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Kiribati Consolidated Legislation |
Commencement: 1st April 1978
LAWS
OF THE GILBERT
ISLANDS
REVISED
EDITION 1977
CHAPTER 58
MINERAL DEVELOPMENT LICENSING
ARRANGEMENT OF SECTIONS
Section
PART I
PRELIMINARY
1. Citation, and
transitional provisions
interpretation
2.
Interpretation
PART II
ACQUISITION OF MINERAL RIGHTS
3. Acquisition of mineral
rights
PART III
ADMINISTRATION
4. Powers of certain
officers to enter upon prospecting areas
etc.
5. Power to require production of
records
6. Indemnity of
officers
7. Public officers prohibited
from acquiring mineral rights
8.
Retention of cores and samples
9.
Preference for local products etc.
PART IV
RECONNAISSANCE LICENCES
10. Acquisition and
duration of rights to conduct
reconnaissance
11. Content of
reconnaissance licence
12. Obligation
of holder of reconnaissance
licence
13. Rights of the holder of
reconnaissance licence
PART V
PROSPECTING LICENCES
14. Acquisition of rights
to prospect
15. Consideration of
application for prospecting
licence
16. Prospecting licence
subject to terms and conditions
17.
Notification of grant or rejection
18.
Content of prospecting licence
19.
Duration and renewal of prospecting
licence
20. Discovery of minerals not
included in prospecting licence
21.
Size of prospecting area
22. Rights of
holder of prospecting licence
23.
Obligations of holder of prospecting
licence
24. Amendment of
programme
25. Transfer of prospecting
licence
26. Removal and disposal of
minerals
PART VI
MINING LICENCES
27. Application for a
mining licence
28. Consideration of
application for a mining licence
29.
Mining licence subject to terms and
conditions
30. Notification of
approval
31. Content of mining
licence
32. Duration and renewal of
mining licence
33. Amendment of mining
programme
34. Rights conferred by
mining licence
35. Obligations of
holder of mining licence
36. Wasteful
mining or treatment practices
37.
Merger or co-ordination of mining
licences
38. Suspension of
production
39. Export of radioactive
minerals
40. Transfer or assignment of
mining licence
41. Restriction on
transfer of shares
PART VII
MINERAL RIGHTS AND SURFACE RIGHTS
42. Restriction on the
exercise of mineral rights
43.
Acquisition of exclusive rights by holder of mining
licence
44. Compensation for
disturbance of rights etc.
45.
Interference, damage to fishing
etc.
46. Compulsory purchase of
land
PART VIII
FINANCIAL
47.
Royalties
48. Agreement concerning
royalties
49. Provisional
royalty
50. Failure to pay royalties
etc.
51. Annual charges for a mineral
right
52. Guarantees for performance
etc.
PART IX
WITHDRAWAL OF APPLICATIONS, SURRENDER AND TERMINATION OF MINERAL RIGHTS
53. Withdrawal of
applications
54. Surrender of
prospecting and mining licence
55.
Suspension or cancellation of a mineral
right
56. Record etc., to be delivered
on termination
57. Extension of period
of prospecting or mining licence
PART X
REGULATIONS
58.
Regulations
PART XI
PENALTIES AND OFFENCES
59.
Offences
60. Penalties
PART XII
RECORDS, INFORMATION AND ARBITRATION
61. Records to be
maintained of minerals
62. Information
to be confidential
63.
Arbitration
----------------------------
An Ordinance to make provision for the grant of licences to search for and to win minerals, and for purposes incidental thereto and connected therewith.
6
of 1977
L.N.
76/78
Commencement: 1st April 1978
PART I
PRELIMINARY
Citation
and transitional
provisions
1.
(1) This Ordinance may be cited as the Mineral Development Licensing
Ordinance.
(2) The provisions of
this Ordinance shall not apply to Ocean Island until provision shall be made by
or under this Ordinance in order
to give effect to the intent of this Ordinance
which is that it shall be of general application subject only to the temporary
exclusion
of Ocean Island from the application of this Ordinance by reason of
the particular application of the provisions of the Mining Ordinance
there.
Cap. 25 of 1973
Interpretation
2.
In this Ordinance, unless the context otherwise requires-
"authorised officer" means a person authorised by the Minister to exercise the powers conferred by section 4(1);
"Gilbert Islander" means, in any period before provision has been made for Gilbert Island citizenship, a person who under the provisions of section 16 of the Constitution is deemed to belong to the Gilbert Islands, and in any period after such provision has been made, means a citizen of the Gilbert Islands;
"holder" means the holder of a mineral right;
"in default" means in breach of any of the provisions of this Ordinance or any of the terms or conditions of a mineral right;
"mine" when used as a verb, means intentionally to win minerals and includes any operations directly or indirectly necessary therefor or incidental thereto and mining shall be construed accordingly;
"mineral" means any substance, whether in solid, liquid or gaseous form, occurring naturally in or on the earth, or in or under the seabed formed by or subject to a geological process, but does not include water;
"mining area" means the land or water subject to a mining licence;
"mineral right" means a reconnaissance licence, prospecting licence or a mining licence;
"mining licence" means a licence to mine acquired under Part VI;
"programme of mining operations" means such a programme approved on the granting or renewal of a mining licence and includes any amendment thereto made in pursuance of the provisions of this Ordinance;
"prospect" means intentionally to search for minerals and includes any work necessary to determine their extent and economic value;
"prospecting area" means the land or water subject to a prospecting licence;
"prospecting licence" means a right to prospect acquired under Part V;
"radioactive mineral" means a mineral which contains by weight at least one-twentieth of 1 per cent (0.05 per cent) of uranium or thorium or any combination thereof, including but not limited to the following-
(a) monazite sand and other ores containing thorium;
(b) carnotite, pitchblende and other ores containing uranium;
"reconnaissance" means the search for minerals by geophysical surveys, geochemical surveys and photogeological surveys or other remote sensing techniques and surface geology in connection therewith but does not include-
(a) drilling, excavation or other subsurface techniques except where the use of such techniques has been authorised in a reconnaissance licence issued under Part IV;
(b) investigation or research into the geology of the Gilbert Islands where such investigation or research has been authorised in writing by the Minister;
"reconnaissance area" means any area of land or water subject to a reconnaissance licence;
"reconnaissance licence" means a licence to conduct reconnaissance acquired under Part IV;
"reconnaissance programme" means such a programme approved on the granting of a reconnaissance licence and includes any amendment thereto made in pursuance of the provisions of this Ordinance;
"termination" means the lapse of a mineral right whether by expiry of time, surrender or cancellation, and where any surrender or relinquishment is in respect of part only of the area covered by a mineral right then the mineral licence shall be deemed to have lapsed in respect of that surrendered or relinquished area;
"working for profit" means producing a mineral product with the intention of use or sale.
