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Vanuatu Consolidated Legislation |
Commencement: 1 September 1986
LAWS OF THE REPUBLIC OF VANUATU
REVISED
EDITION 1988
CHAPTER 190
Act
11 of 1986ARRANGEMENT OF SECTIONS
SECTION
PART I
Interpretation
1. Interpretation
PART II
Property in Minerals to Vest in the
Republic of Vanuatu
2. Vesting of property in minerals
3. Rights
in continental shelf, etc.
PART III
Service of Notices and Documents, etc.
4. Service of
documents
5. Restriction on exercise
of rights
PART IV
Administration
6. Commissioner for Mines
and Minerals
7. Restriction on
disclosure of information
8. Prohibition against holding Mining Right, etc.
9. Indemnity
PART V
General Provisions Relating to
Licences
10. Form of
applications
11. Powers of Minister
with respect to applicants
12. Restrictions on persons who may hold a licence
13. Grant of licence to more than one person
14. Notice of decision on application
PART VI
Exploration Licences
15. Disposal of application for exploration licence
16. Form and content of exploration licence
17. Renewal of exploration licence
18. Term of exploration licence
19. Obligations
of holder of exploration licence
PART VII
Prospecting Licences
20. Disposal of
application for prospecting licence
21. Form and content of prospecting licence
22. Renewal
of prospecting
licence
23. Restrictions on renewal of
prospecting licence
24. Term of
prospecting licence
25. Rights under
prospecting licence
26. Obligations of
holder of prospecting licence
PART VIII
Work Programme Under Exploration and Prospecting Licences
27. Performance of work programme under exploration licence
28. Performance of work programme under prospecting licence
29. Amendment of work programme
30. Damages for failure to perform work programme
31. Discovery in prospecting area
32. Notice
of existence of minerals in commercial quantities
PART IX
Mining Licences
33. Application for mining
licence
34. Disposal of application for mining licence
35. Restrictions on grant of mining licence
36. Form and content of mining licence
37. Renewal of mining licence
38. Restriction on renewal of mining licence
39. Term of mining licence
40. Rights
conferred by mining
licence
41. Restriction on rights
conferred by mining licence
42. Duties of holder of mining licence
43. Suspension
of production
PART X
Relinquishment
44. Relinquishment of land
in exploration area.
45. Relinquishment of land in prospecting area.
46. Relinquishment
of land in mining
area
47. Relinquishment does not
affect obligations
PART XI
Cancellation and Force Majeure
48. Cancellation
49. Force
majeure
PART XII
Miscellaneous
50. Control of company
holding mining licence
51. Application for inclusion of additional mineral in licence
52. Enlargement of prospecting or mining area
53. Security for compliance, etc.
PART XIII
Prospecting Permits and Claims
54. Prospecting
permits
55. Rights under prospecting
permit
56. Terms of prospecting
permit
57. Pegging and registration of
claims
58. Restriction on registration
of claim
59. Period of validity and renewal of claim
60. Rights
and duties of holder of
claim
61. Cancellation of prospecting
permit and claim
PART XIV
Quarry Permits
62. Issue of quarry
permit
63. Renewal of quarry
permit
64. Rights under quarry permit
65. Term
of quarry permit
66. Record of quarry
permits
PART XV
FINANCIAL PROVISION, ROYALTIES
67. Royalty on minerals obtained under mining licence, etc.
68. Prohibition
on disposal of mineral
69. Permission
and recovery of royalty,
etc.
70. Interest
PART XVI
Restrictions and Surface Rights
71. Application of this Part
72. Definitions
73. Restrictions
74. Surface
rights
75. Compensation for
disturbance of rights, etc.
76. Notice of intention to commence prospecting or mining operations, etc.
77. Compulsory
acquisition of land for the purpose of
mining
78. Registration of interest in
the land register in certain circumstances
PART XVII
Offences, Penalties and
Proceedings
79. Power of Commissioner and authorised officers
80. Further
information to be
furnished
81. Restriction on the
export of radioactive minerals
82. Restrictions on removal of minerals
83. Miscellaneous
offences
84. Offences by body
corporate
85. Order for forfeiture in respect of certain offences
86. Report of offences to the Public Prosecutor
87. Evidentiary provision
PART XVIII
Regulations
88. Regulations
PART XIX
Repeal and Savings
89. Repeal of the Mining
Joint Regulation No. 2 of
1957
90. Existing
rights
----------------------------------------------------------------
MINES AND MINERALS
To regulate and control the search for and development of minerals and to provide for matters incidental thereto.
