Article 64.
Article 65.
Article 66.
Article 67.
Section 4- -· Mini_ng Lease
Grant of mining lease •••••••••••••••••
Duration and renewal ••••••••••••.••.••
Rented surf ace ar ea •••••.••••••••.••••••
Rights of lessee ••• ,., •••••• · ••••••• ." ••••
Working obligations on a lease --••.•••••
Transfer of a lease or interest
therein •••••••••••••••, •• • •••.••••.•.
Surrender of lease ••••••••••••••.••••.
Part IV - ~~DROCARBONS
Section -1 : .... ~~~~:~-~i Prov:_isions
Sc ope of _Jt:ii,/--p-dr·; ·. , ... :·: ·:-.. ~ t>:··:· ........ .
Grant _of:: v.e'triil ts, ~tç. \. ~< ............ .
Ri sk .. n~·t.ü.:rè of oper~tions ••••.••..•••.
P a r ·t'_ .'J :·ç .l• . p.a. t 1. on ..- ·;· ·• .. ;.- ~..• ,. ·;. ...•.••..•.•..•..•.
Gene·r-àl. terms· .. ·ana···conditions of an
agr eem.~rt-~·· .. :·. ;· ... ·:· ..•...••.•..•••......•.
Conser.~a.e1-o:n·· and work practices ....•..
Bloçks aad awards of areas ....•....... ... ·· ... · ...... ..
......
Section 2 - Oil Exploration Permit
Duration and renewal ....•.......•..•..
Renewal for completion of works ...... .
Working obligations in permit
ar ea ..••..••.....•.••••..••.•.•..•..
Work programs . . . . . . . . . . . . . . . . . . . . . . . . .
Section 3 - Oil Mining Lease
Grant of lease ....................... .
Comprehensive oil mining lease ....... .
Duration and renewal ................. .
Rights and obligations of holder ..... .
Section 4 - Transportation and
Hydrocarbons
Authorization and operation of
pipelines .......................... .
22
Article 68
Article 69.
Article 70.
Section 5 - Miscellaneous Provisions
Trans fer of permit or le-ase •••• -•••••••
Surrender of permit or lease __ •.••••••••
Rights of entry into excluded
areas ........•.................... , ...
Part V - ROYALTY ON EXPORT AND LOCAL
SALE OF MINERALS
Article 71.
Article 72.
Article 73.
Article 74.
Article 75.
Article 76.
Ar tic le 77.
Article 78.
Article 79.
Liabil i~y to. rQ~:°i.'ty .•••••••••••.••••••
Miner als 0)3·t·~·1:i)·ëd in p:i; 01,; pect ing ••••••
Export ~m.çf lq:ca'l sa;Le 0.:f..)idnerals •.••.
Re co~.d·a. ··-~·t .. ·b1.1y i ng._ -·~t_td\ se 11 i ng .••••••••
Per~_i\--:for sm~Jl:---9.-~ant ity of·
..···:m·i·tter al s •• .:. ... ·.• ;·~ •••••••••••••••••••.
··Ç: a t ~ .. :;;.:: --~'.::-::{ES-;RI CTED MIN ERALS
.:P-oi~·:;~ ~~n of res tr icted miner als •.•..
{_sa_1ë···and p-urchase of restricted
··--··miner als •••••••••••••.••••••.•••••••
Mineral dealer's license •.••••••••••.•
Obligations of licensed minera!
dealer ............................ .
Part VII - SAFETY, INSPECTION AND ACCIDENTS
Article 80.
Article 81.
Ar tic le 82.
Article 83.
Article 84.
Article 85.
Article 86.
Article 87.
General safety ••••••••••••••.•.••.••••
Gener al inspection .•••••••.•••••••••.•
Power ta remedy dangerous
practice, etc ••.••.••••.•. · .••.••••••
Proceedings in case of accident .•.....
Part VIII - REGISTRATION
Prospecting or mining rights
shall be registered •.•..•..•..•.•..•
Transfers of interest to be
registered •.••••••••••••.•.••••.••••
Regtstration not ta cure defect ••.•..•
Inspection of register .•.••....••. ; ..•
23
Article 88.
Article 89.
Article 90.
Article 91.
Article 92.
Article 93.
Article 94.
Article 95.
Article 96.
Article 97.
Article 98.
Article 99.
Article 100.
Article 101.
Article 102.
Article 103.
Article 104.
Ar tic le 105.
Article 106.
Article 107.
Article 108.
Copies of prospecting or m1n1ng
right, etc. to District
Commis s ioner ••••• ·- ••••••••••••••••••
Part IX - DISPUTES
Application to investigate dispute .•.•
Memoranda, statements, etc ••.••.•.••••
Adjustment of disputed boundaries .••.•
Director to submit report •••.•.•••••.•
Discretion of D~~e~tor to refuse
to inves t ~g~ t~\ ·•·;·. ~ ...................•
part ~---/;_::iS~-~:~:~~i,~ÜJ'.':_":·:·:~AL
:· ... ·.~·• .... AND .. Ft:NAl.. PROVISIONS
<.:~) \·:~t io"1/i"\_" .. -~-i scel laneous
Di sc;:Q~?i}:_" ~-f ··.·:iner al s •..•.....•.•.•..•
Pr~or~t~ of applications •••..•.••..•.•
.-P·o·t1t1t ion of water ........•..•.•....•.
:·La.è er al 1 im i t s ••••••••••••••••••••••••
Use of facilities ...••.•••••.•••••••.•
Stat~ of war ..••.......••.•.•••.•••..•
Interference with prospecting or
mining rights, passageway,
beacon, mine timbers, etc .......•..•
Section 2 - Penalties
Illegal prospecting or mining L••······
Failure to comply with notice •.•..•..•
Failure to attend inquiry, etc •.......
General penalty ...................... .
Forfeiture of minerals, etc.,
by Court ........................... .
Section 3 - Final Provisions
Regulat ions ....•••.•.•••....••.•••...•
Repeal and saving .•....•...•.•....•.••
Somali text to prevail ••..••••••••• _ •••
24
ANNEXA - MINING CODE
Part I. - GENERAL PROVISIONS
Article l
Definitions
In this Code unless the context otherwise requires:
"Adit11 means a tunnel of inclination of less
tha~ fifteen (15) degrees in the horizontal which is or
might be used for access, travelling, drainage or
ventilation in connection with_. ... prospecting or mining
operations; \ ·······:
"Agreement" \lle.(;t··\/ ·;on_tt-~}-+--·, between the
Governm.ent and a pers.9.t?-·~ .. )~_el-ating .. t.:o ··~1ârocarbon exploration
and mining OP:~t'-~J::t!<ms, esta~Ii.shing the terms and
conditions, not i•ncô.n~·-istent w1ttï···the provisions of this
Code or the Regi:iJ:_ .. ~tions, _Q:f··· .. àpy ·. Oil Exploration Permit
or Oil Mining Leas-ê to ~hi"çh_).t relates;
"alluvia:V'·--1-~ii~~-~~ all those miner al deposits
which occur as .. --.d~tr_j.tal grains within unconsolidated
near-sur face ma~er__{ais;
· .....
"Commercial Discovery" means a d iscovery of
Hydrocarbons which, in the judgment of the Government
and a holder, can be produced commercially, based on a
consideration of all pertinent operating and f inancial
data, such as Hydrocarbon volumes, recoverable reserves,
sustainable production levels and other relevant technical
and economic factors, according to generally
accepted pract ices in the international petroleum
industry;
"Court" means a territorïally competent
Regional Court;
"Director" shall mean the Director-General
of the Ministry of Mineral and Water Resources;
"to explore" means to carry out geological
studies, geophysical studies, aerial mapping, investigations
relating to subsurface geology, seismic surveys,
structure test drilling, stratigraphie test drilling,
the drilling of exploratory wells, appraisal drilling
and related activities in connection with the exploration
for Hydrocarbons under an Oil Exploration Permit
granted pursuant to this ~ode;
25
"Government" me ans the Government of the
Somali Democratic Republic;
"bolder" means a person to wbom a permit,
license or lease bas been_granted pursuant ta tbis Code,
and includes bis representatives, transferees or assigrtees;
"Hydrocarbons" means all riatural organic
substances composed of carbon and hydrogen called
petroleum, including crude oil and natural gas, and all
otber mineral substances, products, ~y-products and
derivatives that are found in conjunction with the same;
"lease area" means a portion of the geographic
a r e a o f t be Re pub 1 i c w h i ch i.s s u b j e c t t o a 1 e a s e
granted pur suant ta th is Code; \:······:
"li cens e are~.'.' (iiïi~J~· ·; P.Ot-l;:°1.9..q of the geog~
aph ic ar ea of th~ .... ~~:~·u.b1 i~ ~~·ia.~( ï-s subj ect to a
l1cense granted pu~ St:1.é~~t::· .. Eo th1.~ ··.Çci-<;le; .
"lesse~f, . .\.'~-~·~:s t·h~--.:.·_.·.~·;Î1e~ of a lease issued
under the prov ·i"'s·i~ns .. of· ... ··.~t.r i's· Code and i ne ludes a 11
persans baving a r ~gh.~.:··o·r·· interest under such lease
whether by t r ans f eF•··Q~i;.~~·<>.therw i se;
"lice.h~·~a·····~ineral dealer" means a person to
whom a miner at·-.. ~fealer' s 1 icense i s gr anted under the
provisions of Article 78 of this Code;
"lode" includes all minerals occuring in solid
formas vein, stockwork, replacement and stratiform
deposits;
"mine" means any place, excavation or working
where any operation in connection with mining is
carried on;
" t o mine" me an s i nt en t ion ·a 11 y t o de v e 1 op ,
e x tract , e x p 1 o i t or r em ove miner a 1 s in c 1 u d i ng an y
operation necessary for the purpose and, in the case
of Hydrocarbons, includes the storage, transportation,
sale of other disposition thereof;
"minerals" means unless otherwise defined
every naturally occurring mineral substance that can
be mined including hydrocarbons, deposits of laterite
origin, ores of precious, base and precious metalsi
alluvial deposits and minerals used for any industria
or agricultural process;
26
"mining rights" means the rigbts to mine as
defined in tbis Code and the Regulations;
"Minister" means the Minister of Mineral and
Water Resources;
"Ministry" means the Ministry of Mineral and
Water Resources;
"passageway" means any highway, road, street,
footpath, right of way, easement or installation of any
railway, tramway, wireline, conveyor-belt, cableway,
electricity or telephone line, chute, pipe, sewer,
drain, tunnel, shaft, bridge,fluming or watercourse;
"persan" includes ~ (J:prporation, company,
syndicate or other asso.ciati_oq._ \o:i;) body of persans corporate
or unincorporate; _.--··<·-..:-._·.-._ :-. \.
"permit aJ.:'è_~{~/~elns ~-----p~-/{~~-:-· of the geographic
area of t:·b.e·-,:-"Re·public•::•·l{t:1fch is subject to a
permit gr anted P-Pt .. st1ânè to .tb.i.s ·coâe;
"p i t" --\;-'~ S t;lî_"~----:~:--s-l~-: me an i ng a s " s ha f t" ;
"police :êïf}i}i~" means a police off icer not
below the rank f'f·/ns-pector or equivalent rank;
"to pr·o~pect" means to search for minerals,
including such activities as are reasonably necessary to
test the mineral bearing qualities of land and, in the
case of Hydrocarbons, to explore therefor;
"prospect ing r ights" me ans r ights to prospect
as defined in this Code and the Regulations, and
includes, in the case of Hydrocarbons, the rigbt to
explore;
"reef11 bas the same meaning as "lode";
"Regulations" means the Regulations made under
this Code;
"rented sur face area" means the area of land
within a mining lease area wh~ch is occupied by mining
works, installations, etc. for which a separate rent is
prescribed in Article 47;
"Republic" means the Somali Democratic Republic;
27
"sbaft" means any vertical or inclined tunnel
or· excavation other tban an adit wbicb is or might be
used for access, travelling, drainage, or ventilation
in connection witb prospecting or mining operations;
"tailings" means all stones, &ravel, sand,
slime or other substance which is a res1due of bonaf
ide mining operations;
"water cour se" me ans any cbannél, whether
natural or artificial, which confines, restricts,
directs or controls the flow of water, -whether continuously
or periodically.
1.
minerals:
by the
and
Article) ,. _\c::::,
Proper ty in ai,d·, ,:;~~~:~ o.f ·-.J11h1~t:·ii1s
-~·····: \::··... .• ·.. · ...
The e:1~.-iJi·~·(;~OJ?.e{i/<Ù and control of all
·· ...... = . .·· ·· .. ··... } ..... ··
(a) in a.n.1-:--:{~~--- \erritory of the Republic;
(b) 1.fffâ:~ .. \"i1~- territorial s ea as determined
relevant\Jigislation in force from time to time;
(c) on or under the seabed and subsoil of the
submarine areas that extend beyond the territorial sea
throughout the natural prolongation of the Republic' s
land territory to the outer edge of the continental
margin, or to a distance of 200 nautical miles from the
low water mark, as recognized by the Republic, from
which the breadth of the territorial sea is measured
where the outer edge of the continental margin does not
extend up to that distance, or to such di~tance as
may be determined by agreement or otherwise between thé
Republic and other States;
is vested in the State.
