South Sudan parliament passes mining bill - Creamer Media's Mining Weekly

JUBA – South Sudan's parliament has passed a mining bill which it hopes will open up the largely unexplored territory to investors and diversify its heavily oil-dependent economy, a senior lawmaker said on Friday.

Officials say firms from China, Australia, the US, South Africa and other African countries plan to apply for licences in the new country, which seceded from Sudan in 2011.

Apart from gold, South Sudan, a country with few paved roads, has also potential deposits of diamond, chromite, copper, uranium, manganese and a belt of iron-ore, experts say.

Parliament passed the bill this week after its third reading, but it may take a further three weeks to become law, said Henry Odwar, chairperson for the Committee of Energy, Mining, Commerce and Industry.

The joint legislative committee and President Salva Kiir still need to approve the bill but it is not expected to come up against much resistance.

"I hope it will be on the president's desk soon and it should be signed into law within three weeks," Odwar told Reuters.

According to a copy of the bill seen by Reuters, holders of the existing 42 exploration licences signed before independence will have 60 days to renew their licence on a priority basis.

Mining licences will initially be allocated for a maximum of 25 years on a renewable basis, and the government has the right to acquire a maximum of 15% of a concession.

South Sudan wants to lower dependency on oil revenues which used to make up 98% of state income until the government shut down production in a row with Sudan over export fees in January.

Both countries agreed in September to resume exports but need to implement a border security agreement first.

Edited by: Creamer Media Reporter

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