PART I
INTERPRETATION
INTERPRETATION
1. (1) In this Act, unless
the context otherwise requires -
"body corporate" means a company or a corporation;
"building minerals" means, subject to subsection (2), mineral substances and rocks commonly used for building, road making or agricultural purposes;
"claim" means a claim established and registered under and in accordance with this Act;
"Commissioner" means the Commissioner for Mining and Minerals appointed pursuant to section 6(1);
"company" means a corporate body formed and registered under the Companies Act, Cap. 191 including any amendment or re-enactment thereof, and it includes a company formed or registered outside Vanuatu but which is registered as an overseas company in Vanuatu;
"conditions" includes terms, prohibitions, limitations and stipulations;
"corporation" means a corporate body incorporated outside Vanuatu, whether by Act or otherwise, but does not include a company;
"exploration area" means an area of land subject to an exploration licence;
"exploration licence" means a licence granted under section 15;
"exploration operations" means the search for minerals in land by geophysical surveys, geochemical surveys and photogeological surveys, or other remote sensing techniques, and surface geology in connection therewith;
"holder", in relation to a Mining Right, means a person to whom the Mining Right is granted or issued, whether alone or with others, and includes every person to whom the Mining Right, or an interest therein, is lawfully transferred;
"land" includes -
(a) land beneath water;
(b) the seabed and subsoil beneath the territorial sea; and
(c) for the purposes of giving effect to section 3(2), the seabed and subsoil of the continental shelf or beneath the waters of the exclusive economic zone;
"licence" means an exploration licence, a prospecting licence and a mining licence, or any of them, as the context requires;
"licensee" means the holder of a licence;
"mine", when used as a noun, includes any place, excavation or working in or on which any mining operations are carried on;
"mine" when used as a verb, means intentionally to get minerals from land and includes any operations necessary for or incidental to' that purpose;
"mineral" means any substance, whether in solid, liquid or gaseous form, occurring naturally in land, formed by or subject to a geological process, but does not include -
(a) water; or
(b) petroleum;
"mining area" means an area of land subject to a mining licence;
"mining licence" means a licence granted under section 34;
"mining operations" means operations carried out in the course of mining;
"Mining Right" means a claim, a licence, a prospecting permit or a quarry permit, or any of them, as the context requires;
"Minister" means the Minister for the time being responsible for matters relating to mineral resources;
"notice" means a notice in writing;
"petroleum" means any mineral oil or relative hydrocarbon and natural gas existing in its natural condition, including any other mineral substance contained in oil and natural gas brought to the surface in the normal process of extraction, but does not include coal and bituminous shale and other stratified deposits from which oil could be extracted by distillation;
"prospect" means intentionally to search for minerals in land and includes any work necessary to determine their extent and economic value;
"prospecting area" means an area of land subject to a prospecting licence;
"prospecting licence" means a licence granted under section 20;
"prospecting operations" means operations carried out in the course of prospecting;
"prospecting permit" means a permit issued under section 54;
"quarry permit" means a permit issued under section 62;
"regulations" means regulations made under section 88;
"Vanuatu" means the Republic of Vanuatu;
"working for profit" means producing a mineral for use or sale.
(2) The Minister may, by notice published in the Gazette, from time to time, include in, or exclude from, the definition in subsection (1) of "building minerals", any rock or mineral, or class thereof, identified in the notice.
(3) In this Act, a reference to "the territorial sea", "the continental shelf ", "the exclusive economic zone", is a reference to that sea, shelf or zone as lawfully determined from time to time.
(4) In this Act, a reference to a year of the term of a Mining Right is a reference to a period of 1 year commencing on the date from and including which the Mining Right has effect and ending on any anniversary of that date.
(5) In this Act, a reference to minerals in land includes a reference to minerals on or under land.
(6) In this Act -
(a) a reference to the conditions of a licence is a reference to the conditions on which the licence is granted, as from time to time varied, and
(b) a reference to the conditions of a claim is a reference to the conditions on which the claim is, for the time being registered.
PROPERTY IN MINERALS TO VEST IN THE REPUBLIC OF VANUATU VESTING OF PROPERTY IN MINERALS
2. (1) The property in minerals, in their natural condition, in land is vested in the Republic of Vanuatu.
(2) Nothing in subsection (1) shall prejudice the grant, or the exercise, of rights under or pursuant to this Act.
RIGHTS IN CONTINENTAL SHELF, ETC.
3. (1) All rights exercisable, in relation to minerals, by Vanuatu with respect to the continental shelf or the exclusive economic zone are hereby vested in the Republic of Vanuatu.
(2) This Act (other than Parts XIII and XIV) shall apply in relation to the seabed and subsoil of the continental shelf and beneath the waters of the exclusive economic zone, as it applies in relation to land.
(3) Nothing in subsection (1) shall prejudice the grant, or the exercise, of rights under or pursuant to this Act.
PART III
SERVICE OF NOTICES AND DOCUMENTS, ETC.
SERVICE OF DOCUMENTS
4. (1) A document or notice required or permitted to be served on, or given to, a person under or for the purposes of this Act may be served or given -
(a) in the case of an individual other than the Minister or the Commissioner, by serving it personally upon the individual or by sending it by post to him at his usual or last known place of abode or business;
(b) in the case of the Minister or the Commissioner, in the manner prescribed;
(c) in the case of a company -
(i) by leaving it at the registered or principal office of the company with some individual apparently employed by the company and apparently not less than 16 years of age;
(ii) by sending it by post to the company at the registered or principal office of the company; or
(iii) by delivering it to some individual, in the employment or acting on behalf of the company, who is authorised by the company, or agrees on behalf of the company, to accept service of, or to receive, the document or any document.
(2) For the purpose of subsection (1)(c), the principal office of a company incorporated outside Vanuatu is its principal office within Vanuatu.
(3) Where a person has more than one place of abode or business a document or notice may be served on, or given to, the person under this section at any of those places.
(4) Where -
(a) two or more persons constitute the applicant for the grant of a Mining Right; or
(b) the holder of a Mining Right is constituted by two or more persons,
a document or notice served on or notice given to any one of those persons in accordance with this section shall be treated as having been served on or given to all of them.
(5) Where a document or notice is sent by post pursuant to this section, service or notice is deemed to have been effected or given under this section, unless the contrary is proved, at the time at which the document or notice would be delivered in the ordinary course of post.
