THE KENYA MINING CYCLE : REQUIREMENTS,PROCEDURES &

ENTRY POINTS FOR LARGE SCALE MINING.

MINERAL

LICENCE
RECONNAISSANCE PROSPECING RENTENTION
LICENCE LICENCE LICENCE
MINING LICENCE DEALER’S
LICENCE

PERIOD 90 DAYS 90 DAYS 90 DAYS 120 DAYS 2 DAYS

REQUIREMENTS
& PROCEDURE

A,B,C,D,E,F,G,H,I, A,B,C,D,F,G,H,K,L, A,B,C,D,F,G,H,J,

K,L,M,P,S,W(v,vi, M,N,O,P,Q,R,S,T,U, K,L,M,N,O,P,Q,R, B,C,D,F,G,H,K,L,M,N,O,P,Q,R,U,V,W(i,iii),X,Y,Z, G,H,K,L,P,Aa,Ll
vii),Aa,Bb,Nn W(ii,iii,iv),Aa,Bb, U,V,W(vii),Aa,l, Aa,Bb,Cc,Dd,Ee,Ff,Gg,Hh,Ii,Jj,Kk,Mm,Ll,Nn
Gg,Ii,Kk,Ll,Nn Nn
Oo

MINERAL
ONLINE E RECONNAISSANCE PROSPECING RENTENTION MINING LICENCE (4)
APPLICATION LICENCE (1) LICENCE (2)
DEALER’S
LICENCE (3)
LICENCE (5)

CLOSED
Online Mining AREA
MINE
STAGES IN THE MINIG

Cadastre
NO CLOSED
TRESPASSING
CYCLE

LAND
CONSTRUC OPERATION MINE DEALING IN POST
EXPLORATION FEASIBILITY  ACCESS/
TION CLOSURE  MINERALS CLOSURE
AGREE
MENTS
 

By: Seroni Anyona

 LINCESING REQUIREMENTS KEY FOR THE KENYA MINING CYCLE POSTER
NO. LETTER CODE DESCRIPTION LICENCE NO. LETTER CODE DESCRIPTION LICENCE
1 A Area coordinates 1,2,3,4 vii. The holder of a retention licence shall submit quarterly reports, accompanied by appropriate forms.
2 B Digital area map 1,2,3,4
24 X The holder of a mining licence shall pay the annual area-based charges, calculated according to the 4
3 C Approved plans for the procurement of Kenyan goods and services 1,2,3,4 Second Schedule within thirty-five (35) days of the grant of the licence and annually thereafter at the
start date of each licence year.
4 D Approved plan for employment and training of Kenyan citizens 1,2,3,4
5 E For airborne reconnaissance-all transfer camps, temporary installations or installed machinery shall 1 25 Y The holder of a mineral dealer’s licence shall keep a register of the mineral dealings & record in the 5
be removed register all the transactions and relevant information.
6 F Certified or signed statement or formal letter of intent from a bank or other financial source. 1,2,3,4
26 Z The holder of a mineral dealer’s licence shall submit to the Cabinet Secretary a true copy of the
7 G Resumes of the Project Manager and key staffs committed at least throughout year one. The holder 1,2,3,4,5
register in duplicate for the preceding three months, together with a statutory declaration of the
shall update this information if at any time during the term of the licence the manager is replaced.
correctness thereof.
8 H The legally registered name and address 1,2,3,4,5
27 Aa The name, nationality and address of the licence holder; or names and nationalities of Directors and 1,2,3,4,5
9 I A special agreement with the Government (airborne survey) 1 names and address of all shareholders holding more than ten percent (10%) of the registered share
10 J Submit a full study and assessment of the mineral deposit by an independent expert, pursuant to 3 capital and registered address in Kenya for a company the mineral or minerals in respect of which
Clause 87 of the Act, sufficient to demonstrate that the deposit is potentially commercially exploitable the mining licence is issued
(retention licence)
27 Bb The holder shall provide the area in respect of which the licence is issued; 1,2,3,4
11 K A statement of attestation of no mining Act Offence Penal conviction of the applicant using 1,2,3,4,5
28 Cc The holder of a mining licence shall pay royalties, calculated as set out in the Third Schedule 4
appropriate forms
(not yet generated), within thirty-five (35) days after the commencement of production, and monthly
12 L A statement of relevant past work. 1,2,3,4,5 thereafter.

