Steps In Evaluation of Mineral License Application
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The process of assessment and evaluation of application for mineral exploration license is aimed to improve quality of licensing system in mining sector and to ensure that the selected applicant to be granted license has appropriate technical and financial capacity as required by the law on management and exploitation of mineral resources. The process was proposed for adoption by the Ministry of Mines and Energy as of February 17th, 2020 and used by the department of Industrial Mining to evaluate license applications in its bidding rounds. The process consists of three main steps as follow:
Step 1: Check on Completeness of Submitted Application Documents
Full template and list of required documents to be submitted with application for mineral exploration license is provided by the department of Industrial Mining. The first step of the evaluation start with verifying completeness of documents received. There are 14 documents to be review and checked in this step as follow:
1- * completeness of application letter
2- * existing letter of power attorney ( if necessary)
3- * business incorporation and registration
4- * copy of company by law
5- valid copy of effective patent registration
6- valid tax registration
7- * valid copy of identification card or passport of applicant
8- * certificate of resident of the applicant and company office
9- * company profile: background information, company board and beneficiary owners information, organization chart, history and list of related company’s experiences in mining and mineral exploration, corporate financial report for the last 3 years, and, list and CV of key competent and professional expert team members assigned to the current exploration project.
10- other supporting documents enhancing qualification of technical and financial capacity of the company and partners ( if any)
11- * proposal of mineral exploration methodology, work program and budget estimates for the first 3 years period.
12- * committed proposal for supporting license supervision, training, site closure and rehabilitation, and local community fund (*).
13- capacity development & technology transfer program, and, local content promotion program during the first 3 years period.
14- * proposal of measures and environmental and social safeguards during the first 3 years period (*).
Documents with (*) are critical and omission of which may lead to rejection of the application and disqualify the applicant from eligibility for granting license.
Step 2: eligibility check of the applicant
This step follows if the application documents were accepted and passed checking process in step 1. Based on documents submitted, the applicant eligibility for granting mineral exploration license is scrutinized based on the following criteria:
1- application was submitted on time and within period deadline as prescribed by the ministry.
2- data and information provided with documents as submitted in step 1 has reasonable quality enable reliable assessment of applicant’s technical and financial capacity, and the effectiveness of the proposal of methodology and work plan.
3- applicant is lawfully incorporated under Cambodia law and is good corporate citizen.
4- company director or manager does not have any previous records of law abuses.
5- validity and lawfulness of partnership agreements and/or JV documents, if any.
6- appropriateness of office set up and local representation.
Only the applicants passed those eligibility criteria will be subject to further technical evaluation and scoring process in step 3.
Step 3: technical evaluation and scoring
Once passed the above two steps, the application documents and information provided will be subject to further technical evaluation and scoring according to the following criteria:
A- Technical scoring ( total 750 points)
Technical evaluation and scoring will be based on the following criteria:
A-1: technical capacity and experiences of the applicant ( total 200 points) includes: related experience in oversea (50 points), related experience in country (50 points), specific experience in mineral exploration in oversea (50 points), and, specific mineral exploration in country (50 points).
A-2: proposed methodology and work program (total 150 points) includes: completeness and appropriateness of proposed methodology and work plan to achieve effective exploration operation (50 points), quality and scope of deliverables expected to receive as result of work plan implementation (50 points), appropriateness and responsiveness of proposed budget plan and finance to implement work plan (50 points).
A-3: expertise and experiences of foreign experts assigned to the project (total 200 points) includes: generally related experience in oversea (40 points), generally related experience in country (40 points), specific experiences in mineral operation in oversea (40 points), specific experiences in mineral operation in country (40 points), and, level of engagement in the current assignment (40 points).
A-4: expertise and experiences of local experts assigned to the project (total 200 points) includes: generally related experience in oversea (40 points), generally related experience in country (40 points), specific experiences in mineral operation in oversea (40 points), specific experiences in mineral operation in country (40 points), and, level of engagement in the current assignment (40 points).
B- Financial scoring (total 250 points)
Evaluation and scoring of applicant’s financial capacity is based on the following criteria:
B-1: suitability of available cash flow and budget plan (100 points)
B-2: scope of proposed benefits of local content (100 points)
B-3: appropriateness of performance security (50 points).
Total technical scoring used in this step 3 is 1,000 points. As rule of thumb, only applicant with total technical score more than 500 points will be considered for granting license. During the evaluation process, applicant may be asked to supply additional documents or clarification to assist the evaluation team.
This process is expected also to help applicant in preparing their application and promote clarity and transparency of the licensing process./.
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