PART II
ACQUISITION OF MINERAL RIGHTS
Acquisition
of mineral
rights
3.
(1) No person shall in the Gilbert Islands conduct any reconnaissance, for
prospect for or mine any minerals except under the authority
of a licence issued
under and in accordance with this
Ordinance.
(2) Nothing in this
Ordinance shall-
(a) prevent a Gilbert Islander from taking to the extent and in the manner which custom permits and, subject to such conditions and restrictions as may be prescribed, minerals from any land from which it has been customary to take such minerals;
(b) apply to the search for or winning of minerals for use within the Gilbert Islands as materials for building, road making or other construction.
(3)
No mineral right shall be granted under the provisions of this
Ordinance-
(a) to a natural person who is not a Gilbert Islander;
(b) to a corporation unless it is incorporated by or under any law in force in the Gilbert Islands or in the case of a reconnaissance or prospecting licence unless it is a company registered under the Companies Registration Ordinance.
Cap. 11
PART III
ADMINISTRATION
Powers
of certain officers to enter upon prospecting areas
etc.
4. (1) An authorised officer
may, at all reasonable times, enter upon any reconnaissance area, prospecting
area or mining area, or
any vessel, installation, premises or workings thereon
or thereunder, other than a dwelling house, for the purposes of-
(a) generally inspecting any such area, vessel, installation, premises or workings and examining reconnaissance, prospecting or mining operations or the treatment of minerals being performed or carried out thereon;
(b) ascertaining whether the provisions of this Ordinance are being complied with;
(c) ascertaining whether any nuisance exists in such area, such premises or workings;
(d) giving directions and taking steps to enforce any provisions of this Ordinance, or to abate or remove any nuisance;
(e) taking soil samples or specimens of rocks, ores, cores, concentrates, tailings or minerals situated upon such area, premises or workings for the purpose of examination or assay;
(f) examining books, accounts, vouchers, documents, maps, drilling logs, or records of any kind; or
(g) obtaining such information as he may deem necessary.
(2)
The holder of a mineral right shall provide such reasonable assistance including
transport as may be necessary to any authorised
officer in the exercise of his
functions under subsection
(1).
Power to
require production of
records
5.
The Minister may direct the holder of a mineral right to produce for inspection
by an authorised officer any books, accounts, vouchers,
documents, or records of
any kind concerning the mineral
right.
Indemnity
of
officers
6.
No public officer or other authorised officer shall be liable for anything done
or omitted to be done
bona
fide in the performance or purported
performance of any function vested in or delegated to him by or under this
Ordinance.
Public
officers prohibited from acquiring mineral
rights
7.
(1) No public officer shall, directly or indirectly, acquire any right or
interest in any mineral right, and any document or transaction
purporting to
confer any right or interest on any such officer shall be null and
void.
(2) No public officer
employed in the Ministry shall acquire or retain any share in a private company
carrying on prospecting or mining
operations in the Gilbert
Islands:
Provided that the
Minister may authorise a departure from the provisions of this subsection where,
in his opinion, the operations
in the Gilbert Islands of the company concerned
form a negligible part of the total operations of that
company.
Retention
of cores and
samples
8.
(1) No core or sample obtained in the course of the exercise of powers conferred
by a mineral right shall be destroyed or otherwise
disposed of except for the
purposes of assay, identification or analysis without the permission in writing
of the Minister, who may
grant such permission subject to such conditions as he
may deem fit to impose.
(2) Where
any core or sample is retained for the purpose of complying with subsection (1),
there shall be maintained a record in such
degree of particularity as the
Minister may require sufficient for the identification of the core or sample and
the location and
geological horizon of its
origin.
(3) Any person who
destroys or disposes of a core or sample in contravention of subsection (1) or
fails to maintain a record as required
by subsection (2) shall be guilty of an
offence.
Preference
for local products
etc.
9.
(1) The holder of every mineral right shall, in the conduct of his operations
under such right, and in the purchase, construction
and installation of
facilities, give preference, to the maximum extent possible consistent with
safety, efficiency and economy, to-
(a) materials and products made in the Gilbert Islands; and
(b) service agencies including the Gilbert Islands Development Authority located in the Gilbert Islands and owned by Gilbert Islanders, or bodies corporate established by or under any law in force in the Gilbert Islands.
(2)
The holder of a mineral right shall, in all phases of his operations, give
preference in employment to Gilbert Islanders to the
maximum extent possible
consistent with safety, efficiency and
economy.
(3) The holder of a
mineral right shall, in his operations and, in consultation with the Minister,
conduct training programmes in
the widest possible range of skills for the
benefit of employees so that such employee may qualify for
advancement.
PART IV
RECONNAISSANCE LICENCES
Acquisition
and duration of rights to
conduct
reconnaissance
10.
(1) Subject to the provisions of this Ordinance the Minister may in his
discretion grant to any person a reconnaissance licence over
any area in the
Gilbert Islands.
(2) No
reconnaissance licence may be granted in respect of any area over which a
prospecting licence or a mining licence has been
granted and a reconnaissance
licence shall not confer upon the licensee any exclusive right to conduct
reconnaissance over the area
comprised within the licence unless the licence
expressly so provides.
(3) A
reconnaissance licence shall be of such duration not exceeding 2 years and
subject to such conditions as the Minister may in
his discretion
determine.
(4) Where application
is made to the Minister in that behalf not less than 3 months before the
expiration of a reconnaissance licence
the Minister may if he considers that it
would be in the public interest so to do renew the licence for a further period
not exceeding
1 year in
duration.
(5) An application for a
reconnaissance licence shall be in writing and the applicant shall provide the
following information-
(a) his full name and nationality, and, in the case of an application by a partnership or other association of persons, the full names and nationalities of all partners or of all such persons, or, in the case of an application by a corporate body, the registered name of such body;
(b) a description of the area for which the application is made, together with a plan thereof to such scale as the Minister may require;
(c) a proposed reconnaissance programme, with details of the equipment expected to be used in connection therewith, and the names of the persons to be responsible for the conduct thereof;
(d) the period within which the reconnaissance programme is expected to be completed; and
(e) such additional information as the Minister may require.
Content
of reconnaissance
licence
11.
(1) Every reconnaissance licence issued under section 10 shall be published in
the Gazette
and shall include-
(a) the date of issue and the period for which it is issued;
(b) a description and plan of the area covered thereby;
(c) the conditions imposed by the Minister.
(2)
A reconnaissance licence may not be transferred or assigned but the licensee may
subject to section 56 at any time relinquish
all or any part of the area covered
thereby.
Obligation
of holder of reconnaissance
licence
12.