RESTRICTION ON EXERCISE OF RIGHTS
5. Where the doing of any act is prohibited or regulated by a written law other than this Act, nothing in this Act shall be construed -
(a) where the doing of the act is so prohibited, as authorising a holder of a Mining Right to do the act; or
(b) where the doing of the act is so regulated, as authorising a holder of a Mining Right to do the act -
(i) otherwise than in accordance with the written law and any authority referred to in subparagraph (ii); and
(ii) without first obtaining any authority howsoever described required under the written law for the doing of the act.
PART IV
ADMINISTRATION
COMMISSIONER FOR MINES AND MINERALS
6. (1) There shall be appointed a public servant to be known as the Commissioner for Mines and Minerals.
(2) There shall be appointed such number of public servants as may be necessary for the administration of this Act.
(3) Anything required or permitted by this Act to be done by the Commissioner may be done by any public servant who is authorised, either specially or generally, in that behalf in writing by the Commissioner.
RESTRICTION ON DISCLOSURE OF INFORMATION
7. (1) No information, obtained under or by virtue of this Act, about exploration, prospecting or mining operations under a Mining Right shall be disclosed, unless the disclosure is made -
(a) with the consent of the holder of the Mining Right;
(b) in relation to land which has ceased to be subject to the Mining Right;
(c) for the purpose of facilitating the performance of any functions under this Act;
(d) in connection with the investigation of any criminal offence or for the purpose of any criminal proceedings;
(e) for the purpose of any civil proceedings brought by or against the holder of the Mining Right;
(f) for the purpose of facilitating the performance by a consultant to the Government of any functions under the consultancy arrangement;
(g) for the purpose of the determination of the liability of the holder of the Mining Right to make any payment under this Act or of any tax;
(h) for any purpose, or in any circumstances, prescribed in the Mining Right.
(2) Where any disclosure is made to a person pursuant to subsection (1)(a), (c), (f) or (g), then for the purposes of this section that person shall be treated as having obtained the information by virtue of this Act.
(3) Any person who discloses information in contravention of subsection (1) is guilty of an offence and liable on conviction to a fine not exceeding VT100,000 or imprisonment for a term not exceeding 6 months or to both such fine and imprisonment.
(4) In proceedings on a prosecution for an offence under subsection (3) it is a sufficient defence if the accused person proves that the information disclosed was, without that disclosure, generally known to the public.
PROHIBITION AGAINST HOLDING MINING RIGHT, ETC.
8. (1) In this section
-
"member of the family", in relation to a relevant person, means –
(a) the husband or wife, or reputed husband or wife; and
(b) the son or daughter, (being a minor), whether born in or outside wedlock, of the relevant person;
"relevant person" means a public servant or public officer or any person engaged in the service of the Government of Vanuatu.
(2) No relevant person, in his private capacity, shall acquire, attempt to acquire or hold -
(a) a Mining Right or an interest in a Mining Right; or
(b) a share in a body corporate that is entitled under this Act to carry on exploration, prospecting or mining operations in Vanuatu.
(3) Any person who contravenes subsection (2) is guilty of an offence and liable on conviction to a fine not exceeding VT100,000 or to imprisonment for a term not exceeding 6 months or to both such fine and imprisonment.
(4) In proceedings on a prosecution for an offence under this section of acquiring a share of a kind referred to in subsection (2)(b), it is a sufficient defence if the person charged proves -
(a) that the share was acquired by operation of law; and
(b) that all reasonable steps necessary to dispose of the share have been, and are continuing to be, taken.
(5) In proceedings on a prosecution for an offence under this section of holding a Mining Right, or an interest or share of a kind referred to in subsection (2), it is a sufficient defence if the person charged proves that -
(i) the Mining Right, interest or share was acquired before he became a relevant person; or
(ii) the share was acquired before the body corporate became entitled under this Act to carry on prospecting or mining operations; and
(iii) since he became a relevant person or since the body corporate became so entitled, as the case may be, all reasonable steps necessary to dispose of the mining interest or share have been, or are continuing to be, taken.
(6) For the purposes of this section, the acquisition or holding by a member of the family of a relevant person (not herself or himself being a public servant) of any Mining Right, interest or share of the kind referred to in subsection (2), is deemed to be a holding by the relevant person of the Mining Right, interest of shares.
(7) This section applies with respect to shares whether acquired before or after the commencement of this Act, or whether acquired by a person before he became a relevant person.
(8) Nothing in this section shall affect the operation of the principles of Chapter 10 of the Constitution.
INDEMNITY
9. A public servant does not incur any liability in respect of the exercise or performance, or purported exercise or performance, by him in good faith of any function under and for the purposes of this Act.
PART V
GENERAL PROVISIONS RELATING TO
LICENCES
FORM OF APPLICATIONS
10. An application for issue of a licence under this Act to the Minister or the Commissioner -
(a) shall be made -
(i) in accordance with this Act; and
(ii) in such manner and form as may be prescribed;
(b) shall be accompanied by such fee as may be prescribed; and
(c) may be withdrawn by the applicant giving to the Minister or, as the case may be, the Commissioner a notice of withdrawal.
POWERS OF MINISTER WITH RESPECT TO APPLICANTS
11. (1) Without prejudice to any other provision of this Act, upon receipt of an application for the grant or renewal of a licence, the Minister may -
(a) cause such investigations, negotiations or consultations to be made or carried on relating to such application as the Minister considers necessary; or
(b) by notice served on the applicant, require the applicant to furnish the Minister, within such reasonable period as is specified in the notice, with such proposals, by way of alteration to or in addition to any proposals in the application as the Minister specifies in the notice.
(c) publish notice of the application for a period of time and in the places as may be prescribed.