2. Except in accordarice with the terms and
conditions of a permit, license or lease granted pursuant to
this Code, no person may acquire any property in or control
over any minerals located within the areas set forth in the
preceding paragraph.
28
Article 3
Delegation of powers
1. The Minister may, by decree, delegate any of
bis powers conferred· by this Code or Regulations except bis
powers to grant or revoke a permit, license or lease.
--
2. The Director may, with the written approval of
the Minister, authorize in writing any public officer to
carry out any of the powers and duties conferred or imposed
upon the Director by this Code or the Regulations.
Article-.. 4, .. {·::)
Immunit;r,t.~_:i···1·~it ... • \ \_":=-.·./,
·:· ·~ ·-:· ... : ·.. · ... :
• No legal p:i:èç\'~}:~:s.,--w-~:~:~~i;·~r shall lie against
the D1rector or any \authoriz~a.. ~ff1cer on account of anything
done in good faith_ it{ .. .t:fre··.··execution of bis duty under
the provisio~s of this Ça~:e-.:~ad the Regulations.
:· ·: · ..
Article 5
Powers to close areas to prospecting or mining
1. The Minister may, with the approval of the
Council of Ministers, by decree published in the Official
Bulletin, declare any are a to be closed to prospect ing or
mining:
(a) generally for all minerals or for specific
minerals;
(b) for a speci fic period of t ime or unt il
further notice;
(c) to all persans. or to a particular class
of perons;
Provided that such closure shall be without
prejudice to existing prospecting or mining rights in such
area.
29
PTovided fuTther that the Minister may permit
prospecting or mining in such area under a special permit
and subject to such conditions as be may think fit.
2. The Minister may, witb like approval, reopen
such area or any part thereof by further decree on such terms
and conditions to·prospecting.or mining as he may t~ink fit.
Article 6
Areas excluded from prospecting or mining
1. Exceptas otherwise P.f~~ided by this Code, no
permit, license or lease shàll_ ... a:~~~t·{zè any persan to prospect
or mine in: :" : ·•: :·· .. \ ..
<a) any ,.)>ûi,:i'.~;F;·;·; un4 __ --~r}~h: --~ ~ the v ici ni ty
or precincts of .. é\J;l·Y.-.. mosqu~·;· ··ç·h:urch or other sacred
builclings; (b) ~:;·-= \9,pc{-~)~2::~~ for a public purpose
(other than mining)"·-.. o:r<·.within 100 yards of such land;
( c) i~~~'-... ïf{~-a si tuated wi th in the boundai:ies
0 f an y C i t y ' ·1;,o·w n ' V i 11 ag e Or p Op u 1 a te d 10 Ca 1 i t y ;
(d) land reserved for the purpose of any
rai lway, tramway, cableway, power or telephone 1 ine or
cable, other than those constructed by a holder within
a permit, license or lease area;
(e) any area which is the site of or is within
100 yards of any building, works, pipeline, flume,
canal, dam or reservoir owned by the State, local administration
or autonomous agency;
/
(f) any street, road or highway or land within
50 yards of the centre line of such street, road or highway
(other than those constructed by a holder within a
permit, license or lease area);
(g) any game reserve or forest reserve;
(h) land required by the Government for the
extraction of minerals under the provisions of Article 8
hereof, a plan of wh ich land shall have been suppl ied
to the Director;
30
(i) land witbin 100 yards of any building
except wi th the consent of the owner, and land under
cultivation between the sowing and reaping of crops
except with the consent of the owner;
Provided that, where such consent is
unreasonably wi thheld, the Minis ter may author ize prospecting
or mining to continue on such_ land a~d up to
sucb limits a~d under such conditions as be may think
fit;
(j) land witbin 100 yards. of any well,
cat_tle watering place or other source of water in use
except witb the consent of the owner of such source of
water or local administration or autonomous agency
having control of such source; . t··
Provided· ~.lui)"/.\:~'eJ:e_ s.uch consent is
unrea~onably ~i ~hheld, ... .t~~ .. ~iniste_F· .. nf~y\ .. autbor ize prospect1ng
or m1n1ng ~.o. .. ··Ç.é.1)·t·1nue _on.. s-μ~h- land and up to
such limits and unçe-l=-·: .. _s"uch co~ql.tion·s · as be may tbink
f 1 t ; {)·· .. \>· .. -.. ·:···••5··:~·· .>··• .. :..
(k) l~'tîd •wit~f~il .. ··.-i0o•ô yards of the boundaries
of any aerodrome or -J.~~âJng ground (other than one cons
tructed by a hol9·ët\\~·t-tbin a permit, license or lease
are a) ; .-······ ·.. ...... ..= ·
(1) t~nd within 100 yards of any drilling
site for water, miner als or prospect ing oper at ions
except with the consent of the person undertaking such
drilling operations;
(m) land in respect of which any permit,
1 icense or lease for miner als other than Hydrocarbons
bas been granted (other than by the holder) and land
the subject of an application for any such permit,
license or lease;
Provided that the Minister may authorize
the appl icant to beg in prospect ing or mining on such
land pending the grant of the permit, license or lease
under such conditions as be may think fit;
(n) land beaconed by Government officials
under the provisions of paragraph 2 of Article 94;
(o) land with deposits of tailings from
mining operations which have terminated.
3 1
2. Notwithstanding the provisions of the preceding
paragraph, the Minister may, except in the case of item
(a) above, and subject to the consent of the competent Minister
of State, grant a special permit to prospect or mine in
the above areas, subject to such terms and conditions as seem
appropriate.
Article 7
Land required for a public purpose
1. Whenever any land, beipg the whole or part of
the surface of any permit, license OîLl~ase area, is required
for any public purpose, the Minist~~\shill, with the approval
of the Council of Ministers, g1=-vë·\n-Qfice thei·eof to the holder
of the prospect ing or mini~~{~/-g9_ts. · .. ··( \._y::-. __ ·.. ...-.
2. As fro~. ~b/-)-~-~~- sp~cl:·f\~d· in· such notice, all
prospecting and minirig\~•ights i.J:1···-F··~s.pect of the surface area
of the land required'·-.. ·shall ... •be\d.~·eîned terminated, and the
holder shall remove from _suçb-· tand be fore the date specif ied
in the notice any works .. , .. .-·:J;>-u'i._lding, plant or other property.
3. Where,·• .. t:ie--\·older of prospect ing or min ing
rights bas received ..._notice under this Article, he shall not
be required to make good the surface of the land, and sball
be entitled to compensation for any disturbance- to passageways,
works, buildings, plant or other property; but not for
the disturbance of bis prospecting or mining rights;
Provided that compensation shall not be payable
for the removal of any camps or other structures erected
temporarily in connection with prospecting or exploration
operations.
4. Compensation payable under this Article shall,
if not agreed between the parties, be determined by a Court.
Article 8
Government rights to take minerals for public purpose
Nothing in this Code or the Regulations shall
restrict the right of -the Government to take minerals requi
red for any public purpose from any land;
32
Provided that when such minerals are taken from
land, which is the subject of any permit, license or lease, -
in such a manner as to interfere witb any prospecting or
mining rights, the Government shall pay reasonable compensation
to the holder for disturbance or damage caused, as may
be agreed or determined in accordance with the provisions of
paragraphs 3 and 4 of Article 7.
Article 9
Revocation of permits, licenses or
leases in cases of fraud, etc.
1. Where any permit, .. 1J~i·:ase or lease bas been
granted in pursuance of the p~·ov):~Jons of~ .. t-l;lis Code and the
Regulations and subsequentl1··).:·t):s fou~d· ... ê:fi:a~---··such grant bas
been obtained as a resul.~····:d--f-·: .. any fal_s~. d't;: fraudulent representation
or in conseque~c~·: .. o'f any_.i:p.~Qr·-rect· information, the
Minister may give not;·i:Ç~·=·t-o the J~ci).dè.~·-.-.in the prescribed manner
to show cause wttJ:iïn a __ sp·~cff.i·ed time why such permit,
1 icense or lease shoul'd not. ·oe ··-r·es:ioked.
2. If the trtïti~}\a~ls to comply with such notice
within the time spec·if.t~d or if the cause shown be deemed
inadequate, such pe+m,:i.t, license or lease may thereupon be
revoked by the Minister with the approval of the Council of
Ministers.
3. Notice of such revocation shall be published
in the Official Bulletin and a copy of such notice shall be
sent to the holder at bis last known address.
Article 10
Revocation of permits, licenses or leases for
breaches of this Code and the Regulations, etc.
1. In the case of a breach of the provisions of
this Code or the Regulations or of any terms and conditions
of any permit, license or lease by the holder thereof, the
Minister may give the holder notice in the prescribed manner
to show cause within a specified time why tbis permit,
license or lease should not ôe revoked.
33
2. Such notice shall be sent to the last known
address of the holder. If the holder fails to comply with
such notice within the time specified or should the cause
shown be deemed inadequate, the Minister may, with the approval
of the Council of Ministers, by decree published in
the Official Bulletin, a copy of which shall be sent to the
last known address of the holder, summarily revoke sucb permit,
license or lease.
3. Upon such revoation all privilegei and rights
conferred under such -permit, license or lease shall cease as
from the date specified in such decree. ·
4. Revocation under this Article and under Article
9 shall not in any way affect the liability of any persan
concerned arising out of such b~âa~h before sucb revocat
ion and shall not be a bar• to a~Y::•.j.egal p~oceedings relating
thereto. .-······ .... ····\ ·: :-. \
(--/)._\..../ .-.-.::.: ......y =· ·... .....
·-:"":: .. \i;;·~~le ....l "f .. ··:\:·\. ·..
Certain per sons ·-:.!)~~hi b_ij)~:··-.. ~~~: acq u i ring r igh t s
...-·<:.::_-<: .....
: : ·.
1. No m~iÏÎb~·t·•·•Of the Government or Ci vil Service,
nor any other persdn ..... associated with the administration of
this Code or the Regulat~ons shall directly or indirectly, by
himself or by any other person, acquire or hold any right or
interest under any prospecting or mining right. Any permit,
license, lease, document, or other transaction purporting to
confer such right or interest on any · such persan shall be
null and void.
2. No person shall acquire by transfer or through
an agent any prospecting or mining right which be is otherwise
barred from obtaining in bis own behalf under the provisions
of this Code or the Regulations. ·
34
Part II - RIGHTS AND OBLIGATIONS OF HOLDERS
OF PROSPECTING AND MINING RIGHTS
Section 1 - General rights
Article 12
Rights of entry, access, etc.
Subject to the provisions of this Code and the
Regulations and exceptas may otherwise be expressly provided
in the terms and conditions of any peJmit, license or lease,
and subject also to any other law wj:H~.h may prohibit, regulate
or restrict the entry -into •-.?~f a~eas 9f the Republic,
the holder of prospecting or 11110-fnf·· right~ .. \~iJhin the permit,
license or lease area m(ty) \ .... ...- ...- \· \.·=·-. ·.· · ·
.... ~ ·-~ ···:···•.. · ... • ·.. · ... :
(a) enter l!Po;a:. \~~-a"" pro~.pë~t\ i"n any land or under
any water (not·-::_.éi~tuded .. f-l;'_'c~m. ··prospecting or mining
under Article 6) \for su~h· .. Îtl_ii;iét.als as may be authorized
in bis permit, licen~e ·1f·· 1.e·ase;
(b) whilst ~-~g};·~-~- in bona fide prospecting or
mining operatiops···_~i-tbin such area:
· ...... ·
(i) erect on unoccupied land a tempor ary
camp and such· temporary structures and works as
may be necessary for bis operations, and enter
into temporary occupation thereof;
(ii) take firewood, other than standing
timber, for bis domestic use and for his employees,
agents or servants;
(i ii) graze such animals as may be_ necessary
for the carrying out of his operations;
(c) dig pits and trenches and bore or drill holes:
Provided that he shall not d ivert any water
from any river, stream or water course or abstr.act water
from any lake, pool or other source of water .without the
written consent of the competent authority controlling,
or the owner of, such water;
Provided fur ther that the ut il izat ion of
water and the construction of any new works relating
to the collection, extraction or use of water shall be
35
subject to the provisions of any water legislation in
force;
(d) employ for sucb operations any number of persans
as be may require and such methods of transport as
may be necessary.
Article 13
Amalgamation of permits, etc.·
1. The bolder of any permits, licenses or leases
which are contiguous and form a s ingJ;:~r.block may apply in the
prescribed manner to the Director .. t9.\ h~Ye such permits, licenses
or leases amalgamated; ... ······ .. >•.\"·•: :•. \
Provided tl_la{:~àf~amat;:iJÎ_~-----~\;'~it not ex tend to
d i f fer en t C 1 as s es O f P.·~ t-t;H. t s ' 1 j. C·~.ri.;~ e·s O t 1 e as es ' n Or t 0
di f ferent holders. •.:-"> \·· · · ..... \ .. · \ ··
2. The t;°f":~ oJ?{i-~'.~-~\-~-~s imposed by th is Code
and the Regulations in J.e:~Ji.fc;t of all the permits? licenses
or leases thus amalgam~téfi· .. may then be performed 1n respect
of any one or more 9·f·· .t:b.e.: permits, licenses or leases at the
discretion of the h6·l. .d... é· r.
3. Any prescribed returns, reports and plans may
be submitted in respect of the amalgamated black.