(1) The holder of a reconnaissance licence shall at half yearly intervals
commencing 6 months after the grant of the licence submit
to the Minister
reports on the progress of the reconnaissance and within 3 months after the
expiration of the licence submit a final
report setting forth the holders
evaluation of the mineral prospects in the area comprised within the licence;
such report shall
be accompanied by the negatives of all aerial photographs
taken in the course of the reconnaissance programme together
with-
(a) all geological, geochemical and geophysical maps, profiles, diagrams and charts made by or for such holder;
(b) copies of all tests and analyses made by or for such holder;
(c) copies of all reports made by or for such holder, including interpretations concerning the mineral prospects in the area covered by such permit; and
(d) a statement of the costs incurred by the holder in the reconnaissance programme.
(2)
The holder of a reconnaissance licence shall not without the written permission
of the Minister and subject to such conditions
as he may determine remove any
mineral from a reconnaissance area except for the purpose of having such mineral
analysed, determining
its value, or conducting tests
thereon.
Rights
of the holder of reconnaissance
licence
13.
Subject to the provisions of Part VII the
holder of a reconnaissance licence may in the exercise of his rights
thereunder-
(a) in respect of any area of land comprised within the licence enter upon such land with his servants and agents and may-
(i) conduct reconnaissance thereon for the minerals to which his licence relates;
(ii) erect camps and put up temporary buildings for machinery necessary for the conduct of reconnaissance;
(b) in respect of any area of waters comprised within the licence but subject to any limitations imposed under the terms of his licence place vessels or craft on, or erect installations in such waters and with his servants or agents conduct reconnaissance for the minerals to which his licence relates.
PART V
PROSPECTING LICENCES
Acquisition
of rights to
prospect
14.
(1) Subject to the provisions of this
Ordinance the Minister may in his discretion grant to any person who makes
application in accordance
with subsection (2) a prospecting licence over any
area in the Gilbert Islands.
(2)
An application for a prospecting licence shall be in writing and the applicant
shall provide the following information-
(a) his full name and nationality and in the case of an application by a partnership or other association of persons, the full names and nationalities of all partners or of all such persons, or, in the case of an application by a corporate body, the registered name of such body;
(b) in the case of a corporate body, the full names and nationalities of the directors or officers and the full name and nationality of any shareholder who is the beneficial owner of more than 5 per cent of the issued capital;
(c) full information as to his financial status, technical competence and experience;
(d) a description of the area over which a prospecting licence is sought, together with a plan thereof to such specification as the Minister may require or as may be prescribed;
(e) the name of the minerals for which he wishes to prospect;
(f) the period for which the prospecting licence is required;
(g) a proposed programme of prospecting operations and the estimated cost thereof;
(h) the applicant's proposals with regard to the employment and training of Gilbert Islanders;
(i) such further information as the Minister may require.
Consideration
of application for prospecting
licence
15.
(1) No prospecting licence shall be granted to an applicant unless the Minister
is satisfied that-
(a) the applicant has adequate financial resources, technical competence and experience to carry on effective prospecting operations;
(b) the proposed programme of prospecting operations is adequate;
(c) the applicant's proposals for the employment and training of Gilbert Islanders are adequate;
(d) the proposed prospecting area does not overlap an existing prospecting area or mining area unless the application is for a different mineral;
(e) the applicant is not in default; and
the
applicant is able and willing to comply with any term or condition applicable to
a prospecting licence.
(2) The
Minister may cause such investigations to be made or such negotiations or
consultations to be carried on as he may deem necessary
to enable him to decide
whether or not to grant a prospecting
licence.
Prospecting
licence subject to terms and
conditions
16.
Subject to the provisions of this Ordinance, a prospecting licence may be issued
subject to such terms and conditions as the Minister
may in each case
determine.
Notification
of grant or
rejection
17.
The Minister shall cause the applicant to be notified in writing of his decision
on the application and, if the grant of a prospecting
licence is approved, such
notification shall include the terms and conditions on which it is
granted.
If the
applicant-
(a) notifies the Minister, in writing, within 60 days of the date of notification or within such further period as the Minister may allow, that he accepts the terms and conditions to be attached to the prospecting licence, the Minister shall cause the prospecting licence to be issued;
(b) fails to notify the Minister in accordance with the provisions of paragraph (a), the application shall lapse.
Content
of prospecting
licence
18.
(1) Every prospecting licence issued under section 14 shall be published in the
Gazette
and shall-
(a) include the terms and conditions on which it is granted;
(b) include a description and plan of the prospecting area and specify the mineral to which it relates; and
(c) state the period for which it is granted.
(2)
There shall be appended to a prospecting licence the programme of prospecting
operations.
Duration
and renewal of prospecting
licence
19.
(1) Subject to the provisions of this Ordinance, a prospecting licence shall be
valid for such period, not exceeding 3 years, as
may be specified
therein.
(2) The holder of a
prospecting licence may, at any time not later than 3 months before the expiry
of such licence, apply to the Minister
for renewal thereof; subject to the
provisions of this Ordinance, a renewal may be granted for a period not
exceeding 2 years and
for a further period not exceeding 2 years
thereafter.
(3) Any application
for renewal of a prospecting licence shall state the period for which renewal is
sought and shall be accompanied
by-
(a) a report on prospecting operations so far carried out and the costs incurred thereby;
(b) a proposed programme of prospecting operations to be carried out during the period of renewal and the estimated cost thereof; and
(c) such other information as the Minister may require.
(4)
Notwithstanding the provisions of subsection (2), the Minister may renew a
prospecting licence for a period in excess of the period
specified in that
subsection where, in his opinion, special circumstances exist justifying such
further period.
(5) The Minister
shall not renew a prospecting licence if-
(a) the applicant is in default; or
(b) he considers that the proposed programme of prospecting operations is inadequate:
Provided that-
(i) before rejecting an application for renewal under paragraph (a), the Minister shall give notice of the default to the applicant and shall call upon the applicant to remedy such default within such time as he may allow; and
(ii) before rejecting an application for renewal under paragraph (b), he shall give the applicant opportunity to make satisfactory amendments to the proposed programme of prospecting operations upon such terms as the Minister may determine.
(6)
On the renewal of a prospecting licence the Minister shall cause such licence to
be amended accordingly and there shall be appended
thereto the programme of
prospecting
operations.
Discovery
of minerals not included in prospecting
licence
20.
(1) If, in the course of exercising his rights under a prospecting licence, the
holder thereof discovers any mineral included therein,
he may apply to the
Minister for an amendment of his prospecting licence to include such
mineral.
(2) An application for
amendment to a prospecting licence under subsection (1) shall specify the
mineral discovered, shall give particulars
of the situation and circumstances of
the discovery and shall have appended thereto a proposed programme of
prospecting operations
in connection
therewith.
(3) Subject to the
provisions of subsection (4), the Minister may, in his discretion, permit the
amendment of a prospecting licence
to include the mineral
concerned.
(4) An amendment of a
prospecting licence shall not be permitted if any person other than the
applicant is the holder of a prospecting
licence or a mining licence in respect
of the mineral concerned over the area in which it was
discovered.
