MINISTRY OF NATURAL RESOURCES

AND ENVIRONMENTAL AFFAIRS

MINES AND MINERALS ACT

CAP. (61.01)

Extracts

The Director of Mines

Department of Mines
P.O. Box 251
Lilongwe
MALAWI

Tel : (265 - 1) 754 777 / 755 303 / 754 789

Fax : (265 - 1) 754 793

1
BACKGROUND

The Department of Mines was established in 1983 with the objective of facilitating
the development of mining and petroleum exploitation so as to create an orderly and
Environmentally sustainable mining industry.

KEY ROLES FOR MINES DEPARTMENT

(1) Administering of the mines and minerals Act, the explosives At and the
petroleum (Exploration and Production Act).

(2) Providing technical assistance in setting up mining operation.

(3) Researching into the beneficiation of various minerals.

(4) Providing technical support and extension services to the minerals sector
particularly the small-scale miners concentrating on appropriate mining
techniques, and mineral processing and safety aspects.

(5) Promotion of the mineral resources of Malawi through publications,

conference presentations and general correspondences with potential
investors.

(6) Issuing prospecting and mining licences

(7) Compilation of statistical information on mineral production.

(8) Providing technical assistance on the purchase, transportation, storage and

use of explosives.

(9) Conducting bench and pilot scale tests on individual on industrial suitability of
the different Malawian minerals.

(10) Inspection of mines and magazines.

(11) Generation and execution of various mineral development project.

(12) Issuing permits and licences for explosives and testing and issuing licences
to Blaster.

2
MINERAL RIGHTS ISSUED BY THE
DEPARTMENT OF MINES
RECONNAISSANCE LICENCE

An application for the grant of Reconnaissance licence shall :

(1) Be accompanied by a plan of the area over which the licence is sought.

(2) Identify the minerals in respect of which the licence is sought.

(3) Be accompanied by a statement giving particulars of the financial and

technical resources available to the applicant for the licence.

(4) Be accompanied by a statement giving particulars of the programme of

reconnaissance operations proposed to be carried out in the area of land over
which the licence is sought, an estimate of the cost of carrying out the
programme and the period required for completion of the programme, and an
estimate of any significant effect which the carrying out of the programme
would be likely to have on the environment or on any monument or relic in the
area over which the licence is sought.

Restriction on grant of Reconnaissance Licence.

No reconnaissance licence shall be granted over an area of land, which
constitutes: -

A prospecting area if a person, other than the person to whom the

reconnaissance licence would be granted, is the holder of an exclusive
prospecting licence over the area in respect of a mineral of which the
reconnaissance would relate;

(1) a mining area.

(2) A claim area

Term of Reconnaissance Licence.

(1) The holder of the licence shall have the right to carry on
reconnaissance operations in or over the reconnaissance area,
and for the purpose of the exercise of that right the holder may
enter the reconnaissance area, erect camps and temporary
buildings, or erect installations in any waters forming part of the
reconnaissance area.

3
(2) The holder shall not engage in drilling, excavation or other
subsurface techniques, expect where and to the extent, he is
authorised by his licence to use any of those techniques.

• EXCLUSIVE PROSPECTING LICENCES.

An application for the grant of an exclusive prospecting licence shall:

(1) Identify the minerals sought.

(2) Be accompanied by a plan of the area.

(3) State the period for which the licence is sought.

(4) Give or accompanied by a statement giving particulars of the

programme of prospecting operations proposed to be carried out
in the area of land over which the licence is sought and an
estimate of the cost of carrying out programme, and an estimate
of any significant effect which the carrying effect which the
carrying out of the programme would be likely to have on the
environment and on any monument or relic in the area over
which the licence is sought;

(5) Give or be accompanied by a statement giving particulars of the

applicant’s proposals with respect to the employment and
training of citizens of Malawi;

(6) Be accompanied by a statement giving particulars of expected

infrastructure requirements;

Restriction on grant of Exclusive Prospecting License

(1) No exclusive prospecting license shall be granted over an area

of land in, or which constitutes a mining or a claim.

(2) Where an area of land is subject to an exclusive prospecting

licence, no other exclusive prospecting licence shall be granted
over land in, or which constitutes, that area in respect of any
mineral to which the subsisting exclusive prospecting licence
relates.

