The Mining (Amendment) Bill

1458 The Mining (Amemament} Bill, 2023 es (c) where the vertical depth of exploration or excavation is up to thirty meters deep. (d) deleting the definition "Mineral Rights Board". 5. The principal Act is amended by deleting section 5 and substituting therefor the following new section— a 5, The values and principles enshrined in the Constitution and in particular Article 10, 66 (2), 20) (c) and (d) and 232 of the Constitution and the principles of leadership and integrity set out under Chapter Six of the Constitution shall apply in the administration this Act. of 6. Section 7 of the principal Act is amended in subsection (2) by deleting the words "Mineral Rights Board" and substituting therefor the word "Authority". 7. Section 9 of the principal Act is amended by deleting the words "Cabinet Secretary" wherever they appear and substituting therefor the word "Authority". 8. Section 12 of the principal Act is amended by— (a) deleting subsection (1); and (b) deleting subsection (2). 9. Section 13 of the principal Act is amended— (a) by deleting the marginal note and substituting therefor the following new marginal note— "Declaration of areas reserved for small scale operations"; (b) in subsection (1) by deleting the words "Mineral Rights Board," and substituting therefor the words "Authority"; and (c) in subsection (2) by inserting the words "on the recommendation of the Authority" immediately after the words "Cabinet Secretary. Amendment of section Sof Ma. 12 of Dole. Amendment of section 7 of Ho. ef2iis. Amendment of seetives 9 of Mo, 12 of 2016, Amendment of section 12 of No, 12 of 2016,

The Mining (Amendment) Bill, 2023 1501 "licence area" means the area or areas of land covered by a prospecting licence, a retention licence or a mining licence under this Act: "liquidator" has the meaning assigned to it under the Companies Act (No. 17 of 2015); "maritime zones" has the meaning assigned to it under the Maritime Zones Act (Cap. 371); "member" means a member the Board under section 25; of appointed "mine" a fe (a) when used as a noun, includes an excavation or system of excavations made for the purpose of, or in connection with, the extraction of minerals or mineral products, and includes an opencast pit, quarry and any area where a mineral is won by dredging brine pumping, evaporation or other means; and (b) when used as a verb, means the carrying out of a mining operation and includes tailing: "mines support" means— (a) contract mining services which include top soil and waste removal, drilling and blasting, excavating and haulage of ore to plant on turnkey basis: (b) assay laboratory services: (c) drilling and blasting services; (d) mineral exploration services for a holder of a mineral right; (e) contract mining services for small scale and artisanal mining, which include mining and processing of ore reclamation fevegetation and management of mining operations: (f) any other services specifically and exclusively related to mining, which the Cabinet Secretary considers necessary for the effective and sustainable development of the mining industry: "mineral dealer" means any entity or person licenced to carry out mineral dealings; "mineral dealings" means— (a) buying minerals; (b) selling minerals: (c) bartering minerals;

1502 The (Amendment) Bill, 2023 Mining (d) depositing or receiving minerals as a pledge or security; or (¢) cutting, polishing, processing, refining and treating minerals; "mineral dealer's permit" means a permit issued in accordance with section 164; "mineral deposit" means a mass of naturally occurring minerals of economic value; "mine waste and tailings" means the residue of mining operations that includes gravel, sand, slime, or other substances that are discarded in the course of mining operations; "mineral" means a geological substance whether in solid, liquid or gaseous form occurring naturally in or on the earth, in or under water, in mine waste or tailing and includes the minerals specified in the First Schedule but does. not include petroleum, hydrocarbon pases or groundwater; "mineral agreement" means mineral agreement entered into in accordance with section 117; "mineral product" for the purposes of royalty a product of mining operations, the product of extraction in mining operations of a metal or a precious mineral from a mineral and the product of beneficiation in mining operations of a mineral, but excluding waste and tailings; "mineral nght" means— (a) a prospecting licence; (b) aretention licence; — (c) a mining licence; (d) a prospecting permit; (e) a mining permit; or (f) an artisanal permit; "Mineral Rights Board" means the Board established under section 30; "mining area" means an area or arcas of land that are covered by a mining licence; be "mining bond" means an obligatory payment or cash deposit that may required of a mineral right holder as guarantee for the due implementation of an approved mining programme;

The Mining (Amendment) Bill, 2023 1503 "mining permit" means a permit granted in accordance with this Act, which authorises the holder to carry out small scale mining operations; "mining licence" means a licence relating to large scale operations which authorises the holder to carry out mining operations; Operations" means an operation carried out in connection with a mine— (a) to win a mineral from where it occurs; (b) to extract metal or precious mineral from a mineral so won, or to beneficiate a mineral or so won; (c) to dispose of a mine waste or tailings resulting from winning, extraction or benefaction; "National Land Commission" means the National Land Commission established under Article 67 of the Constitution; "permit area" means the area covered by a prospecting permit or a mining permit; "petroleum" has the meaning assigned to it under the Petroleum (Exploration and Production) Act (Cap. 308); "precious minerals" means the minerals specified in Part B of the First Schedule; "precious stones" means the minerals specified in Part C of the First Schedule; "Principal Secretary" means the Principal Secretary in the State Department for the time being responsible for mining; "programme for mining operations" in respect of a mining licence means — (a) a programme of an intended mining operation prepared by the holder of the licence and approved by the Director of Mines on of the grant or renewal the licence; or {b) where the programme is amended pursuant to this Act, means the programme as 50 amended; "programme for prospecting operations" means a programme of intended prospecting operations prepared by the applicant for a licence and approved by the Cabinet Secretary on the grant or renewal of the licence, and where the programme is amended pursuant to Act means the programme as so amended: this