Size
of prospecting
area
21.
(1) Subject to the provisions of this Ordinance, a prospecting licence shall
cover such area as may be specified
therein.
(2) Subject to the
provisions of subsection (4), the prospecting area shall be reduced in size to
eliminate therefrom-
(a) at the end of the initial term of the prospecting licence, any area in excess of half of the area included in the licence where it was granted; and
(b) at the end of any period of renewal, half of the remaining area,
or
such lower proportion as the Minister may in any case
agree.
(3) The holder of a
prospecting licence shall designate, prior to the end of each of the periods
referred to in subsection (2), the
area or areas to be eliminated from the
prospecting area and, in default thereof, the designation shall be made by the
Minister.
(4) Where a person holds
2 or more prospecting licences for the same mineral or minerals the Minister
may, for the purposes of the
elimination, under subsection (2), of part of the
areas thereof, permit the areas covered thereby to be deemed to be one area, the
subject of one such prospecting
licence.
Rights
of holder of prospecting
licence
22.
Subject to the provisions of Part VII the holder of a prospecting licence may in
the exercise of his rights thereunder-
(a) in respect of any area of land comprised within the licence enter upon such land with his servants and agents and may-
(i) prospect thereon for the minerals to which his prospecting licence relates;
(ii) erect camps and put up temporary buildings for machinery necessary for prospecting purposes;
(b) in respect of any area of waters comprised within the licence may subject to any limitations imposed under the terms of his licence place vessels or craft on, or erect installations in such waters and with his servants or agents prospect for the minerals to which his prospecting licence relates.
Obligations
of holder of prospecting
licence
23.
(1) The holder of a prospecting licence shall-
(a) commence prospecting operations within 3 months, or such further period as the Minister may allow, of the date of issue of his licence;
(b) carry one prospecting operations in accordance with the programme of prospecting operations;
(c) notify the Minister of the discovery of the mineral to which his prospecting licence relates within a period of 30 days of such discovery;
(d) notify the Minister of the discovery of any mineral deposit of possible economic value within a period of 30 days of such discovery;
(e) backfill, plug or otherwise make safe any borehole or excavation made during the course of his prospecting operations;
(f) unless the Minister otherwise stipulates, remove, within 60 days of the expiry of his prospecting licence, any camp, temporary buildings or machinery erected or installed by him, and repair or otherwise make good any damage to the surface of the ground occasioned by such removal, to the satisfaction of the Minister;
(g) subject to the conditions of his prospecting licence and to the provisions of section 24, expend on prospecting, not less than such amount as may be specified in his prospecting licence; and
(h) submit to such persons at such intervals such reports and such affidavits containing such information and supported in such manner as may be prescribed.
(2)
Any moneys required to be spent under the provisions of subsection (1)
(g)
and which are not so spent shall be a debt due to Government recoverable in a
court of competent
jurisdiction.
(3) The holder of a
prospecting licence shall keep, to the satisfaction of the Minister, full and
accurate records of his prospecting
operations which shall show-
(a) boreholes drilled;
(b) strata penetrated, with detailed logs of such strata;
(c) minerals discovered;
(d) the results of any seismic survey, geochemical or geophysical analysis;
(e) the results of any analysis or identification of minerals removed under section 26;
(f) the geological interpretation of the records maintained under paragraphs (a) to (e) inclusive;
(g) the number of persons employed;
(h) other work done in connection with the prospecting licence;
(i) costs incurred; and
(j) such other matters as may be prescribed,
and
shall supply, at least once in every 3 months, copies of such records to the
Minister, together with any reports prepared as a
result of such
records:
Provided that the
Minister may, in his discretion and on application being made to him in that
behalf, dispense with or modify any
or all of the requirements of this
subsection.
(4) Any person who
fails to keep any record required to be kept under subsection (3) or who fails
to supply any record to the Minister
or who supplies any false or misleading
record shall be guilty of an
offence.
Amendment
of
programme
24.
(1) The holder of a prospecting licence may, from time to time, notify the
Minister of amendments he wishes to make to his programme
of prospecting
operations and such amendments shall, unless the Minister rejects the same
within 2 months after being so notified,
have effect after such
period.
(2) The Minister may, on
application being made to him by the holder of a prospecting licence, limit or
suspend the obligation to
carry on prospecting as required by section 23 (1)
(b),
or to expend moneys as required by section 23 (1)
(g),
for such period and on such terms as he may
specify.
Transfer
of prospecting
licence
25.
(1) No prospecting licence shall be transferred or assigned without the approval
of the Minister and any purported transfers without
such approval shall be void
and of no effect.
(2) In any
application for the approval of a transfer, the applicant shall give to the
Minister such details of the transferee as
would be required in the case of an
application for a prospecting licence, together with such other information as
the Minister may
require.
(3)
Subject to the provisions of subsection (4), the Minister may, in his
discretion, refuse to give approval to the transfer of a
prospecting
licence.
(4) The Minister shall
give his approval where the proposed transferee of a prospecting licence is a
person controlling, controlled
by, or under joint or common control with, the
holder of the prospecting licence, provided that such transferee is not
disqualified
under any provision of this Ordinance from holding a prospecting
licence and the Minister is satisfied in accordance with the provisions
of
section 15.
(5) Where the Minister
has given his approval to the transfer of a prospecting licence, the transferee
shall assume and be responsible
for all rights, liabilities and duties incurred
by the transferor under the prospecting licence prior to the
transfer.
Removal
and disposal of
minerals
26.
The holder of a prospecting licence shall not, without the written permission of
the Minister and subject to such conditions as he
may determine, remove any
mineral from a prospecting area except for the purpose of having, such mineral
analysed, determining its
value or to conduct tests thereon.
PART VI
MINING LICENCES
Application
for a mining
licence
27.
(1) Where the holder of a prospecting licence has by notice in writing informed
the Minister that minerals to which his licence relates
have been discovered in
commercial quantities within the area comprised in his licence he may make an
application to the Minister
for the grant of a mining
licence.
