*MINERAL DEVELOPMENT ACT 1994

This Act shall apply throughout Malaysia; however the

Minister may by order suspend the operation of the whole or any of the provisions of this Act in any State.

Application to fossicking, panning, etc.

naturally;

as a result of mining in or on the earth; or

as a result of mining in or under the sea or sea-bed, formed by or subject to a geological process, but excludes water,

“rock material” as defined in the National Land Code [Act 56 of 1965] and “petroleum” as defined in the Petroleum Mining Act 1966

[Act 95];

“mineral ore” means any mineral of economic interest from which one or more valuable constituents may profitably be recovered by treatment;

“mineral processing” means any activity whereby minerals or mineral ores are treated for the beneficiation thereof but excludes smelting and refining;

“mineral tenement” means a fossicking licence, dulang licence, individual mining licence, prospecting licence, exploration licence, proprietary mining licence, mining lease, or any of them for the purpose of exploration or mining of minerals or mineral ores, as the

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case may be, issued under any Federal or State law regulating mineral tenements;

“mines officer” means the Director General of Mines, any Director of Mines, Assistant Director of Mines, Senior Mining Assistant,

Mining Assistant or any other officer duly authorized in writing by the Director General;

“mining land” means any land in respect of which a proprietary mining licence or mining lease issued or granted under any written law relating to mining is for the time being in force;

“mining lease” means a mining lease for the time being in force granted under any written law regulating mining;

“Minister” means the Minister charged with the responsibility for mining and minerals;

“notice” includes any notification, assessment, instrument or other document authorized or required by this Act to be served on any person or body;

“operational mining scheme” means an operational mining scheme approved under section 10;

“police officer” has the meaning assigned to it in the Police Act 1967 [Act 344];

“prescribed” means prescribed by regulations;

“proprietary mining licence” means a proprietary mining licence for the time being in force issued under any written law relating to mining;

“prospecting licence” means a prospecting licence for the time being in force issued under any written law relating to prospecting;

“sample” means a fraction of naturally occurring matter deemed to be indicative of the mass of which it forms a part;

“specimen” means a fraction of naturally occurring matter not necessarily representative of the mass of which it forms a part;

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“to mine” means intentionally to win minerals and includes any operation directly or indirectly and necessary therefore or incidental thereto, and “mining” shall be construed accordingly;

“to pan” means to wash or sift with a pan, dulang or rake for the purpose of obtaining minerals;

“treat” means to subject to any process whereby chemical or physical change takes place in the substance subjected thereto;

“waste” includes any discarded overburden material, tailing, any intermediate product from mining or mineral processing stockpiled for further operations, water treated or stored in mining or mineral processing, and any chemical substance temporarily or permanently withdrawn from such operations;

“waste retention area” means any area defined for the retention of waste and includes any area where works are employed for the purification of water contained in such waste.

Subject to subsection (1) and unless the context otherwise requires, all words and expressions used in this Act which are defined in the National Land Code shall be deemed to have the meaning assigned to them by that Code.

The Minister shall also appoint such numbers of Deputy

Director Generals of Mines, Directors of Mines, Deputy Directors of

Mines, Assistant Directors of Mines, Senior Mining Assistants,

Mining Assistants and such other officers as may be necessary for carrying out the purposes of this Act.

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All officers appointed under subsection (2) shall be subject to the control, direction and supervision of the Director General.

All officers appointed under this Act shall be deemed to be public servants within the meaning of the Penal Code [Act 574].

Functions and duties of Director General

be responsible for the administration and enforcement of this Act;

exercise supervision and control on the safety aspects relating to mines and to the fossicking, panning, exploration, mining, possession, movement, storage and processing of minerals and mineral ores in accordance with this Act;

obtain information on and keep records of operations pertaining to the fossicking, panning, exploration, mining, possession, movement, storage, processing, purchase and sale of minerals and mineral ores;

perform such functions in relation to this Act as the

Minister may from time to time determine; and

carry on such other activities as may appear to the

Director General requisite, advantageous or convenient for the purpose of carrying out the provisions of this Act.

Delegation of functions or duties by Director General

A Director shall report to the Director General any matter in respect of which any action on the part of the Director General is necessary.

A Director shall be vested with the functions and duties of an

Assistant Director.

Functions and duties of Assistant Director

inspect and regulate the storage, transportation and use of toxic, inflammable or other potentially dangerous substances in respect of or in relation to any fossicking, panning, exploration, mining or mineral processing activity;

require the holder of a mineral tenement to provide and maintain within the mineral tenement and mineral processing area such access roads and other routes as are necessary and adequate for the purpose of safe access, exit, escape or removal of any injured person;

give such orders as he considers necessary to discontinue any operation, use of equipment or practice in or about any fossicking, panning, exploration or storage facility area or mine or mineral processing plant which—

affects the safety or health of any person;

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order the immediate cessation of work in, and the immediate departure of all persons from, any fossicking, panning, exploration or storage facility area or mine or mineral processing plant or any part thereof which is deemed unsafe, or allow work to continue after precautions are taken or such things are done as he considers necessary.

