How to Get a Small-scale Mining Licence in Zambia

A Comprehensive Guide to Obtaining a Small-Scale Mining Licence in Zambia

Are you interested in acquiring a small-scale mining licence in Zambia? The country’s rich mineral resources and favourable mining environment have attracted many local small and medium enterprises (SMEs) to engage in small-scale mining operations. Zambia, known for its long-standing history of copper and cobalt mining in the Copperbelt Province, has seen an expansion of mining activity beyond this region. The North-Western Province, often referred to as the “new Copperbelt,” has emerged as a successful mining territory, with notable operations like the Lumwana Mine contributing significantly to the country’s mineral production.

Across various provinces in Zambia, there are ongoing small-scale mining and exploration activities, as visible on the Zambia Mining Cadastre Portal. Small-scale mining in Zambia covers a range of minerals, including gold, coal, manganese, zinc, and gemstones such as emeralds. However, it’s worth noting that while a significant number of small-scale mining licences have been issued in recent years, a large portion of them remains non-operational. Out of over 600 licences issued, only around 100 were active as of 2018. The primary reason for this discrepancy is the lack of operational capacity and managerial competence among many licensed firms. By establishing strategic partnerships and enhancing operational capabilities, companies holding small-scale mining licences can operate profitably.

Eligibility for a small-scale mining licence is determined by the Mines and Minerals Development Act, specifically Part III, Division III, sections 30 and 31. This licence can only be granted to a company owned by Zambian citizens, where 50.1% of the equity is held by Zambian citizens. The Ministry of Mines and Mineral Development’s Mining Cadastre Unit (MMMD – CMU) is the government authority responsible for issuing small-scale mining licences. The application process for new licences is facilitated through the Central Mining Cadastre offices in Lusaka and the Regional Mining Bureaux offices located in Chipata, Choma, Kitwe, Mansa, Mkushi, and Solwezi. To apply for a new small-scale mining licence, you will need to provide the following:

1. Statement on the mineral deposits, including information on their proven, estimated, or inferred reserves, as well as the mining conditions.
2. Description and sketch of the land area for which the small-scale mining licence is sought.
3. Proposed programme of prospecting and mining operations (PPMO), including investment forecasts, estimated ore recovery rate, and the applicant’s plans for treatment and disposal.
4. Duration for which the small-scale mining licence is sought.
5. Tax clearance certificate issued under the Income Tax Act.
6. Copy of the national registration card or passport.
7. Company details, including the names of shareholders and directors.
8. Any additional information requested by the Director of Mining.

The Director of Mining evaluates the application based on the following criteria:

• Adequate financial resources, technical competence, and experience to conduct effective small-scale mining operations.
• Adequacy of the proposed small-scale mining programme, including provisions for environmental protection.
• Consent, if required by any applicable laws for areas under traditional ownership.

Once the Director of Mining is satisfied that the application meets the requirements of the Act, a small-scale mining licence is granted for a period not exceeding 10 years.

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