(2) Unless the Minister is satisfied that those requirements as may be specified under subsection (1) have been complied with, he shall refuse to proceed further with the application.
RESTRICTIONS ON PERSONS WHO MAY HOLD A LICENCE
12. No -
(a) licence shall be granted to an individual unless he is an indigenous citizen of Vanuatu;
(b) exploration or prospecting licence shall be granted to a body corporate unless the body corporate is -
(i) a company; or
(ii) a corporation which is specifically approved by the Minister for the purposes of this Act;
(c) mining licence shall be granted to a body corporate unless the body corporate is a company or a corporation which is specifically approved by the Minister for the purposes of this Act.
GRANT OF LICENCE TO MORE THAN ONE PERSON
13. (1) A licence may be granted to two or more persons associated together in any form of joint arrangement, if each one of them is qualified to hold, and none of them is disqualified from holding the licence under section 12.
(2) Where, at any time, a licensee is constituted by two or more persons, the obligations to be observed and performed by the licensee under this Act are joint and several obligations, but without prejudice to any right of contribution which may exist between all or any of them.
NOTICE OF DECISION ON APPLICATION
14. (1) The Commissioner shall cause an applicant for the grant or renewal of a licence to be notified of the decision on the application giving, where the Minister is pre- pared to grant or renew the licence, details of the conditions on which the licence will be granted or renewed.
(2) Where an applicant for the grant or renewal of a licence -
(a) notifies the Minister, within 60 days of the date of notification pursuant to subsection (1), or within such further period as the Minister may allow, that he accepts the conditions of the grant or renewal of the licence, the Minister shall cause the licence or the instrument of renewal to be issued on those conditions; or
(b) fails to notify the Minister, in accordance with the requirement of paragraph (a), the application lapses.
PART VI
EXPLORATION LICENCES
DISPOSAL OF APPLICATION FOR EXPLORATION LICENCE
15. (1) Subject to this Act, on application duly made, the Minister may grant on such conditions as he determines, or refuse to grant, an exploration licence.
(2) An application for the grant of an exploration licence shall include -
(a) full name and nationality of applicant, or in the case of a partnership or an association of individuals, the full names and nationalities of all applicants;
(b) in the case of a company or corporation the full names and nationalities of the directors and full name and nationality of every shareholder and full name and nationality of every ultimate beneficial owner of 5 per cent or more of the issued capital;
(c) full information as to financial status, technical competence and experience;
(d) a description of area over which the exploration licence is sought together with a plan thereof to such specification as may be prescribed;
(e) the proposed programme of exploration and the estimated cost thereof;
(f) such further information as the Minister may require.
(3) An exploration licence shall not be granted to an applicant in relation to any land which is, at the time the application for the grant of the licence is made, comprised in -
(a) a prospecting licence, being a licence in respect of a mineral to which the exploration licence would, if granted, relate;
(b) a mining licence; or
(c) a claim.
(4) The area of land in respect of which an exploration licence is granted shall cover such area and be of such size, shape, or orientation as may be prescribed.
FORM AND CONTENT OF EXPLORATION LICENCE
16. (1) An exploration
licence -
(a) shall -
(i) be in such form as may be prescribed;
(ii) state the date of grant of the licence;
(iii) identify the land over which the licence is granted;
(iv) state the conditions on which the licence is granted;
(v) state the term, not exceeding 12 months, for which the licence is granted;
(b) shall describe the programme of exploration work to be fulfilled in the period of the grant of the licence in or in relation to the exploration areas and the estimated cost thereof; and
(c) may contain such other matter as may be prescribed.
(2) An exploration licence shall not give an exclusive right to conduct exploration over the area specified therein.
RENEWAL OF EXPLORATION LICENCE
17. (1) Subject to subsection (2), on application duly made to the Minister in accordance with this Act for the renewal of an exploration licence, the Minister may, by instrument in writing, renew the licence on such conditions as are reasonably necessary to give effect to the application and the requirements of this Act, or refuse to renew the licence.
(2) The Minister shall not renew an exploration licence if it is established that the exploration operations would be liable to disturb public order, and shall not renew a licence more than once.
(3) The instrument in writing renewing an exploration licence -
(a) shall -
(i) identify the land over which the licence is renewed;
(ii) state the conditions on which the licence is renewed; and
(iii) state the term, not exceeding 12 months, for which the licence is renewed; and
(b) shall describe the programme of exploration work to be fulfilled during the period of the renewal in or in relation to the exploration area and the estimated cost thereof.
(4) An instrument in writing renewing an exploration licence shall, for the purpose of this Act, form part of the licence.
TERM OF EXPLORATION LICENCE
18. An exploration licence, unless sooner determined by or under this Act, shall, by virtue of this section, continue in force, in relation to the land for the time being subject to the licence -
(a) for the term, not exceeding 12 months, for which the licence is granted, commencing next after the date of the grant of the licence;
(b) for any term, not exceeding 12 months, for which the licence is renewed, commencing on the date on which the licence would cease to have effect if not then renewed, or next after the date on which the licence is renewed, whichever is the later; and
(c) for any period added to the term of the licence pursuant to section 49(3).
OBLIGATIONS OF HOLDER OF EXPLORATION LICENCE
19. (1) The holder of an exploration licence shall, within 3 months after the expiration thereof, submit a report to the Minister setting forth his evaluation of the mineral prospects in the area of the licence, such report shall be accompanied by -
(a) all geological, geochemical and geophysical maps, profiles, diagrams and charts made by such holder;
(b) copies of all tests and analyses made by such holder;
(c) copies of all reports made by such holder;
(d) a statement of direct costs incurred by the holder in the exploration programme.