(2) An application for a
mining licence shall be made within 2 months from the date of the notice
referred to in subsection (1) or
such longer period as the Minister may in any
particular case permit and the applicant shall provide the following
information-
(a) his full name and nationality, or in the case of an application by a partnership or other association of persons, the full names and nationalities of all partners or of all such persons, or, in the case of an application by a corporate body, the registered name of such body;
(b) in the case of a corporate body, the full names and nationalities of the directors or officers and the full name and nationality of any shareholder who is the beneficial owner of 5 per cent or more of the issued capital;
(c) full information as to his financial status, technical competence and experience;
(d) the number of his prospecting licence;
(e) the names of the minerals which it is intended to mine;
(f) details of the mineral deposit and a comprehensive report thereon which shall include details of all known minerals, proved, estimated and inferred, ore reserves and mining conditions;
(g) details, illustrated by a plan, of the area in respect of which the application is made;
(h) the period for which the licence is sought;
(i) a technological report on mining and treatment possibilities and the intention of the applicant in relation thereto;
(j) a proposed programme of mining operations which shall include-
(i) the date by which the applicant intends to work for profit;
(ii) the capacity of production and scale of operations;
(iii) the estimated overall recovery of ore and mineral products;
(iv) the nature of the product;
(v) a detailed programme for the prevention or treatment of pollution, the safeguarding of fishing and navigation, the progressive reclamation and rehabilitation of lands disturbed by mining and for the minimisation of the effects of such mining on water areas and adjoining land;
(k) a detailed forecast of capital investment, operating costs and sales revenues and the anticipated type and source of financing;
(l) a programme for the employment and training of Gilbert Islanders;
(m) a report of the goods and services required for the mining operations which can be obtained within the Gilbert Islands and the applicant's intention in relation thereto;
(n) details of expected infrastructure requirements; and
(o) such further information as the Minister may require or as may be prescribed.
Consideration
of application for a mining
licence
28.
(1) The Minister shall consider every application for a mining licence and
shall, subject to the provisions of this section and section
29, cause a mining
licence to be issued to the
applicant.
(2) No mining licence
shall be issued to an applicant pursuant to section 29 unless the Minister is
satisfied that-
(a) the proposed programme of mining operations will ensure the most efficient and beneficial use of the mineral resources in the proposed mining area;
(b) the proposed mining area is not the same as or does not overlap an existing prospecting area or mining area, unless the Minister is satisfied that the rights of the holder of any existing mineral right in respect of such area will not be prejudiced thereby;
(c) the area for which application has been made is not in excess of the area reasonably required to carry out the proposed programme of mining;
(d) the applicant has adequate financial resources, technical competence and experience to carry on effective mining operations;
(e) the applicant is able and willing to comply with any term or condition applicable to a mining licence; and
(f) the applicant is not in default.
(3)
The Minister shall not reject an application on any of the grounds referred to
in-
(a) subsection (2) (a) or (c) unless the applicant has been so notified and has failed to propose amendments satisfactory to the Minister to his proposed programme of mining operations or to the proposed mining area as the case may be within such reasonable time as the Minister may allow; and
(b) subsection (2) (f), unless the applicant has been given details of the default and has failed to remedy the same within such reasonable time as the Minister may allow.
(4)
The Minister may cause such investigations to be made or such negotiations or
consultations to be carried on as he may deem necessary
to enable him to decide
whether or not to grant a mining
licence.
Mining
licence subject to terms and
conditions
29.
Subject to the provisions of this Ordinance, a mining licence shall be issued
subject to such terms and conditions as the Minister
may in each case determine,
including, in particular, conditions concerning the processing, disposal or sale
of the
mineral.
Notification
of
approval
30.
(1) The Minister shall cause the applicant to be notified of his decision on
such application and, if the grant of a mining licence
is approved, the
notification shall include the terms and conditions upon which the mining
licence will be issued.
(2) If the
applicant-
(a) notifies the Minister in writing within 60 days of the date of the notification referred to in subsection (1) that he accepts the terms and conditions upon which the application is approved, the Minister shall issue a mining licence containing such terms and conditions;
(b) fails to notify the Minister in accordance with paragraph (a) his application shall lapse.
Content
of mining
licence
31.
(1) Every mining licence issued under section 28 shall be published in the
Gazette
and shall-
(a) include a description and plan of the area and the name of the minerals to which it relates;
(b) state the period for which it is granted; and
(c) include the terms and conditions upon which it is granted.
(2)
There shall be appended to a mining licence the programme of mining
operations.
Duration
and renewal of mining
licence
32.
(1) Subject to the provisions of this Ordinance, a mining licence shall be valid
for such period, not exceeding 25 years, as may
be specified
therein.
(2) The holder of a
mining licence may apply to the Minister for the renewal of the licence at any
time not later than 1 year before
the expiry of such licence and, subject to the
provisions of subsections (4) and (7), the Minister may, in his discretion,
grant
a renewal of such
licence.
(3) An application for
renewal of a mining licence shall state the period for which renewal is sought
and shall be accompanied by-
(a) a proposed programme of mining operations to be carried on in the period of renewal; and
(b) details of-
(i) the latest proved, estimated and inferred ore reserves;
(ii) the capital investment to be made in, and production costs and revenue forecasts in respect of, the period of renewal;
(iii) any expected changes in methods of mining and treatment; and
(iv) such further information as the Minister may require, and shall be presented in such a way as to give a clear indication of any expected increase or reduction in mining activities and the estimated life of the mine.
(4)
The Minister shall reject an application for renewal if-
(a) the applicant is in default;
(b) the Minister is not satisfied that-
(i) development of the mining area has proceeded with reasonable diligence;
(ii) minerals in workable quantities remain to be produced; or
(iii) the proposed programme of mining operations will ensure the most efficient and beneficial use of the mineral resources in the mining area.
(5)
The Minister shall not reject an application on the ground referred to
in-
(a) subsection (4) (a), unless the applicant has been given details of the default and has failed to remedy the same within such reasonable time as the Minister may allow;
(b) subsection (4) (b) (i) or (ii), unless the applicant has been given reasonable opportunity to make written representations thereon to the Minister; or
(c) subsection (4) (b) (iii), unless the applicant has been so notified and has failed to propose amendments to his proposed programme of mining operations satisfactory to the Minister within such time as the Minister may allow.
(6)
The period of renewal of a mining licence shall be for such period, not
exceeding 25 years, as the Minister may
determine.
(7) The renewal of a
mining licence shall be subject to such terms and conditions as the Minister may
determine.
(8) On the renewal of a
mining licence, the Minister shall amend the licence accordingly and append
thereto the programme of mining
operations to be carried out in the period of
renewal.
Amendment
of mining
programme
33.
The holder of a mining licence may, from time to time, notify the Minister of
amendments he wishes to make to his programme of mining
operations and such
amendments shall, unless the Minister rejects them within 2 months after being
so notified, have effect after
such
period.
Right
conferred by mining
licence
34.
(1) Subject to the provisions of Part VII, any other written law and any
condition in his mining licence, the holder of a mining
licence may, in the
exercise of his rights thereunder-
(a) take all reasonable measures in his mining area to mine the mineral to which his mining licence relates including the use of necessary equipment and the erection of necessary installations, plant and buildings for the purposes of mining, transporting, dressing, treating, smelting or refining the mineral recovered by him during mining operations;
(b) dispose of any mineral product recovered;
(c) prospect within his mining area for the mineral for which he holds a mining licence and for any other mineral except one for which a prospecting licence is held over the same area by another person; and
(d) stack or dump any mineral or waste products in a manner approved by the Minister.
