13. Application for prospecting licence

A person wishing to obtain a prospecting licence shall make application to the Minister by completing Form I set out in the First Schedule.

14. Consideration of application for prospecting licence

(1) The Minister shall grant a prospecting licence if-

(a) the applicant has, or has secured access to, adequate financial resources, technical competence and experience to carry on effective prospecting operations;

(b) the proposed programme of prospecting operations is adequate and makes proper provision for environmental protection;

(c) the proposed prospecting area is not the same as, nor does it overlap an existing prospecting area, retention area, mining area or minerals permit area in respect of the same mineral or associated mineral; and

(d) the applicant is not in default.

(2) The Minister may cause such investigations to be made or such negotiations or consultations to be carried on as he may deem necessary to enable him to assess whether or not the criteria in subsection (1) has been satisfied.

(3) Where an application is made for a prospecting licence in respect of an area over which a previous prospecting licence in respect of the same or an associated mineral has been held for seven years, no new prospecting licence shall be granted before a period of three months has elapsed since the expiry of the previous licence, and the Minister shall in the event of competing applications grant a prospecting licence to the applicant which in his opinion has the best proposed programme.

15. Notification of grant or rejection

The Minister shall cause the applicant to be notified in writing of his decision on the application and, if the prospecting licence is refused, the Minister shall give reasons for such refusal.

16. Form and content of prospecting licence

(1) A prospecting licence shall be in Form II of the First Schedule.

(2) There shall be appended to a prospecting licence the programme of prospecting operations.

17. Duration and renewal of prospecting licence

(1) Subject to this Act, a prospecting licence shall be valid for such period as the applicant has applied for, which period shall not exceed three years.

(2) The holder of a prospecting licence may, at any time not later than three months before the expiry of such licence, apply to the Minister by completing Form I set out in the First Schedule for renewal thereof stating the period for which the renewal is sought and submitting together with the application-

(a) a report on prospecting operations so far carried out and the direct costs incurred thereby; and

(b) a proposed programme of prospecting operations to be carried out during the period of renewal and the estimated cost thereof.

(3) Subject to this Act, the applicant shall be entitled to the grant of no more than two renewals thereof, each for the period applied for, which periods shall not in either case exceed two years, provided that-

(a) the applicant is not in default; and

(b) the proposed programme of prospecting operations is adequate.

(4) Before rejecting an application for renewal under subsection 3(a), the Minister shall give notice of the default to the applicant and shall call upon the applicant to remedy such default within a reasonable time.

(5) Before rejecting an application for renewal under (3)(b), the Minister shall give the applicant opportunity to make satisfactory amendments to the proposed programme of prospecting operations.

(6) Notwithstanding the provisions of subsection (3), the Minister may renew a prospecting licence for a period or periods in excess of the periods specified in that subsection where a discovery has been made and evaluation work has not, despite proper efforts, been completed.

18. Discovery of minerals not included in prospecting licence

(1) If, in the course of exercising his rights under a prospecting licence, the holder thereof discovers any mineral not included therein, he may apply to the Minister for an amendment of his prospecting licence to include such mineral.

(2) An application for the amendment of a prospecting licence under subsection (1) shall-

(a) specify the mineral discovered;

(b) give particulars of the situation and circumstances of the discovery; and

(c) have appended thereto a proposed programme of prospecting operations in connection therewith.

(3) Subject to the provisions of subsection (4), and provided that the applicant is not in default, the Minister shall permit the amendment of a prospecting licence to include the mineral concerned.

(4) An amendment of a prospecting licence under subsection (3) shall not be permitted if any person other than the applicant is the holder of a prospecting licence, retention licence, mining licence or minerals permit in respect of the mineral concerned or an associated mineral over the area in which it was discovered.

19. Size of prospecting area

(1) Subject to the provisions of this Act, a prospecting licence shall cover such area, not exceeding 1000 km2, as is in accordance with the applicant's application.

(2) Subject to the provisions of subsection (4), the prospecting area shall be reduced in size to eliminate therefrom-

(a) at the end of the initial term of the prospecting licence, not less than half of the initial area;

(b) at the end of each period of renewal, half of the remaining area, or such lower proportion as the Minister may in any case agree; and

(c) the area covered by any retention licence or mining licence granted thereon.

(3) The holder of a prospecting licence shall designate, prior to the end of each of the periods referred to in subsection (2), the area or areas to be eliminated from the prospecting area and, in default thereof, the designation shall be made by the Minister.

(4) Where a person holds two or more contiguous prospecting licences covering the same period and the same mineral or minerals the Minister shall, for the purposes of the elimination, under subsection (2), of part of any of the areas thereof, permit the areas covered thereby to be deemed to be one area, the subject of one such prospecting licence.