PART VII
PROSPECTING LICENCES
DISPOSAL OF APPLICATION FOR PROSPECTING LICENCE
20. (1) Subject to this Act, on application duly made, the Minister may grant on such conditions as he determines, or refuses to grant, a prospecting licence.
(2) An application for the grant of a prospecting licence shall include -
(a) full name and nationality of applicant, or in the case of a partnership or an association of individuals, the full names and nationalities of all applicants;
(b) in the case of a company or corporation the full names and nationalities of the directors and full name and nationality of every shareholder and fun name and nationality of every ultimate beneficial owner of 5 per cent or more of the issued capital;
(c) full information as to financial status, technical competence and experience;
(d) a description of area over which the prospecting licence is sought together with a plan thereof to such specification as may be prescribed;
(e) the names of the minerals for which prospecting will take place;
(f) the proposed programme of prospecting and the estimated cost thereof;
(g) such further information as the Minister may require.
(3) The application shall be registered by the Commissioner and the date and hour of its deposition shall be recorded in a register provided for the purpose, and which shall be open to public inspection. Applications shall be credited with an order of priority determined by the date and hour of registration.
(4) A prospecting licence shall not be granted to an applicant in relation to any land which is, at the time the application for the grant of the licence is made, comprised in -
(a) an existing prospecting licence, being a licence in respect of a mineral to which the new prospecting licence would, if granted, relate;
(b) a mining licence;
(c) a claim, unless the applicant is the holder of the claim.
(5) The area of land in respect of which a prospecting licence is granted shall cover such area, not exceeding 100 km 2 and be of such size, shape, or orientation as may be prescribed.
(6) No prospecting licence shall be granted to an applicant –
(a) unless the Minister is satisfied that -
(i) he has adequate financial resources, technical competence and experience to carry on effective prospecting operations;
(ii) his programme of prospecting work to be fulfilled is adequate; and
(iii) his proposals for the employment and training of citizens of Vanuatu are adequate; or
(b) if, being a licensee, he is in default.
(7) For the purposes of this section, an applicant who is a licensee is in default if he is in breach of the conditions of his licence, or of the requirements of this Act in relation to him or his licence, when he makes application for the grant of a prospecting licence.
FORM AND CONTENT OF PROSPECTING LICENCE
21. (1) A prospecting
licence -
(a) shall -
(i) be in such form as may be prescribed;
(ii) state the date of grant of the licence;
(iii) identify the land and mineral or minerals in respect of which the licence is granted;
(iv) state the conditions on which the licence is granted; and
(v) state the term, not exceeding 3 years, for which the licence is granted;
(b) shall describe the programme of prospecting work to be fulfilled in the period of the grant of the licence in or in relation to the prospecting area and the estimated cost thereof.
(2) There may be included in a prospecting licence provision with regard to future joint arrangements for the mining of any mineral resources which may thereafter be discovered in land to which the licence relates.
(3) There may be included in a prospecting licence provision for the determination of disputes, in relation to any identified matters, by way of arbitration or otherwise in such manner as is specified in the licence.
RENEWAL OF PROSPECTING LICENCE
22. (1) Subject to section 23, on application duly made to the Minister in accordance with this Act for the renewal of a prospecting licence, the Minister shall, by instrument in writing, renew the licence on such conditions as are reasonably necessary to give effect to the application and the requirements of this Act.
(2) An application for renewal of a prospecting licence shall be submitted not later than 60 days before the expiry of the licence and shall be accompanied by -
(a) a report on prospecting operations so far carried out and the direct cost 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.
(3) The instrument in writing renewing a prospecting licence -
(a) shall -
(i) identify the land in relation to which the licence is renewed which shall not exceed in area 50 per cent of the area of the land in respect of which the licence was granted or, in the case of a second renewal, was first renewed;
(ii) state the conditions on which the licence is renewed; and
(iii) state the term, not exceeding 2 years for which the licence is renewed; and
(b) shall describe the programme of prospecting work to be fulfilled during the period of the renewal in or in relation to the prospecting area and the estimated cost thereof.
(4) An instrument in writing renewing a prospecting licence shall, for the purposes of this Act, form part of the licence.
RESTRICTIONS ON RENEWAL OF PROSPECTING LICENCE
23. (1) A prospecting
licence shall not be renewed on more than two occasions.
(2) Subject to subsection (3), the Minister shall refuse to grant a renewal of a prospecting licence if the licensee is in default.
(3) The Minister shall not refuse to renew a licence on the ground that the licensee is in default unless -
(a) he has given to the licensee notice of his intention to do so giving in the notice -
(i) particulars of the alleged default;
(ii) a date before which the licensee may make representations in writing in relation to the alleged default, or remedy it; and
(b) the licensee has not, before that date -
(i) remedied the default; or
(ii) in a notice given to the Minister, made representations which satisfy the Minister that the licensee is not in default, or that in the circumstances he is justified in renewing the licence notwithstanding the default.
(4) The Minister shall not renew a licence in respect of an area of land which does not meet the requirement in section 22(3)(a)(i).
(5) For the purposes of this section, a licensee is in default if he is in breach of the conditions of his licence, or of the requirements of this Act in relation to him or his licence, when he makes application for the renewal of the licence.
