TYPES OF MINERAL RIGHTS UNDER THE  KENYAN MINING ACT.docx

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    In Kenya, all mineral resources belong to the people of Kenya and are vested in the national government. This includes all valuable rocks, minerals, oil or gas found on or within the Earth. Organizations or individuals in counties with these resources cannot legally extract and sell any mineral commodity without first obtaining an authorization from the government.

    Secure mineral rights are considered to be a critical component of a competitive mining investment climate. However, many stakeholders find themselves in the dark on matters touching on mineral rights, especially the institutions, block size and location, eligibility and processing of mineral licenses and permits. We at the Extractives Baraza, has developed a brief outline of the mineral rights as outlined in the Mining Act, 2016 and The Model Production Sharing Contract, 2015. With the exception of artisanal mining operations, all mineral rights are granted by the Cabinet Secretary responsible for mining on the advice of the Mineral Rights Board.


    Key terms:

    Large-Scale Operations

    I. Reconnaissance Licence; confers on the holder the right to search for a specific mineral (or commodity) within the license area by geochemical and photo-geological surveys or other remote sensing techniques

    II. Prospecting License; gives the holder the exclusive right to search for specific minerals (or commodities) by conducting geological, geophysical and geochemical investigations to determine the extent and economic value of any deposit within the license area. Drilling, excavation or other sub-surface techniques are permitted under the prospecting license.

    III. Retention License; is a holding title for a mineral resource which has been identified but due to existing circumstances, cannot be mined or explored until a later date. A retention license will allow you more time to plan, to develop the resource and to obtain financing.

    IV. Mining License; the grant gives the holder the right to mine or extract specified minerals (or commodities) within the lease area.

    Small scale operations

    I. Reconnaissance permit (RP); is a permit granted for the purpose of undertaking "reconnaissance operations" which means any operation undertaken for preliminary prospecting of a mineral through regional, aerial, geophysical or geochemical surveys and geological mapping.

    II. Prospecting permit (PP); gives the holder the exclusive right to search for specific minerals (or commodities) by conducting geological, geophysical and geochemical
    investigations to determine the extent and economic value of any deposit within the license area. Drilling, excavation or other sub-surface techniques are permitted under the prospecting license.

    III. Mining permit (MP); the grant gives the holder the right to mine or extract specified minerals (or commodities) within the lease area.

    Artisanal Mining

    Artisanal Mining Permit; A Grant is given to artisan miners, to extract specified minerals within an area.

    We will update this document periodically; if you know of additional information that should be included, please drop me an email edwin.njoroge@extractives-baraza.com