Article 14
Holder may remove plant, etc. on
termination of permit, license or lease
1. Except as may be expressly otherwise provided
in the terms and conditions of any permit, license or lease,
any plant, machinery, engines or tools on the area of a
permit, license or lease which bas terminated or which are on
any passageways used in connection therewith may, within
ninety (90) days from the date of such termination, or within
such further time as the Minister may allow, be removed by
the holder, but be shall not remove any timber from any mine,
adit or shaft except as may be approved by the Director to
c om p 1 y w i th the pro v i s ions o f i t em ( b) o f Ar t i c 1 e 2 3 .
3 6
2. If such plant, machinery, engines or tools
are not so removed, they may be sold by negotiation or auction,
by order of the Minister, and the net proceeds of sucb
sale, after deducting the costs thereof and any sum whicb
the holder is required by law to pay to the State, shall be
retained by the Minister, and beld until applied for by the
holder within a period of twelve (12) months, after which
.tiJne any such sums shall be forfeited to the -State: -
Provided that where plant, machitiery, engines
or tools cannot be sold by negotiation or auction they shall
become the property of the State, and may be dealt with in
such manner as the Minister may direct.
Article JS: .. {--::-.:=
Right of·;;~:1·~~-:w~y \ ). \··,
1. If on•;·~~t<i:~·::~., ... {i}~is·:· o~ lease area or on lands outs ide the boü,ndàr ies .. ~n.~i';eo·f, the holder of the prospect
ing or mining rfgbt:s ·.. i :~ .. ·ë:i.étdrous of obtaining a right
of passageway, be may aP.P.·ly<:fo the Minister in the prescribed
manner for a grant of 5:-uc~ \right of passageway .
... ······ · ....... ..
2. If on. fmY application made under the preceding
paragraph, the Mfiiister is satisfied:
(a) that it is necessary for the prospecti
ng or mining operations or for the transportation,
treatment, process ing or storge of any minerals such
tbat the applicant should have the passageway; and
(b) that it is reasonable for sucb r ight to
be granted over the particular land which is the subject
of the application, or as may be amended by the
Minister with the agreement of the applicant. -
be may make a grant of a right of passageway in the prescribed
manner.
37
Article 16
Duration of right of passageway
Any right of passageway acquired under the preceding
Article -shall expire when the permit, license or
lease -which it serves is terminated, and thereupon the bolder
shall comply witb the provisions of Articles 14 and
23.
Section 2 - General Obligations
Article 17 ,._\C:) ·
___ ~ 11-~~'~:s·-.\ ·-: -<.·. ... · ... _. v= ·•_ ........ •. .
•.. : •.. .
1. Be fore{g};n:·i:;~~ _a-Rf· .. ;:;i~i t, license or lease
or any passageway, and .... s.ubs~c;p:~~~~~ ···fo such grant should the
necessity arise, the Min:{.st-~;-· mây require the area of land
to be included or occup.i~·~·· .. :çfr the boundar ies thereof to be
surveyed by a surveyq1 ~pproved by the Minister, the cost of
such survey shall b:é 1;>O1:tie by the appl icant or holder, as
the case may be. -... .... /
2. The Minister may require the boundary of any
permit, license or lease or any part thereof to be demarcated
in a manner approved by h im, includ ing the clearing of any
vegetation along such boundary so that it shall be clearly.
visible, ·and the holder shall keep such boundary or part
thereof permanently demarcated in such manner.
Article 18
Holder to produce permit, license, etc.
The holder of any permit, 1 icense -or lease shall
produce bis permit, license, or l~ase whenever demanded by
any person having lawful interest in the land on which be
is carrying out prospecting or mining operations, or when
demanded by a police officer, District Commissioner, or the
Director or any officer authorized by him.
38
Article 19
Notice and security for compensation
Any holder of prospecting or mining rights intending
to prospect or mine on any land shall, whenever practicable,
give notice to the person having lawful .interest
in such land before commencing ope-rations thereon and shall,
if so required· by such person or the Minister, deposit with
the Minister such sum, or give security therefor, as the
Min.ister may direct, for the payment of compensation which
may be payable under Article 20. Such sum or balance thereof
(if any) may be refunded or released in accordance with
the provisions of paragraph 5 of Article 21.
\ ::-:: ... :
P a~e~ :::::~7-~:!:~:&:;~~:·.:.\::, . \ . ·,
·.:~)·: ( ··. . ...···.:·.~· .. .... ..
1. The hoi°<ier q( .. ·~~·-o·~~·~cting or mining rights
shall, on demand being ·m·a~.ê.. oy any persan having lawful
interest. in land whe~e /sùç~ ··prospecting or ~ining operations
are carr1ed on by q..tm•;· .... p.ay such person fair and reasonable
compensation for any. d_.1.sturbance of bis surface rights, and
for any damage done ···fo the surface of the land, or to any
livestock, crops, treesi buildings or works, as a result of
such operations.
2. The amount of compensation payable under the
preceding paragraph shall be determined by agreement between
the parties or, if the parties are unable to reacb agreement,
or if the agreed compensation is not paid, the party having
lawful interest in the land may take proceedings before a
Court.
3. The sum awarded by such Court shall be paid
by the holder to the person entitled thereto within fourteen
(14) days of the date of communication of the decision.
4. If the sum awarded is not p_aid witbin the
time specified in the preceding pararaph such sum may, where
the party concerned bas made a deposit under Article 21, on
application to the Minister, be paid out of such deposit
under the order of the Minister. Where no such.deposit bas
been made, the award may be executed in accordance with the
law.
3 9
5. The Minister may, by notice to the holder of
prospecting or mining rights who bas failed to pay the sum
awarded, suspend bis mining or prospecting rights, until the
sum awarded bas been paid, and until the holder bas lodged
with the Minister such further sum as he may demandas
security for any future compensation payable.
6. If sucb payment or deposit is not __ made within
such time as the Minister may consider reasonable he may
revoke the prospecting or mining rights of the holder in
default, without prejudice to any further légal proceedings
which may be instituted by reason of such default.
Article 21:.. /.":)
/~~~~:~:J·<·-: -<.: ---. __ s:,--:---....--
1. As a g!):~t·1~'~:-e· f_o.r_\i,~-;-\iue performance of the
obligations imposed \py· _thi~. -..~·çd~·-.. ··or the Regulations, any
per son who bas app 1 ied f ot:v o._r...- is holding prospect ing or
mining rights, may be r~_çi.~:~-r:~.a by the Minis ter to depos i t, in
addition to any sum l~dg·e·rl under Articles 19 and 20, such
sum, or security fof ... ll:ké. amount in lieu thereof, as may be
prescribed or otherwJ;$•e as may be decided by the Minister.
2. If such pers on f ails to make depos i t wi thin
the time specif ied, the application may be refused by the
Minister, or the prospecting or mining rights revokeà.
3. The Minister may, in any case where the
depositor bas failed, after due notice, to meet any obliga-
.tions imposed upon him by this Code or the Regulations, take
such steps as be may consider necessary to fulfill the
obligations, and may expend from any deposit such sum as he
may cons ider reasonable to defray any expense incurred by
him in so doing.
4. Where any deposit or portion thereof is so
expended, the Minister may require the depositor to make
good such deposit or portion. Failure to do so may render
any prospecting or mining rights, _ in respect of which any
deposit was made, liable to revocation by the Minister.
S. Where upon the termination of all interests
in any prospecting or mining rights, in respect of which a
4 0
deposit bas been made, the permit, license or lease is produced
to the Minister and the termination of such interests
is duly recorded, then the persan by wbom such deposit was
made may make wr itten application to the Minister for the
refund or release of sucb deposit or balance thereof and,
upon production of satisfactory evidence by the applicant,
the Minister shall authorize such refund or release to be
made;
. -·
Provided that such refund or release is made
without prejudice to any claim or proceeding existing, or
which may arise through the breach by the holder or bis
agents or servants of any of the provisions of this Code or
Regulations, or existing or arising from any other cause.
6. Subject to the provi~!Ôns of Article 29, where
the interest of a depositor· in a1;1x-.. \pe-tmit, . license or lease
is terminated by transfer, no 1;êI\in~f:or rel~à..se shall be made
until the transferee bas ma~n~ \a .. ..like 4ep~~it··.·\:>f such sum as
the Minis ter may demand. (···: ··::·•.. · .. · \ \:
</_-}=-.::-c· .: ·-. -:.:_··--.;<:_-_:::'.·:.::·\ ·-. .
· Art"i.ci:-e\·22
Records of pr_os)?~~ii~-~ and mining operations
:· · ..... ·
.......
1. The holder of prospecting or mining rights
shall keep on the permit, license or lease area or such
other place in the Republic as the Director may approve,
full and accurate records, plans and maps of bis prospecting
and mining operations, and shall render to the Director sucb
returns, reports and plans as may be prescribed or as may be
required under the terms or conditions of bis permit, license
or lease.
2. Exceptas may be expressly otherwi~e provided
in the terms and conditions of any permit,. license or lease,
one half of the cores of any drill-hales shall be preserved
by the holder, together with proper geological legs and
records thereof, during the currency of such permit, license
or lease and on the termination thereof such core portions,
logs and records shall be made available to-the Director or
to such other officer as be may direct.
3. If the holder fails to comply with the requirements
of this Article, the Minister may, without prejudice to
any other penalty for which the holder may be liable, refuse
4 1
to entertain any application by such holder for any permit,
license or lease.
Article 23
Obligations on termination of a permit, licénse or lease
Every pers on who was the ho lder of a permit,
license or· lease which has terminated sball,. not later than
thirty d~ys from the date of such termination:
(a) submit the permit, license or lease to the
Minister for cancellation; .-···
(b) fill in or otbe~:w.f-~è-\~~~:hure to the satisf action
of the Director, ~Jt s)là-f~s, pit;~···· .. 9ç other excavations
in a permane~~\μi~hn-er so ... ,~is\Aô··-prevent persans
or livestock inadv~ff~ii.~1i enter_i~g'\thérein;
(c) remove·.::_::k1i· ... beaco.1:1s.:\~;·ik:ing the boundaries of
such permit, licei:rse- or ... léa·s~) area;
(d) forward _.. t !o\_-~~'~ ··-;-~rector all plans both of
surf ace and un9-e.tgrgund workings, topographical, geological
or assay :P'Lsns, borebole core logs, and otber
records of the····aiea over which rights are termioated;
(e) furnish written confirmation to the Director
that be bas complied with the provisions of this Article
as to the securing of excavations and removal of beacons.
Article 24
Liability incurred before termination of permita, etc.
Termination of any permit, license or lease for
whatsoever reason, including transfer and surrender, shall
not affect in any way any liability incurred by the holder
before such termirtation takes effect.
42
Aricle 25
Appointment of agents
1. When the holder is not personally residing on
or sufficiently near bis permit, license or lease area so as
to maintain continuous supervision of any_ prospecting or
mining operations in progress, be shall appoint an agent
who shall be approved by the Director as possessing suitable
qualifications and experienc~ to supervise continuously such
operation. Such approval may be wi thdrawn _by the Director
at any t_ime.
2. Any change in the appointment of an agent
shall be notified to the Director for~hwith.
3. Such appointineç.t:.::·-~~\··::1p.prol{al shall in no
way absolve the holder fr_OJP.{ aqy•: qf h._i~···:-~·~.l,igations and
respons!bilities under t9.e..:~-l?.i:.~vfsion_s..•{Oi\\tbis Code or the
Regulat1ons. :- \ ... : .. -.. .... \ \ ·
.•··. \··::• .. ·.. . .:·- ·.::·•.:: ..
4. E v ery ····.:t1·oùd er .o•.f·· ... ·~(i;i. ·.ex c 1 us ive prospect i ng
1 icense, mining permit··· or ~i-n.Îljg)fease, and every ho lder of
an o i 1 e x p 1 or a t ion p e rm.:i.~· . . ♦·.:p r ·. o i 1 mini n g 1 e as e w h en no t
resident in the Repub1ic·;··•. ." -çr:•. when such holder is a syndicate
or company with its peaq 9ffice elsewhere than in the Repubic,
shall appoint and at a,_r· times have resident in the Republic
an agent with fu11 ···p·ôwers to represent the holder in all
matters relating to any prospect1ng and mining operations,
including the obligations imposed by this Code and the
Regulations and the terms and conditions of such permit,
license or lease.
5. A copy of the power of attorney duly signed
by the agent in acceptance of bis appointment shall be sent
immediately to the Minister for record, and any subsequent
doctDnent by which such power of attorney is àltered shall
similarly be s igned and s·ubmi tted to the Minis ter ..
43
Part III - PROSPECTING AND MINING FOR
MINERALS OTHER THAN HYDROCARBONS
Section 1 - PROSPECTING PERMIT
Article 26
No prospecting without permit
No person shall prospect for minerals other than
Hydrocarbons wi thout a prospecting permit issued under the
provisions of this Part. . ( ..
\ ······:
Art::.f~ç};> .... ·.. \°>.\,.··,
Grant ~~:'.:~~~::·;ectirig-:~~:-~2·i~ .
1. The M;•i:~=:t~r·-.::;;;:::.)::· -~pplication in the prescribed
manner, grant ~-···Rlt~oë:.pecting permit in the prescribed
form to any individu~! ~h~~
... · . ·-..... ·
(a) bas attained the age of 21 years;
(b) is able to prove to the satisfaction of
the Minister, or other authorized officer, that be can
understand the provisions of this Code and the Regulations
to such an extent as to enable him to carry out
the obligations imposed by them.