TERM OF PROSPECTING LICENCE
24. (1) A prospecting licence, unless sooner determined by or under this Act, shall, by virtue of this subsection, continue in force, in relation to the land for the time being subject to the licence -
(a) for the term, not exceeding 3 years, for which the licence is granted, commencing next after the date of the grant of the licence;
(b) for any term, not exceeding 2 years, for which the licence is renewed commencing on each occasion on the date on which the licence would cease to have effect if not then renewed, or next after the date on which the licence is renewed, whichever is the later, and
(c) for any period added to the term of the licence pursuant to section 49(3).
(2) Where a prospecting licence would otherwise cease to be in force then, by virtue of this subsection, the licence shall, unless sooner determined by or under this Act, continue in force in the circumstances referred to -
(a) in subsection (1) of section 31, for the period necessary to enable the licensee to comply with the duties under paragraphs (a) and (b) of that subsection;
(b) in section 32, for the period necessary to enable the licensee to comply with the duty under that section; and
(c) in section 33(1), for the period of 60 days referred to in section 33(1) or such further period as the Commissioner may allow for the purposes of section 33(1).
(3) Where a prospecting licence would otherwise cease to be in force then, by virtue of this subsection, the licence shall, unless sooner determined by or under this Act, continue in force in respect of any land, subject to the licence, to which an application for the grant of -
(a) a renewal of the licence; or
(b) a mining licence, relates, until
(c) that application is finally dealt with -
(i) by the renewal of or refusal to renew the licence; or
(ii) as the case may be, by the grant of or refusal to grant the mining licence; or
(d) that application lapses.
RIGHTS UNDER PROSPECTING LICENCE
25. A prospecting licence, while it remains in force, confers on the licensee, subject to this Act and to the conditions specified in the licence, the exclusive right to carry on prospecting operations in or in relation to the prospecting area for any mineral to which the licence relates, and to execute in the prospecting area such works as are necessary for that purpose.
OBLIGATIONS OF HOLDER OF PROSPECTING LICENCE
26. (1) The holder of prospecting licence shall keep, to the satisfaction of the Commissioner, full and accurate records of his prospecting operations which shall show -
(a) boreholes drilled, with detailed logs of strata penetrated;
(b) the results of any geochemical or geophysical analysis;
(c) minerals discovered;
(d) the results of any analysis or identification of minerals;
(e) the geological interpretation of the records maintained under (a) to (d) inclusive;
(f) other work done in connection with the prospecting licence; and
(g) such other matters as may be prescribed, and shall supply, at least once every 3 months, copies of such records to the Commissioner, together with any reports prepared as a result of such records.
(2) Any holder of a prospecting licence who fails to supply any record to the Commissioner or who supplies false or misleading record shall be guilty of an offence and shall on conviction be liable to the same penalty or penalties as specified in section 79(8).
(3) The holder of a prospecting licence shall, within 3 months after the expiration thereof, submit a report to the Minister setting forth all results of his prospecting operations in the area of the licence, such report shall be accompanied by -
(a) all geological, geochemical and geophysical maps, profiles, diagram charts made by such holder;
(b) copies of all tests and analyses made by such holder;
(c) copies of all reports made such holder;
(d) a statement of direct costs incurred by the holder in the prospecting programme.
PART VIII
WORK PROGRAMME UNDER EXPLORATION
AND PROSPECTING
LICENCES
PERFORMANCE OF WORK PROGRAMME UNDER EXPLORATION LICENCE
27. (1) During the term for which an exploration licence is granted, the licensee shall, subject to section 29, fulfil the programme of exploration work described in the licence pursuant to section 16(1)(b).
(2) During the term for which an exploration licence is renewed, the licensee shall, subject to section 29, fulfil the programme of exploration work described in the instrument renewing the licence pursuant to section 17(3)(b).
PERFORMANCE OF WORK PROGRAMME UNDER PROSPECTING LICENCE
28. (1) During the term for which a prospecting licence is granted, the licensee shall, subject to section 29, fulfil the programme of prospecting work described in the licence pursuant to section 21(1)(b).
(2) During the term for which a prospecting licence is renewed, the licensee shall, subject to section 30, fulfil the programme of prospecting work described in the instrument renewing the licence pursuant to section 22(3)(b).
AMENDMENT OF WORK PROGRAMME
29. The Minister may, on application made to him by a licensee, by instrument in writing, amend, in the manner proposed in the application, any programme of exploration work or prospecting work which the licensee is obliged by section 27 or, as the case may be, by section 28, to fulfil, and in the event, the obligation under the section concerned shall apply in relation to the programme as so amended.
DAMAGES FOR FAILURE TO PERFORM WORK PROGRAMME
30. Subject to section 49(1), a licensee is liable to pay to the Republic damages in respect of any failure to fulfil his obligation under subsection (1) or (2) of section 28, which damages -
(a) shall be those prescribed in respect of any such failure in the licence; or
(b) if not so prescribed, shall be assessed on the basis that the failure constitutes a breach of a contract with the Republic to fulfil the obligation.
DISCOVERY IN PROSPECTING AREA
31. (1) Where a mineral
deposit is discovered in a prospecting area, the licensee -
(a) shall -
(i) forthwith inform the Commissioner; and
(ii) within a period of 30 days after doing so, furnish the Commissioner in writing with particulars of the discovery and identify the location of the discovery;
(b) shall, subject to subsection (3), where the deposit contains a mineral to which his licence relates, take promptly all steps that are reasonable, in the circumstances relating to the discovery, to ascertain whether or not, in his opinion, the mineral exists in commercial quantities; and
(c) shall, to the extent to which he is able to do so, comply with any notice served on him pursuant to subsection (2).