An Assistant Director may—

Any holder of a prospecting licence, exploration licence, proprietary mining licence or mining lease shall, within thirty days after the registration of such mineral tenement under any written law, send a copy of his mineral tenement to the Director and the Director

General of Geological Survey.

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Any holder of mineral tenement mentioned in subsection (1)

who has changed his address shall, within fourteen days from the date of change of such address, notify the Director and the Director

General of Geological Survey in writing of his new address.

Submission of operational mining scheme

The operational mining scheme shall include—

The holder of a proprietary mining licence or mining lease may submit a modification to the approved operational mining scheme for approval by the Director and shall not commence any development work or mining which does not comply with the approved operational mining scheme until the modified operational mining scheme has been approved by the Director.

The Director shall —

Where the Director rejects the operational mining scheme or modification thereof, he shall notify the holder of the proprietary mining licence or mining lease in writing of his decision.

The holder of a proprietary mining licence or mining lease may submit such number of operational mining schemes or modifications thereof as may be necessary in order to obtain the approval of the

Director.

The holder of a proprietary mining licence or mining lease who is aggrieved by the decision of the Director under this section may, within thirty days from the date he is notified of such decision, appeal in writing to the Director General whose decision shall be final.

Notices of intent to explore or carry out development work

The holder of a proprietary mining licence or mining lease shall send to the Director and the Director General of Geological

Survey a similar notice before commencing any development work.

Compliance with operational mining scheme

Upon failure by the holder of a proprietary mining licence or mining lease to comply with the approved operational mining scheme, the Director shall inquire into the matter and may order the holder of such licence or lease to —

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Any measures taken to comply with an order issued under subsection (2) shall not operate to relieve any holder of such licence or lease from any liability arising under subsection (1).

Good and safe practices and environmental standards

there are ten or more persons employed at the mine; or

the Assistant Director has notified the holder of such licence or lease that a manager is required, appoint a manager of the mine.

The appointment of a manager under subsection (1) shall be with the approval of the Assistant Director.

If the manager appointed under subsection (1) ceases to be the manager of the mine, the holder of a proprietary mining licence or mining lease shall within three days from the date of cessation appoint another manager with the approval of the Assistant Director.

The holder of a proprietary mining licence or mining lease may appoint such number of assistant managers as may be necessary to

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assist the manager, any such appointment shall be with the approval of the Assistant Director.

Where the holder of a proprietary mining licence or mining lease is a natural person, he may, subject to the approval of the

Assistant Director and the provisions of this Act, appoint himself as manager of the mine.

No person who has been appointed manager of any mine shall, while he holds that appointment, act as the manager of any other mine without the written approval of the Assistant Director.

A manager appointed under subsection (1) shall—

Where a manager is required under this Act, no work shall be carried out at the mine unless—

Where in any mine the workings extend over or are separated by such a distance that control and daily supervision by one manager is, in the opinion of the Assistant Director, inadequate, he may require that a manager be appointed to control and supervise such of those workings as he may specify, and thereupon a manager shall be appointed in accordance with this Act for the workings so specified.

If a manager appointed under this section is incapacitated from performing his duties or is about to be absent from the mine for more than two days he, or the holder of a proprietary mining licence or mining lease shall, if no assistant manager has been appointed, appoint with the approval of the Assistant Director, any other person to act as manager during such incapacity or absence.

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The holder of a proprietary mining licence or mining lease and every manager, assistant manager and person appointed under subsection (10) shall ensure the safety of all operations at the mine and the observance of the provisions of this Act.

Directions by manager of mine

A copy of the written directions shall be sent to the Assistant

Director and if the Assistant Director has not within thirty days from the receipt thereof objected to them in writing to the manager the written directions shall, subject to subsection (8), come into force.

If the Assistant Director does not approve of any proposed written directions he shall within thirty days after the receipt thereof inform the manager of any alteration, addition or substitution to such directions as he deems fit.

If the manager objects to any such alteration, addition or substitution he may refer the matter to the Director whose decision shall be final.

Any written directions coming into force under this section shall continue to be in force until the Assistant Director orders the revocation thereof.

A copy of the written directions shall be kept posted in one or more conspicuous places at the mine.

A copy of the written directions in force certified as correct by the manager shall be admissible as evidence in any legal proceedings.

Where any written directions under this section is inconsistent with this Act, the provisions of this Act shall prevail to the extent of the inconsistency.

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Plans to be furnished

Where a mine plan is updated, the manager shall furnish to the

Assistant Director certified copies of such plan showing thereon the workings carried out since the last plan was submitted.

A certified copy of such plan shall be kept by the Assistant

Director in his office and no copy or tracing thereof shall be furnished, or information in relation thereto given, nor shall such plans be open to inspection unless the permission of the Assistant

Director has been obtained.

If, on receipt of any such plan the Assistant Director is not satisfied with the accuracy or completeness of such plan he may, in his discretion, order that a survey be made under his direction of the workings of the mine by a surveyor licensed under any written law at the expense of the holder of a proprietary mining licence or mining lease.