2. The Minister may issue a prospecting permit
for all minerals, other than Hydrocarbons, which are open to
prospecting, or for such minerals or class of minerals as be
deems fit. He may restrict the rights under any prospecting
permit by endorsement thereon, either in respect of certain
minerals, or class oil minerals, or in respect of any specified
area or areas in the Republic.
3. When prospecting is to be carried-out by a
corporation, company, syndicate, .partnership, society or
other body, such body shall employ an individual or individuals,
as i ts prospecting agent. The prospect ing permit
shall be in the name of such individual as agent for such
body.
4 4
4. When application is made for a prospecting
permit to be issued to an individual to actas agent for
another peson:
(a) such person shall complete an undertaking
in the _prescribed form to be respons ible for the
acts and omissions of the · individual, who shall also
be responsible for bis own acts and omissions;
(b) the individual shall surrender for cancellation
an_y valid prospecting permit be may hold in
his own behalf.
S. An agent's prospecting permit shall terminate
when he leaves the services of the person for whom be is acting
as agent. . t··
The Minis ter ~ay;.···r·~fiit··:·.~o- ~-ii~e. a prospect ing
permit to an individual who,.(O:t"···~}:iose e~p·\oye.r·..-bas previously:
(a) beld·-.. _"'~J;·c;rol!.PË!:.~b. .. ;·~g\
0
or mining r igbts
which have been ··fe.v1:fke.d; .•···•.\.·· \ ·
6.
(b) b;·~~- COI.\V:.i~~:M) ~-; an offense against tbis
Code or the Regul?.{t:orl;~··. or of an offense against the
laws relating to tpe ~mployment of labour.
:.·······. :·· ...... ...
· Article 28
Duration and renewal
A prospecting permit shall remain in force for
one year from the date of issue, and may be renewed on application
in the prescribed manner for further periods of one
year each.
Article 29
Prospecting permit not transferable
A prospecting permit shall not be transferable.
45
Article 30
Rights and obligations under a prospecting permit
1. Subject to the provisions of this Code and
the Regulations, and to any conditions endorsed on bis
prospecting permit, the holder of a prospecting pe~mit may
prospect on any land, not otherwise closed to prospecting,
for such minerals as are endorsed on bis permit. --
2. The holder shall be present .at the site of
any prospecting or other operations being carried out under
the authority of bis prospecting permit, but many employ at
such site such persons working under bis direct supervision
as may be necessary for such operati~ns. Such persans shall
not require prospecting permi ts. \·······:
3. The holder maY..~. f~-::~J; ;:e11ct-Ù>~ manner demarcate
and apply for an exc.l.~.i~J~e····prosp~~·ti.dg ·-1icense, mining
permit or mining lease. :•. -:.. .. ) ... \ · ·:·•--· ... \ ·.
{) ... \>·..... ..•·· ..' <· ~· .. :·.:-.
Section 2 - -~-~~l~s--{;~·--.:~f::-~ecting License
..... ·· .. ~·.::·••:: .. ·.
: ! ·. ( ..... /··~f t icle 31
· ...... ·
Grant of an exclusive prospecting license
1. The Minister may, on application in the prescribed
manner by the holder of a prospecting permit and on
being satisfied that the applicant bas sufficient capital
to ensure proper prospecting of the area appl ied for, grant
an exclusive prospecting license in the prescribed form.
2. The Minister may, after approving -the grant
of the license, authorize work to begin on ·the license area,
pending the issue of the license.
Article 32
License area
The area of an exclusive prospecting license shall
not exceed eight (8) square miles;
46
P-rovided that the Minister may, with the approval
of the Council of Ministers, grant an exclusive prospecting
license for an area greater than eight (8) square miles upon
such terms and conditions as be may think fit.
Article 33
Duration and renewal
An exclusive prospecting license shall be valid
for one (1) year, and may, on application in the prescribed
manner be renewed by the Minister, at bis discretion, by
endorsement thereon, for further t~tiii~ of one (1) year each
up to a maximum of a five (5) yea~ jμ~~tion;_
Provided that in . .thl·~1·;~·~: of .. a Û;:~--à-e"rtse whose area
exceeds e ight (8) squar~····ui'ï:_fe·s·· the ·.. M i.pf°ster may, wi th the
approval of the Council:·• .. p·~--~·Minist~r$--,.\g-rant· furtber renewals
a f ter the fi f th ye a:t) .. on··. s uch .. t.ë.J:.mè-. and conditions and in
respect of such area "6.î·= \~.rea~ .. -~-~- ~e-·faay think fit •
. ·.: . ·.. ·.. .. ·
.·· .. ·.~\:.-·><~:. ·.
: : ·.
c·····.-=---·····.Article 34
Righi~ and obligations under
an exclusive prospecting license
1. Subject to the provisions of this Code and
the Regulations and to the terms and conditions contained in
the exclusive prospecting license, the holder shall have the
sole right of prospecting within the license area for such
minerals as may be authorized in the license;
Provided that such right shall no€ extend ta
the area of any other license, permit or lease lying within
the boundaries of the license during the currency of such
other license, permit or lease.
2. The holder may apply in the prescribed manner
for the grant of a mining permit or mining lease within the
license area.
3. Throughout the currency of the license, the
holder shall continuously carry out prospecting operations
47
within the license area to the satisfaction of the Director,
unless suspension of such operations bas been authorized by
the Minister in the prescribed manner.
Article 35
Transfer of license
The holder of an exclusive prospecting license or
any interest therein shall not transfer bis license or any
such interest without the prior written approval of the Minister.
\ c: ... :
A~_1?4t~ji•·\ ·:::( \._·>·\ .. ··,
sur ~.e~4è:t -~ f 1 i c.e.n·f? e\ ·.
An exclusi:i\~:~-p~·çt-}~/i:·::nse may be surrendered
in the prescribed manner···:~~.\.any time on giving thirty (30)
days notice to the Mini.s1:·e_r._;"···· . . .
. ····· .. ·.
Provided that ····~here the holder des ires to surrender
a part of the iîfense area he shall apply in the prescribed
manner for the approval of the Minister.
Section 3 - Mining Permit
Article 37
No mining without mining permit or lease-
Save as provided by Article 8, no persan shall
mine minerals other than Hydrocarbons without a mining permit
or mining lease issued under the provision~ of this
Part.
48
Atticle 38
Grant of mining permit
1. The holder of a valid prospecting permit or
exclusive prospecting license may apply to the Minister in
the prescribed manner for the grant of a-mining-permit.
2. If the Minister is satisfied that the application
is prima facie in order, and that the mineral applied
for exists within · the area demarcated, be shall grant the
mining permit in the prescribed form to the applicant for
such mineral or class of minerals as may be authorized in
the prospecting permit or exclusiv.e.... prospecting license •
\. ·······:
Ar_ttc/::j;·> ·:::< \_:_>-\--·,
Durat:i"~d-.. ·1~d re.n~~l \
A m101ng p·;.;~::~- .$½)'.~)s.::i'i····:alid for one (1) year
from the date of demar_ç_·a:t-1.:-9-n, and may be renewed in the
prescribed manner for/ f\.i1:t"her periods of one (1) year,
subject to the Minist'êt."··b.a-i.ng satisfied that the requirements
of this Code and Régu;Ifations have been met and that mining
operations are being ··ëarried out in a safe and satisfactory
manner.
Article 40
Conversion to lease
Where, in the opinion of the Minis ter, ·the scale
of operations on a mining permit or permits is of such a
scale as to warrant the grant of a mining lease, he may
require the holder to apply for a lease, and such lease
shall be granted, but subject to such terms and conditions
as the Minister may think fit.
49
Article 41
Rights and obligations of the bolder of a mining permit
1. Subject to the prov1s1ons of Articles 19 and
20, the holder of a mining permit sball, within the permit
area, bave the right: -
(a) to prospect for and to mine such minerals
as may be specified in the permit;
(b) subject to the provisins of Part V, to
dispose of such minerals;
( c) t o ma k e a 11 n /~-~ s s a r y ex c av a t ion s ;
( d) t o s tac k ... atid·;:;---J~\ j~ c_t '.·~ ~--.. the pr ov i s ions
of Article 96, to d~f.)_ny..-··o f . t9~· -~'rl:-oa·ûcts of mining;
(e) t.o .. ~-.?il/· ~ erl!lart*~:t\. h~-u'ses, buildings,
engines, machiné~·Y: ~and o~qe~--.\~.9tks, and to obtain such
passageways as m·ay -be ._ne-ça_~_sàry for the mining operat
ions. -. \ -..:· .._ ·
2. The hp.J,<f°;·;·}-:~-;11 throughout the currency of
the permit carry o~ rn°tïi"ing ope-rations continuously within
the permit area to the·.-satisfaction of the Minister;
Provided that the Minister may, on application
in the prescribed manner, authorize the holder to
suspend work within the permit area for periods not exceeding
ninety (90) days where be is satisfied that circumstances
make it desirable to do so.
Article 42
Transfer of permit or shares
1. Subject to the approval of the Minis ter,
which shall not be unreasonably withheld and to- the provisions
of Article 11, the holder- may transfer bis mining
permit or permits in the prescribed manner.
2. Subject to the approval of the Minister,
which- shall not be unreasonably withheld, the holder may
50
- by instrument in writing divide bis interest in any mining
permit into sucb sbares as be sball tbink proper, but not
exceeding twelve (12) in number, and may transfer such
shares, atid the rights and interests in the permit in the
prescribed manner.
3. When the transfer of shares in a permit is
effected, all or any of the share holders may be held responsible
for the obligations imposed by this Code or_ Regulations,
unless otherwise provided in the instrument creating the
shares.
Article 43
Su-rrender of---_pa't:i:'t ·
A mining permit;--;;/~} ~-~~i:_-ê:hd-~t:~------~•t any time by
notice to the Min1ster :.anat·submiss.ia:a, .. J:>Î" the permit for cancellation,
together w:Jth/the CO~-f.f~ma•tion required by Article
2 3 • \) . ...- ··<>··.) ·.. ....
_.-------/::\::<
c·····./···••irticle 44
· .....
Revocation of permit
Without prejudice to the generality of Articles
9 and 10, a mining permit shall be liable to revoation:
(a) if subsequent to its grant it is found that
the are a was not proper ly d emarcated pr ior to the
application;
(b) if the holder ceases work for a perfod exceeding
fourteen (14) days in any month without the authority
of the Minister;
(c) if the holder fails to submit any prescribed
return or report;
(d) if after due warning in writing the holder
fails to maintain in good order the beacons demarcating
the area; and
5 1
(e) if the holder fails to.keep proper records
and accounts of bis operations as required by Articles
22 and 74.
Section 4 - Mining Lease
Article 45
Grant of mining lease
1. Where the holder of a prospecting permit,
exclusive prospecting license or mining permit in the course
of bis operations d iscovers deposi~s····<;>f minerals of sufficient
size and bas carried àut_ ... d:~~(~-l.opmènt i!JOrk or preparations
for mining, or such ot;p~r pt;~spec~ihg\w.qrk as in bis
opinion indicates a reas.9.~:f{l9._le-•···prob~ltil:~ty· of steady and
con t in u ou s pro duc t ion J 6.~/. â. ·i? e r i o .. ~ \.o t... à t . 1 e as t f ive ( 5 )
years, such holder pi,af} .. ·•·iri the _-·pr·-~·s~r ibed manner, apply
for the grant of a mfn:f~g 1eas~<·"• .. '·-( ... ·.
2. If the ~~ni.si;; .. \.~-...-~~tisfied with the evidence
submi tted and is fur the7-··-si~·i:1;°f ied:
. . .
(a) fh-~é--··fhe applicant bas or can command
sufficient cap~e~l for the proper development of a
mine; and
(b) that a market exists or can be found for
the products, the Minister may, wi th the appro~al of
the Council of Mi nisters, grant a mining lease 1n the
prescribed manner, subject to such conditions as be may
think fit.
Article 46
Duration and renewal
1. The initial term for a mining lease ·shall not
be less than five (5) years and not more than·twenty-one
(21).
52
2. Not less than six (6) months before the end of
the term granted the lessee may apply in the prescribed
manner for renewal of the lease for further terms, and if
the Minis ter is satisf ied that the lessee is carrying out
work in a normal and businesslike manner, and that the lease
is not otherwise liable to revocation under the provisions
of this Code or Regulations, the Minister shall renew the
lease.by endorsement thereon for a further term, not exceeding
twenty-one (21) years, as may seem to him reasonable, in
view of the probable life of the operation. -·
3. Each such renewal shall be subject to such
conditions as may apply to the grant of new leases.
Article 47. /.'.' .. }
Ren ted .stn!.:~-~i:.X-!r.~q. \ .. \>· \··'
The lessee·:·f;hh:{?·i·::·in.e'-:·.-~'i,t~fo t~e lease area the
rented surface area o··f .. ifreas ~Q{cif··be requires to occupy with
surface installations, · duμii,).s\.···.·èxcavations, etc, but not
r.assageways, and sha;1 I?.~t::•q\.~pecial rent, hereinafter called
'the sur face rent", 1n :tea:p.ect of such rented sur face area at
the prescribed rate_.;;-····.·· .. s.u·ch surface rent may be revised at
intervals of seven\_(}) years and the rented sur face area
occupied may be variëd by the lessee, upon giving notice in
the prescribed manner, · as required by the progress of bis
mining ope-rations.