(2)
If, in the course of exercising his rights thereunder, the holder of a mining
licence discovers any further deposits of the mineral
for which he holds a
mining licence or any mineral not included in such licence, he shall, within 31
days after such discovery, notify
the Minister thereof, giving particulars of
the mineral discovered and the site and circumstances of the discovery, and may
apply
to the Minister to have the mining of such deposit or such mineral
included in his mining licence, giving in his application a proposed
programme
of mining operations in respect of that
mineral.
(3) If the Minister is
satisfied with the proposed programme of mining operations submitted under
subsection (2), he may approve such
application on such terms and conditions as
he thinks fit and shall amend the mining licence
accordingly.
(4) The holder of a
mining licence may apply to the Minister to have his mining area enlarged and
the Minister may, subject to the
provisions of subsection (5), approve of such
application if he is satisfied that such approval will ensure the most efficient
and
beneficial use of the mineral resources of the Gilbert
Islands.
(5) A mining area shall
not be enlarged so as to include any area over which a person other than the
applicant is the holder of a
prospecting licence or a mining licence in respect
of the same
mineral.
Obligations
of holder of mining
licence
35.
(1) Subject to the provisions of this Ordinance, the holder of a mining licence
shall-
(a) commence production on or before the date referred to in the programme of mining operations as the date by which he intends to work for profit;
(b) develop and mine the mineral covered by his licence in accordance with the programme of mining operations:
Provided that the Minister may, on application being made to him by the holder of a mining licence, limit or suspend such programme for such period and on such terms as he may specify if he is satisfied that, in the circumstances, it is fair and reasonable so to do;
(c) demarcate and keep demarcated the mining area in such manner as may be prescribed;
(d) keep and maintain an address in the Gilbert Islands, full particulars of which shall be registered with the Minister, to which all communications and notices may be addressed; and
(e) notify the Minister as soon as he begins to work his mining area for profit.
(2)
The holder of a mining licence shall-
(a) maintain at the address kept in accordance with subsection (1) (d)-
(i) complete and accurate technical records of his operations in the mining area in such form as the Minister may approve;
(ii) copies of all maps, geological reports, including interpretations, mineral analyses, aerial photographs, core logs, analyses and tests and all other data obtained and compiled by the holder in respect of the mining area;
(iii) accurate and systematic financial records of his operations in the mining area and such other books of accounts and financial records as the Minister may require; if such holder is engaged in any other activity not connected with his operations under the mining licence, he shall maintain separate books of account of his operations under such licence;
(b) permit an authorised officer at any time to inspect the books and records maintained in pursuance of paragraph (a) and shall deliver to the Minister, without charge, copies of any part of such books and records as the Minister may from time to time require;
(c) submit to the Minister such reports, records and other information as he may from time to time require concerning the conduct of his operations in the mining area; and
(d) furnish the Minister with a copy of every annual financial report within 3 months of the end of each financial year showing the profit or loss for such year and the state of financial affairs of the holder at the end of each financial year.
Wasteful
mining or treatment
practices
36.
(1) If the Minister considers that the holder of a mining licence is using
wasteful mining or treatment practices he may notify such
holder accordingly and
require him to show cause, within such time as the Minister shall specify, why
he should not cease to use
such
practices.
(2) If, within the time
specified in any notice issued under subsection (1), the holder of a mining
licence fails to satisfy the Minister
that he is not using wasteful mining or
treatment practices, or that the use of such practices is justified, the
Minister may order
the holder to cease using such practices within such time as
he may specify.
(3) If the holder
of a mining licence fails, after being ordered so to do, to cease using wasteful
mining or treatment practices,
the Minister may cancel the mining licence or may
suspend such mining licence for such period as he deems
fit.
Merger or
co-ordination of mining
licences
37.
(1) If the Minister considers that the
public interest or the interests of the holders of mining licences covering
neighbouring or
contiguous mining areas would best be served with regard to the
efficient and economic exploitation of minerals by the merger or
co-ordination
of all or part of the mining operations of such holders, he may direct such
holders to effect such merger or co-ordination
within such time and on such
terms as he may specify.
(2)
Before giving any directions under subsection (1), the Minister shall afford the
holders of the mining licences concerned reasonable
opportunity to make
representations to him in
writing.
Suspension
of
production
38.
(1) The holder of a mining licence shall notify the Minister-
(a) 1 year in advance, if he proposes to cease production from his mine;
(b) 6 months in advance, if he proposes to suspend production from his mine;
(c) 3 months in advance, if he proposes to curtail such production,
and
shall, in all cases, give reasons for such cessation, suspension or
curtailment.
(2) If, for reasons
beyond his control, the holder of a mining licence terminates, suspends or
curtails production from his mine,
he shall, within 14 days of such termination,
suspension or curtailment, notify the Minister
thereof.
(3) On receiving
notification under subsections (1) and (2), or if he otherwise becomes aware of
any cessation, suspension or curtailment
of production, the Minister shall cause
the matter to be investigated and shall either-
(a) give his approval to such cessation, suspension or curtailment; or
(b) direct the holder of the mining licence to resume full production at the mine by such date as he may specify.
(4)
Approval of cessation, suspension or curtailment may be given subject to such
conditions as the Minister may
impose.
Export
of radioactive
minerals
39.
(1) No person shall export any radioactive mineral except under and in
accordance with the terms and conditions of a permit granted
by the
Minister.
(2) The grant of a
permit under subsection (1) shall be in the discretion of the
Minister.
(3) A permit issued
under subsection (1) shall be in such form and shall be subject to the payment
of such fee and such terms and
conditions as the Minister may
determine.
Transfer
or assignment of mining
licence
40.
(1) No mining licence or any interest therein shall be transferred, assigned,
mortgaged or dealt with in any other way without the
approval of the Minister,
and any purported transfer, assignment, mortgage or dealing without such
approval shall be void and of
no
effect.
(2) In any application to
the Minister for his approval under subsection (1), the applicant shall give
such particulars concerning
the proposed transferee, assignee, mortgagee or
other party concerned as the Minister may
require.
(3) The Minister may, in
his discretion, grant or refuse his approval to any transfer, assignment or
mortgage or other dealing with
any mining licence or interest therein, and may
impose such conditions as he may deem
fit.
Restriction
on transfer of
shares
41.
Without the prior written approval of the Minister, no person shall dispose of
and no person shall acquire, directly or indirectly
any interest in a company
which is the holder of a mining licence which would confer a voting right or
other financial interest exceeding
20 per cent of the total or any right to
appoint directors, and, in considering any application for such approval, the
Minister may
call for and obtain such information as he considers
necessary.
PART VII
MINERAL RIGHTS AND SURFACE RIGHTS
Restriction
on the exercise of mineral
rights
42.
(1) Notwithstanding any other provisions of this Ordinance or any agreement to
which he may be a party no holder of a mineral right
shall exercise any right
thereunder without the written consent of the Minister upon-
(a) any land used as a place of burial;
(b) any land not being Crown land set aside or used for the purposes of Government.
