Through Government Notice No. 323 published on 16th April 2021 the Government through the Mining Commission (hereinafter referred to as “the Commission”) enacted the Mining (Disputes Resolution) Rules, 2021 (hereinafter referred to as “the Rules”). The Rules are made under Section 122 of the Mining Act cap 123 (hereinafter referred to as “the Act”) and they revoke and replace The Mining (Disputes Resolution) Rules, 1999.
The Rules provide the procedure for resolving disputes referred to the Commission under Section 119 of the Act. Section 119 of the Act gives powers to the Commission to inquire into and decide all disputes between persons engaged in prospecting or mining operations, except for disputes involving the Government. The Commission has powers to make any order which may be necessary for the purpose of giving effect to its decisions and may order the payment, by any party to a dispute, of such compensation as may be reasonable, to any other party to the dispute. The Commission powers are however limited to disputes in connection with:
(a) the boundaries of any area subject to a mineral right.
(b) the claim by any person to be entitled to erect, cut, construct, or use any pump, line of pipes, flume, race, drain, dam or reservoir for mining purposes, or to have priority of water taken, diverted, used or delivered, as against any other person claiming the same.
(c) the assessment and payment of compensation pursuant to the Act.
(d) any other matters that may be prescribed by law.
Section 119 does not however make it mandatory for the Commission to exercise its powers to inquire into and decide disputes between persons engaged in prospecting or mining operations.
It is also not mandatory for an aggrieved party engaged in prospecting or mining operations to refer a dispute to the Commission. This means that the aggrieved party if so wishes, may refer a dispute to other appropriate dispute resolution mechanism or body.
The Rules vest the powers to inquire into and decide all disputes between persons engaged in prospecting or mining operations in the Executive Secretary of the Commission. the Executive Secretary of the Commission may however delegate such powers to any officer of the Commission of a rank of director.
Upon hearing a complaint, the Commission will pronounce judgment and make orders. The orders of the Commission are executed through a court presided over by a Resident Magistrate Court within the local limits of whose jurisdiction the subject matter of the order is situated. Appeals from the orders of the Commission lies with the High Court.