Article 48
Rights of lessee
1. Subject to the prov1s ions of Articles 19 and
20 the lessee shall, within the lease area, have the right:
(a) to prospect and mine for such miner als
as may be specified in the lease;
(b) subject to the prov1s1ons of Part V, to
process for sale, transport, and dispose of such minerals
or minera! products;
53
(c) to stack and, subject to the provisions
of Article 96, to dump any of the products of mining;
(d) to make all necessary excavations;
(e) to erect permanent bouses, buildings,
engines, machinery, plant and other works, and to make
such passageways as may be necessary- for the mining
operations. -
2. Pend ing the issue of a m1n1ng lease the grant
of wh ich bas been approved, the appl icant may apply_ to the
Minister for permission to begin mining within the lease area
or parts thereof. The Minister may grant permission subject
to such conditions or restrictions as be may think fit. Such
permis s ion ma y be w i th d r a wn a t a 1\y.".': .. ~ im e b y the Mini s ter •
/···<:·· .. \-~: .... '
~rfi;{~:··49 ·<.: ... ·· ... _\:=··\····,
Worki~: .. Jbl:{~.~~için{.·_-~~.::·~. lease
The lessee ····:h.,fl::i:·ii~i:~~g·:·out the currency of the
lease carry out contfnû~:h.1s"ly bonafide mining operations
wi th in the lease a~.Efii" /·t.o·_. the satisfaction of the Minister;
Provided tli.~t the Minister may on application in
the prescribed manner àuthorize the lessee to suspend work
within the lease area for such period, not exceeding six (6)
months, as be may think fit.
Article 50
Transfer of a lease or interest therein
/
The lessee shall not transfer bis lease or create
or transfer any right or interest therein, exceptas may be
specifically authorized in the terms and conditions of the
lease, until such transfer or interest bas been approved in
the prescribed manner by the Minist~r.
5_ 4
Article 51
Surrender of lease
A m1n1ng lease may be surrendered either in whole
or in part in the prescribed manner, after giving six (6)
months notice to the Minister.
Part IV - HYDROCARBONS
Section 1 - General P,ô.tfsions
tion and
Ar _t ~e]{j;·-> ·:::.,.:: _ ...... v,-\ ... ·'
Scop~-::.~.df·•:.:~h is pa:i:t ...
. •·· ·: :_ .. ···.. . '\ ·. . .
The prov i s};:~ of-::·:;;~:~:/~:; t r e 1 a t i ng
mining apply sole:l;y . .\t·-9 Hydrocarbons.
=--······.! · .•. ·•.•,
to explora-
.. -····· ·-..... ·
· ..... Article 53
Grant of permits etc.
1. No person, other than the Government, may
explore or mine for Hydrocarbons except in accordance with
this Code, the Regulations and the terms and conditions of a
permit or lease granted under the provisions of this Part.
2. Subject to the provisions of this Code and the
Regulations, the Minister may, with the_approvàl of the
Council of Ministers, in the prescribed manner, grant:
(a) an Oil Exploration Permit to explore for,
d r i 11 for , e x tract and r emo v e , f or the pur pose o f
testing and analysis, Hydrocarbons in and from such
lands and under such waters, referred to in Article 2
of this Code, as may be specified in the permit;
(b) an Oil Mining Lease to explore for,
drill for, develop, extract, produce, transport, store,
55
process for sale or dispose of Hydrocarbons from any
lands and waters, referred to in Article 2 of tbis Code,
as may be specified in the lease;
Provided tbat any permit or lease
granted pursuant to this Part shall be accompanied by,
and its validity shall be conditioned upon the existence of,
an Agreement between the Government and a holder relating to
the conduct of Hydrocarbon exploration or mining operations
within a particular permit or lease area, and provided,
further, that the termination of any such Agreement shall
result automatically in the revocation of any such permit or
lease to-which such Agreement relates.
3. Be fore entering into any Agreement, the Minister
may require the individual sig·p:_ing such Agreement on
behalf of any corporation, co~pf~~; syndicate or otber
association or body of person~----·~o-fporate : .. ot. unincorporate,
to lodge a power of attorn.~Y·: =.Jn..= such .. f~riμ.>--ii-2:f· the Minister
may approve evidencing s~·\i'·--:•i:noîvidu?I--~s\autbority to sign
on i ts behalf. :-.. \ ... : ... ·. ·-:·-. \ \
.. •.. : \.:=•· .. ·.. ,:· . ·. .: ·•.:-.
4. The gr·a~·e of ~P.-.. tfi).\.:e·xploration Permit or Oil
Mining Lease may be sÜbject..\to\._such terms and conditions as
the Minister may, with JJl~•-.:·:?PProval of the Council of Ministers,
determine, profid•ia .. that such terms and conditions
shall not be contra~y--_t.o.l or inconsistent with, the provisions
of th is Code o( _ fhe Regulat ions.
S. The terms and conditions of any permit or
lease granted pursuant to this Part shall be deemed to
include those contained in any Agreement relating to such
permit or lease area.
6. A permit or lease granted pursuant to this
confer upon the holder, for the duration of its
the exclusive right to conduct the operations
therein within the area covered by such_ permit or
Part shall
validity,
authorized
lease.
7. Without prejudice to the provisions of the
preceding paragraph, the Government shall have the right to
grant to persans, other than the holder of an Oil Exploration
Permit or Oil Mining Lease, permits, licenses or l_eases for
the prospecting and mining of minerals other than Hydrocarbons
within the permit or lease areà or passageway. Provided
that the grant of prospecting or mining rights for minerals
other than Hydrocarbons shall not materially interfere with
the rights of such holder to explore or mine for Hydrocarbons.
56
Article 54
Risk nature of operations
Exceptas may be otherwise provided in an Agreement,
the holder shall take upon himself all the risks inherent
in Hydrocarbon exploration and mining operations -and shall
commit himself to supply exclusively for bis account the
technology, capital, equipment, machinery and all other
investments required for such operations in the permit or
lease area, and the Government shall not be obligated to make
any reimbursement to the holder with respect to the investments
mc:Jde. In the fulfillment of this obligation the holder
may not have recourse to bank credit in the Republic from
institutions, companies or enterprises operating therein.
\ ::-:: ... :
Ar\i4{;j}/ ·::: .. :· \_-\/--\··,
~.fif-~1i•~·pat iQn.::•->·· .. \. ·. ·
.. · ·: :_ .. ···.. . ,: . ·•.. . ..
The terms ~:çÏ9-~ condi~t9ri;S\.-of any Agreement may, in
the d iscretion of the ··Minis~·~:r\. \p·rovide for the Government' s
participation in some or-·.::~~-1:.. s·tages of the Hydrocarbon exploration
or mining op~:fa·tl~i'i:s contemplated. Such participation
may include th_e ... Ti..gl:it to participate in the rights and
obligations under tl:i._is)Code, the Regulations or any permit or
lease. The Ministif.may issue Regulations governing the
terms and conditions upon which the Government will participate
in such operations.
Article 56
General terms and conditions of an agreement
In addition to the requirements of, and consistent
with, this Code and the Regulations, the terms and conditions
of every Agreement shall require a holder to undertake the
following obligations:
(a) Perform certain minimum work and incùr certain
minimum expenditures during t'he course of Hydrocarbon
exploration operations conducted pursuant to an Oil
Exploration Permit;
57
(b) Provide a letter of guaranty to secure the
fulfillment of the minimum expenditure obligations
undertaken pursuant to a. above;
(c) Employ and train Somali nationals to the
fullest extent possible with a view to the replacement
of foreign personnel as soon as may be practicable.
Such training and employment shall be carr-ied out
in accordance wi th a program approved by t!::te Minister;
(d) Keep current financial and cost accounting
records of Hydrocarbon exploration and mining operations,
with pertinent records and vouchers, during the term of
a permit or lease, in accordance with normal accounting
practices in the international P.etroleum industry, the
R7g~lat ions and the account i~rig. .. : r equi rements of the
M1n1stry; .. :-. : ..... •
( e) Pur chase Somq·l"\ (;_J;J:' a9-(i-.. t~:\tces, provided
such goods and serv-ic~·s::·:•.are reB:_So~ably pr iced and are
competitive in ter:mt·(o·t qua1:..it:y.\ai:'id availability with
imported goods a-tj~ .. ~-é"r·vice~.; .. _\_..• \ ··
(f) Presen;··.··:~nu~îÛ•·):.J --~~e Minis ter, for approval,
complete work prog:ç:~~-s.\.and budgets for the Hydrocarbon
exploration or mirfin~\operations to be conducted in the
ensuing year; / ..... · .... ./
(g) Supply····1:o the Government out of any Hydrocarbons
to which be is· entitled thereunder such quantity of
Hydrocarbons as may be required to meet the requirements
of the Republic for internal consumption of Hydrocarbons,
provided that the quantity of Hydrocarbons to be so
suppl ied shall be determined on a bas is that does not
discriminate against any individual holder and that the
price therefor shall be fair and reasonable;
(h) Relinquish part or parts of a permit area at
such time or times as shall be prescribed thèrein. The
obligation to relinquish part or parts of a permit area
shall not apply ta any part of such area encompassing
the area of a Commercial Discovery of Hydrocarbons for
which an Oil Mining Lease is sought;
(i) Indemnify at all times the Government and its
representat ives and agents against all and any claims
made by third parties in respect of any injury, damage
or loss caused by an act or omission of the holder, bis
contractors, subcontractors, agents, employees or
58
representatives in the course of Hydrocarbon exploration
or mining operations;
(j) Comply with and be governed exclusively by the
laws of the Republic, provided that the terms and conditions
may provide for arbitration of disputes arising
thereunder between the holder and the Government in
accordance with the rules issued by recognized .international
bodies which are acceptable to the Mitiister.
Article 57
Conservation and work practices
\ ::-.·: ... :
In the conduct of Hyd.roç·ai~on· ~xp_lo~ation or m1n1ng
opera t ions each holder, in a.Qe.d:rd~née wi):Q _:ge.~ei! ally accepted
practices in the intern~-t-~à~:at···petr.~·t~um.\ industry, shall:
(a) Cart:Y •t~.J/·>'-~·~:h ... !?fe};·è-i~ns us ing the mos t
rel iable, modern \~na ef f j.çi_erl:t·-.. ·techniques;
(b) Take s~eps,:.{J{ ~·~1·~eve the maximum efficient
rate of produc t ipn\ \ c·bmp at i b le wi th the part icular
characteristics(·o·~=·· .. JJfe Hydrocarbon reservoirs discovered;
(c) Conti~i the flow and prevent the waste or
escape of Hydrocarbons, water, drilling fluids, or
any mixture thereof;
(d) Generally adopt the necessary measures for the
protection of flora, fauna and other natural resources;
(e) Avoid the pollution or contamination of water,
atmosphere and land;
(f) Maintain in good conditiop and repair all
structures, equipment and other proper ty used in such
operations;
(g) Carry out such operat ions in a proper, saf e
and workmanlike manner;
(h) Take all steps necessary to secure the safety,
health and welfare of persons engaged in such operations.
The procedures for the application and enforcement
of such conservation an_d work pract ices shall be prescr ibed
59
i~ the ·Regulations and may be developed in the terms and
conditions of any Agreement.
Article 58
Blacks and awards of areas
For the purpose of awarding areas pursuant to this
Part, the areas of the Republic referred to in Article 2
hereof shall be divided into blacks, according to a grid
system, determined in accordance with rules to be prescribed
by the Minister. Blacks must be of a rectangular sbape with
two of the i r s ides or iented in th~(.'."QOr thsoutb direct ion,
ex cep t where the border s Q f th.e ..J\ep.i.Ibl ic, other natur al
boundar ies or the boundar ies•····.à·f\"··.~ther. a-reas wh icb are
currently s ubject to a permi_1: .... ~ ~=eàse, p~~t:e.#·t·•.i t.
·:·····: · ....... : .. _ ...... ..•·.:.. ·•· ... \
Section i:,.J~:-:·· ~ iç μJd~'~:\~~ --~ erm i t
..... . .·· ·. ·. :
,----Àf i:{:~-~:-- ·:·9
(~·;·~·t\on and renewal
1. The initial term for an Oil Exploration Permit
shall not exceed three (3) years.
2. Not later than ninety (90) days before the
expiry of the term the holder may apply in the prescribed
manner to the Minister for a renewal of the permit.
3. The Minister may renew the permit for not more
than three (3) further terms of one (1) year each, provided
th a t the ho 1 der ha s c om p 1 i ed w i th the p r_ o v i s ions o f th i s
Code, the Regulations and the terms and conditions, including
drilling commitments, of bis Oil Exploration Permit.
Article 60
Renewal for completion of works
If at the expiration of the initial term of an Oil
Exploration Permit, or ~f such permit bas been renewed, at
60
the end of any renewal period, any well is actually being
drilled, tested, appraised or plugged the Minister shall, in
accordance with the terms and conditions of such Oil Exploration
Permit, renew such permit with respect to the area
relating to the well being drilled, tested, appraised or
plugged for such period as may be necessary to complete the
drilling, testing, appraisal or plugging of such well.