(2) Where a mineral deposit containing a mineral to which a prospecting licence relates is discovered in the prospecting area, the Commissioner may by notice served on the licensee, direct the licensee to furnish to the Commissioner, within the period specified in the notice, particulars in writing of the extent and nature of the mineral deposit and of any other matters relating to the discovery that are specified in the instrument.
(3) The Commissioner may exempt a licensee from the requirement of subsection (1)(b) either wholly or partly and either unconditionally or subject to such conditions as are specified in the instrument of exemption.
NOTICE OF EXISTENCE OF MINERALS IN COMMERCIAL QUANTITIES
32. Where a licensee has, pursuant to section 31(1)(b), ascertained whether or not, in his opinion, any mineral to which his licence relates exists in commercial quantities in the prospecting area, he shall forthwith give to the Commissioner notice stating whether or not the mineral does so exist.
PART IX
MINING LICENCES
APPLICATION FOR MINING LICENCE
33. (1) A licensee whose prospecting licence is in force and who has given notice to the Commissioner under and in accordance with section 32, stating, that in his opinion, a mineral exists in commercial quantities, the licensee may, within a period of 60 days from the date on which that notice is given to the Commissioner, or within such further period as the Commissioner may allow, apply pursuant to this subsection for the grant of a mining licence -
(a) over land in, or which constitutes, the prospecting area; and
(b) in relation to any mineral specified in the notice given under that section.
(2) Where subsection (1) does not apply, a person may, subject to subsection (3), apply under this subsection for the grant of a mining licence over land whether he holds, or does not hold, a licence over that land.
(3) No application shall be made under subsection (2) for the grant of a mining licence over any land in respect of any mineral unless that mineral exists in commercial quantities in that land.
(4) An application for the grant of a mining licence shall include -
(a) 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 company or corporation, the full names and nationalities of the directors and the full name and nationality of every shareholder and the full name and nationality of every ultimate 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 or numbers of his prospecting licence;
(e) the name of the mineral 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 an approved plan, of the area in respect of which the application is made;
(h) the period for which the lease 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 estimated overall recovery of ore and mineral products;
(iii) the nature of the product;
(iv) the marketing arrangements made for the sale of the mineral product; and
(v) a detailed programme for the progressive reclamation and rehabilitation of lands disturbed by mining and for the minimization of the effects of such mining on adjoining land and water areas;
(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 Vanuatu citizens;
(m) a report of the goods and services required for the mining operations which can be obtained within Vanuatu 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.
DISPOSAL OF APPLICATION FOR MINING LICENCE
34. Subject to section 35
-
(a) on application duly made pursuant to section 33(1) the Minister shall grant the mining licence applied for on such conditions as are reasonably necessary to give effect to the application and the requirements of this Act; and
(b) on application duly made pursuant to section 33(2), the Minister may grant on such conditions as he may determine, or refuse to grant, the mining licence applied for.
RESTRICTIONS ON GRANT OF MINING LICENCE
35. (1) A mining licence
shall not be granted to an applicant –
(a) unless -
(i) the proposals of the applicant would ensure the most efficient, beneficial and timely use of the mineral resources concerned;
(ii) the applicant has adequate financial resources and technical and industrial competence and experience to carry on effective mining operations;
(iii) the applicant would be able and willing to comply with the conditions on which a licence would be granted;
(iv) the applicant's proposals for the employment and training of citizens of Vanuatu are satisfactory; and
(v) any option given under section 21(2) has been properly disposed of, or arrangements satisfactory to the Minister have been made for that purpose; or
(b) if the applicant is in default, unless the Minister considers that special circumstances exist which justify the granting of the licence notwithstanding the default.
(2) Where an application is made under section 33(1) the Minister shall not refuse to grant a mining licence to the applicant -
(a) on any ground referred to in subsection (1)(a), unless the Minister has given notice to the applicant of his intention to do so on that ground and has allowed the applicant, within such reasonable time as is specified in the notice, to make representation in relation to the proposed refusal and where appropriate, to put forward proposals either in alteration of or in addition to those in his application, and has taken into account any such representations and proposals;
(b) on the ground that the applicant is in default, unless the Minister has given notice to the applicant of his intention to do so giving in the notice -
(i) particulars of the alleged default; and
(ii) a date before which the applicant may make representations in relation to the alleged default, or remedy it, and the applicant has not, before that date, remedied the default or, in a notice given to the Minister, made representations which satisfy the Minister that the applicant is not in default, or that in the circumstances he is justified in granting the licence notwithstanding the default.
(3) A mining licence shall not be granted to an applicant in relation to any land which is, at the time the application for the grant of the licence is made, comprised in -
(a) a single prospecting licence, unless the applicant is the holder of the prospecting licence, or applies with the written consent of that holder;
(b) more than one prospecting licence, unless, subject to subsection (4)-
(i) the applicant is the holder of one of those prospecting licences;
(ii) the applicant's prospecting licence covers the mineral to which the mining licence would, if granted, relate, or the mineral is not covered by any other such prospecting licence; and
(iii) the Minister is satisfied that the public interest requires that the mining licence should be granted.
(c) an existing mining licence, unless the applicant is the holder of the mining licence; or
(d) a claim, unless the applicant is the holder of the claim.
(4) Where, in the circumstances referred to in paragraph (b) of subsection (3)-
(a) the Minister is satisfied as provided in subparagraph (iii) of that paragraph; and
(b) every holder of a relevant prospecting licence or, if the applicant for the mining licence is the holder of such a prospecting licence, every other holder of such a prospecting licence, gives his consent in writing to the grant of a mining licence to the applicant,
such a licence may be granted to the applicant notwithstanding subsections (3)(b)(ii) and (iii).
