Exploration license (EL)

An Exploration license grants the license-holder the exclusive right to explore for all mineral categories authorized by the license.

As per Section 29 of the principal enactment and Section 11(2) of the Amendment, the following are NOT eligible to apply:

1. An individual who
   1. (i) Is, under the age of 18 years;
   2. Is, a public officer or employ of any provincial council or local authority;
   3. Is, under any law enforce in Sri Lanka, declared to be of unsound mind; or
   4. Is a person, having being declared and insolvent or a bankrupt under any law enforce in Sri Lanka or in any other country, is an undischarged insolvent or bankrupt;
   5. Is a member of the parliament or a member of a provincial council or a member of a local authority.
2. A company which –
   1. Is not registered to do business in Sri Lanka;
   2. Is declared to be bankrupt or in liquidation;
3. A firm which –
   1. Is not registered to do business in Sri Lanka;
   2. Is declared to be bankrupt or in liquidation;
4. any applicant who does not possess the financial capacity and technical qualifications necessary in the opinion of the bureau to conduct the Activities in respect of which the license has been applied for;
5. any applicant who fails to pay the prescribed fee for the issue of the license

Application procedure for an Exploration License (EL)

An application for an exploration license should be preceded by;

• Letter of Intent
• A map of suitable scale demarcating the intended area of exploration
• Communication fee of Rs. 5000.00 + VAT + other applicable government levies

Required Documents;

• Letter of Intent
• Duly filled Application [Forms 2.1 and 2.3]
• A map of suitable scale demarcating the intended area of exploration
• Project proposal
• Application fee receipt
• Communication fee receipt
• If an individual applicant, original and the copy of National Identity Card (NIC)
• If corporate applicant, original and the copy of Business Registration (BRC)

It should also be noted that;

• An Exploration License holder having completed exploration phase is entitled to apply for a Mining License. However, the license holder will be required to report all exploration results through a PowerPoint presentation and submit two originals of the final Technical Work Report.
• A Mining License will be issued only on the acceptance of the Technical Work Report by the Bureau’s Technical Evaluation Committee (TEC).

Mining Licenses

Artisanal Mining License (AML)

Grants the license-holder the exclusive right to mine, process and trade in all minerals specified in the license within an area not exceeding ten hectares or to a depth not exceeding twenty-five metres.

Category A - which shall include one or more of the under-mentioned conditions.

• The depth of bore hole to be less than 1.5 metres;
• The production volume to be not less than 100 m3 and not more than 600 m3 per month;
• No machinery to be used.

Category B - which shall include any one or more of the under mentioned conditions.

• The depth of borehole to be less than 1.5 metres;
• The depth of mine not exceeding 2 metres;
• Production volume to be not exceeding 100 m3 per month;
• No machinery to be used.

How to apply for Artisanal Mining License (AML)

Required Documents;

• Duly filled Application [Form 1.1]
• Copy of Deed
• Copy of Survey Plan of site (Provisional)
• If the applicant is not the land owner, lease deed or lease agreement should be provided by the land owner.
• If Individual applicant, should submit copy of National Identity Card (NIC)
• If corporate applicant, should submit copy of Business Registration Certificate (BRC)

Industrial Mining License (IML)

Grants exclusive right to explore for, mine, process, transport and trade-in all minerals mined within the area specified in such license. There are four (4) categories of Industrial Mining Licenses, namely, “A”, “B”, “C” and “D”.
An application to mine for any industrial mineral as defined by the mining licensing regulations, should submit the detailed exploration report and other relevant documents. However, submission of a detailed exploration report is not necessary for application to mine for building materials.

Note that;

• The term ‘bore hole’ or ‘shot hole’ mentioned herein denotes “blasthole”.
• One (1) cube equals one hundred (100) cubic feet equals two decimal eight three (2.83) cubic metres.

Category A - (include any one or more of the following criteria):

1. the blasting method shall be multi-bore holes using high explosives and more than five (5) electric detonators and five (5) bore holes at a time;
2. the depth of a bore hole shall be more than three (3) metres;
3. the production volume shall be more than two thousand (2,000) cubes per month;
4. the machinery permitted to be used by the Bureau shall be dredgers, track-drills, jack hammers, compressors, rock breakers, front-end loaders, excavators and backhoe loaders;
5. any other machinery to be used as permitted by the Bureau;
6. the mining area shall be more than ten (10) hectares;
7. the depth of mine shall be more than twenty-five (25) metres;
8. the diameter of a bore hole shall be more than forty-two (42) mm.

Category B

1. the blasting method shall be multi-bore holes using high explosives and shall not exceed five (5) electric detonators and five (5) bore holes;
2. the blasting method shall be multi-bore holes using detonating cord, or expansion by non-explosives;
3. the depth of a bore hole shall not exceed three (3) metres;
4. the machinery permitted to be used by the Bureau shall be dredgers, jack hammers, compressors, rock breakers, front-end loaders, excavators and backhoe loaders;
5. any other machinery to be used as permitted by the Bureau;
6. the production volume shall not exceed two thousand (2,000) cubes per month;
7. the depth of the mine shall not exceed twenty-five (25) metres;
8. the mining area shall not exceed ten (10) hectares;
9. the diameter of a bore hole shall not exceed forty-two (42) mm.