Article 61
Working obligations in permit area
1. Subject to the terms and conditions of the Oil
Exploration Permit, the holder s~~¼l with all reasonable
des patch, and in any case not la;~t···):qan ninety (90) days
from the grant of the permit, _..(:}Qm~fenë·e by g_eological and/ or
geophysical methods, a progJ;•ci!JÎ. oj ·explqi:._açJo·n···.in the permit
area which may include, bμt .. ·ts ... iïô't li~-ited .. \to·, investigations
relating to the subsur+.~é~-: .. g-eology~:• ... a.~r-ial ·mapping, seismic
surveying, structure .. -~e$t· .. ârilling·,. ··ffte drilling of exploratory
well.s, stratigr·ap~ïc tesr-::·a,;-·i).1ïng and related activities,
and shall, during th~ ·.:t:~-r:t:.ency of the permit, continue
with due diligence to ca;ç.1;·y-.:: out such other work as may be
necessary to determin.e····~t!êther a deposit of Hydrocarbons
ex ists wi th in the Pe1:m.f-t ~rea.
2. In t~l!) ~~-~nt that a formation is identified
and is shown to be pot-entially productive of Hydrocarbons,
the holder shall carry out an adequate program of appraisal
drilling and such other activities that may be necessary to
determine whether the deposi t of Hydrocarbons so identif ied
is a Commercial Discovery.
Article 62
Work programs
The exact nature and extent of the operations to be
carried out pursuant to an Oil Exploration Permit shall be
set f orth in an exploration work program and wor·k program
budget which shall be submitted · to and approved by the
Minister. Except as may be otherwise provided in the terms
and conditions of any Oil Exploration Permit, the scheme of
exploration operations shall be conducted in accordance with
such approved work prog~am and work program budget.
6 1
Section 3 - Oil Mining Lease
Article 63
Grant of lease
1. An Oil Mining Lease shall only be granted to:
(a) the holder of an Oi 1 Exploration Permit
w~th respect to an area within bis permit area; or
(b) the holder of an Oi 1 Mining Lease with
respect to an area adjacent to bis lease area, provided
that such area is not currentlY .. subject to a valid Oil
Exploration Permit or Oil Minin~.Lfase.
2. An Oil Mining L~âs·~···1hai°l .oq-l:Y'"·-.b.!=! granted with
respect to the area, as des:.fgnatéd by ... ag.J:"~èmËfo;t between the
Government and the holde~····:cj-f•··.the petjn"i_t \or lease, where a
Commercial Discovery 9.f(~y4"r·o·carbQ.as.:···l±~s·· beén declared. The
area to which such Co~tcial Dls.ç·~ve·ty relates shall include
the area which, in thé· _judgm~n.t )ot the Government and the
holder of the Permit or Le~s.e,\ ts capable of, and necessary
for, the development an_d ... p.:rM·uction of Hydrocarbons from the
formation or formatio.ns:ïdentified during the course of
exploration operatiq~s-~/·····..■-
· ...... ·
Article 64
Comprehensive oil mining lease
The Minister may, with the approval of the Council
of Ministers, grant a comprehensive Oil Mining Lease covering
two or more lease areas provided that such lease a~eas are on
the same geological formation or cover a group of similar or
related formations.
Article 65
Duration and renewal
1. The initial term of an Oil Mining Lease shall
not exceed twenty-five -(25) years, but renewal may, at the
62
.discretion of the Minister, be granted, with the approval of
the Council of Ministers, at the end of such term for
a further period not exceeding five (5) years.
2. Every renewal of an Oil Mining Lease shall be
subject to a review of the terms and conditions of such lease
in the light of prevailing conditions at the time of such
renewal.
Article 66
Rights and obligations of holder
:··,
1. Subject to th~ proyi~~o~.$ pf this Code and the
Regulations and to the terms an9•··cfo*â:itions .. Of the Oil Mining
Lease, the holder of suclJ.•···.li.ea~e · .sha.LJ_\"·:h_a~·e the r ight:
(a) t o ~.x\J};'·~·····~ o_r•.: •. :~)~.}1\ . for i d_eve lop,
extract and pro9•~c~:• .. J!ydroca1:.b9n.s·•.·.10cated w1th1n areas
subject to the lè:àse; . ·.:····· ... \ .. · ·
(b) su~jec·~-.:·-.{~ ·-.. ~-b~ .. provisions of Part V, to
transport, store, .-·t:fr{>çË:fs·s for sale or dispose of all
Hydrocarbons pr9dt:Û::.~.4.= Îrom a lease are a, and, sub ject to
the provisions :._of.: Article 96, to dispose of any waste
products resu~~ing from such mining operations;
Provided, however, that the operations
conducted pursuant to the Oil Mining Lease shall not include
transportation beyond the FOB point of export or agreed
delivery point in the Republic, nor any process of refining,
nor any handling of Hydrocarbons which have been treated in a
refinery, liquefaction or processing plant.
2. Subject to the provisions of this Code and the
Regulations and to the terms and conditions of the 1ease, the
holder shall at all times develop and exploit every Commercial
Discovery of Hydrocarbons in accordance with generally
accepted practices in the international petroleum industry.
63
Section 4 - Transportation of Hydrocarbons
Article 67
Authorization and operation of pipelines
The construction, reconstruction and alteration of
pipelines, pumping stations and otber necessary facilities
inc idental thereto, and the operat ion thereof, wi th in
the areas set forth in Article 2 hereof, shall be subject to
the prior authorization of the Minister. Authorization may
be granted subject to such conditions as the Minister deems
appropriate. Procedures for obtaining. such authorization and
conditions applicable thereto mat•···b.e prescribed in the
Regulat ions. •· .. :·. \ ... .- ·
... {······.~ ··•:: ·•: . .
Section 5 ~:--.i~:i::-i~::~neo~-~'.:)~.:i~~i·::s
</·_-_, \~ ~f~-~-s~i;-:.·..,_ ·
Transfef··~#-::·;:·rmit or lease
:· · ..... ·
· .....
1. The holde~~of an Oil Exploration Permit or Oil
Mining Lease shall not assign, encumber or transfer such
permit or lease, or any right, interest or obligation arising
therefrom, except with the prior written approval of the
Ministet.
2. Such approval may be granted subject to such
conditions as the Minister may deem appropriate. Any transfer,
assignment or encumbrance in contravention of this
Article shall be null and void.
Article 69
Surrender of permit or lease
Except as may be expressly otherwise provided in
the terms and conditions applicable thereto, an Oil Exploration
Permit or Oil Mining Lease may be surrendered either
64
wholly or in part after g1v1ng not less than ninety (90) days
notice to the Minis ter. In the case of partial surrender,
the area so surrendered sball thereupon cease to form part of
such permit or lease area.
Article 70
Rights of entry into excluded areas
_ Notwithstanding the prov1s1ons of Article 6, the
holder of a permit or lease issued under the provisions of
this Part may, upon giving notice of a least two (2) weeks to
the Minister, and subject to the te~~s and conditions of bis
permit or lease, enter such_ are~s : .. ~(.)u:e described in item
(c), (d), (e), (1), (g), (h) ,.-···(.i·)_~··.: (j), .. (lë), (1), (m) and
(n) of Article 6 for the PJJt".pps~ of cqtJ:d~·~t-ing Hydrocarbon
exploration opera t ions .t-h.é-~.e.p·n··, pr~~·Jd·~a ·tha t he shal 1:
(a) not ex.c-aJ,~:{·;;~ otl1é;;)~~·-. d.isturb the sur face
of such areas; \·····=: . ·::···· .. :·.:: ... · ·
(b) not en~·:ge ··::(;\~~;)f~rm of drilling act ivity;
(c) so CQ-nd,;;·· .. ~--~s operations as to cause as
1 ittle damage in s_:ué·h areas as possible; and
· .....
(d) on comple·tion of such examination, forthwith
make good any damage caused in such areas.
Part V - ROYALTY ON, EXPORT
AND LOCAL SALE OF MINERALS
Article 71
Liability to royalty
1. All minerals obtained in the coursé of prospect
ing or mining operations and· any substance or matter
ex tr acted the ref rom, a f ter deduc t ing the amount of any
minerals used or consumed in the conduct of such operations,
shall be liable to such royalty as may be provided in the
65
Regulations or in the terms and condi tiens of any permit,
license or lease.
2.. Notwithstanding any other prov1s1ons of this
Code or the Regulations, liability for the payment of royalty
shall be deemed to have arisen immediately the minèrals have
been extracted or produced and shall be payable in the manner
prescribed, provided that where it is not possible to calculate
the exact amount of royalty payable before the sale or
other disposition of the mineral, provisional royalty shall
be payable to the Minister in such sum as be may reasonably
assess. - Thereafter, a final assessment shall be made after
receipt of account sales, assays, valuations or other doccrments
as may be necessary to establt@h the proper amount of
royalty due. \:······=
3. The Minis ter méfy° .. ::~.i~~~-~ fr:-0.~\ ~.be paymen t of
royalty such quantities o~····lti•in.érals ... as .. ·'1-e·.·mày deem to be
necessary for the purpose(s°} (J_f·· testing·· --~nd-: ~nalysis, experiment
or assay or fo1;. ~~μiiμèrcial .. -·ci"t·• . .':$.c·•ientific specimens.
<-:.:) r .. . .,..-.·< \:::/<-· .
.... $t-·i":i\1~ 72
:..· ··: ·.
Minerc:tfs· :hbta ined in prospec ting
· ............ ·
1. Save as may be .provided in the terms of any
permit or license to prospect, minerals obtained in the
course of prospecting shall be the proper ty of the State,
and shall not be removed from the permit or license area or
disposed of by the holder or by any other persan except with
the prier written approval of the Minister who may authorize
their removal for safe custody, or for any other reason which
be may deem fit and subject to such conditions as be may
impose.
2. If the Minister is satisfied that the applicant
has been conducting only such work as is reasonably
necessary to enable him to test the mineral bearing quality
of the permit or 1 icense are a, he may author i ze the appl ican
t to retain or dispose of the minerals on payment of the
presc~ibed royalty.
66
Article 73
Export and local sale of minerals
1. No persan shall export any mineral or any
product or substance refined or derived from any mineral
unless be is in possession of a permit to export issued under
the provisions of this Code or the Regulatiàns, which shall
contain a certificate to the effect that royalty bas been
paid or secured to the satisfaction of the Minister.
2. The Director or any authorized officer may
inspect -any consignment of minerals before export and may
take free of cost samples therefrom for the purpose of
ascertaining the mineral content and_fts worth;
Provided that· a~y..:·--~~;-~:~ · mat-~rials remaining
after examination shall b~ .. fet~t:~ed t;ot---~·t)_e-, exporter if
requested at the time of s~~'P.~fng-~· .. •·.:'° \_-("·-_ ·
3. When 1!1-Î, n\Éi':·ah'·- -~r ,m :(~~--t :-i . ~~ odu c t s or s ubs
tances are sold to p~i\S.Ons wi_t!'ti·i:ï··::·~.n-e Republic for any purpose
whatsoever, the··.·bo-lde.~-· 'Qf._ .. the prospecting or mining
r ights shall be li able tç_ ···1f~y ··-such royalty as may be pres
cri bed for such mine~-al);_""··0r mineral products within one
( 1) mon th of s uch s.a.1-e, _:u·nles s such royalty i s o therwi se
secured to the sat is~ac.=t::"tôn of the Minister.
· ...... ·
Article 74
Records of buying and selling
The holder of a mining permit, mining lease, or
oil mining lease and any other person buying or selling miner
als or miner al products, shall keep adequate records to
the satisfaction of the Minister to show the quantity of
minerals or miner al products produced, bought or sold, and
accounts of such purchases, sales or exports. Such records
may be inspected by the Director or other authorized officer
at any reasonable time.
67
Article 75
Permit for small guantity of minerals
The Minister may grant to any persan a permit to
possess or buy small quantities of minerals subject to such
conditions as may be specified in the permit.
Part VI - RESTRICTED MINERALS
Article 76
Possession of tes tr. i.ç t:i,~::·.fuiner a 1 s ...
1. Under tQe·-::_p;2-;·;·L~. af·:.: ;â:·:··;·~rt, the Minister
may, wi th the ap.p#)~a1·· of tl:J-e ··-co:Uncil of Ministers, by
decree published in t_l:i'~~·offici~~·-.. ;s.~r}.letin, restrict the possession
of and dealfng .in .. arl·i·-.~Ïrierals. Such decree may
specify the state of pro.S7e~·~·irrg··· at which such restrictions
shall apply or cease to ... -a~-pl-y.;•
: : ·.
2. No ~~~-lon· shall possess any such r estr icted
minerals unless: · .....
(a) be is a mineral dealer licensed under
the provisions of this Part;
(b) be is the holder of prospecting or mining
rights which specifically authorize the prospecting
or mining of such minerals;
(c) be is a person to whom a permit to possess
small quantities of such minerals bas been granted
by the Minis ter under Article 7 5, and such possession
is in accordance with the conditions of the permit; or
(d) be is the duly authorized employeee of
any persan specified in sub-paragraphs (a) to (c) of
this paragraph and bis official employment necessitates
possession of such minerals.
68
Article 77
Sale and purcbase of restricted minerals
1. No persan shall sell restr icted minerals to
or buy restricted minerals from any persan in the Republic,
otber than a licensed mineral dealer, or a person. to whom
a permit bas been granted under the provisions of Article 75.
2. In this Article "buy" and "sell" includes
barter, exchange, give or receive as a gift or pledge, and
all other forms of acquisition or disposal.