The Minierg fAmenchment) Bill, 2023 (6) Bice regulatory administration and supervision over all prospecting, mining, processing, refining and treatment operations, transport and any dealings in minerals, including import and export of minerals; (d) ensuring compliance with conditions relating to mineral rights; (e) ensuring compliance with the requirements of this Act; (f) making any lawful orders as are necessary for the performance of the functions and duties under this Act: (g) reviewing, assessing and approving prospecting and mining programmes, (h) preparing the necessary reports required under this Act; (i) facilitating access to information by the public, subject to any confidentiality restrictions; (j) carrying out investigations and inspections necessary to ensure compliance with the provisions of this Act; (k) providing advice and support to holders of mineral rights on proper and safe mining methods; (I) exercising regulatory administration and supervision over the use of commercial explosives in accordance with the Explosives Act (Cap. 115), (m)providing advice during the negotiation of mineral agreements; (n) promoting co-operation among state agencies, county governments, the private sector, research bodies, nongovernmental organizations and other organizations which are engaged in programmes related to mining and activities to: enhance the administration and operation of this Act; (0) advising on the development of policy to ensure compliance with intemational conventions and national policies relating to the sustainable development of the mineral resources and ensure that mining operations take into account local and community values; and (p) performing such other functions as may be assigned by the Cabinet Secretary, this Act or any other written law, (2) The Director of Mines or a duly authorized officer may, at all reasonable times, enter upon any land, licence area, permit area or mine, or any premises for the purpose of —

__The he Mining (Arienadmeni) Bt Bill, 2023, j (c) ae geodlugic.t, 2eophysical, cesdomial: pcismological and hydro-geological surveys, investigations and mapping aimed at defining the character and distribution of rocks and superficial deposits and detennining the mineral potential of Kenya; (d) conducting ges-environmental studies; (€) monitoring of seismic activities and mapping of areas of potential geohazands;. (f} conducting geological analysis and valuations; oe. a national repository of geo-science information through the compilation, publication and dissemination of information and data conceming the geology and mineral tesources of Kenya and facilitate access to this information by the general public; (h) promoting private sector interest and investment in mineral exploration by providing geological information and services to prospective investors: (i) maintaining a laboratory, library and record facilities as may be necessary for the discharge of the functions; (j) providing geoscience expertise in evaluations of prospecting and mining applications; (k) providing support to the Director of Mines in relation to exercising regulatory administration and supervision over all prospecting and mining operations; (I) undertaking audits of mineral right holders' geological sampling and assaying processes; and (m)performing any other function as may be assigned by the Cabinet , this Act or any other written law. (2) In the performance of his duties, the Director of Geological Survey or a duly authorised officer may— (a) enter any licence or permit area; (b) upon informing the lawful owner or legal occupant, enter into or upon any land for the purpose of carrying out surveys; (c) take soil samples or specimens of rocks, concentrate, tailings or minerals from any licence or permit area for the purpose of examination or assay; (d) break up the surface of the land for the purpose of ascertaining the rocks or minerals within or under it; and

_The Mining (Amendment) Bill, 2023 fi oi two persons with professional qualifications and experience in the mining industry, (3) The Cabinet Secretary shall appoint the eee under subsection (2) (d) and (h) who shall serve a period of three years. (4) A person shall be qualified for appointment as a chairperson or member of the Mineral Rights Board if that person — (a) is a citizen of Kenya; (b) holds a degree from a recognized university, in geology, geophysics, mining, engineering, economics, business administration or law; (c) has experience in the mining sector of not less than ten years in the case of the chairperson and five years in the case of any other member, and (d) satisfies the requirements of Chapter Six of the Constitution, (5) A person shall not be qualified for appointment as a Chairperson or member of the Mineral Rights Board, if that person — (a) is an undischarged bankrupt; (b) suffers from physical or mental infirmity which renders him or her incapable of discharging the function of the Mineral Rights Board; and (c) has been convicted of an offence whose term of imprisonment exceeds six months. (6) The Chairperson and members of the Mineral Rights Board under subsection (2) (a) and (h) shall hold office for a period of years and may be eligible for re-appointment for one further term. appointed three Section 31 of No. 12 of 2016 which it is propased to amend— (1) The functions of the Mineral Rights Board shall be to advise and give recommendations, in writing, to the Cabinet Secretary on— (a) the grant, rejection, retention, renewal, suspension, revocation, variation, assignment, trading, tendering, or transfer of Mineral Rights Agreements; (b) the areas suitable for small scale and artisanal mining; (c) the areas where mining operations may be excluded and restricted; (d) the declaration of certain minerals as strategic minerals;

Tie Kates (Arwenbeit) Bil, 2029 (c) cessation, suspension, or curtailment of production in respect of mining licences; (f) fees, charges and royalties payable for a mineral right or mineral; and (g) any matters which under this Act, are required to be referred to the Mineral Rights Board. (2) The Mineral Rights Board may for the purpose of facilitating the of its functions establish such number of committees to advise the Mineral Rights Board on matters relating to mining. and minerals. Section 32 of No. 12 of 2016 which it is proposed fo amend— Categories of mineral right (1) The Cabinet Secretary, on the recommendation of the Mineral Rights Board, may grant, deny or revoke a mineral rights. (2) A mineral right may be granted in respect of a large scale Operation or small scale operation. (3) The following licences and permits may be granted for a mineral right under this Act to authorise a mineral right holder to engage in— (a) large scale operations which shall include — (i) reconnaissance licence; (ii) a prospecting licence; (ili) a retention licence; (iv) a mining licence; or (b) small scale operations, which shall include— (i) a prospecting permit; or (ii) amining permit. (4) The Cabinet Secretary may on the recommendation of the Mineral Rights Board, by notice in the Gazette, designate any other mineral right which may be granted under this Act. Section 33 of No. 12 of 2016 which it is proposed to amend— Feedback on status of applications for large scale operations (1) A person shall make an application for a mineral right in the prescribed manner to the Cabinet Secretary.

