Tuesday 5 December 2017

Lesotho`s Mining Legislative Reforms; A better Future for Basotho



             By Rorisang David Mahlo




The 20th to 21st of November 2017 marked the second multi stakeholder forum, specifically aimed at reforming several old Mining sector codes which currently do not sufficiently respond positively to the developmental millennium demands of the mining sector for socio economic developments. This forum was held on a warm sunny day, at Lesotho Avani, located alongside and towards the cliff of the only hill within the city boundaries of Maseru.

To highlight a few but in no particular order, the new areas proposed by the draft Mining Bill 2015 according to the Senior Legal Officer- Liteboho Tlebere, which were not catered for in the old principal Mining Law - Mines and Mineral Act of 2005 and other supporting codes were:

 Firstly, the Mineral rights (contracting and licensing);
Currently there is no model Mineral Development Agreement (MDA) as thus the need to address policy aspiration of removing negotiability in mining contracting and have a standard MDA.
Also, the bill seeks to ensure that mineral rights relating to prospecting cover all known exploration methods (Geo-physical, Geo-chemical, remote sensing, and other Geological methods).

Secondly, Chapter 8, of Mining Sector Governance;
The current law has no provision that ensures unhindered access to information in the mining industry. Further, the mining sector does not have transparency and accountability guidelines/regulations. Therefore, chapter 8 of the bill seeks to curb the seeming lacuna in law.

Thirdly, Chapter 9, Sanctions and Penalties and Dispute Settlement;
Currently there is a framework of sanctions and penalties, but sanctions are only civil in nature. The Bill shall create crimes in relevant thematic areas which will be punishable under relevant procedural law. Therefore, chapter 9 of the bill proposed the different disputes settlement mechanisms.

Fourthly, the Precious Stones Amendment;
Cabinet has given clearance for the amendment of Precious Stone Order of 1970.   So, it is through this amendment that the Government is establishing a Lesotho Diamond Centre whose mandate will be to valuate diamonds for determining applicable levies and taxes, to facilitate exports and imports of diamonds in Lesotho, be a platform for buying and selling of diamonds and collect royalties on behalf of Government as well as issuing cutting and polishing licenses.

The Centre is also going to house the Diamond Valuator who will be a person with expertise in valuation, buying and selling of diamonds.  The valuator will ensure that standards are met and laws are observed especially the Kimberly Processing Certification Scheme (KPCS).

However, Tlebere on the other side went on to conscientise Basotho that, it should be clear that this is not a final document, that means since it is still work in progress, it is open for constructive modification wherever those that have stake may deem it fit to. Once again for this bill to be truly owned by Basotho Mining Sector as a Principal Mining Law, certain areas might change to suite what is required by Majority stakeholders.

Despite that, during his address on the multi stakeholder forum, Hon. Keketso Sello – the Minister of Mining, showed that, the move of enforcing the legislative reforms in the Mining sector is perpetuated by the long overdue prevailing need to address the developmental goals of the policy in the legal and regulatory framework. 

Adding that, currently, the Ministry of Mining relies on the following outdated pieces of legislation; Precious Stone Order 1970, Precious Stone Order Regulations 1970, Precious Stone (Diamond Dealers License 2004, Kimberly Process Regulations 2003, Mine Safety Act 1981 Mines and Minerals Act 2005, and the Mines and Minerals Amendment Act 2014 hence the undertaking of legislative reforms.

 Also, Hon. Sello strongly emphasised that, lack of statutes in vital areas such as safety and occupational health, anti-hoarding measures, corporate social responsibility, legality of artisanal and small scale mining activities and illegal trade compounded by inadequate regulations for implementing the Mines and Minerals Act lead to uncertainty and unpredictability in the sector.

“The Ministry therefore acknowledges that, there is a need to overhaul the above legislation in order to improve monitoring of the mining operations with a view to providing lasting and equitable socio-economic benefits to Lesotho and Basotho,” said Hon. Sello.

In addition, he also reiterated that, the mentioned pieces of legislation do not contain provisions relating to the responsibilities and obligations of Government, mine investors and other key actors, for the realisation of the developmental goals of the policy.

Most importantly, Hon. Sello confirmed to the Stakeholders that, “with the today`s endeavour, the Ministry is intending to do away with the stigma of the conspicuously echoed consents of the prolonged procedures for securing an investment transactions for requiring mining title transfers, which at the moment are still a hindrance to the flow of mining investment into the sector,” said the Minister.

On the positive side, the Ministry is pushing everything to its limits in trying to live up to the expectations on its set mandate by equipping the Ministry with all necessary tools for regulating the sector, closing the gaps and levelling the grounds for smooth operation of whole sector. 

While reporting the milestones, Hon. Sello indicated that, “the Ministry has embarked on development of the Minerals and Mining Policy in July 2013 and was finally completed in April 2015. The policy was presented before the Informal Cabinet on the 26th May 2015 and it was approved,” Said the Hon. Sello.

As a means of gearing into the momentum of transition, Chief Legal Officer Lesimole Moletsane also contributed during the forum discussion by showing that, “the Ministry of Mining aims to uphold and to promote good governance which is characterised by transparency accountability and inclusiveness.”

Despite that, Basotho will remember that, the first multi stakeholder meeting for the new Mining legislative framework was done on the 8th to 9th of July 2015. Comparatively, the first stakeholder meeting was elevated to the maximum highest level that it deserved, as it was presided over by the then Prime Minister of Lesotho.

Subsequently, at the end of August 2015, Africa Mining Development Centre (AMDC) which is the coordinator and the major stakeholder steering the whole process, handed over the first draft bill to the Ministry to run with it to its finality. This steps was the earliest signal of attainment and paving a better way forward for realisation of the bigger objective which is Africa Mining Vision for Lesotho. 
 
In general the press release published on the 13 of June 2015 by United Nations Lesotho – Economic Commission for Africa concurs that, “the development of an AMV- compliant legal and regulative framework for Lesotho, would facilitate the full alignment of the policy with aspiration of the AMV and set the stage for the successful implementation of the Minerals and Mining Policy of 2015.”   

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