The Mining (Technical Support to Small Scale Miners) Regulations, 2025, establish a comprehensive legal structure to guide the provision of technical assistance to holders of Primary Mining Licenses (PMLs), as part of a broader effort to promote sustainable and responsible mining practices. This framework aims to facilitate the transfer of specialized knowledge, skills, and modern technologies that are not readily available within the country, thereby enhancing operational safety, efficiency, and environmental management.
It involves the development of written agreements, or contracts, between small-scale miners and designated technical facilitators or service providers. These agreements outline the scope of support, including exploration, extraction, processing, and environmental management activities, and set the terms for collaboration over a specified period, generally not exceeding (3) three years per contract, with provisions for renewal to align with the lifespan of the mining license.
A key aspect of the law is the involvement of government officials, such as designated mineral officers, who are responsible for inspecting and verifying the validity of license applications and ongoing operations. These officials ensure compliance with legal and environmental standards, evaluate the financial standing of license holders, and assess any existing disputes or legal issues related to the mining activities. Their oversight is intended to maintain transparency and accountability in the support process.
Support providers, or facilitators, have clear responsibilities, including delivering technical assistance on various aspects of mining operations, ensuring environmental and safety standards are adhered to, and preparing comprehensive plans for sustainable mining practices. They are also tasked with transferring technology, knowledge, and operational skills to local personnel, thus fostering capacity building and reducing dependence on external expertise over time.
License holders are mandated to cooperate fully with facilitators, comply with relevant laws, and ensure that all activities are conducted within the boundaries of the granted license area. They are also responsible for paying appropriate levies, royalties, and other statutory dues, and for implementing approved environmental and safety management plans. The law emphasizes the importance of engaging local communities by establishing frameworks for corporate social responsibility and community development initiatives, which are integral to sustainable mining operations.
Financial arrangements regarding profit-sharing are also explicitly defined, with a requirement that licensees obtain a minimum of (30%) thirty percent of gross mineral revenue, after deducting royalties and taxes, to ensure that local stakeholders benefit equitably from mining activities. In cases where multiple licenses are combined or where joint ventures are formed, provisions are included to facilitate the transfer of licenses and the equitable distribution of profits among involved parties.
The law underscores the importance of safety and security at mining sites, mandating ongoing management of site security and environmental safeguards throughout the term of the support agreement. It also provides for the registration, review, and potential renewal of support contracts, with clear procedures for amendments or termination based on performance or compliance issues.
Dispute resolution mechanisms are established to address conflicts that may arise between license holders and facilitators, prioritizing amicable negotiations but allowing for legal recourse when necessary. Overall, the legal framework is designed to promote responsible mining by enhancing technical capacity, ensuring environmental sustainability, and fostering community development, ultimately contributing to the sector’s long-term growth and integrity.