The Mining fAmencimeni) Bill, 2023 | 5 15 (4) Subject to sub-section (3), a person or community may object to the grant of a licence — (a) within twenty one days in the case of an application for a prospecting licence; and (b) within forty two days in the case of an applications for a mining licence. (5) The Cabinet Secretary shall hear and determine any objection to an application under subsection (4) through the Minerals Rights Board. Section 36 of No. 12 of 2016 which: it is proposed to amend— Mineral rights in excluded and restricted areas (1) The Cabinet Secretary shall not grant a mineral right which authorises prospecting or mining operations on— (a) any land specified by the Cabinet Secretary, by notice in the Gazette, to be land upon which such operations are excluded or restricted; or (b) an area of which is subject to an existing permit or licence. (2) The Mineral Rights Board shall, prior to recommending to the Cabinet Secretary the grant of a mineral right, require the applicant to seck— (a) approval of the National Land Commission, in relation to public land; (b) the approval of the relevant State agency where that mineral right is on public land under Article 62 (1b) of the Constitution; (c) the approval of the appropriate Cabinet Secretary or other authority, where the area in respect of which a mineral right is sought is dedicated or set apart as a place of burial, religious significance, as a public building, or for any other public purpose; (d) the Governor of the respective county exercising control where the land is situated within a town, municipality or trading centre; {e) the Cabinet Secretary responsible for matters relating to wildlife conservation and management, where the land is situated within a marine park, a national park or a local sanctuary under the Wildlife (Conservation and Management) Act (No. 47 of 2013); (f) the Cabinet Secretary responsible for matters relating to the environment, where the land is situated within a protected area, a protected natural environment, or a protected coastal zone under

_The Mining (Amendment) Bill, 2023 the Environmental Management and Coordination Act (No. 8 of 1999); (g) the Director of the Kenya Forest Service, where the land is situated within a forest area or, operations on, under or over an area, that has been declared a forest area under the Forests Act (No. 7 of 2005), (h) any other person who in the opinion of the Cabinet Secretary would otherwise be affected by the grant of a mineral right, who may include the owner of private land or the community in occupation of the land. (3) The Cabinet Secretary shall determine any questions as to whether operations on any land are excluded under this section. Section 37 af No. 12 af 2016 which it is proposed to amend— 37. Mineral rights on private land (1) A prospecting and mining rights shall not be granted under this Act with respect to private land without the express consent of the registered owner, and such consent shall not be unreasonably withheld. (2) For the purpose of subsection (1), consent shall be deemed to be for the purposes of this Act where the owner of private land has given entered into— (a) a legally binding arrangement with the applicant for the prospecting and mining nights or with the Government, which or allows for the conduct of prospecting or mining operations; (b) an agreement with the applicant for the prospecting and mining rights concerning the payment of adequate compensation. (3) Where consent is granted prior to any change in land ownership, consent shall continue to be valid for as long as the prospecting and such mining rights subsists. Section 38 of No. 12 of 2016 which it is proposed to amend— 38. Mineral rights on community land (1) A prospecting and mining rights shall not be granted under this Act or any other written law over community land without the consent of— (a) the authority obligated by the law relating to administration and management of community land to administer community land; or

1518 The Mining (Amendment) Bill,2023 Section 43 af No. [2 of 2016 which it is proposed to amend— Directions concerning good mining practice (1) A a not— holder of mineral right shall (a) engage in wasteful mining or treatment practices; or (b) conduct his operations otherwise than in accordance with this Act, best industry practice and any other guidelines as shall be prescribed from time to time by the Cabinet Secretary. (2) The Cabinet Secretary or an officer authorised by the Cabinet Secretary, may issue directions to the holder of a mineral right requiring the holder to undertake measures necessary to— (a) prevent wasteful mining practices; or (b) ensure that prospecting or mining operations are carried out in accordance with mining best practice, the Act or guidelines under this Act. (3) The holder of # mineral right shall comply with any direction given under this Act. (4) A person who does not comply with the provisions of this section commits an offence. Section 45 af No. [2 ef 2016 which it is proposed to amend— Registered address A holder of a mineral right and any agent appointed by the holder of a mineral right shall register with the Principal Secretary an address in to which all communications and notices made under this Act to the: mineral right holder or agent may be sent. Section 46 of No. 12 of 2016 which it is proposed ta amend — Employment and training of Kenyans (1) To ensure skills transfer to and capacity building for the citizens, the holder of a mineral right shall submit to the Cabinet Secretary a detailed programme for the recruitment and training of citizens of Kenya in a manner as may be prescribed by the Cabinet Secretary. (2) The submission and approval of the programme under subsection (1) shall be a condition for the grant of mineral right. (3) The Cabinet Secretary shall make regulations to provide for the replacement of expatriates, the number of years such expatriates shall serve and provide for collaboration and linkage with universities and research institutions to train citizens.

1520 Mining (Amencment) Bilt, 2023 ___The (2) The Cabinet Secretary shall not unreasonably withhold consent to assign, transfer, mortgage or trade a mineral right and shall inform an applicant of the decision within thirty days of receipt of an application to assign, transfer, mortgage or trade a mineral right. (3) The Cabinet Secretary shall not consent to a proposed assignment, transfer, mortgage or trade of a mineral right toa person or a body corporate which is not eligible for the grant of a mineral right under this Act. (4) Prior to assignment, transfer, mortgage or trade of a mineral right, and within thirty days from the date of receiving consent, the holder of such right shall notify the Kenya Revenue Authority of the transfer of an interest in a mineral right. (5) The Cabinet Secretary shall not register the interest of the transferee until the transferor produces evidence of compliance with the relevant tax provisions. (6) Subject to this Act, the holder of a mineral right shall noufy the Cabinet Secretary of any significant proposed change in the ownership or control of the mining company with any single interest exceeding twentyfive percent interest in the licence. (7) A proposed change shall not take effect until it has been approved by the Cabinet Secretary. (8) The Cabinet Secretary shall not refuse to grant approval, except for valid reasons. (9) The transferee as well as the transferor of a mineral right shall be liable for the payment of all rent and compensation which may have accrued, and the observance of all obligations imposed by the licence up to the date of the transfer in respect of the licence or part thereof so transferred, but the transferor shall not be liable for the payment of any future rents and compensation or the compliance with any obligations so imposed as aforesaid in regard to the licence or part thereof so transferred after the date of the transfer. Section 52 of No. 12 2016 which it ix proposed ta. amend— of Preparation of reports The Mineral Rights Board shall prepare and submit a report on each application for a mineral right to Cabinet Secretary. the Section 33 No. 12 2016 which it is proposed amend— af ef to

