THE Ministry of Mines and Vitality is proposing that royalties for all minerals be capped at 10% to permit for flexibility to extend the present low charges, notably throughout growth market circumstances.

This was mentioned by the mining commissioner and deputy government director of mines and power, Erasmus Shivolo, when he made a presentation on the draft minerals invoice to an engagement that included members of parliament final month.

He mentioned within the present Minerals (Prospecting and Mining) Act, royalty charges are capped at 5% for dimension stone, 3% for base and uncommon, valuable metals and nuclear fuels minerals, whereas industrial minerals are at 2%, and valuable stones at 10%.

“This leaves little room for adjustment in future when the necessity to improve arises,” Shivolo mentioned.

He mentioned the Minerals Act, which was promulgated in 1992, wants reviewing to maintain up with the dynamics of the business, and to create and preserve a aggressive atmosphere for funding to the advantage of all Namibians.

He mentioned the proposed modifications will allow allowable deductions on levies, expenses, and costs to be outlined.

At present, mining corporations are allowed to deduct levies, expenses, and costs, from royalty funds, Shivolo mentioned.

“At instances, corporations inflate these allowable deductions, which leads to much less cost on royalties to the state. It is because there’s presently no definition of what qualifies as levies, expenses, and costs within the act,” he mentioned.

On possession, the invoice offers for Namibians to obtain and preserve possession of not lower than 5% of fairness in mining corporations as could also be prescribed by the mining constitution beneath the nationwide equitable financial empowerment invoice.

“At present the act doesn’t prescribe any native possession in both exploration and prospecting licences or mining licences.

“Nevertheless, there’s a rising public view that the nation just isn’t benefiting equitably from its mineral sources, as a result of most mining corporations are owned by overseas buyers with out native participation,” Shivolo mentioned.

As a approach of making downstream jobs, Shivolo mentioned every holder of a mining licence shall be required to make sure that a proportion of annual manufacturing from the mine is made accessible for processing, smelting, refining or different beneficiation processes in Namibia, offered the related services can be found.

“Such proportion shall be agreed on following a technique of session between the mineral rights holder, and shall be mirrored within the mineral settlement referring to such mining licence,” he mentioned.

Shivolo mentioned there’s a want for sand mining to be lined by mineral rights, as presently there isn’t a clear authorized framework to control sand mining beneath any ministry.

He mentioned the Ministry of Surroundings, Forestry and Tourism requires an environmental clearing certificates when mining sand, and the Ministry of Agriculture, Water and Land Reform regulates sand mining in river beds.

“No allowing system for sand is roofed by the act. When licensed or permitted, it should result in correct environmental administration and direct financial contributions to the fiscus,” he mentioned.

Shivolo mentioned the invoice offers for the minister of mines to make laws crucial or handy for the right administration and implementation of the act.

“At present there isn’t a provision within the act for the minister to make laws, thus making some provisions of the act troublesome to implement,” he mentioned.

Shivolo mentioned the proposed invoice makes provision for the introduction of a small-scale mining allow, which is tailored to the wants of small-scale miners in Namibia.

“The allow is designed to be reasonably priced, simply accessible, and protecting of the pursuits of the small-scale miners with out stringent necessities,” he mentioned, including that provisions for mining claims laws are too stringent for small-scale miners, leading to non-compliance.

Because the lifespan of mines is restricted, the invoice offers for mine closure plans and monetary assurance to be a requirement within the mining licence software course of to make sure the price of rehabilitation is carried by the corporate and won’t move to the state after mine closure.

“At present closure and rehabilitation plans are left on the discretion of mining corporations with the danger of insufficient plans and adequate monetary sources and residual danger to the federal government,” he mentioned, including that regional stakeholder conferences shall be performed to solicit enter for incorporation into the minerals invoice.

E mail: [email protected]