Article 78 \::-_·: ... :
Miner al d~.aJ_e:;:)·-{t:n_s~ >>·-._..--,
·~·····: ·-::·-.. .·· ·.. · ...
The Minist~r: .. ~=à/····g~a~.t. <~ \~iheral dealer' s 1 icense
in the prescr ibed ma~μér suÇ>j~_cf:: ·· ... t;Jo such candit ions as he
may think fit. This· lice_n::s.e\s.Hall be in addition to any
other authorization presc~:i.l;¼it} tiy any other law.
:········ .... · ... _ ·-·.
Article 79
Obligations of a licensed mineral dealer
1. Every licensed mineral dealer shall pay to
the State royalties due on any restricted minerals bought
or received by him under the provisions of this Part and,
if so required by the Minister, shall give security for such
payments.
2. Every licensed mineral dealer shall:
(a) keep a register showing:
(i) all purchases and sales of minerals
made by him;
(i i) the nature and weight of such minerals;
(iii). the date of each transaction;
69
( i v) the name and address of the vendor
and bis title to such minerals;
(v) the name and address of the purchaser
or consignee to whom such minerals are sold
or consigned;
(b) cause every transaction. to be _entered
in such register within twenty four (24) hours of being
made;
(c) produce such register to the Minister, to
any_ officer authorized in writing by him or to any police
officer whenever so required; and
(d)
may require.
Part VII -
render to the Director such returns as be \ ·······:
=---···<:·</ ... • <
s~Et;S~::;:i::~~ît.di·:jD:l:c·::ENTS
··.:;:).;.~\~:{f ;•§:;{:.: ... •· .
_.·····•d.en~r·a1 safety
·-..... ·
1. The holder of any permit, license or lease
shall take all due and proper precautions for the safety of
all persans employed by him in any prospecting or mining
operations to the satisfaction of the Director.
2. The holder shall, dur ing the currency of any
permit, license or lease keep all adits, shafts, pits and
other excavations, whether made prior to the grant of such
permit, license or lease or during its currency, secured to
the satisfaction of the Director in such a manner as to prevent
the inadvertant entry of persons or livestock.
3. The holder shall also take proper precautions
to prevent any persans being injured by any blasting operations
or the operations of any plant, machinery, conveyors,
moving belts, cableway, tramway, electricity supply or other
works or apparatus, and shall provide sui table fencing,
guards and warning notices where such danger ex ists or is
likely to arise.
4. In any quarry, gravel or sand pit, or other
opencast working or operi excavation the holder shall ensure
70
that the working faces of such excavation are stepped
or sloped, and restricted in height so as to avoid collapse,
and shall take proper precautions when men are working near
faces to prevent injury due to falling materials.
Article 81
General inspection
1. The Director, a medical off icer nominated by
the Minister of St·ate for Health, hereinafter called "the
med ical off icer", or any other persan author ized in wr iting
by the Minister, at any time by da~@i night, but so as not
unreasonably to impede or .obstl;'U:~t .. tihe work in progress,
may: /····· .. :·· ... ~ ·•:: :·· .. \... ..
(a) enter 1···•.J;:~.~ë,tt aqd\. ~-x~~-i~·e· any area in
which prospecting ~-Q_r"·-tmfning .. ope.t_af:.ions are being conducted
or which:··::Je···· .. t"he s~P.J~ct.. ·of any prospecting or
mining r ights or\~:ight of .. P.a~s-ageway;
(b) ex~Jn~:~i~~-----~-~ke inquiry into the condition
and vent il&·t fcfq ···of any mine and any building
connected wit\( ... P.·"r . .ospecting or mining operations or
passageway, aà~.~11 matters relating to the safety,
welfare and heilth- of the persans employed therein;
(c) inspect and examine the condition of the
external parts of machinery used on any mine or for the
pur poses of any passageway, and the condition of all
plant and works;
(d) inspect the storage of explosives upon
any mine and direct in what manner they shall be stored.
2. The Minis ter , or a p er son _au th or i z e d b y h im
in writing, may call for, examine and take extracts from all
books, accounts, vouchers and documents relating to prospecting
or mining operations.
3. The Director, or a person author iz~d by him
in wr iting, shall have the right to examine all plans and
documents relating to prospecting ·or mining operations, to
inspect all mine workings and taKe samples therefrom at any
reasonable time.
7 1
Article 82
Power to remedy dangerous practice, etc.
1. If the Director or the medical officer finds
anything connected with prospecting or mining operations or
any passageway to be dangerous or defective so as to be
detr imental to the welf are or heal th of any __ per son, or
livestock, he shall give notice in writing thereof to the
holder of the prospecting or mining rigbt or right of passageway,
or h is agents in charge of the oper·at ions or mine.
2. Such notice shall contain such particulars of
the matter considered to be dangerous or defective, whicb
shall be remed ied, ei ther forthwi th\::°o~ wi thin such t ime as
may be spe:~fie:~e Director ._e-c, :::_;;i•·t~~·:_pal\;-ù"i'cer may order
work to be suspended unt·i-.l\:··bhe dang'Ëù; 'is removed to bis
satisfaction. :··. \/·-. ·. .· ·-:·-... \ ·.. ·
4 • On r ed~}.p(··.: f .. · i._iiçt{::~:-~~-c e the ho ld e r o f the
prospecting or mining right._\9.r\_ i!-igbt of passageway, or bis
agent, shall comply ther.~_w:f·tJù or, if be abjects thereto, be
shall immediately state\hii objection in writing to the
Minister who shall mf·lfè./-a ... decision on the objection.
S. Where ·ffie holder of the prospect ing or mining
right or right of passageway, or bis agent states bis objections
to the Minister under the preceding paragraph be shall
cease .to use the mine, or part thereof, machine, plant,
matter or practice as to which such notice bas been given,
and shall withdraw all men from the danger indicated by such
officer until such time as the matter is decided by the
Minister;
Provided that, if in the opinion of th~ officer
giving such notice, there is no immediate danger, such
officer may allow work to proceed during the time the matter
is being determined, under such restriction and upon such
conditions to ensure safety as be may consider necessary and
may specify in writing.
72
Article 83
Proceedings in case of accident
1. Whenever an accident occurs in connection with
prospecting or mining operations causing or resulting in loss
of life or serious injury to any persan, the persan in charge
of the operations shall, as soon as possible, report in
wr iting the f acts of the mat ter, so far as they ·are known to
him, to the Director who shall hold an inquiry into the
cause thereof and record a finding.
2. A copy of the report and·finding shall be submitted
to the competent labour authority.
3. The Director shall, .fJé:tbe purpose of an inqui
ry under th is Article havè tJ1e::·p.~w.e·rs o~ a. Court to summon
wi tnesses, to call for the p.r.p~uc}t:fo.n of .. bP:9~-s··.and documents
and to examine witnesse.s ... ·~~d.>·-p"artie·( t.d)1cerned on oath.
4. Any wi.t~J.~,::·:.}i~~ir~· .. "fi'.\-~tend by the Director
for an inquiry may be-::·p.aid re~s:~·rr~l?.le expenses as are applicable
to Court witnessë·s.· ._..· \ \/
5. The word.-···"·~{}~~t-~~.. in this Article includes
an officer appointed ... -b.y.._ htni: for the purpose of this Article.
( ...... ..= .... .
Part VIII - REGISTRATION
Article 84
Prospecting or mining rights shall be registered
All permits, licenses or leases ànd rights of passageway
shall be registered in the office of the Director in
the prescribed manner.
73
Article 85
Transfers of interest to be registered
1. When any permit, license, lease or right of
passageway is transferred to, vests in or devolves upon any
person, such person shall within thirty (30) days thereafter,
or of the date of approval where approval is required, apply
in the prescribed manner to the Director to register such
transfer, vesting or devolution.
2. Where any interest in any permit, license,
lease or right of passageway bas been created, renewed
or terminated, the persan concerned fthall apply in the prescribed
manner to the Director to \ 1:·egister the instrument
creating, renewing or terminati~g--.~~h-··lnter~st within thirty
(30) days of the date of the e,ç-~cqtion the1:~o-~ ;_.
Provided that •fcy;.;_\i;·~cto·('·:~~/:· ;·o,r good cause
shown, ex tend the per.j. .09·•: .. f·<>t the makJrig ·of such application. : :·· ·. '\. . ·.
3. The Dit;·=dtor '~- -4~·(1.·~-~ . shall cause to be kept
in such Register, maint~itf~d ··.p·i.irsuant to this Part, such
details as are prescrt.b.~1·• . .":ifr as the Minister may direct,
including but not limJ.t~d ;t·o:
(a) ~~-;;fice address in the Republic of any
holder of any permit, license, lease or right of
passageway and the name of h is res ident agent, a long
wi th the power of attorney establishing such agent• s
authority to act on bis behalf;
(b) maps of the Republic illustrating those
areas currently subject to a permit, license or lease
and those which remain available for award in accordance
with this Code.
Article 86
Registration not to cure defect
Registration shall not .cure any def-ect in any
document registered, or confer upon it any effect or validity
which it would not otherwise have had.
7 4
Article 87
Inspection of register
The Director shall on application, and on payment
of the prescribed fee:
(a) allow. inspection of the register at all reasonable
times; and
(b) give copies of or extracts from any entry in
the register.
Copies of :::::~:~:_:g-() min_iog
r ights, etc. to 0-i~~r i:ct' .Comqiis~j.onèr
The Director ~1;ii;Ù,::·:.;;;~ar,d:-)::_·::-0PY of every permit,
license or lease (o;het-=·· .. t:·han a p~d·$p·ecting permit issued
under Part III) and ·-~·'l=~ry r igh:F\ô..f-· ·passageway, and of any
instrument transferrirlg, · r~tl'~~·1;hg\ creating or terminating
any of these or any inter·~s..t-._-·.:thérein, which is registered in
bis office to the Distr·rc..e.··•cômmissioner of the District or
Districts in which tfe·•-~î..~-à. in question is situated.
· ...... ·
Part IX - DISPUTES
Article 89
Application to investig~~e dispute
Where any matter respecting the provisions of this
Code or the Regulations, or the terms or ~onditions of any
permit, license or lease, or arising out of any prospecting
or mining ope-rations, is in dispute between two or more
holders of prospecting or mining rights, the parties may
jointly apply to the Director to investigate such dispute.
75
- Article 90
Memoranda, statements, etc.
1. The parties to the dispute sball submit to the
Director written memoranda covering the matter in dispute.
2. The Director, or other officer duLy authorized
by him, may investigate sucb dispute, and for such purpose
sball have the same powers of inspection and inquiry as are
provided in Article 83 of tbis Code.
Article 91\ (♦-: ••• :
Adjustment of disp-Cit:"~a\~o-~~dat':·Ïè'-S
·{--·: ......... · .·<. \ . .y··· .....
1. Where suc:R.\J~·;:·te _is\·ib. .. i:-espèct of any area,
boundary or beacon, $~. llir·ecto~ .... q'I;.-· otber author ized off icer
shall make a survey of..):h_e diJi3p._O.fe#··.··ârea, boundary or beacon,
and shall have power to ame~d._ .. .sa.c-h area, boundary or beacon
in wbatever manner seems t<., ... bm best in the circumstances.
2. Such aliie,~~~;~ shall be binding upon all the
parties to the d ispu~.~.!--=
Article 92
Director to submit report
At the conclusion of every investigation, the Director
or other authorized officer shall make a rep~rt to the
Minister, together with bis recommendations, and a plan show-,
ing any amendments made under the provisions of the preceding
Article.
7 6
Article 93
Discretion of Director to refuse to investigate
Notwithstanding anything in this Part, the Director
may refuse to investigate any dispute, and may thereupon, or
at any time during any investigation refer the disputants to
a Coutt.
Part X - MISCELLANEOUS, PENAL AND FINAL PROVISIONS
Section 1 - Micell_~n,~\i~i:~: .
f\r_f.((dJ :-~ --: ---< \ __ \=-- \----'
D i.s<: Ô\r.:f ;-- --~ ~ mir i~ f:_~1s ·..
1. When t::~\o,l._d~------~-;);-~~spect ing or minmg r ights
discovers minerals which··b)i··•Y,.élieves may be of economic value
or capable of devel9pm~nf, ·. and which have not been reported
in the locality pr'?vipüsly, he shall notify the Minis ter,
giving details of su~ti discovery, and shall supply a sample
of the minerals.
2. In the event of any Government officer discovering
minerals which be believes may be of economic value or
capable of development, be may demarcate an area not exceeding
one (1) square mile, or several such areas, and shall
report such demarcation with a plan thereof to the Minister,
and shall supply a sample of the minerals. Demarcation shall
be by the same method as prescribed for a mining permit.
Such area shal 1 be des ignated a "Government Mine-r al Ar ea".
Article 95
Priority of applications
If applications for a permit, license or lease for
minerals other than Hydrocarbons are received for the same
7 7
area or for overlapping areas from two or more persans, that
application which is first received by the Minister shall
have priority, provided that the application bas been made in
the prescribed manner, and that the area applied for shall
have been properly demarcated, as may be required by this
Code or the Regulations.