ER ATS: i Annual financial reports (1) The holder of a mineral right shall, within three months following the end of each financial year, furnish the Cabinet Secretary and the Kenya Revenue Authority with a copy of audited annual financial statements, in accordance with International Accounting Standards. (2) The Cabinet Secretary shal! prescribe the form and contents of the annual financial statements. ' Section 34 af No. 12 of 2016 which it ix proposed to amend— Power to require additional information (1) The holder of a mineral right, or an applicant for the grant or renewal of a mineral right, shall provide such additional information to the Cabinet Secretary as may be reasonably required for consideration of the (2) The Cabinet Secretary shall request for information by written notice to the holder of the mineral right. (3) Where the Cabinet Secretary requires additional information to be provided under subsection (1), an application for the grant or renewal of a mineral right shall be deemed to be incomplete until the mineral right holder furnishes the additional information to the Cabinet Secretary. Section 55 of No. 12 of 2016 which it is propased to amend— 55. Report by the Cabinet Secretary (1) The Cabinet Secretary shall submit an annual report, to Cabinet, of all mineral rights granted or rejected under this Act or any other written law, (2) The report submitted under subsection (1) shall indicate the justification for granting or rejecting a mineral right under this Act or any other written law. Section 57 of No. 12 of 2016 which it is proposed to amend— Treatment of applications (1) The Cabinet Secretary shall extend the term of a mineral right that has expired by effluxion of time— (a) where the mineral right is for a prospecting licence and the holder is awaiting a decision on an application made in accordance with this Act for— (i) the renewal of the licence: or (it) @ retention licence or a mining licence that applies to the whole, or a part, of the area covered by the prospecting licence,

122 The Mining (Amenament) Hill, 2023 (b) where the mineral right is for a retention licence and the holder is awaiting a decision on an application made in accordance with this Act for— (i) the renewal of the licence; or (ii) a mining licence; or (c) where the mineral right is fora mining licence or a mining permit and the holder is awaiting a decision on an application for renewal of the mineral right made in accordance with this Act. (2) An extension of the term of a mineral right in accordance with subsection (1) shall end immediately if an application for any of the mineral rights mentioned in this section is surrendered or is refused. Section 58 of No. 12 of 2016 which it is proposed to amend— Conditions for grant of mineral rights for large scale operations The Cabinet Secretary shall only grant or renew a mineral right for a, large scale operation where the applicant has complied with the provisions of this Act. Section 61 of No. 12 of 2016 which it is proposed to amend— Application for a reconnaissance licence (1) An application for reconnaissance licence shall be submitted to the Cabinet Secretary in the prescribed form with the prescribed fee. (2) An applicant for a reconnaissance licence shall provide the following information to the Cabinet Secretary— (a) the area in respect in which the reconnaissance licence is sought; O) Rs Te programme for the reconnaissance operations to be carried out; (c) details of the technical expertise and financial resources to be used in the conduct of the reconnaissance operations; (d) a plan outlining the proposals for procurement of local goods and services by the applicant; and (ce) any other information required by the Cabinet Secretary as may be prescribed by Regulations. (3) The Cabinet Secretary, on the recommendation of the Mineral Rights Board shall grant a reconnaissance licence, if— (a) the size area of land on which the reconnaissance licence is sought is reasonable and in line with the programme of operations proposed by the applicant;

__The Mining (An The Mining (Amendavent) Bill, mes (b) the saricien has adequate financial resources, technical competence and mining industry experience to carry on the proposed programme of reconnaissance operations; (¢) the local product plan by the applicant with respect to the procurement of locally available goods and services is acceptable; and (d) the local employment plan by the applicant with respect to employment and training of Kenyan citizens is acceptable. Section 62 of No. 12 of 2016 which it is proposed to amend — Maximum area reconnaissance licence of (1) The maximum area covered by a reconnaissance licence shall be a block or any number of blocks not exceeding five thousand contiguous blocks each having a side in common with at least one block the subject of the application. (2) Notwithstanding the number of blocks that may be granted under sub-section (1), nothing in this Act shall prevent the government from conducting any reconnaissance over the total land offshore area of Kenya or such lesser area as the Cabinet Secretary may approve. (3) A person or company may hold only one reconnaissance licence or such number of licences as the Cabinet Secretary shall prescribe in Regulations. Section 63 af No, 12 of 2016 which it is proposed to amend— 63. Term of a reconnaissance licence The term of a reconnaissance licence shall not exceed two years and renewable. is not Section 66 of No, 12 af 2016 which it is proposed to amend— Minerals obtained under reconnaissance licence Any mineral acquired in the course of reconnaissance operations under reconnaissance licence shall be the property of the National Government and shall not be disposed of or removed from Kenya without the written consent of the Cabinet Secretary. Section 67 No. 12 of 2016 which it is proposed amend— of to Obligations under reconnaissance licence (1) The holder of a valid reconnaissance licence shall— (a) commence reconnaissance within three months of grant of the licence; *

