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Neither London Mining nor African Minerals concession agreements conformed to a new mining act Sierra Leone introduced in 2009.
The appeals court also criticized the current mining act for being "remarkably sweeping".
Exactly how the government will keep both the prospectors and landowners happy with its revised mining act is unclear.
Opponents, though, say that the project would be far more intrusive and that it offers a vivid argument for revising the 1872 mining act.
Kenya's national assembly has voted to overhaul its 74-year-old colonial mining act, as it aims to ramp up the country's fledgling sector.
According to America's mining act of 1872, framed at a time when spurring development of the wide-open West was all the rage, no government agency can refuse a mining permit on federal land, or charge a royalty.
Similar(38)
The judge said the agency had infringed on the authority given to state regulators by federal clean water and surface mining acts.
They also insist that their leases conform to the mines act.
Under the federal mine act, safety violations, with the exception of falsifying records, are categorized as misdemeanors.
But she reckoned the world had changed since the rules were set in the Dean Forest (Mines) Act 1838 and applied to become a free miner.
India's Mines Act of 1952 prohibits anyone under the age of 18 from working in coal mines, but Ms. Thapa said enforcing that law would hurt her family.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com