(5) No compensation shall be payable to the holder of any prospecting licence arising out of reductions in area effected in terms of subsection (2).

20. Rights of holder of prospecting licence

Subject to the provisions of Part VIII, the holder of a prospecting licence may, in the exercise of his rights thereunder, enter upon any land to which his prospecting licence relates together with his servants and agents and may-

(a) prospect thereon for the mineral to which his prospecting licence relates;

(b) drill boreholes and make such excavations as may be necessary; and

(c) erect camps and put up temporary buildings for machinery necessary for prospecting purposes.

21.     Obligations of holder of prospecting licence

            (1) The holder of a prospecting licence shall-

     (a)     commence prospecting operations within three months or such further period as the Minister may allow, of the date of issue of his licence;

     (b)     carry on prospecting operations in accordance with the programme of prospecting operations;

     (c)     notify the Minister of the discovery of the mineral to which his prospecting licence relates within a period of 30 days of such discovery;

     (d)     notify the Minister of the discovery of any mineral deposit of possible economic value within a period of 30 days of such discovery;

     (e)     backfill or otherwise make safe any excavation made during the course of his prospecting operations, to the reasonable satisfaction of the Director of Geological Survey;

     (f)      permanently preserve or otherwise make safe any borehole in the manner directed by the Director of Geological Survey and surrender to Government without compensation all such boreholes and any water rights in respect thereof on termination;

     (g)     unless the Director of Geological Survey otherwise stipulates, remove, within 60 days of the expiry or termination of his prospecting licence, any camp, temporary buildings or machinery erected or installed by him, and repair or otherwise make good any damage to the surface of the ground occasioned by such removal, to the reasonable satisfaction of the Director of Geological Survey;

     (h)     subject to the conditions of his prospecting licence and the provisions of section 22, expend on prospecting, in accordance with his prospecting programme, not less than such amount as may be specified in his prospecting licence; and

     (i)      submit to the Director of Geological Survey, at least quarterly, reports containing the information required under the licence and the Act both in digital and analogue form.

            (2) The holder of a prospecting licence shall submit to the Director of Geological Survey not later than three months after the end of each year of the licence, an audited statement of expenditure directly incurred under the licence and any moneys required to be spent under the provisions of subsection (1)(h) and which are not so spent shall be a debt due to Government recoverable in a court of competent jurisdiction.

            (3) The holder of a prospecting licence shall keep full and accurate records of his prospecting operations which shall show-

     (a)     boreholes drilled;

     (b)     strata penetrated, with detailed logs of such strata;

     (c)     minerals discovered;

     (d)     the results of any geochemical or geophysical analysis;

     (e)     the result of any analysis or identification of minerals removed under section 24;

     (f)      the geological interpretation of the records maintained under paragraphs (a) to (e) inclusive;

     (g)     the number of persons employed;

     (h)     any other prospecting work not listed above;

and shall supply, at least once in every three months, copies of such records to the Director of Geological Survey.

            (4) Any person who fails to keep any record or information required to be kept under subsection (3) or who fails to supply any record to the Director of Geological Survey or who supplies any false or misleading record or information shall be guilty of an offence.

22.     Amendment of programme of prospecting operations

            (1) The holder of a prospecting licence may, from time to time, notify the Minister of amendments he wishes to make to his programme of prospecting operations and such amendments shall, unless the Minister rejects the same within two months after being so notified, have effect after such period.

            (2) The Minister may, on application being made to him by the holder of a prospecting licence, limit or suspend the obligation to carry on prospecting as required by section 21(1)(b), or to expend moneys as required by section 21(1)(h).

23.     Transfer of prospecting licence

            (1) Subject to this section, a prospecting licence or any interest therein or any controlling interest in the holder thereof may be transferred to any other person provided that the Minister is notified not less than 30 days before the intended transfer.

            (2) In such notification, the applicant shall give to the Minister such details of the transferee as would be required in the case of an application for a prospecting licence.

            (3) Where the Minister is satisfied that the transferee is not disqualified under any provision of this Act from holding a prospecting licence, he shall notify the applicant of his approval of the transfer of the prospecting licence or an interest therein.

            (4) Upon the transfer of a prospecting licence, the transferee shall assume and be responsible for all rights, liabilities and duties of the transferor under the prospecting licence.

24.     Removal and disposal of minerals

            The holder of a prospecting licence shall not, without the written permission of the Minister, which permission shall not be unreasonably withheld, and subject to such reasonable conditions as the Minister may determine, remove any mineral from a prospecting area except for the purpose of having such mineral analysed, valued, or tested in Botswana.