1524 The Mining (Amenclnertt) Bill, 2023 Gb) cans out reconnaissance in accordance with the as programme of reconnaissance operations; (c) expend on reconnaissance in accordance with the programme of reconnaissance, not less than such amount as may be specified in the reconnaissance licence: (d) not engage in drilling, excavation or other subsurface exploration techniques; (e) inform and consult on an ongoing basis with the national and county government authorities and communities about the reconnaissance operations that require physical entry onto the land within their jurisdiction; (f) not enter land that is excluded from the reconnaissance licence: (zg) compensate users of land for damage to land and property resulting from reconnaissance operations in the licence area; (h) not remove any mineral from reconnaissance are except for the purpose of having such mineral analysed, valued or tested; (i) ensure that the amount of work and amount of expenditure as specified in the approved programme or reconnaissance operations is actually expended in the course of undertaking reconnaissance operations within the mandated deadlines stipulated in the plan and reported in the reports that may be required by the relevant Regulations; (j) notify the Cabinet Secretary without any unreasonable delay of the discovery of any mineral deposit of potential commercial use; (k) notify the Cabinet Secretary of any archaeological discovery; (1) comply with the conditions of the licence and any. directions issued by the Cabinet Secretary or authorised officer in accordance with the Act; (m)submit to the Cabinet Secretary geological and finuncial reports and such other information relating to reconnaissance operations as may be prescribed; (n) carry out reconnaissance in accordance with the international good practice standards and any guidelines as may be prescribed: (o) remove within sixty days of the expiration of the reconnaissance licence, any camps, temporary buildings or machinery erected or installed by the holder and repair or otherwise make good any damage to the surface of the ground occasioned by such removal to the satisfaction of the Cabinet Secretary or a duly appointed officer.

__The Mining (Amendment) Bill, 2023 1525 ae (2) Where the expenditure specified in the approved programme of reconnaissance operations in sub-section (1) (c) is not expended during the term of the reconnaissance licence, any shortfall shall be paid to the Ministry of Mining in a manner as prescribed by the Cabinet Secretary. (3) A reconnaissance licence is subject to an area-based annual charge as may be prescribed (4) A reconnaissance licence is not transferable. Section 68 of No. 12 of 2016 which it is proposed to amend— 68. Form of reconnaissance licence (1) A reconnaissance licence issued in accordance with this Act shall nelude — i (a) an approved programme of reconnaissance including an expenditure commitment; (b) an approved plan for the procurement of local goods and services: {(¢) an approved plan to employ and train citizens of Kenya; and (d) any other conditions applying to the licence. Section 69 of No. 12 of 2016 which itis proposed to amend— (1) The holder of reconnaissance licence shall keep complete and accurate records of the reconnaissance operations at the registered office of the holder in the prescribed manner. (2) The records of a reconnaissance operations shail include — (a) details of all minerals discovered: (b) the results of geological, geochemical, geophysical or airborne surveys obtaiued and compiled by the holder; (c) financial statements and books of accounts as the Cabinet Secretary may by notice require; and (d) any other reports or information as may be prescribed or otherwise determined by the Cabinet Secretary. (3) The holder of a reconnaissance licence shall submit six-monthly and anual reports on reconnaissance operations in the form prescribed in guidelines. Section 70 of No. 12 of 2016 which it is proposed to amend—

1526 The Mining (Anrondiment) Bill, 2083 Amendment of programine for -econnaissance The holder of a reconnaissance licence may make an application in the prescribed form to the Cabinet Secretary for approval to amend the approved programme for reconnaissance. Section 71 of Now 12 ¢f 2016 which it is proposed to amend— Right to surrender reconnaissance licence (1) The holder of a reconnaissance licence may, upon application in the prescribed form and manner and upon meeting preseribed conditions, surrender the licence. (2) Upon surrender, the holder of a reconnaissance licence shall submit all records, reports, results, data and interpretation arising from the reconnaissance operations to the Cabinet Secretary which shall become the property of the State, and the holder shall not trade or otherwise divulge information to any third party without the express permission of the Cabinet Secretary. Section 72 of No. 12 of 2016 which it is proposed to amend— Application for prospecting licence (lA eg may apply for a prospecting licence to the Cabinet Secretary in the prescribed form and accompanied by the prescribed fee. (2) An applicant for a prospecting licence shall provide the following information to the Cabinet Secretary — {a) the mineral or minerals in respect of which the licence is sought; (b) the area in respect of which the licence is sought; (c) particulars of the proposed programme for prospecting operations to be carried out under the licence; (d) details of the experience and financial resources available to the applicant to be able to conduct the prospecting operations; (e) a plan giving particulars of the proposals by the applicant with respect to the employment and training of Kenyan citizens; and Cea qrodd abtyn gt canbe ey tear dats by the applicant with respect to the procurement of local goods and services. (3) The Cabinet Secretary shall not grant a prospecting licence unless he is satisfied that— (a) the size area of land over which the prospecting licence is sought is reasonable having regard to the proposed programme of prospecting operations by the applicant,

Amendment of programme for prospecting operations The holder of a prospecting licence may make a written application in the prescribed form to the Cabinet Secretary for approval to amend the approved programme for prospecting operations. Section 8! of No. 12 of 2016 which it ix proposed to amend— Renewal of prospecting licence (1) The holder of a prospecting licence may apply to the Cabinet for the renewal of the prospecting licence in respect of an area of land that forms part of the prospecting area, (2) An application under this section shall be made in the prescribed form and shall be accompanied by the prescribed fee. (3) An application for the renewal of a prospecting licence shall be made three months before the expiry of the term of the current prospecting licence. (4) The Cabinet Secretary, on the recommendation of the Mineral Rights Board, shall respond to an application for the renewal of a prospecting licence within sixty days of receipt of the application. (5) Where an application has been made and the Cabinet Secretary fails to respond before the expiry of the prospecting licence, the applicant may continue the prospecting operations until the application is determined. Section 82 of No. 12 of 2016 which it is proposed to amend— Application for renewal of prospecting licence (1) An application for the renewal of a prospecting licence shall be accompanied by — (a) a report on the progress of the prospecting operations; (b) @ statement of the costs incurred in the course of undertaking prospecting operations, (c) particulars of the programme for prospecting operations that the applicant proposes to carry out during the renewal period, including an estimate of expenditure; (d) a plan showing the area of land in respect of which renewal is sought; and (e) proof of submission and approval of environmental audit reports relating to the initial application and the application for renewal, to the National Environmental Management Authority.

