Mining Law N°01-10
The new Mining law enacted on the 3rd of July 2001 , establishes :
- Separation of the ground and underground ownership.
- Non differentiation of the mineral substances.
- Open access to mining activities for any operator.
- The same treatment for all investors.
- The legal value of mining title :
- Prospecting and exploration Mining Titles : a personal estate, which can be transferred and assigned.
- Exploitation Mining Title : a real estate, which can be transferred, assigned, leased or mortgaged.
- Automatic right to exploitation shall be granted to the holder of an Exploration Mining Title who has discovered a mineral deposit.
- Stability of fiscal, legal and social conditions during the validity of the Mining Concession.
- Enhancement on environmental management.
- International arbitration.
- Mining Title granted by bid in the case of mineral deposits discovered under public financing.
- Setting up of the Geological data bank and its free access.
- Setting up of a single authority for granting mining Titles.
Who can Invest ?
Mining activities are commercial acts exercised exclusively by natural or legal entities of private law.
Any legal entity of private law can apply for a Prospecting Title.
Any legal entity possessing the relevant financial and technical capacities can apply for an Exploration Title:
- Any Holder of a valid Prospecting authorisation, or for the awarded bidder,
- The first comer is the first served, if the area has never been prospected.
Concession : granted to a legal entity
- holding an Exploration Permit,
- the awarded bidder.
Small or medium scale exploration : granted to a legal entity.
- holding an Exploration Permit.
- the awarded bidder.
Artisanal Exploitation :
Legal or natural entities according to the following priorities:
- the holder of an Exploration Permit,
- the holder of a Prospecting authorisation,
- the awarded bidder.
Documents to Provide
In 4 (four) copies
Decree n°02-65 of the 06/02/2002
Prospection:
- Company by-laws.
- Map at 1: 50 000 or 1: 200 000 scale showing the requested area and its location.
- General program of projected works.
Exploration:
- Company by-laws.
- Documents proving the financial and technical capacities.
- Map at 1 : 25 000 or 1 : 50 000 scale showing the perimeter boundaries.
- According to the case, a copy of the Prospecting Authorization.
- Environmental impact assessment.
Concession / small or medium scale mining:
- Previous exploration Permit or the awarding act.
- Documents proving the financial and technical capacities.
- Report on the general development program, planning of the intended works, and the financial amount to be invested.
- Map at the 1: 25 000 or 1: 50 000 scale showing the perimeter boundaries, the corners coordinates and the reference points.
- Report on the Prospecting and Exploration results.
- The feasibility study.
- Development plan of exploitation (1: 1 000 or 1: 5 000 scale).
- Environmental impact assessment.
Artisanal exploitation
- Previous Prospecting Authorization or Exploration Title,
- Prospecting or exploration results,
- Information on financial capacities,
- Delimitation of the site at the map 1: 25 000 or 1: 50 000 scale,
- Exploitation method on the map at 1: 5 000 or 1: 10 000 scale,
- Intended production and estimated cost.
- Environmental impact study and mitigating actions
Two possible ways
The applications are deposited at:
- Mining Patrimonies National Agency (ANPM).
- Mining General Directorate (during transitional period).
Procedures
.
- Either:
- Apply for a Prospecting authorization for defining the area to explore and,
- Apply for an Exploration Permit, for delimiting the mineral deposit and obtaining the automatic right to an exploitation title or,
- Apply for an Exploitation Title.
- Or :
- Apply for an Exploration Permit for delimiting the deposit and obtaining the automatic right to an exploitation title or,
- Apply for an Exploitation Mining Title.
Titles awarded following a bidding process (decree N°02-66) :
- An Exploration mining Title for confirming the existence of the mineral deposit and obtaining the automatic right to an Exploitation mining Title.
- An Exploitation mining Title when the deposit is already known and surveyed or when the Exploitation is an open area.
Mining Titles - Types and granting
1 - Prospecting Authorization:
Initial Period 1 Year + 2 Renewal Periods Of Six (6) Months Each One.
2 - Exploration Permit:
Initial Period 3 Years + 2 Renewal Periods Of Two (2) Years Each One With Possibility Of A Grace Period Of 2 Years In The Case Of An Unfavorable Situation.
3 - Mining Concession:
Duration 30 Years + Renewal According To The Deposit Reserves.
4 - Exploitation Permit For Small Or Medium Scale Mining:
Duration 10 Years + Renewal According To The Deposit Reserves.
5 - Artisanal Mining Authorization:
Duration 5 years + renewal according to the deposit reserves.
Mining titles are granted after a prior administrative review :
- Either for the first applicant (as certified by registration date and hour), if the deposit has not been surveyed under public funds.
- or to the awarded bidder when the deposit has been surveyed under public financing or the exploitation area has been released.
Applications handling
- 1 (one) month for Prospecting
- 3 (three) months for Exploration
- 5 (five) months for Exploitation
Fiscal Incentives
The mining law n°01 - 10 of the 03/07/2001 offers:
- Exemption from professional activity tax.
- Exemption from the VAT on goods specifically for acquired or imported for mining activity,
- Exemption from custom duties for equipment, material and products used in mining surveying.
- Exemption from the built property tax.
- Exemption from all the taxes related to exploitation results, except the mining profit tax (IBM).
- Depreciation of the Prospecting and Exploration costs in the case of Exploitation.
- Abatements of the mining royalties according to the exploitation type, surveying efforts and exploitation location.
- Transfer warranty of the invested capital and resulting incomes.
- Loss carry-over on 10 years.
- Possibility for setting up a provision of 1% from the turnover (excluding taxes), deductible from the gross renewing for rebuilding the reserves.
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