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Licensing Guide

Licence types, application requirements, fees, and processing times for mining, diamond, and petroleum operations in Namibia.

Source: Ministry of Mines and Energy — Licences, Rights and Permits Application Guidelines (2019)

Mineral Rights

Non-Exclusive Prospecting Licence (NEPL)

Minerals (Prospecting and Mining) Act, 1992 — Section 16–24

A gateway to pegging mining claims. The holder of a NEPL is not entitled to exclusive rights for any specific mineral group or area. It is issued for a year and the annual fee is N$50.

Duration

1 year

Fees

N$50 annual fee

Processing Time

1 day after application received

Mining Claims (MC)

Minerals (Prospecting and Mining) Act, 1992

Granted to Namibian citizens or to companies owned by Namibian citizens. A mining claim holder may contract a foreigner or a foreign-owned company to prospect and mine. An individual or company can be awarded a maximum of ten (10) mining claims at a time. Registration requires an Environmental Clearance Certificate from the Ministry of Environment and Tourism.

Duration

Subject to registration

Fees

N$50 application fee

Processing Time

7 working days after Environmental Clearance received

Requirements

Valid NEPL Namibian citizen or Namibian-owned company Environmental Clearance Certificate from Ministry of Environment and Tourism

Reconnaissance Licence (RL)

Minerals (Prospecting and Mining) Act, 1992 — Section 58–66

Used to conduct regional investigations such as airborne geophysical surveys and analysis of satellite images. Usually covers a large area (e.g. 1 million Ha). Issued for six (6) months, after which the holder should ideally apply for an Exclusive Prospecting Licence within the area previously covered.

Duration

6 months

Fees

N$500 per quarter of a degree square

Processing Time

3–4 months

Exclusive Prospecting Licence (EPL)

Minerals (Prospecting and Mining) Act, 1992 — Section 67–76

For detailed investigations such as geological mapping, ground geophysics, geochemical sampling, trenching, drilling, bulk sampling, and trial mining. It is the most common type of mineral licence issued by the Ministry of Mines and Energy — more than 70% of the licensing workload comes from EPL applications.

Duration

3 years, renewable

Fees

Area-based fees: < 20,000 Ha — N$2,000 20,001–30,000 Ha — N$3,000 30,001–40,000 Ha — N$4,000 40,001–50,000 Ha — N$5,000 50,001–60,000 Ha — N$6,000 60,001–70,000 Ha — N$7,000 70,001–80,000 Ha — N$8,000 80,001–90,000 Ha — N$9,000 90,001–100,000 Ha — N$10,000

Processing Time

3–4 months

Requirements

Company registered in Namibia for mineral exploration/mining, or Namibian citizen Sound description of exploration target Sound exploration model and budget Capability to finance the exploration project Environmental clearance certificate from Ministry of Environment and Tourism Notification to Traditional Authority if on communal land

Mineral Deposit Retention Licence (MDRL)

Minerals (Prospecting and Mining) Act, 1992 — Section 77–89

After conducting exploration under an EPL, the holder may find a deposit but certain circumstances may prevent taking the project to mining — such as commodity price, lack of infrastructure, or poor extraction technologies. The MDRL allows the holder to preserve rights over the deposit. The holder is not obliged to carry out any work.

Duration

5 years, renewable

Fees

N$5,000 annual fee

Processing Time

3–4 months

Mining Licence (ML)

Minerals (Prospecting and Mining) Act, 1992 — Section 90–101

After a successful exploration program, an EPL holder may apply for a mining licence to start mining activities. Depending on the deposit size and scale of production, a mining licence may be issued for up to twenty-five (25) years, renewable for periods not exceeding 15 years.

Duration

Up to 25 years, renewable for up to 15 years

Fees

Annual fee based on projected turnover: Below N$10,000,000 — N$1,000 Above N$10,000,000 — N$5,000

Processing Time

6–12 months

Requirements

Sound report detailing resources and reserves (SAMREC, JORC compliant) Sound track record in exploration/mining Sound mine design and processing plant design Availability of mining experts Pre-feasibility study

Diamond

Dealer's Licence

Diamond Act, 1999 and Diamond Regulations 2000

Entitles the holder to carry on business as a buyer, seller, and exporter of rough diamonds. Issued under the Diamond Act, 1999 and Diamond Regulations 2000, administered by the Diamond Commissioner.