Category C

a. the blasting method shall be single shot hole;
b. the depth of a bore hole shall not exceed three (3) metres;
c. the production volume shall not exceed one thousand (1,000) cubes per month;
d. the machinery permitted to be used by the Bureau for operations shall be jack hammers, compressors, rock breakers, front-end loaders, excavators and backhoe loaders;
e. the mining area shall not exceed two (2) hectares and depth of the mine shall not exceed twenty-five (25) metres;

Category D

a. the blasting method shall be single shot hole;
b. the depth of a bore hole shall not exceed one decimal five (1.5) metres;
c. the production volume shall not exceed five hundred (500) cubes per month;
d. the machinery permitted to be used by the Bureau shall be jack hammers with compressors, front-end loaders and excavators;
e. the mining area shall not exceed two (2) hectares and depth of the mine shall not exceed twenty-five (25) metres;

How to apply for a new Industrial Mining License (IML)

Required Documents;

• Duly filled Application [Form 3.1, 2.3]
• Copy of Deed
• Copy of Survey Plan of site (Provisional)
• If the applicant is not the land owner, lease deed or lease agreement should be provided by the land owner.
• An Individual applicant, should submit copy of National Identity Card (NIC)
• A Corporate applicant, should submit copy of Business Registration Certificate (BRC)
•  Economic Viability Report

Reserved Minerals License (RML)

License to explore for, mine, process and trade in reserved minerals may be granted with the approval of the Minister.

Required Documents;

• Duly filled Application [Form 5]
• Copy of Deed
• Copy of Survey Plan of site (Provisional)
• If the applicant is not the land owner, original of either the Lease Deed or the Lease Agreement as issued by the land owner to be submitted.
• If an Individual Applicant, should submit the original and a copy of National Identity Card (NIC)
• If a Corporate Applicant, should submit the original and a copy of Business Registration Certificate (BRC) and a copy of Memorandum of Articles
• A detailed map showing access to the mining site
• Proof of residence of Applicant?
• Application fee receipt

Trading License (TDL)

A Trading License shall grant the non-exclusive right to purchase, store, process, trade-in and, with the special authorization of the Director, to export minerals in respect of which the license is issued.

Category A - to trade in minerals for export

Category B - to trade in minerals locally

Category C - to trade in bricks and lime produced manually

How to apply for a new Trading License

Required documents

• Duly filled application [Form 6.1?]
• Deed and plan of the site where mineral will be stored.
• If the applicant is not the land owner, lease deed or lease agreement should be provided by the land owner.
• Concerned letters should be obtained from respective mining license holders.
• Copy of relevant mining license/s.

Transport License (TL)

License to transport mineral-bearing substances or minerals shall be issued for such quantity and period and for minerals as may be specified in such license. All exploration, mining and trading licenses shall require a transport license to transport minerals or mineral-bearing substances.

The Applicant should be a Mining or Trading License holder.

Required documents;

• Duly filled application [Form 7.1]
• Copy of valid Mining/Trading License
• Details of vehicle/s to be used for transport

Export of Minerals

All exploration, industrial mining license category ‘A’ and ‘B’ and trading license category ‘A’ shall obtain the special authorization of Director General of the GSMB to export minerals in respect of which the license is issued.

Under the existing National Mineral Policy, export of minerals may be allowed after value addition. However, depending on the mineral to be exported, the Bureau, at its discretion, will decide on the need to enter into an appropriate Mineral Investment Agreement (MIA).

Required documents;

• Duly Filled Application [Form 15]
• Copy of valid mining/trading license
• Copy of letter of credit/ tele-transaction document
• Copy of invoice
• Application fee receipt
• Proof of Royalty payments in full

Royalty fees

As per section 44 of the Mines and Minerals Act No. 33 of 1992 as amended by Mines and Minerals (Amendment) Act No. 66 of 2009 and in Licensing Regulations No. 33 and 34, royalty should be paid by the Mining License holder in respect of all minerals mined and processed.

Royalties from sales or determined market value of mine output shall be as a percentage of that value as follows:

• Precious metals - 7%
• Industrial minerals (not exported) - 6%
• Industrial minerals (exported) - 7%
• Building materials - 4%
• Dimension stone (exported) - 7%
• Base and other metals - 6%

Royalty payment procedure

• Artisanal mining License holders and Industrial Mining License “C” category holders should pay royalty on or before the twentieth day of the fourth month following the end of each calendar year along with the duly filled form 14.
• Industrial Mining License “A” and “B” category holders should pay royalty as per the schedule given below.

Non-settlement of royalty within said date makes the licensees liable to pay an additional 20% on the due amount as penalty to the Bureau.