BUSINESS •

Africa has a rich diversity of minerals . However , it is not always easy bringing these minerals to surface .

All photos © Leon Louw

Africa holds a wealth of potential for new mines , but navigating the red tape can be a challenge , writes Dr Nicolaas C Steenkamp and Leon Louw .

African countries unfortunately have a tainted history of highly ineffective and sometimes corrupt awarding systems for the establishment of new mines . The regulations and legislation relating to the mining industry is also the first to be targeted for amendments to increase the country income from royalties and taxes .

Although the process of progressing from a prospect to a mine is guided by host country legislation and regulations , there are some common requirements that need to be met , along with listing requirements . Most of the activities described run in parallel and may take several years to complete .

First step to apply for a lease Following the completion of the prospecting phase , the mining footprint is established . The company would then need to apply for a mining license and meet several criteria before being given the red light and to retain all permits and licenses for the life-of-mine .

The first steps would involve applying for the mining lease area at the relevant country department to have it registered on the mining cadastre system . All technical reports generated during the prospecting phase would then need to be updated . The data pack would contain a map of the area that is being applied for along with the coordinates of the lease boundary applied for . If the title to the land is being transferred , proof of purchase and transfer need to be supplied .