1534 The Mining (Amendment) Bill, 2025 Section 4 af No. (2 of 20/6 which it is proposed to amend — Artisanal Mining Committee (1) There shall be established in every county an Artisanal Mining Committe:. (2) An Artisanal Mining Committee shall comprise of — (a) a representative af the Gowernar whe shall be the chairperson ol the committee: (b) the representative of the Director of Mines who shall be the secretary; (c) three persons not being public officers and elected by the association of artisanal miners in the county; (d) a representative of the inspectorate division of the Ministry; (e) a representative of the National Environment Management Authority: and (f) a representative of the county land board. (3) The Committee shall advise the representative of the Director of Mines in the granting renewal or revocation of artisanal mining permits. (4) The members of the Committee shall hold office for a period and on such terms and conditions as may be determined in the Genuine ok appointment, Section 98 of No. 12 of 2016 which it is proposed to amend — Operations of Artisanal Miners (1) A holder of an artisanal permit may mine and produce minerals in an effective and efficient method, Se ay ne ea eek practices, health and safety rules and pay due regard to the protection the environment. (3) The Cabinet Secretary shall prescribe Regulations for the protection, health and safety of artisanal ginies operations. Section 101 of No. 12 of 2016 which it is proposed to amend — Application for mining licence (1) A person or company may apply for a mining licence in the prescribed form and accompanied by the prescribed fee. (2) An application for a mining licence under subsection (1) shall be in the prescribed form and addressed to the Cabinet Secretary and shall provide the following information— (a) the mineral or minerals in respect of which the licence is sought;

The Mining (Amenderent) Bill, 2023 (b) the area in respect of which the licence is sought, (c) a proposed programme of mining operations that outlines the mine forecasts and operation plans, including the options for minerals beneficiation in the prescribed form; (d) a feasibility study; ({c) a Statement regarding the mineral or minerals in the area of land over which the licence is sought, including details of all known minerals as well as probable mineral reserves; (f) a statement of the financial and technical resources available to the applicant to carry out the proposed mining operations and to comply with the conditions of the licence; (g) i giving particulars of the applicant's proposals with respect the employment and training of Kenyan citizens, (hy a a giving particulars of the applicant's proposals with respect the procurement of local goods and services; (i proof of submission and approval of an environmental and social impact assessment report and environmental management plan for the term of the ere licence to the National Environment Management Authority; and (j) a plan giving particulars of the applicant's proposals with respect to social responsible investments for the local community. Section 102 af No. 12 of 2016 which it is proposed to amend— Restrictions in respect of mining licences The Cabinet Secretary shall not grant a mining licence in respect of land which is the subject of a prospecting licence, reconnaissance licence, a retention licence or a mining licence unless — (a) the applicant is the holder of that licence; or (b) the applicant, with the consent of the licence holder, is applying for a licence that would permit the applicant to work a mine dump or mine waste and tailings on the land but not to undertake any other mining operation on the land. Section 103 of No. 12 of 2016 which it is proposed fo amend— Consideration of applications The Cabinet Secretary, on recommendation of the Mineral Rights Board, may grant a mining licence if satisfied that—

= Ts Hanley (Armarnpein) Bi, 2003 (c) comply with the conditions of the licence, any applicable mineral agreement and any directions issued by the Cabinet Secretary or an authorized officer in accordance with this Act: (f) submit to the Cabinet Secretary up to date quarterly returns of mine development and mineral production; {g) stack or dump any mineral or waste products in the manner provided for in the licence or as otherwise prescribed, having regard to good mining industry practice: (h) carry out prospecting and mining activities in accordance with international best practice and the prescribed guidelines; and (i) sign a community development agreement with the community mining operations are to be carried out in such a manner as shall be prescribed in Regulations, Section 111 of No. 12 of 2016 which it is proposed to amend — Amendment of programme of mining operations (1) Subject to the terms and conditions of the licence, the holder of a mining licence shall notify the Cabinet Secretary of any proposed Amendment of the approved programme for mining operations. (2) Unless the Cabinet Secretary rejects the proposed amendment, the amendment shall take effect three months after the date of notification under subsection (1). (3) A proposed amendment which is likely to substantially alter the approved programme of mining operations shall not take effect unless expressly approved by the Cabinet Secretary. Section 112 of No. 12 af 2016 which it is proposed to amend— Newly discovered minerals (1) The holder of a mining licence shall notify the Cabinet Secretary of the discovery of any mineral to which the licence does not relate within thirty days of the discovery. (2) The notification under sub-section (1) shall include the particulars of the site and such other circumstances of the discovery as may be prescribed or otherwise required by the Cabinet Sectetary. (3) Subject to subsections (1), the holder of the mining licence may apply to the Cabinet Secretary to include a newly discovered mineral or minerals under the mining licence, (4) An application to include a newly discovered mineral or minerals made under subsection (3) shall be in the prescribed form and shall include

_The Mining (amenctenent) 'Bill, 2023 1547 5) Whhass a biked dieke Wek eed LE CE cancelled by the Cabinet Secretary, the former holder of the mineral right shall provide a statement to the Cabinet Secretary in the prescribed form containing the information prescribed in subsection (1) within such reasonable period as the Cabinet Secretary may direct. (3) All immovable assets of the bolder under the mining licence shall vest in the Republic from the effective date of the surrender or termination of the licence. (4) All movable assets of the holder in the mining area which are fully depreciated for tax purposes shall vest in the County Government without charge on the effective date of such termination and any property not then fully depreciated for tax purposes, the County Government or the Republic shall have the right of first refusal for the sale of such assets from the effective date of termination at the depreciated cost. (5) Subject to subsection (4), the Cabinet Secretary may permit the assets to be removed solely and exclusively for the purpose of use by the holder in another mining operation in the country. (6) The Cabinet Secretary shall prescribe Regulations on the use of assets. Section 150 of No. 12 af 2016 which it is proposed to amend— Delivery of records and documents on termination Where a mineral right is not renewed or is surrendered by the holder or cancelled by the Cabinet Secretary, the holder shall deliver to the Cabinet Secretary within a period of two months — (a) all the records which, prior to termination, the holder was obliged to maintain under this Act; and (b} all plans or maps of the area covered by the mineral right prepared by or for the holder, Section 153 of No. 12 of 2016 which it is proposed to amend— Principles of compensation (1) Where the exercise of the rights conferred by a mineral right— (a) disturbs or deprives the owner or any lawful occupier or user of the land or part of the land; (b) causes loss of or damage to buildings and other immovable property, (c) causes damage to the Water table or deprives the owner of water supply;

