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31 1940

MINERALS DEVELOPMENT ACT, 1940

PART II.

Right of Entering and Prospecting Unworked Minerals and Grant of Prospecting Licences.

Entering and prospecting for minerals.

7. —(1) Whenever it appears to the Minister that there are minerals on or under any land and that such minerals are not being worked or are not being worked efficiently, the Minister may, subject to giving the notice required by this section, do, at his discretion, either of the following things, that is to say:—

(a) enter upon such land and there do all such things as are in his opinion necessary or desirable for the purpose of ascertaining the character, extent, or value of such minerals and, in particular make borings, sink pits, remove water from old workings, and take and remove reasonable quantities of such minerals for analysis, test, trial, or experiment;

(b) grant to any person, in accordance with this Part of this Act, such licence (in this Act referred to as a prospecting licence) in respect of such minerals as is authorised by this Part of this Act.

(2) The Minister shall not exercise, in respect of any land, either the right conferred on him by paragraph (a) of the foregoing sub-section of this section or the power conferred on him by paragraph (b) of that sub-section before the expiration of one month after he has served on the occupier of such land notice of his intention to exercise such right or such power, as the case may be.

(3) The notice mentioned in the next preceding sub-section of this section may be served by registered post and, when so served, may be addressed to the occupier by name at either his last-known place of abode or at the land to which the notice relates.

(4) The Minister shall not enter on any land under paragraph (a) of the first sub-section of this section, or do on such land any of the things authorised by that paragraph without the consent of the Minister for Finance.

(5) The right conferred on the Minister by paragraph (a) of the first sub-section of this section is in this Act referred to as the right of entering and prospecting.

Prospecting licences.

8. —(1) Every prospecting licence shall be granted upon such terms and conditions as the Minister thinks proper and specifies in such licence.

(2) On the granting of a prospecting licence, the licensee shall pay to the Minister such consideration therefor as the Minister, with the concurrence of the Minister for Finance, may determine.

(3) Every prospecting licence shall be expressed and shall operate to authorise the licensee, during the currency of such period as is specified in such licence and subject to the provisions of this Part of this Act, to enter on such land as may be similarly specified and there do all such things as the licensee considers necessary or desirable for the purpose of ascertaining the character, extent, or value of the minerals lying on or under such land, and in particular, and without prejudice to the generality of the foregoing power, for the purposes aforesaid to make borings, sink pits, remove water from old workings, and take and remove reasonable quantities of any such minerals for the purpose of analysis, test, trial or experiment.

(4) Every prospecting licence shall contain an indemnity clause whereby the licensee under such licence indemnifies the Minister against any claim or demand whatsoever in respect of the land or the minerals the subject of such licence or in any way arising out of the exercise by the licensee of any of the rights conferred on him by such licence.

(5) Every prospecting licence shall contain a clause requiring the licensee thereunder to exercise the rights conferred on him by such licence in such manner as not to interfere unnecessarily with the amenities of the locality in which are situate the land and minerals the subject of such licence.

Applications for prospecting licences.

9. —(1) The Minister may make regulations for all or any of the following purposes, that is to say:—

(a) prescribing the form and manner in which applications for prospecting licences shall be made;

(b) requiring the payment of fees on such applications and prescribing the amounts of such fees;

(c) specifying the conditions to be complied with by applicants for prospecting licences;

(d) requiring every applicant for a prospecting licence to furnish evidence as to his character, financial standing, and technical qualifications and to give security for the due fulfilment of his obligations under such licence, and prescribing the nature of such evidence and of such security respectively;

(e) specifying the terms and conditions to be incorporated in prospecting licences (including the period for which the licence is granted) and the obligations imposed on the licensees thereunder.

(2) Different regulations may be made under this section in respect of particular classes of prospecting licences.

(3) Every application for a prospecting licence shall be made in accordance with such of the regulations made under this section as are applicable to such application.

Compensation for damage under Part II.

10. —(1) Whenever damage to the surface of any land is caused, whether directly or indirectly, either—

(a) by the exercise by the Minister under this Part of this Act of his right of entering and prospecting, or

(b) by the exercise by the licensee under a prospecting licence of his rights under such licence,

the Minister or the said licensee (as the case may be) shall be liable to pay compensation (in this Act referred to as compensation for damage under Part II) for such damage.

(2) The amount of compensation for damage under Part II shall, in default of agreement, be determined in accordance with the provisions of Part VII of this Act.

Restriction on working minerals by licensees.

11. —(1) It shall not be lawful for any licensee under a prospecting licence to work, sell, or otherwise dispose of any minerals lying on or under the land in respect of which such licence was granted.

(2) Nothing in this section shall prevent the licensee under a prospecting licence taking and removing reasonable quantities of the minerals to which such licence relates for analysis, test, trial, or experiment.

(3) If any licensee under a prospecting licence works, sells, or otherwise disposes of any minerals in contravention of this section he shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding one hundred pounds and, in the case of a continuing offence, to a further fine not exceeding fifty pounds for every day during which the offence is continued.

Revocation and termination of prospecting licences.

12. —(1) The Minister may at any time, in his absolute discretion, revoke a prospecting licence.

(2) A prospecting licence shall terminate, if the licensee thereunder is an individual, on his death or bankruptcy or, if such licensee is a body corporate, on its dissolution.

(3) On the revocation or termination of a prospecting licence under this section—

(a) all rights and powers exerciseable by the licensee thereunder shall cease and determine, but without prejudice to any obligation or liability imposed on such licensee by this Act or by such licence;

(b) such licensee shall not be entitled to be repaid any part of the consideration paid by him for the grant of such licence.

Undertaking by Minister to grant leases.

13. —(1) On the granting or at any time during the currency of a prospecting licence, the Minister may enter into an undertaking with the licensee under such licence to the effect that if, at any time during the currency or on the expiration of such licence, the Minister is satisfied that the prospecting carried on by such licensee has been successful and that the terms and conditions of such licence have been observed and performed, the Minister will grant to such licensee a State mining lease under Part IV of this Act to take effect from such date, either before or after the expiration of such licence, as may be specified in the State mining lease.

(2) Every such undertaking as is mentioned in the foregoing sub-section of this section shall be in such form as the Minister, with the consent of the Minister for Finance, thinks fit, and may specify the terms and conditions (if any) upon which the State mining lease which is the subject of such undertaking shall be granted.

(3) Whenever the Minister enters into an undertaking to grant a State mining lease under this section, it shall be lawful for the Minister to carry out such undertaking in accordance with the terms thereof.