(2)
Where the holder of a mineral right in the exercise of his rights thereunder
makes any find of historical or archaeological significance
or discovers any
wreck he shall promptly inform the Minister and the Minister may give such
directions for the preservation or disposition
of such find or wreck as he may
consider to be appropriate having regard to all the relevant
circumstances.
(3) No holder of a
mineral right shall exercise any right thereunder upon any land without the
written consent of the owner or lawful
occupier
thereof:
Provided, however, that
where consent is unreasonably withheld the Minister may authorise the holder of
a mineral right to exercise
all or any of his rights thereunder on such land
subject to such conditions as he may deem
fit.
Acquisition
of exclusive rights by holder of mining
licence
43.
(1) The holder of a mining licence may, if he requires the exclusive use of the
whole or any part of the mining area, and shall if
so requested by the owner or
lawful occupier of any part of such area, obtain a lease thereof upon such terms
as to rents to be paid
therefor the duration thereof or the extent or area of
the land to which such lease shall relate as may be agreed between such holder
and such owner or lawful occupier, or, failing such agreement as may be
determined by arbitration.
(2) In
assessing any rent payable under the provisions of this section, an arbitrator
shall determine the matter in relation to values
at the time of arbitration
current in the area in which the mining lease is situated for land of a similar
nature to the land concerned
but without taking into account any enhanced value
due to the presence of
minerals.
Compensation
for disturbance of rights
etc.
44.
(1) The holder of a mineral right shall, on demand being made by the owner or
lawful occupier of any land subject to such right,
pay such owner or occupier
fair and reasonable compensation for any disturbance of the rights of such owner
or occupier and for any
damage done to the surface of the land by such
operations and shall, on demand being made by the owner of any crops, trees,
buildings
or works damaged during the course of such operations, pay
compensation for such
damage:
Provided
that-
(i) payment of rent under the provisions of section 43 shall be deemed to be adequate compensation for deprivation of the use of land to which such rent relates;
(ii) in assessing compensation payable under this section, account shall be taken of any improvement effected by the holder of the mineral right or by his predecessor-in-title, the benefit of which has or will enure to the owner or lawful occupier thereof;
(iii) the basis upon which compensation shall be payable for damage to the surface of any land shall be the extent to which the market value of the land (for which purpose it shall be deemed saleable) upon which the damage has occurred has been reduced by reason of such damage, but without taking into account any enhanced value due to the presence of minerals.
(2)
If the holder of a mineral right fails to pay compensation when demanded under
the provisions of this section, or if the owner
or lawful occupier of any land
is dissatisfied with any compensation offered, the dispute shall be determined
by arbitration.
(3) A claim for
compensation under the provisions of subsection (1) shall be made within a
period of 4 years from the date when such
claim has accrued, failing which,
notwithstanding the provisions of any other written law, such claim shall not be
enforceable.
Interference,
damage to fishing
etc.
45.
(1) Where it appears to the Minister, having regard to any representations that
may have been made to him or otherwise, that the
holder of any mineral right
over any area of the territorial sea, or over any lagoon or inland waters or any
part of the foreshore
has in the exercise of his rights thereunder interfered
with or caused substantial damage to fishing, the gathering of crustaceans,
shells or plants or to any other activity customarily carried on in such area he
shall appoint a Board of Claims to inquire into
the matter and where appropriate
to award compensation.
(2) A Board
of Claims appointed under this section shall consist of 3 persons at least 2 of
whom shall be Gilbert Islanders and decisions
of the Board shall be by a
majority.
(3) A Board of Claims
appointed under this section shall have the powers of Commissioners appointed
under the Commissions of Inquiry
Ordinance and sections 3 (3), (4), 4, 6, 7, 10,
11, 12, 13, 14 and 16 of that Ordinance shall apply to a Board of Claims as they
apply to a Commission of Inquiry.
Cap. 10
(4) References to the
Governor in the Commission of Inquiry Ordinance shall be read and construed as
if they were references to the
Minister, and references in that Ordinance to
the. Commission, and to the Commissioner shall be read and construed as if they
were
references to a Board of Claims, and to members of that
Board.
(5) Where a Board of Claims
finds that any person has been adversely affected by such interference or damage
as is referred to in
subsection (1) the Board may order the holder of the
mineral right to pay to such person such compensation as having regard to all
the circumstances is fair and
reasonable.
(6) Any sum which the
holder of a mineral right has been ordered to pay as compensation by a Board of
Claims shall subject to the
provisions of subsection (7) be recoverable as
though the same were a judgment debt due to the person in whose favour such
order
has been made.
(7) Where the
holder of a mineral right or any other person is aggrieved by an order made by a
Board of Claims under the provisions
of subsection (5) he may appeal to the High
Court and the High Court may after hearing the appeal confirm, quash or vary the
order
of the Board of Claims or make such other order in the matter as the
justice of the case may
require.
Compulsory
purchase of
land
46.
(1) Where the Minister considers that any land is required to secure the
development or utilisation of the mineral resources of the
Gilbert Islands he
may compulsorily acquire such
land.
(2) Acquisition of land
under this section shall be deemed to be for a public purpose in terms of the
provisions of the Crown Acquisition
of Lands Ordinance and any acquisition under
this section shall be effected in accordance with the provisions of that
Ordinance.
Cap. 18
PART VIII
FINANCIAL
Royalties
47.
(1) The holder of a mining licence shall, in accordance with the provisions of
this Ordinance, pay royalties on any minerals obtained
by him in the exercise of
his rights thereunder.
(2)
Royalties shall be paid on minerals obtained by the holder of a mining licence
at the rate of 2 per cent of the gross market value
of the
minerals.
(3) For the purpose of
this section the "gross market value" of minerals shall mean their gross market
value free on board at the
port of export from the Gilbert
Islands.
(4) In the case of
minerals obtained by the holder of a mining licence from any area of the
territorial sea or lagoon or inland water
or any other area which is Crown land
the royalty payable under this section shall be paid to the Government and shall
form part
of the Consolidated Fund and in any other case shall be paid to the
Government to be applied in accordance with a scheme to be approved
by the
Minister for the benefit of those whose rights, interests or welfare are likely
in the opinion of the Minister to be significantly
affected by the mining
operations in respect of which the royalty is
payable.
(5) Where the Minister
has for the purpose of subsection (4) approved a scheme he shall before it is
implemented submit the scheme
for approval to the House of Assembly and the
House of Assembly may approve or disallow the
same.
(6) Where the House of
Assembly has disallowed a scheme submitted for approval under subsection (5) the
Minister shall as soon as
possible thereafter submit to the House of Assembly
for approval an alternative
scheme.
Agreement
concerning
royalties
48.
(1) The Minister may, on behalf of the Government, enter into an agreement
concerning royalties with any person who is or may become
liable to the payment
of royalties under this
Ordinance.