The Mining (Asnenudent) Bill, 2023 referral of the dispute and shall advise the other party of the nature of the complaint and invite that party to lodge a nemernltin in response to the complamt; "facet ing the written respense from the party against whom i thas heen fodeed for aleteniination, the Cabinet Hafli he parties Wl thie tin aid plc ub hagt Hi nhict will be ieered cond determined: id) the partigs shall be invited to state their respective cases bevore the Cabinet Seeretary and shall be entitled to adduce evidence on oath or affirmation in support of their causes; and (c) after hearing the statements and receiving the evidence the Cabinet Secretary shall make a written determination of the dispute. (2) Any person who is a party to a dispute referred to the Cabinet Secretary for determination under this section may appear in person or be represented by an advocate. (3) In making a determination of a dispute, the Cabinet Secretary shall, having regard to the subject matter of the dispute, apply relevant Tules and principles concerning the matter in dispute, (4) Subject to section 155, the Cabinet Secretary may make such orders as he may consider necessary to give effect to a determination, including ordering the payment of compensation by one party to the dispute to the other. (5) An order made by the Cabinet Secretary under this section shall be enforceable by a Court as if the same were an order of that Court. (6) The Cabinet secretary shall keep a record of all matters heard and determined by him, and shall keep a written record of the evidence given before him. (7) Any person who is interested in any dispute, decision or order shall be entitled to obtain a copy of such record and notes upon payment of the prescribed fee. (8) The Cabinet Secretary may send a copy, certified under his hand and seal, of any decree or order made by him to any civil court within the local limits of whose jurisdiction the subject-matter of the decree is situated, and such civil court shall enforce the decree of the Cabinet Secretary in the same manner in which it would enforce its own decree or order. (9) The Cabinet Secretary shall by notice in the Gazette prescribe rules of procedure to be applied in respect to determination of disputes under this Act.

The Mining (Amendment) Bil, 2023 x Section 157 of No, 12 of 2016 which it is proposed to amend — Appeals Any person aggrieved by any decree, order or decision made or given under the powers. vested in the Cabinet Secretary may appeal within thirty days to the High Court. Section 158 of No. 12 of 20/6 which it is proposed to amend— 158. Disposal of minerals (1) A person shall not dispose of minerals, whether for sampling, assay, analysis or otherwise except— (a) with the written consent of the Cabinet Secretary; (b) where the person is the holder of a mineral right, in accordance with the conditions of the mineral right; (c) where the person is the holder of a mineral dealer's licence or a diamond dealer's licence in accordance with the conditions of the licence: or (d) in any other case, as otherwise penmitted by or under this Act, (2) No title to minerals shall pass in any case where a person disposes of minerals otherwise than in accordance with subsection (1). Section 160 of No. 12 of 2016 which it is proposed to amend— Application for mineral dealer's licence (1) An application for a mineral dealer's licence shall be made to the Cabinet Secretary in the prescribed form and shall be accompanied by the prescribed fee. (2) An application made under subsection (1) shall be accompanied by evidence sufficient to show that the applicant is in possession of, or commands, either sufficient knowledge, experience, or working capital to ensure that the applicant can carry on the business that would be permitted under the licence. Section 161 of No. 12 of 2016 which it is proposed to amend— Term of mineral dealer's licence (1) A mineral dealer's licence shall expire on the thirty-first day of December of the year in which it is issued. (2) A mineral dealer may apply for renewal of a mineral dealer's licence to (ie Cabinet Secretary in the prescribed form and upon payment of the prescribed fee, Section 163 af No. 12 of 2016 which it ix proposed to amend—

The Mining (Amencdment) ain, 2023 months, together with a statutory declaration of the correctness thereof, and shall also produce and exhibit the register to a police officer of or above the rank of Inspector whenever required in writing by the officer. Section 169 of No. 12 of 2016 which it is proposed to amend— Appointment of agent by holder of diamond dealer's licence (1) The holder of a diamond dealer's licence may appoint an agent for the purpose of cngaging in diamond dealings on behalf of the licence holder. (2) The appointment of an agent under subsection (1) shall not Operate to exempt the holder of a diamond dealer's licence from compliance with the relevant provisions of this Act and the conditions of the licence. (3) Where the holder of a diamond dealer's licence appoints an agent he or she shall furnish the Cabinet Secretary with the following information in the prescribed form — (a) the name and registered address of the agent; (b) the date of the appointment of the agent; and (c) the duration of the instrument of appointment between the licence holder and the agent and details of the terms and conditions of the agency agreement. (4) An agent appointed, by the holder of a diamond dealer's licence may exercise the rights of the holder of the licence subject to, any limitations on the powers of the agent contained in the agreement or instrument of appointment between the licence holder and the agent. Section 170 of No. 12 of 2016 which it is proposed to amend— Mines support (1) person or company shall provide any mine support services subject to being issued with a licence by the Cabinet Secretary, upon recommendation of the Mineral Rights Board. (2) The Cabinet Secretary shall prescribe Regulations to give effect to this section. Section [71 af No. 12 of 2016 which it is proposed to amend— Import of minerals Where a person imports minerals, the person shall make a declaration at the point of entry in the prescribed form. Section 173 of No. 12 of 2016 which it is praposed to amend—

