The Republic of Kenya owns all minerals in Kenya, and the national government manages them in trust for the people of Kenya. The mining sector is equally regulated to protect the natural resources of its citizens from being misused. However, anyone carrying out mining in Kenya, be it a Kenyan citizen or a foreigner, must fulfill all the requirements of operating such a business. Additionally, licenses and permits are mandatory requirements for mining and trading minerals. We provide consultation as well as facilitation to acquire the right mineral rights to ensure you have whatever is needed to succeed in your mining business.

Mining Licensing

You must apply for the right licenses and permits to conduct mineral operations and dealings. The process of getting the mineral rights takes approximately 3 months. The Ministry of Mining and Blue Economy and Maritime Affairs, through the state department of mining, is responsible for issuing any mining licenses and permits. Firstly, you must incorporate your business before applying for the specific licenses and permits applicable to your mining operations.

Types of mining licenses.

Mining Rights. This right holder is authorized to conduct mining for a large-scale or small-scale operation. The following licenses and permits may be granted for a mineral right under the Mining Act 2016 to approve a mineral right holder to engage in.

Mining licenses for large-scale mining operations.

Reconnaissance licenseThe holder of a reconnaissance license shall have non-exclusive rights to conduct reconnaissance of the minerals in the area covered by the license, in accordance with the provisions of this Act. The validity of the license is not more than 2 years and is not renewable.

Prospective license. The holder of a prospecting license shall enjoy exclusive rights conferred to carry out prospecting operations as per the provisions of the Mining Act 2016. The term for a prospective license is specified in the license but should not exceed 3 years.

Retention license. The holder of a retention license shall enjoy the exclusive right to conduct prospecting operations in the area. Furthermore, you can apply for a mining license in respect of all or a part of the retention area.

Artisanal Miners Operations.A holder of an artisanal license may mine and produce minerals in an effective and efficient method. However, an artisanal license cannot be granted where any other mineral right has been granted over a piece of land. The license remains valid for three years from the issue date, and you can renew it for one more term upon application.

Mining license. The holder of a mining license shall enjoy the exclusive right to carry out mining operations in respect of the license, moreover the mineral or mineral deposit specified in the license within the area specified, subject to the provisions of the Mining Act 2016 and the terms and conditions set out in the license. The term of the mining license shall not exceed 25 years, or the forecast of the life of the mine, whichever is shorter, and shall be specified in the license. The term for renewal of the license will be specified in the license.

Mining licenses for small-scale operations.

The following licenses apply to small-scale mining operations.

1. A prospecting permit
2. A reconnaissance permit
3. A mining permit

Mineral dealings licenses

A person can not engage in dealings, either as principal or agent, except with and in accordance with a mineral dealer’s license or a mineral dealer’s permit. Nevertheless, the holder of a mining right may deal in minerals lawfully acquired under the terms and conditions of the mineral licenses. The holder of a mineral dealers license is authorized to carry out mineral dealings such as:

1. Buying minerals
2. Selling minerals
3. Bartering minerals
4. Depositing or receiving minerals as a pledge or security
5. Cutting, polishing, processing, refining, and treating minerals

Who is eligible for a mineral dealer permit/license?

1. A Kenyan citizen who is over 18 years old.
2. A company with 60% of its shares held by a Kenyan citizen.

Types of mineral dealer’s licenses

1. Mineral dealers (trading) license. This license gives the holder the right to buy, sell, and export minerals specified in the license. It is valid for one year, ending 31st December, and the renewal process should take place 1 month before the expiry date of the existing license.
2. Mineral dealers (processing) license. The license confers the holder the right to process a mineral to which the license relates and conduct any incidental activity attached to the license. It is valid for one year.
3. Mining permit. The permit allows the holder to trade in the specified minerals only within Kenya and is valid for one year.
4. Export permit. A person can export minerals only if the Director of Mines grants them an export permit. The holder of a mineral right, a mineral dealer license, or a diamond dealer license can apply to the Director of Mines for this permit. The export permit, which is valid for thirty days from the date of issue, applies to the specified consignment.
5. When you import minerals, you do not need an import permit. However, you have to make a declaration at the point of entry by completing Form ID.

Types of minerals under mineral dealer’s license

1. Construction, Industrial, Gaseous Minerals and Coal
2. Precious and Semi-Precious Stones [All gemstones except diamonds],
3. Precious and Rare Metals
4. Base Metals

You can submit all applications for mining and mineral dealers licenses and permits online through the mining cadaster portal. However, the costs for applying and renewing various licenses vary depending on the nature of mining operations or mineral dealings. Also, foreigners intending to start a mining company in Kenya must obtain an investor permit (Class A). Moreover, the KRA pin will also be crucial for incorporation and running such a company. Get in touch with us to get detailed insights and consultation on mining licenses and requirements.