(2) No agreement
entered into under this section shall have effect unless and until it is
ratified by an Ordinance but upon ratification
an agreement shall be deemed to
have come into operation on the date specified in that
agreement.
(3) An agreement
entered into under this section may vary the provisions of this Ordinance in so
far as such provisions-
(a) impose liability to royalties; or
(b) regulate the imposition of such liability.
(4)
If any agreement entered into under this section imposes any liability to
royalties, such liability shall be deemed to be a liability
imposed under this
Ordinance and the provisions of this Ordinance shall apply
thereto.
Provisional
royalty
49.
(1) Where, for any reason, it is impracticable to assess the amount of any
royalty due, the Minister may assess a provisional
royalty.
(2) When any royalty due
has been ascertained, the holder of the mining licence concerned shall pay any
sum which may be required
to complete such ascertained royalty or be entitled to
be repaid any sum paid in excess of the ascertained royalty as the case may
be.
Failure to
pay royalties
etc.
50.
(1) If the holder of a mining licence fails to pay any royalty or provisional
royalty due in respect of that licence on or before
the due date or any
extension thereof, the Minister may, by order served on the holder of the mining
licence concerned at the address
maintained pursuant to section 35 (1)
(d),
prohibit the disposal of any mineral from such mining area, or from any other
mining area held by such holder until all outstanding
royalties have been paid
or until an arrangement has been made, acceptable to the Minister, for the
payment of such royalties.
(2) Any
holder of a mining licence who contravenes or fails to comply with the
provisions of an order given under subsection (1) and
any person who, knowing of
such an order and contrary thereto, transports or receives any mineral from the
mining area concerned,
shall be guilty of an
offence.
Annual
charges for a mineral
right
51.
(1) There shall be paid to Government by every holder of a mineral right an
annual charge in such amount as the Minister may determine
or as may be
prescribed.
(2) The annual charge
payable under the provisions of subsection (1) shall be paid on the issue of a
mineral right and thereafter
annually on the anniversary thereof until the
termination of such
right.
Guarantees
for performance
etc.
52.
The Minister may, from time to time, make such arrangements as to him appear
appropriate to secure that the holder of a mineral right
complies with the
provisions of this Ordinance, and, without prejudice to the generality of the
foregoing, may accept guarantees,
whether from shareholders or otherwise, in
respect of such compliance.
PART IX
WITHDRAWAL OF APPLICATIONS, SURRENDER AND TERMINATION OF MINERAL RIGHTS
Withdrawal
of
applications
53.
An applicant for a prospecting licence or a mining licence or any renewal
thereof may withdraw his application at any time before
such application is
approved or rejected by notifying the Minister, in writing, that he withdraws
such
application.
Surrender
of prospecting and mining
licence
54.
(1) Subject to the provisions of section 38 and of any condition in his licence
the holder of a prospecting licence or a mining licence
may surrender the area
covered by his licence or part thereof by-
(a) giving the Minister not less than 3 months' notice of his intention to surrender the whole or part of the area concerned;
(b) applying to the Minister for and obtaining a certificate of surrender; and
(c) complying with such conditions as the Minister may determine.
(2)
If the application for a certificate of surrender is in respect of part only of
the area covered by a prospecting licence or mining
licence, the holder thereof
shall-
(a) in his application,
(i) if it relates to a mining area, provide a diagram of the area to be surrendered;
(ii) in the case of a prospecting area, provide a reliable plan, in a form acceptable to the Minister, of the area to be surrendered; and
(iii) in either case give the results of any prospecting carried out; and
(b) if the application is approved, demarcate the remaining area in the prescribed manner.
(3)
No surrender of any area covered by a prospecting licence or mining licence
shall be effective until the Minister has issued a
certificate of surrender in
respect of that area.
(4) A
surrender shall be without prejudice to any liabilities or obligations incurred
by the holder in relation to the area surrendered
prior to the date of
surrender.
(5) On the issue of a
certificate of surrender the Minister shall-
(a) if the surrender is in relation to the whole area covered by a prospecting licence or mining licence, cancel such licence; or
(b) if the surrender is in respect of part only of the area covered, amend the licence accordingly.
Suspension
or cancellation of a mineral
right
55.
(1) Subject to the provisions of this section, the Minister may suspend or
cancel a mineral right if the holder thereof-
(a) fails to make any of the payments required by or under this Ordinance on the due date;
(b) contravenes any provision of this Ordinance or the conditions of his mineral right or the provisions of any other written law relating to mines and minerals;
(c) dies or becomes insolvent or commits any act of bankruptcy or enters into any agreement or scheme of composition with his creditors or takes advantage of any written law for the benefit of debtors or, in the case of a company, goes into liquidation, except as part of a scheme for the reconstruction or amalgamation of the holder thereof;
(d) makes any statement to the Government (including any public officer) in connection with his mineral right which he knows or ought to have known was false.
(2)
Before suspending or cancelling a mineral right under paragraphs
(a)
and
(b)
of subsection (1), the Minister shall give the holder thereof notice in writing
specifying the particular failure or contravention
and calling upon the holder
to remedy the same within such period, being not less than 30 days, as may be
specified in such notice.
(3) If
the holder of a mineral right fails to remedy any failure or contravention
specified in paragraphs
(a)
and
(b)
of subsection (1) within the period specified in a notice issued under
subsection (2), or if there is an event specified in paragraphs
(c)
or
(d)
of subsection (1), the Minister may, by notice to the holder thereof, cancel the
mineral right forthwith.
(4) On
cancellation of a mineral right under the provisions of this section, the rights
of the holder thereof shall cease but without
prejudice to any liabilities or
obligations incurred in relation thereto prior to the date of
cancellation.
Record
etc. to be delivered on
termination
56.
(1) Upon termination of any mineral right the holder thereof shall deliver to
the Minister-
(a) all records which the holder is obliged under the provisions of this Ordinance to maintain;
(b) all plans or, maps of the area covered by the mineral right prepared by the holder or at his instructions; and
(c) such other documents relating to the mineral right as the Minister may direct.
(2)
Any person who fails to deliver any document required to be delivered under the
provisions of subsection (1) within 14 days of
being called upon so to do by the
Minister shall be guilty of an
offence.
Extension
of period of prospecting or mining
licence
57.
Where the holder of-
(a) a prospecting licence has made application for a renewal thereof or for a mining licence over part of the area covered by his prospecting licence; or
(b) a mining licence has made application for a renewal thereof,
the
Minister may extend the period of validity of such prospecting licence or mining
licence, as the case may be, pending his decision
on the
application.
PART X
REGULATIONS
Regulations
58.
(1) The Minister may make regulations for the better carrying into effect of
this Ordinance and, in particular and without prejudice
to the generality of the
foregoing, regulations may provide for the following matters or
purposes-