Duration

5 years

Fees

N$500 application fee (non-refundable) N$10,000 annual fee

Processing Time

6 months

Requirements

Namibian or permanent resident Compliance with Company Act and State Finance Act Clean Police Clearance Certificate Financial viability (financial support, working capital, insurance) Technical viability (experience and expertise) Proof of market and distribution channels Business Plan

Cutter's Licence

Diamond Act, 1999 and Diamond Regulations 2000

Entitles the holder to polish diamonds for purposes of business or trade.

Duration

10 years

Fees

N$500 application fee (non-refundable) N$1,500 annual fee

Processing Time

6 months

Requirements

Namibian or permanent resident Clean Police Clearance Certificate Financial and technical viability Source(s) of rough diamonds Business Plan

Tool Making Licence

Diamond Act, 1999 and Diamond Regulations 2000

Entitles the holder to set unpolished diamonds in tools, implements, or to alter or crush those diamonds for the purpose of trade.

Duration

5 years

Fees

N$500 application fee (non-refundable) N$1,500 annual fee

Processing Time

6 months

Requirements

Namibian or permanent resident Clean Police Clearance Certificate Technological viability Business Plan

Research Licence

Diamond Act, 1999 and Diamond Regulations 2000

Entitles the holder to conduct research and testing in connection with diamonds, but not to polish diamonds for business or trade.

Duration

As determined by Minister

Fees

N$500 application fee (non-refundable) N$1,500 annual fee

Processing Time

6 months

Requirements

Proof of purposes of research and tests to be conducted Clean Police Clearance Certificate Business Plan

Petroleum (Upstream)

Reconnaissance Licence (Petroleum)

Petroleum (Exploration and Production) Act, 1991 — Section 22–28

Allows the holder to carry on reconnaissance operations subject to terms and conditions stipulated under Section 22–28 of the Petroleum (Exploration and Production) Act, 1991. A reconnaissance licence is non-exclusive. Companies can explore for oil and gas both onshore and offshore in Namibia.

Fees

N$15,000 application N$3,000 renewal

Processing Time

3 months

Exploration Licence (Petroleum)

Petroleum (Exploration and Production) Act, 1991 — Section 29–38

Allows the holder to carry on exploration operations exclusively in the designated block(s), subject to the terms and conditions specified in the licence under Section 29–38 of the Petroleum Act.

Fees

N$30,000 application N$15,000 renewal N$30,000 transfer

Processing Time

3 months

Requirements

Technical and financial capabilities for safe and cost-effective exploration Willingness to perform complete evaluation of petroleum potential Proposed minimum work programme and expenditure Economic terms in accordance with bid requirements

Production Licence (Petroleum)

Petroleum (Exploration and Production) Act, 1991 — Section 39–43

Allows the holder to exclusively carry on production operations on the designated block(s), to sell or dispose of petroleum recovered, and any other activities stipulated under subsections 39–43 of the Petroleum Act.

Fees

N$30,000 application N$15,000 renewal N$30,000 transfer

Processing Time

3 months

Permits

Export Permit

Minerals (Prospecting and Mining) Act, 1992

Required when a licence holder needs to export minerals from Namibia for the purpose of sale or scientific examinations. Royalty rates apply based on commodity group: Precious Stones 10%, Dimension Stones 5%, Base and Rare Metals 3%, Precious Metals 3%, Nuclear Fuel Minerals 3%, Non-Nuclear Fuel Minerals 2%, Industrial Minerals 2%, Semi-Precious Stones 2%.

Fees

Royalty rates: 2%–10% depending on commodity group

Processing Time

24 working hours

Requirements

Application form from Ministry or www.mme.gov.na Proof of minerals purchased (invoice/receipt) for non-mineral right holders Certified copy of applicant's passport/ID Valid MC, NEPL, EPL, ML, or HVM numbers for mineral right holders

Transportation Permit

Minerals (Prospecting and Mining) Act, 1992

Required for the purpose of transporting minerals within Namibia.

High Value Mineral Permit (HVM)

Minerals (Prospecting and Mining) Act, 1992

For anyone who wishes to trade in High Value Minerals such as gold, silver, platinum, etc. Application forms can be found on www.mme.gov.na. After application, technical staff evaluate the value of the material and allowable deductions.

Fees

N$250 application fee