Maravi

Govt to start trust funds in mining communities

Govt to start trust funds in mining communities
By Kabanda Chulu
Monday July 14, 2008 [04:00]

DEPUTY mines minister Maxwell Mwale has said the government will soon establish trust funds that will make mining companies contribute funds towards the sustainability of local communities. And the ministry of mines has granted a grace period of one year for the implementation of the new mines and minerals development Act that came into effect on 1 April 2008 in order to allow stakeholders to comply with new requirements. Mwale said the trust funds would be controlled and managed by the communities themselves.

"We are in the process of establishing community trust funds where mining companies will contribute towards the sustainability of the communities in which the mines operate from and these trust funds will be administered by the communities themselves," he said.
Mwale also said the government was currently improving laboratory facilities at the Mines Safety Department (MSD) in order to enhance efficiency and higher standards.

And director of mines in the Ministry of Mines Gerhad Kangamba stated that the new Act became law on April 1, 2008 but the government granted a transition period of one year from April 2008 to March 2009.

"During the transition period all holders of mining rights and non-mining rights and firms operating mineral analysis, geological or mining consultancies are expected to fully comply with the requirements of the new law," Kangamba stated. "And all holders of renewed licences that do not conform to the Act should resubmit fresh applications to comply with the new law by 1 April, 2009."

Amongst other provisions, the new Act would require that all holders of gemstone licences, mining licences and mineral processing licences obtain annual operating permits from the MSD, meaning that an entity could not operate even if it has a mining licence.

Also all mining rights for industrial minerals shall only be granted to citizens of Zambia and citizen-owned companies.

Other requirements would be that all small scale mining licences, including gemstone and prospecting permits shall only be granted to Zambian citizens and citizen-owned companies.

It is expected that all mining and non-mining rights granted under the repealed Act of 1995 shall cease to be valid by April 2009.

Labels: FUNDING, MINING

posted by MrK @ 3:39 AM