(5) For the purposes of this section, an applicant is in default if he is in breach of the conditions of any licence held by him, or of the requirements of this Act in relation to him or any such licence, when he makes application for the grant of a mining licence.
FORM AND CONTENT OF MINING LICENCE
36. (1) A mining licence
-
(a) shall -
(i) be in such form as may be prescribed;
(ii) state the date of the grant of the licence;
(iii) identify the land and mineral in respect of which the licence is granted;
(iv) state the conditions on which the licence is granted; and
(v) state the term, not exceeding 25 years or the estimated life of the ore body which it is proposed to mine, whichever is the shorter.
(b) shall describe a programme of mining work to be fulfilled; and 20
(c) may contain such other matters as may be necessary to give effect to subsection (2) or (3), if applicable, or for any other purpose as may be determined by the Minister.
(2) There may be included in a mining licence conditions with respect to the processing, disposal or sale of the minerals to be mined.
(3) There may be included in a mining licence provision for the determination of disputes, in relation to any identified matters, by way of arbitration or otherwise in such manner as is specified in the licence.
RENEWAL OF MINING LICENCE
37. (1) Subject to section 38, on application duly made to the Minister in accordance with this Act for the renewal of a mining licence, the Minister may, by instrument in writing, renew the licence on such conditions as he deems fit, or refuse to do so.
(2) An application for renewal of a mining licence shall state the period for which renewal is sought, which period will not exceed 25 years, 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 reserves;
(ii) the capital investment to be made in, and production and revenue forecasts in respect of, the period of renewal;
(iii) any proposed changes in methods of mining and treatment;
(iv) such other information as the Minister may require, and, such information shall be presented so as to give a clear indication of expected in- crease or reduction in mining activities and the estimated life of the mine.
(3) The instrument in writing renewing a mining licence shall -
(a) identify the land in respect of which the licence is renewed;
(b) state the conditions on which the licence is renewed;
(c) state the term for which the licence is renewed; and
(d) describe a programme of mining operations to be fulfilled.
(4) An instrument in writing renewing a mining licence shall, for the purpose of this Act, form part of the licence.
RESTRICTION ON RENEWAL OF MINING LICENCE
38. (1) A mining licence
shall be renewed on one occasion only.
(2) The Minister shall refuse to renew a mining licence if the licensee is in breach of the conditions of his licence, or of the requirements of this Act in relation to him or his licence, when he makes application for the renewal of the licence.
TERM OF MINING LICENCE
39. (1) A mining licence, unless sooner determined by or under this Act, shall, by virtue of this subsection, continue in force -
(a) for the term for which the licence is granted, commencing next after the date of the grant of the licence;
(b) for any term for which the licence is renewed, commencing on the date next after the date on which the licence would cease to have effect if not renewed; and
(c) for any period added to the term of the licence pursuant to section 49(3).
(2) Where a mining licence would otherwise cease to be in force then, by virtue of this subsection, the licence shall, unless sooner determined, by or under this Act, continue in force in respect of any land, subject to the licence, to which an application for the grant of a renewal of the licence relates until -
(a) the application is finally dealt with by the grant or refusal to grant the renewal; or
(b) the application lapses.
RIGHTS CONFERRED BY MINING LICENCE
40. (1) A mining licence, while it remains in force, confers on the licensee subject to this Act and to the conditions specified in the licence, exclusive rights -
(a) subject to subsection (2) to carry on exploration, prospecting and mining operations in or in relation to the mining area;
(b) to sell or otherwise dispose of any mineral product recovered and stack and dump any mineral or waste products in a manner approved by the Minister; and
(c) to carry on such operations and execute such works in or in relation to the mining area as are necessary for or in connection with any matter referred to in paragraphs (a) and (b).
(2) Any exploration or prospecting operations carried on by a licensee in or in relation to the mining area shall be carried on in accordance with a programme of work from time to time approved by the Commissioner.
RESTRICTION ON RIGHTS CONFERRED BY MINING LICENCE
41. (1) The holder of a mining licence -
(a) shall not, without the consent of the Minister, intentionally carry on exploration, prospecting or mining operations for a mineral unless it is a mineral to which his licence relates; and
(b) shall not mine any mineral deposit, particulars of which have not been given in his application, or a statement accompanying his application, for the grant of the licence, without the approval of the Minister given under subsection (3).
(2) Where, in the exercise of his rights, the holder of a mining licence discovers any deposit of a mineral, particulars of which were not given in his application, or a statement accompanying his application, for the grant of the licence, the holder -
(a) shall, within a period of 30 days after the discovery, give to the Minister notice and particulars of the mineral deposit and the circumstances in which the discovery was made; and
(b) may, in the notice, or in a further notice given within such period as the Minister may allow, request the Minister to give his approval to the mining of the mineral deposit in accordance with a programme of mining work stated in or accompanying the notice.
(3) On a request made pursuant to subsection (2)(b), the Minister -
(a) may refuse to give the approval requested; or
(b) may give in writing
(i) approval to the request as made; or
(ii) approval to the request as amended with the agreement of the holder of the licence,
unconditionally or subject to such conditions as are agreed to by the holder of the licence and stated in the instrument of approval.
(4) An instrument of approval given under this section shall, for the purposes of this Act, form part of the mining licence concerned.
DUTIES OF HOLDER OF MINING LICENCE
42. (1) The holder of a
mining licence shall -
(a) subject to subsections (2) and (3), carry on mining and development operations and commence production in accordance with the programme of mining work described in the licence pursuant to section 36(1)(b) or 37(3)(d);