Mining
To promote the development, strategically manage and safeguard the rational and sustainable exploration and exploitation of mineral resources in Somaliland in an environmentally responsible manner to benefit the nation’s economic and social development.
Function and Objectives
1. Issue and manage various mineral permits including prospecting, exploration and mining minerals licenses.
2. Oversee and monitor all mining exploration and exploitation operations to ensure adherence to licensing terms and compliance with the Mining Act as well as environmental regulations.
3. Carry out geological investigations and promotional activities to attract investment in the exploration and development of Somaliland’s mineral resources
4. Establish a national geoscience database by collecting, interpreting, preserving and disseminating the information for the development of the country’s mineral resources and for public and private use.
5. Provide effective and reliable analysis and assaying services in support of the mining sector for institutional, public and private use.
6. Promote the development and technical training of Somalilanders in all areas of the mining sector to assume key positions in the industry by gradually replacing expatriate personnel.
Mining Sector Operations
Somaliland is currently witnessing the birth of its mining sector, starting with the inauguration of its first mine. A Beryl Ore mine has been established in the Simodi Hills, which was previously confirmed to hold potentially viable minerals by internationally recognized senior geologists.
The mining sector in Somaliland has been in state of stagnation for an extended period of time, and extraction of minerals has been limited to artisanal mining and similar procurement activities. Fortunately, now it seems the tide has turned in favour of the people of Somaliland;
Ministry of Energy and Minerals (MEOM) lead by Minister Hussein Ali Duale on behalf of Somaliland Government, has achieved what has not been by any other minister and has strategically managed to attract international foreign mining companies to come to the country
and develop its mining sector. A massive step for the fledgling industry. African Resource Corporation (ARC), a Chinese firm with its head office in the capital city, Hargeisa has recently started a first phase mining project in the Simodi Hills. MOEM and ARC signed a production sharing agreement based on international standards.
MOEOM and ARC optimistically expect to achieve great success from the project and hope to successfully explore the Simodi Hills, whilst setting a good example for other foreign companies interested in the sector. The mine currently employs 50 local staff and 15-20 Chinese engineers. A positive and welcoming environment has been established on the mining site among the employees, and ARC are working hard in establishing close relationships with the community. MOEM and ARC have also established a very professional standard of work in order to facilitate the progressionof the project. At present MOEM and ARC are engaging the community and through development programs such as inaugurating schools, hospitals and wells for water.
A Prospecting permit
Procedure for obtaining Prospecting Permit:-
A prospecting permit is a document (Sectoral License) issued by the Minerals Department of the Ministry of Energy & Minerals which allows the bearer to conduct prospecting operations in Somaliland.
Application letter to the Ministry of Energy & Minerals;
Articles of Association written in Somali and English Languages;
Somaliland National Identity Cards, CVs of the founders (Educational background, and expertise);
Registered office (Specify if other branch offices exist);
Company profile (Address, background, vision, mission, core values, objectives, strategic plan etc)
Bank statement;
Agreement statement issued by a public notary office;
Pay the prescribed, non-refundable application fee;
Feasibility study of the interested area by the department staff;
Tax clearance certificate if any;
Once accepted, the Minerals Department will ask you to submit an environmental management plan/sustainable development plan and the consultation agreement with the legal occupier of the land as well as any other affected party within 30 days period;
Finally, the Ministry will officially accept if all the above requirements are met, and the Prospecting Permit will be issued for your business.
KEY NOTES:
Prospecting permits are aimed at controlling mine digging, having regard to considerations for health and safety, environmental management and the responsible extraction of minerals;
>No person can do mining without having obtained a prospecting permit at the stage;
Both locals and foreigners are allowed to apply for prospecting permit only if they are capable in terms of technicality, finance, and expertise;
Prospecting permits are not transferrable;
A prospecting permit is valid for the period specified in the permit, but if ma however be shortened if the bearer succeeds his/her investigation prior to its expiring by requesting the issuance of mining permit;
A prospecting permit may only be issued if the mineral in question can be mined optimally for several years, and also the mining area extent is allowed as specified by the Somaliland Mining & Minerals Act.
Dealership Permit
A dealership permit is a document (Sectoral license) issued by the Minerals Department of the Ministry of Energy & Minerals which allows the bearer to purchase or sell minerals (Either gemstone or industrial minerals).
Procedure for obtaining Dealership Permit:
Formal application letter to the Director General;
Appropriately Complete Form 1 (Available at the Minerals Department);
Pay the prescribed, non-refundable application fee;
Your company’s brand name and emblem will be checked;
Company’s assets (Office, equipment etc) are compulsory and will be supervised by the department staff;
Articles of Association written in Somali and English languages;
Profile of the company (Address, background, vision, mission, core values, objectives, strategic plan etc);
Bank statement (With minimum share capital requirement of $20,000);
Registered public notary authentication letter on the company’s Article of Association
After all, certificate of incorporation and Attorney General’s approval letter will be processed by the mandated institutions;
Tax clearance certificate, if any.
KEY NOTES:
No person is allowed to engage in such business without obtaining legal permission;
The dealership permit is only issued to the nationals of Somaliland but not to the foreigners;
Dealership is not transferable, but if someone acts contrarily then the involved parties will be asked to pay extra fees for their act;
The Dealership permit is issued to control minerals deals with regard to consideration for the investment, and development of the minerals industry in the country;
A dealership permit is valid for the period specified in the permit and always cannot exceed one year. It may however be renewed for each successive years as the specified time expired.
