South Sudan may take 15% in mining projects under proposed law Bloomberg News Juba, 23/11/12 - South Sudan will have the right to take a 15 percent stake in any mining projects that are developed in the East African nation under draft industry legislation, a government official said. The country's mining bill, approved by lawmakers on Nov. 19, is also expected to result in mining companies beginning exploration in the country by January, Henry Odwar, who heads the mining and energy committee, said in a phone interview today from the capital, Juba. The draft law doesn't specify what taxes and royalties will be paid, he said. South Sudan, the world's newest country, gained independence from Sudan in July 2011, when it acquired three-quarters of the formerly united country's output of 490,000 barrels a day. The government relies on crude to generate 98 percent of its revenue. The passage of the mining bill, which still requires President Salva Kiir's approval, is expected to enable the Mining and Petroleum Ministry to begin processing applications for licenses by mid-December, Odwar said. ``Investors have lined up applications within the ministry, but they're not being processed now,'' he said. ``As soon as the bill is signed into law, these applications will be processed on a first-come basis.'' During an interim period of semi-autonomy, after the end of Sudan's civil war in 2005 and before South Sudan declared independence, a southern governmental body had issued exploration licences, though there were concerns about the legality of some permits and the process was put on hold until a mining law could be enacted, he said. Exploration Permits Consolidated Mineral and Energy Resources Co., based in Juba, was granted a provisional exploration permit, according to Emma Parker, chief operations officer for Equator Gold Ltd., a British company working under the licence. She said CMERC was one of as many as two companies granted a permit by the Mines Ministry. ``With the passing of the new bill South Sudan is set to see a huge influx of international and local companies entering the sector looking for prosperous areas to explore,'' she said in an e-mailed response to questions on Nov. 14. Gold deposits have been identified in an area around Kapoeta, a southern town in Eastern Equatoria state, ``which is due to see a rush from international and local companies trying to gain licences,'' Parker said. South Sudan's western border with the Democratic Republic of Congo may also attract interest, she said. Northeastern Congo is rich in deposits of gold, tin and columbite-tantalite, the mineral known as coltan that's used in mobile phones and computers. Companies will have to prove they have financial resources and won't be allowed to let concessions lay idle, though the mining laws will guarantee companies' investment in a concession, Odwar said. ``Investors don't have to fear that on day it is going to be nationalized,'' he said.
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