The Mining (Amendment) Bil 2023 Suspension and revocation (1) The Cabinet Secretary may suspend or revoke a licence or permit granted under this Part if the holder— (a) fails to make a prescribed payment by the due date; (b) fails to comply with a condition specified in the licence or an obligation imposed on the holder by this Act and fails to take action to remedy a breach within a reasonable time; (c) makes a false statement or gives false information to the Cabinet Secretary or to a public officer exercising functions under this Act that was, which information is material to the grant of the licence or permit; (d) dies, (e) becomes of unsound mind; (f) is adjudged bankrupt; (g) is subject to financial difficulty or otherwise ineligible to hold the licence or permit; or (h) commits any offence under this Act. (2) Before suspending or revoking a licence or permit under subsection (1) the Cabinet Secretary shall give the holder of the licence or permit written notice requiring the holder— (a) to comply with the condition or obligation within a reasonable péniod of time; or (b) where this is not possible, to show cause within that period, why the licence should not be suspended or revoked. Section 175 af No, 12 of 2016 which it is proposed to amend— Delivery documents on revocation of records and Upon revocation of a licence, the holder shall deliver to the Cabinet Secretary within the prescribed period all the records which, prior to revocation or expiration, he was obliged to maintain under this Act. Section 180 of No. 12 of 2016 which it is proposed to amend— Requirement of site restoration and mine-closure plans (1) The Cabinet Secretary shall not grant a prospecting licence, a retention licence or a mining licence to an applicant, unless the applicant has submitted a site mitigation and rehabilitation or mine-closure plans for approval,

1558 The Mining (Aimenciment) Hill, 2023 eee notice to the mineral right holder requiring repayment of the outstanding royalties. (2) In the event that the mineral right holder does not pay the royalties payable within the period specified in the notice— (a) the Mining Cadastre Office shall record the outstanding royalties in the cadastral register; and (b) the Cabinet Secretary shall suspend the respective licence or permit. (3) In the event that the mineral right holder does not pay the royalties payable within sixty days, the Cabinet secretary shall revoke the licence or permit a% the case may be. (4) Where the holder of mineral right fails to pay the prescribed royalty with the prescribed period, the Cabinet Secretary may prohibit the disposal of any mineral or mineral product from the mining area concerned, or from any other mining area held by that mineral right holder. Section 188 of No. 12 of 2016 which it is proposed to amend— Reduction or suspension of royalties (1) A mineral right holder may apply to the Cabinet Secretary for a reduction or temporary suspension of a royalty rate. (2) The Cabinet Secretary shall make Regulations to provide for the conditions and criteria for determining applications for reduction or suspension of payment of royalties. Section 192 of No. 12 of 2016 which it is proposed to amend— Requirement to enter information in register (1) The register established under section 164 shall contain details of each application, grant, assignment, transfer, notice, surrender, suspension and cancellation of a mineral right. (2) The Cabinet Secretary may prescribe such other records and instruments that shall entered into the register. (3) The computerized mining cadastre and registry system shall include an online transactional facility to enable applications for granting and renewal of mineral rights to be submitted online. (4) The cadastre shall be a public documen tand may be inspected by an interested person upon the payment of a prescribed fee. (5) The National Land Commission shall keep a copy of the cadastre.

The Mining (Amendonent) Bi, 2023 = Section 196 of No. 12 of 2016 which tt is proposed to amend — Appointment of inspectors of mines (1) The Cabinet Secretary may, by notice in the Gazette, designate duly qualified public officers, 10 be inspectors of mines for such Jurisdictional units as may be specified in the notice, (2) A mines inspector shall moniter compliance and take enforcement action and perform such other functions as may be required under this Act or specified in the notice of appointment, (3) The Cabinet Secretary shall issue a mines inspector with a document of identification, Section 197 of No. 12 uf 2016 which it ix proposed to amend— General powers of search and inspection (1) The Cabinet Secretary or a mines inspector authorised by the Cabinet Secretary may without prejudice to all other written laws, at all reasonable times — (a) enter, inspect and examine land on which prospecting or mining Operations are being conducted or land which is the subject of a mineral right; (b) enter into an area, structure, vehicle, vessel, aircraft or building that, in the opinion of the Cabinet Secretary or the mining inspector has been or is being used for or in connection with Prospecting or mining operations; (c) carry out periodic inspections of premises within the jurisdictional limits which have been or are being used for or in connection with Prospecting or mining operations: (d) enter, inspect and examine any premises where mineral dealings are being conducted: () require the production of, inspect, examine, and take copies of licences, permits, registers, records of any kind and other documents relating to this Act and the carrying out of operations authorised by a mineral right, or other licence or permit granted under this Act; (f) take samples of any article and substances to which this Act relates and submit such samples for testing and analysis in such a manner as may be prescribed; (g) seize for a maximum period of seven days any article, vessel, motor vehicle, plant, equipment, substance or any other thing

1562 The Mining (Amencarent) Bill, 2023 Section 219 of No. 12 of 2016 which itis proposed to amend— Immunity of officials Neither the Cabinet Secretary nor any public officer, shall be liable to be sued in a civil court in respect of the exercise or performance, or in good faith of a function under and for the purposes of this Act. Section 222 of No. 12 of 2016 which itis proposed to amend— Radioactive minerals (1) Where a radioactive mineral is discovered in the course of exercising a right under this Act or under another enactment, the holder of the mineral right or another person shall immediately notify the Cabinet Secretary of the discovery. (2) Where a radioactive mineral is discovered on land other than land which is subject to a mining right, the owner of the land shall immediately notify the Cabinet Secretary of that discovery. (3) The holder of a mineral right shall within the first week of cach month furnish the Cabinet Secretary and the Director of Geology with a true report in writing of the prospecting and mining operations conducted by the holder in the immediately preceding month with respect to radioactive minerals.