13 M A programme for reconnaissance or prospecting operations or mining operation. 1,2,3,4 29 Dd Submit the feasibility study report 4

30 Ee The Community Development Agreement(s), giving particulars of the applicant’s proposals with 4
14 N A plan describing how, on an ongoing basis, local government, traditional authorities and 2,3,4
respect to social responsible investments for the local community.
communities will be informed.

15 O Identify activities and actions that, as a result of the programme of prospecting operations, may be 2,3,4 31 Ff Submit a written notice by using appropriate forms not later than thirty-five (35) days before 4
reasonably expected to result in significant adverse effects on the environment, gender impact and commencing mine development and shall at the same time inform all affected land holders.
on any monument, cultural heritage, artefacts or relic the rehabilitation programme. 32 Gg An agreement signed by all relevant land holders for land use including detailed information on 2,3,4
16 P A certified copy of the applicants’ audited accounts for the previous three (3) years; 1,2,3,4,5 compensation, resettlement or other land use arrangements.

17 Q Undertake an environmental and social impact assessment (ESIA) and submit a report and an 2,3,4 33 Hh Submit a written notice using appropriate forms, at least thirty-five (35) days prior to the commercial 4
environmental licence, providing an environmental and social management plan (ESMP), , production start date, and each time that there is a significant change in capacity
accompanied by a mine closure and rehabilitation plan.
34 Ii Performance bond or escrow account information for the previous three (3) years; 2,3,4
18 R All consents and agreements should be submitted not later than forty-nine (49) days after the original 2,3,4
application is made. 35 Jj Submit a written notice using appropriate forms not later than ninety-one (91) days before the 4
commercial production start date and shall at the same time inform any affected land holders
19 S A prospecting or reconnaissance licence holder shall submit a written notice in the form of as 1,2
recommended in the regulations. 36 Kk Community Development Agreement(s), giving particulars of the applicant’s proposals with respect 2,3,4
20 T In writing inform any affected land holders in accordance to the regulations before commencement of 2 to social responsible investments for the local community;
exploration/prospecting.
37 Ll Articles of Incorporation, place and date of incorporation 2,3,4,5
21 U An applicant for a prospecting license, a retention license or a mining license shall provide a bond or 2,3,4
some other form of financial security in this section called an environmental protection bond within 38 Mm The proposed programme of mining operations and production forecasts over the term of the licence, 4
thirty-five (35) days of receiving notice of the amount submit copies of the bond document and other including plans for mineral processing and beneficiation within and outside of Kenya, mineral
security via the OMC, and within a further seven (7) days shall deliver the original hard copy transportation, together with details of the type and sourcing of equipment and mining
documents to the Mining Cadastre Office methodologies expected to be used.
22 V Demarcate and keep demarcated the mining area 3,4
39 Nn The holder should submit a detailed statement of relevant past work; 1,2,3,4
23 W i. Within five (5) days of the end of every month of each licence year, monthly reports on mine 1,2,3,4
development and mineral production, using appropriate forms. 40 Oo Report exploration results using the Australasian Code for Reporting of Mineral Resources and Ore
ii. Within fourteen (14) days of the end of every quarter of each licence year, a uarterly progress Reserves (The JORC Code); or the Canadian Institute of Mining,Metallurgy and Petroleum (CIM), CIM
report, using appropriate forms. Standards on Mineral Resources and Reserves; or The South African Code for the Reporting of
iii. An annual ESIA report, using appropriate forms or, where there is an ESM attached to the licence, Exploration Results, Mineral Resources and Mineral Reserves (The SAMREC Code); or The SME Guide
a detailed progress report prepared according to guidelines. for Reporting Exploration,
iv. Within thirty-five (35) days of the end of each licence year, a full and detailed annual technical
report covering all prospecting activities carried out over the prospecting licence area in compliance
Types of Licenses
with published Ministry guidelines accompanied by appropriate forms not later than thirty-five (35)
1.Reconnaissance License
days following the end of each licence year, a full and detailed annual report, using appropriate
2.Prospecting License
forms on all reconnaissance work carried out over the licence area
3.Retention License
v. within fourteen (14) days of the end of six (6) months of each licence year, a six (6) monthly
4.Mining License
progress report on all reconnaissance work carried out over the licence area.
5.Mineral Dealers License
vi. an annual declaration of minimum operational expenditures on reconnaissance activities using By: Seroni Anyona
appropriate forms to accompany the annual report.