(3) No exclusive prospecting licence shall be granted to the

applicant unless;

The applicant has adequate financial resources, technical competence

to carry on effective prospecting operations.

The programme of proposed prospecting operations is adequate.

4
The applicant’s proposals for the employment and training of citizens of
Malawi.

Terms of Exclusive Prospecting Licence.

The licence is granted for a period not exceeding three years. It is renewable for two
years thereafter for one year.

Duties of Holder of Exclusive Prospecting Licence.

The Holder of an Exclusive Prospecting Licence –

(1) Shall commence prospecting operations within three months of the date of the
grant of the licence.

(2) Shall carry on prospecting operations in accordance with his programme of

prospecting operations.

(3) Shall give notice of the discovery of any mineral to which his licence deposit of
possible commercial value within thirty days of discovery.

(4) Shall employ and train citizens of Malawi.

MINING LICENCE

(1) An application for the grant of a mining licence may be made by the holder of
an exclusive prospecting licence or by a person who is not such a holder.

(2) An application for the grant of a mining licence shall identify the minerals,
which it is proposed to mine and state the number of exclusive prospecting
licence. (if any) and give details of any exclusive prospecting licence by the
applicant.

(3) The application shall:

Be accompanied by a plan of the area over which the licence is sought.

State the period for which the licence is sought.

Give or be accompanied by statement giving details of the mineral

deposits in the area over which the licence is sought.

Be accompanied by a technological report on mining.

Be accompanied by an environment impact assessment report.

5
Be accompanied by statement giving a detailed forecast of capital
investment, operating costs and revenues and the anticipated type and
source of financing.

Be accompanied by a statement giving particulars of proposals with

respect to the employment and training of citizens of Malawi.

Term of Mining Licence.

The licence shall be granted for a maximum period of 25 years or estimated life of
the ore body, renewable for a period of 15 years.

Rights and duties of holder of Mining Licence.

The holder of a mining licence shall :

(1) Not intentionally carry on prospecting or mining operations for a mineral

unless it is a mineral to which his licence relates;
(2) Carry on mining and development operations and commence production in
accordance with his programme of mining operations;
(3) Employ and train citizens of Malawi;
(4) Demarcate and keep demarcated the area of land subject to the licence;

DEPARTMENT OF MINES ROLE IN ENVIRONMENT ISSUES.

Part VII of the Mines and Minerals Act Cap 61:01 of 1981 empowers the Department
of Mines to create an orderly and environmental sustainable mining industry by
performing the following roles during the granting to Mineral Right and
environmental inspections of Mining operations.

Protection of Natural Resources.

(1) A mineral right shall be granted after taking into account the need to conserve
the natural resources in or on the land over which mineral right is sought.
(2) Environmental impact studies to be carried out before the granting of mining
licence.

Conditions for the Protection of the Environment.

A mineral right will be granted with conditions to be included with respect to :

(1) The prevention, limitation or treatment of pollution;

(2) The minimisation of effects of mining on adjoining or neighbouring areas and
their inhabitants.

Rehabilitation of area damaged by prospecting or mining.

6
Conditions for the rehabilitation of area damaged by prospecting or mining may be
included in the licence relating to :

(1) The reinstatement, levelling, regressing, reforesting and contouring of any

part of prospecting or mining area that may have damaged or deleteriously
affected by prospecting or mining operations;
(2) The filling in, sealing or fencing off excavations, shafts and tunnels.

Direction to comply with Conditions of Mineral right for Protection

of Environment.

(1) Where a Mineral right over any land is wholly or partly determined or
cancelled or expires, the Minister may, by notice served on the person who is
or was the last holder of the Mineral Right, direct him to comply with
conditions of mineral right for the protection of the environment.
(2) Any person to whom a direction is given fails or neglects to comply with the
direction is guilty of an offence and liable on conviction to a fine or
imprisonment.

APPENDEX

7
TYPE OF LICENCE DURATION

Renaissance Licence 1 Year, renewable for a period of one

year

Exclusive Prospecting Licence 3 years, renewable for a further period of

two years thereafter for one year

Mining Licence 25 Years or life of the mine, renewable

for a maximum of 15 year period

non-exclusive Prospecting Licence 1 Year, renewable each year

Mining Claim Licence 1 Year, renewable each year

Reserved Mineral Licence 1 Year, renewable each year