Article 96
Pollution of water
No persan shall in the course of prospecting or
m1n1ng operations permit any noxiou~(QF poisonous matter to
pollute water in use by the. publ.ic;.,\ n.ër. shall be d ischarge
sand, slime or other tailings _.•in:·· .. ~··•:manne; \;is to interfere
with any such use. . .. •···.~. } · .. -...\°:> .. _\...-;
<_;:: .. \:{·{:::~::~:-i,.:•.:>-::·:.;:\· ...... \
·--~a t ~c;f.:- ~-{~-: t.s
. ..... . .. .. ..
1. The l,~·~;·a'{ limits of any permit, license or
lease shall be vertië~l planes passing through the sicles by
which such permit, license or lease area is bounded.
2. The lateral limits of the occupied or rented
surface area required for prospecting or mining operations on
the sur face may be less than the permit, license or lease
area, and may vary from time to time depending upon the
requirements of the operations.
/ Article 98
Use of facilities
1. The construction of any roads, railwày lines,
airfields, ports, power generation 'facilities or communication
systems, the reclamation of land and the creation of
islands, on any permit, license or lease area, or on any
passageway, by a holder shall require the prior written
7 8
approval of the Minister, which shall not be unreasonably
witbheld or delayed, and the Minister may require, as
a condition of bis approval, that such facilities be available
for public use, provided that any person having a lawful
interest in the land on which such facilities are constructed
and any authorized public of ficer shall have access to and
use of such facilities, and provided, further, that:
(a) -where any such person or member of the
pub 1 i c uses suc h f ac i 1 i t i es in a manne r-· as , in the
opinion of the holder and the Government, to do appreciable
damage thereto, or to enhance substant ially the
cos_t of upkeep thereof, the holder shall be ent itled
to call upon such user to contribute to the cost of
upkeep;
(b)_ where any suçh,._~·;_Î:ison or member of the
public uses such facilitle·s.···-.in a manrter as to interfere
materially with tg.e .. ~r~~ ·'use ?Q.d\)~.njoyment of such
facilities or the e.f-f.~·çt.fvË:~ coqdc(cê\ nf the ope-rations
authorized in the ?.~~-i-t·~ lic~_n-$.~·-... o·t. iease by the holder
thereof, the hol_.d-er\ .. may g ive ,n9t•Jc·e to the user to 1 imit
bis use of the f-~~ilities. ·-io·/~s ·to limit such interference.
·.· . ·.:···. -.. .. · .... ..:
2. Except a,1,r··P.f.;i:id~d in the preceding paragr aph,
any such facilities .--cori-f;,J;.iucted by the holder of any permit,
license, lease or r~gh_t of passageway shall be considered to
be private facilitie·s··· and members of the public may not use
such facilities without ·the consent of the holder under such
conditions as be may require.
3. Any airfield constructed by the holder of
prospecting or mining rights shall be subject to the laws for
the time being in force for the regulation of airfields and
flying generally in the Republic.
Article 99
State of war
In the event of astate of war duly declared, the
Minister shall have the right of pte-emption of all minerals
mined under any permit, 1 icense or lease, and all products
thereof, and shall have the right to take control of the
mining operations from the holder for such time as the state
of war exists.
79
Article 100
Interference with prospecting or mining rights,
passageways, beacons, mine timbers, etc.
No person shall at any time:
(a) interfere with or obstruct any prospecting or
mining operations authorized under this Code or the
Regulations;
(b) interfere with any passageway;
(c) interfere with any machinery, plant, works or
property on any area the subject. ~-0-f any permit, license,
lease or passageway; ~ ...... ~
( d) w i th out law ful ... a..U:~b;J~ y···~H f,i;l{ty-· •break , de face
or remove any bounda~y ·· .. J;,;t:?.t'k, be~eçnt·. ': p1llar, post or
notice erected for .. t_g.~ \p.urpos.~_\_of.. i:his Code or the
Regulations; ... :.--:= ... \ · ;-·· -..._·• .. :..
( e) wi thou/<îlw~ul.-·· ài;·bb-~·j_ :y inter f ere with any
timber, support, door- ... o't·\.ba'rrier in any mine, shaft or
ad i t; _.·······./.~<: .. ·.
(f) withou{ .. t~e-··~~nsent of the lawful owner remove
or otherwise intj$f~re with tailings;
(g) obstruct any person in the exercise of bis
r ights conferr ed by th is Code or the Regulat ions.
Section 2 - Penalties
Article 101
Illegal prospecting or mining
Any persan who prospects or mines_ on any area
referred to in Article 2 otherwise than in accordance with
the provisions of this Code and the Regulations-shall be
guilty of an offence, and shall be liable on conviction to a
fine not exceeding Sh. So. 100 000.-- or to imprisonment for
a term not exceed1ng twelve (12) months, or to both such fine
and imprisonment.
80
Article 102
Failure to comply with notice
1. If the holder of any prospecting or m1n1ng
rights or right of passageway, or bis agent, fails to comply
with the requirements of any safety notice given under
Article 82 or with any decision of the Mini~~er when an
objection bas been determined, he shall be guilty of an
offence and liable on conviction to a fine not exceeding Sb.
So. 20,000.-- or to imprisonment f01~ a term not exceeding
twelve (12) months or to both such fine and imprisonment.
2. Any persan failing to comply with the requirements
of any other notice lawfully g:i:v."e.n under the provisions
of this Code or the Regulations s~ali .Pe .guilty of an offence
and 1 iable on conviction to .a···-{i.jfé not :~x-çeed ing Sh. So.
5,000.-- or to imprisonment:····ç0.'!=.)a terlll. ·-nô.t·._·-exceeding three
(3) months, or to both su~h·: f:_ine .. and ~~P-~ f$onment.
· .... ··... . .. ·. ·. , :··. . ; ·.:.:_--<:-. . \/) /:r-tfêf-:<.;i~:/ · .
. ·.· .
Fa il ure .to·-:;ù-:nd i ng u ir ::!: ' et C •
... ·· ... · ...... ·
Any person····summoned to attend or produce books or
documents at any inquiry held under the provisions of
Article 83 and refusing or neglecting to do so, or refusing
to answer any question putto him by or with the concurrence
of the Director, or other authorized officer holding such
inquiry, shall be guilty of an offence and liable on conviction
to a fine not exeeding Sh. So. 400.--.
Article 104
General penalty
Any persan who violates any of the prov.1s1ons of
this Code or the Regulations for_which no penalty is expressly
provided shall be liable on conviction to a fine not
exceeding Sb. So. 10,000.-- or to a term of imprisonment not
exceeding six (6) months, or to both such fine and imprisonment.
8 1
Article 105
Forfeiture of minerals, etc. by Court
1. In addition to any other penalty, the Court
shall order the forfeiture of all minerals obtained in the
course of illegal prospecting or mining, or -Obtained as the
result of any violation of this Code or the Regulations, or
in default of such minerals, such a sum as the Court may
assess as the value of such minerals.
_ 2. The Court may further order the forfeiture of
any implements or mach inery used for any i llegal prospect ing
or mining.
\::-:: ... :
Section 3 - F--i.P:;Ε::;J;v~-~ion'i;:, .. \ .. ·,
..... : t:S~:;·:·:~·-·~ 06 --::.:;-.::;::::.:..._ ...... \ .
\.::) 'Regu.i~-~-:~;ü··· .
..-··<\:·\>- .
1. The P..re~.ig.ént of the Republic may, on the
propos al of the Minf_st~r, make Regulations for the implementat
ion of this Code. ······
2. Without prejudice to the generality of the
power conferred by the preceding paragraph, Regulations made
hereunder may include, but are not limited to, particular
provisions for, or with respect to, the following:
(a) prospecting and mining for minerals other
than Hydrocarbons and the carrying on of prospecting and
mining oper at ions and the execution of works for that
purpose;
(b) the exploration for and mining of Hydrocarbons
and the carrying on of exploration and mining
operations and the execution of works for that purpose;
(c) the manner of application fo_r, - and the
form and conditions of, and - the renewal, transfer,
surrender, revocation or registration of rights under
any permit, license of lease;
82
(d) the fees and rents to be paid, and
deposits to be made in respect of any permit, license or
lease, or any renewal, transfer, surrender or revocation
thereof, or any creation of an interest therein;
(e) the size, shape, method of demarcation or
survey of any permit, license or lease area and the
removal of obsolete beacons;
-·
(f) the construction and use of passageways;
(g) the cutting down and use of timber for
the purposes of carrying on the operations autho·rized
in a permit, license or lease;
(h) the safety, welfâr.~, health and housing
conditions of persans employ~d: .. Jn .. -explo~ation, prospecting
or mining operations .-··irn-çi··.~t"he pre.ça{)t~ons necessary
for the carrying on ...o -~ :.. .. s_μch · op_e-r.ai=ioris in a safe,
sanitary and proper ~~~h:~~;·· ...-...... \:
( i) t:!):e. \~~}:·· ~ s ~gef ; .. ·,J~ji: ~g e , and p r op er h and 1-
i ng of any explo .. e-iyes ys·~ij- Jn····exploration, prospecting
or mining operations; · .. -.:. ... \ ·• .. ·
(j) th~·····r:;:;i;iction or prohibition of the
employment of ...-•ëlfilclren, young persans and women in
underground mirii~g;
(k) the possession, safeguarding, disposal of
and dealing in the minerals mined or produced;
(1) the construction and operation of storage
facilities, pipelines, water lines, pumping stations,
tank stations, valve sta_tions or other storage or
transportation installations for the carrying on of
exploration, prospecting or mining operations;
(m) the registration of permits, licenses and
leases, rights of passageway, and the registration
o f an y o the r in s t rumen t s und e r w h i ch an y r i g h t or
interest in any of them is transferred, surrendered, or
otherwise dealt with, and the fees payable on such
reg is tr at ion;
(n) the agents and· representatives to be
appointed, the returns, reports, and plans to be rendered,
the nature of the records, accounts, books and
plans to be kept by the holders of prospecting and
83
mining rights, the furnisbing by· such holders• of any
reports, returns and other information required by
the authority concerned, and the method of Government
inspection and control of exploration, prospecting or
mining operations;
(o) the rates of royalty to be paid to the
Government, the method of calculation of the amount of
such royalty, and the manner and time of· payment· thereof;
(p) the control of the flow, the prevention
of escape and the disposition of any poisonous or
noxious substances, tailings or minerals resulting from
exploration, prospecting or mining operations;
(q) conserving, and p-t'eventing the waste of
minerals anâ other natural reSfJtft:ces of the Republic;
(r) the constp.i~â~·l} -~recti,~~-f·, maintenance,
opera t ion or use oJ •:.: fds.t··a l la.t-Jà~â ··or e qui pmen t;
(s) th,!;! \t;~J;·~~- of;-··Sl,;t~-l:u:~~, equipment and
other property Ô~-oμght int.o"• .. t·-~~ ··Republic in connection
with exploration;·•.·prosp~et·.fi=l;g.: ôr mining operations that
are not used or are .-go"·-.:\-origer to be used in connection
with such operatio0:.s•; .. /.::-<:-. ·.
: : ·.
(t) t{h~ /m•ê.thods to be used for the measurement
of mineréd.:s .. and other substances that may be
mined, extracted or .produced;
(u) taking, preserving and furnishing to the
Ministry of cores, cuttings and samples of minerals and
other substances;
(v) the obligations of a holder upon revocation
or termination of a permit, license or lease with
respect to clean up or make safe operations;
(w) conservation and other work practices to
be followed during the course of exploration, prospecting
or mining operations.
3. The power under this Article to promulgate
Regulations may be exercised with respect to all exploration,
prospecting and mining operations or only with respect to
certain specified ope~ations or only with respect to certain
holders.
84
Article 107
R~peal and savin_g_
1. Without prejudice to any existing prospecting
or mining rights granted under any convention, agreement
or other form of permit, license or lease and without prejudice
to any liability incu~red thereunder, all fμture rights
to explore, prospect or mine for minerals in the Republic
shall be governed by the provisions of this Code. In addition,
the following law and Regulations are hereby repealed:
(a) the Mining Code (Law No. 72 of 22 November
1970); and
:···
(b) the Mining Regulat.iq_~··.·.·.·.(Decree No. 173 of 3
April/
971
:~r suant to.- ·t; hi~(:L°:·-'. r é{~-t~t~·:·:·' to the "Min-·
ing Code11 and "Mining R~.gù..~~iltions'~--- i;_n>::.any other legislation
of the Republic shallt~.e\-·"âe·emed .. tP·._ .. be .. r·eplaced by references
to this Code and the M-~t;ifng Reg.μ·:t,a·~i0ns promulgated hereunder.
3. Any con~ent-i;:h:, ·· .. :~r eement or other f orm of
permit, 1 icense or le~ù;è-/-.g'r anted or en ter ed i nto by the
Government pursuant ~o··L~.vi. No. 77 of 22 November 1970 which
is in effect as of \~~k effective date of this Code shall
continue in eff ect a·ifd shall be implemented in accordance
with its terms and the provisions of such Law and the regulations
promulgated thereunder until such convention, agreement
or other form of permit, license or lease has expired or
terminated in accordance with its terms or or the provisions
of such Law.
4. Any other law or provision relating to exploration,
prospecting or mining contrary to or inconsistent
with the provisions of this Code is also repealed.
-Article 108
Somali text to prevail
Where there is a conflict between the Somali text
and any other text of this Code and the Regulations, the
former shall prevail.
85
Annex 1: Law No. 7 of 9 January 1984 Approving and Containing the Mineral Code of the Somali Democratic Republic