MINERAL RESOURCES DEVELOPMENT POLICY(2013) 14 th February 2014 MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT 1

PRESENTATION OUTLINE Background( Historical perspective) 1995 Mining Policy(Repealed and replaced) Overview of the Mineral Resources Development Policy (2013) Policy Measures and Strategies Implementation Framework 2

1. BACKGROUND (Historical Perspective) Zambian large scale mining industry commenced in the 1930s under private ownership Mines were Nationalized in the 70s In 1997 the Zambian Government initiated reprivatization of the mining industry which ended in 2000 Privatization of the mining sector was necessitated by the poor performance of the sector and the need to attract private investment 3

BACKGROUND (Cont.) The development of the private driven mining sector was carried out within the frame work of the Mining Policy which was put in place in 1995 Hastily done and lack detail 4

MINING POLICY(REPLACED) The 1995 Mining Policy failed to address the following: Inefficiency in the administration of the mining rights Undeveloped small scale mining and gemstone subsectors Low revenues from the mining sector to the treasury Lack of financing for small scale miners 5

1995 MINING POLICY(REPLACED) (Cont.) Poor marketing and mainstreaming of the gemstone and small scale mining industry Non participation by Zambians in ownership of large scale mines Therefore, to address these challenges, the Mineral Resources Development Policy of 2013 was formulated 6

3. OVERVIEW OF THE MINERAL RESOURCES DEVELOPMENT POLICY OF 2013 GUIDING PRINCIPLES Government’s commitment to ensure sustainable exploitation of mineral resources Government’s commitment to a free market enterprise economy The application of modern principles in administration of mining laws and regulations Adherence to regional and international conventions Promotion of Citizen Economic Empowerment (CEE) 7

OBJECTIVES Policy objectives of the Government for the mining sector are to: Attract and encourage local and foreign private sector participation. Facilitate the empowerment of Zambians to become owners/shareholders in the mining industry Promote the development of a mining industry that is integrated in the domestic economy Encourage sustainable development of small scale mining sub-sector 8

OBJECTIVES(Cont.) Promote the development of a mining industry that is integrated in the domestic economy Achieve acceptable safety, health and environmental standards Promote research and development (R&D) in the mining industry Encourage mining companies to develop a participatory and collaborative approach to mine planning development and decommissioning taking into account the needs and concerns of local communities 9

4. POLICY MEASURES AND STRATEGIES The following sub-sections give policy measures and strategies intended to achieve the outlined objectives: Exploration and Mining Expedite geological mapping of the remaining unmapped parts of the country, through non-tax incentives Promote exploration of energy minerals Promote exploration and marketing of uranium in accordance with national and international mining law 10

POLICY MEASURES AND STRATEGIES (CONT.) Spread the benefits of mining across Zambia Mining Rights Administration Maintain an efficient computerised mining cadastre system The Legal Framework Regularly update the legislative framework for the mining sector in line with the changing environment. 11

POLICY MEASURES AND STRATEGIES (CONT.) Safety, Health, Environment and Quality Government ensuring that exploration, mining and processing of minerals comply with safety, health and environmental legislation Maintaining Environmental Protection Fund(EPF) Government shall ensure that exploration and mining activities within protected areas comply with the environmental legislation 12

POLICY MEASURES AND STRATEGIES (CONT.) Large and Small Scale Mining Government shall : Promote development of at least one large scale mine in provinces with economical mineral deposits Collaborate with large prospecting and mining associations Disseminate information to raise awareness on safety, health and environmental risks to small-scale miners Facilitate small-scale miners’ access to finance for the development of the sub-sector 13

POLICY MEASURES AND STRATEGIES, (CONT.) Citizen Economic Empowerment in the Mining Sector Promote Zambian ownership of large scale mines through the Citizen Economic Empowerment Act Encourage mining companies to float their shares on the Lusaka Stock Exchange 14

POLICY MEASURES AND STRATEGIES (CONT.) Human Resource Development Regularly identifying skills deficiencies and promoting measures to address them Encourage mining companies to support training through provision of bursaries, in-house training and apprenticeships Regional and International Co-operation Government will explore and engage in regional initiatives to facilitate the development of the sector and also cooperate with other Governments 15

POLICY MEASURES AND STRATEGIES, (CONT.) Marketing of Gemstones Government will devise mechanisms of auctioning gemstones within the country Value Addition Government shall promote and facilitate the development of downstream processing capacities for minerals 16

5. IMPLEMENTATION FRAMEWORK The implementation framework will be as follows: Institutional Arrangement Legal framework Monitoring and Evaluation Resource mobilization and financing. 17

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