The manager shall make available such plans at the mine whenever requested by any mines officer and the manager shall, if so requested, mark on such plans the progress of the workings of the mine at the time of production, and shall allow the mines officer to examine and take a copy thereof.

Record books on operations

The record books shall be—

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Whenever a mines officer has inspected a mine or any works accessory thereto, he shall enter in a record book a summary of his inspection and any requirement that may be necessary.

Notwithstanding anything contained in or omitted from the report of the mines officer, such report shall not be held to limit the responsibility of the holder of a proprietary mining licence or mining lease or manager under this Act.

Nothing in this Act shall be construed as imposing the obligation on the manager to keep record books or copies thereof for more than twelve months after the record books have ceased to be used for making any entry therein unless the Assistant Director has in writing required that any record book be kept for a longer period.

Effluent water

The Assistant Director shall, on receipt of a complaint made in writing describing the failure on the part of any person to comply with the provisions of subsection (1), inquire into the matter of such complaint, and may at any time order such person complained of to—

Any measures taken to comply with an order issued under subsection (2) shall not operate to relieve any person from any liability arising under subsection (1).

Erosion

Whenever directed by the Assistant Director, every holder of a mineral tenement and his manager shall provide and maintain such retention works or other place as are necessary and adequate to prevent the products of erosion from being discharged into any river or drainage system.

Mine abandonment

Where any mine is to be abandoned, the holder of the proprietary mining licence or mining lease or manager shall cause to be made an accurate plan, to the satisfaction of the Director, showing the workings of such mine up to the time of abandonment and copies of such plan shall be submitted to the Director and the Director

General of Geological Survey within one month after the abandonment.

Where a mine or part of a mine is to be abandoned, the holder of a proprietary mining licence or mining lease or manager shall securely fence or cover every mine shaft or adit and the holder of such licence or lease and the manager shall continue to be personally

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responsible for the due compliance of this provision until the Director has confirmed in writing that the work has been properly executed, notwithstanding that the mine or part of the mine has been abandoned.

Abandoned mines and waste retention areas shall be made safe in such manner as may be prescribed.

any accident resulting in loss of life or serious bodily injury to any person; or

any accident resulting in damage to any property, has taken place in connection with any work incidental to or connected with a mineral tenement, the manager, any other person in charge of the mine or the holder of the mineral tenement shall forthwith report in writing to the Assistant Director the facts of the matter as far as they are known.

The Assistant Director shall—

The place where the accident has taken place shall be left as it was immediately after such accident until the investigation has been completed:

Provided that rescue work or any work necessary for the general safety of the persons employed therein or for the recovery of the bodies of deceased persons shall not be delayed.

No work shall resume until permission in writing has been obtained from the Assistant Director.

Upon receipt of the report given by the Assistant Director, if it appears to the Director that there is reason to believe that the accident was due to any failure to comply with any written directions issued under section 15 or any order given by any mines officer under this

Act and the Director is of the opinion that the accident may have been prevented if proper precautions had been taken and observed, he shall submit the report of the Assistant Director together with his recommendations on the holding of an inquiry to the Director

General.

The Director General shall consider the report submitted under subsection (5) and decide whether or not to hold an inquiry.

Procedure for inquiry

The mines officer may open the inquiry or any part of the inquiry to the public and shall conduct it in such manner as he considers most effective for ascertaining the cause of the accident and he shall subsequently submit a report of the inquiry through the

Director General to the Minister.

In conducting the inquiry, the mines officer shall have the following powers:

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Where the mines officer is satisfied that a person who, under subsection (3)—

A person giving evidence under this section shall be legally bound to state the truth, whether or not such evidence is made wholly or partly in answer to questions.

Where a certificate is given under subsection (4), the

Magistrate shall inquire into the case and, if he is satisfied that the person to whom the certificate relates has, without reasonable excuse, failed to attend or failed or refused to comply with the requirement as mentioned in the certificate he shall order the person to attend or to comply with the requirement at a hearing before the mines officer holding such inquiry to be held at a time and place specified in the order.

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call for and examine any book, document, instrument or record and make copies of or take extracts from such book, document, instrument or record which is in the custody or control of any person pertaining to any matter under this Act;

visit, enter, inspect and examine with or without previous notice any fossicking, panning, exploration or storage facility area or mine or mineral processing plant at any time but shall not unnecessarily obstruct or impede any work therein;

investigate in respect of any fossicking, panning, exploration or storage facility area or mine or mineral processing plant concerning—

the state and condition of any such area or plant;

compliance with the provisions of this Act;

take measures to ensure the use of proper precautions in all fossicking, panning, exploration, mining, storage or

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mineral processing activities for the prevention of damage or danger to life or property;

require any person whom he finds in an area where fossicking, panning, exploration, mining, storage or mineral processing is undertaken to reveal his identity and purpose, and give such information as is required by this

Act and in such person’s power to give; and

take samples of any material whether solid, liquid or gas in or being discharged in or from any fossicking, panning, exploration or storage facility area or mine or mineral processing plant.

Power of investigation

Every person required by a mines officer to give information or produce any document or other article relating to the commission of any offence which is in the person’s power to give shall be legally bound to give the information or to produce the document or other article.

Power to require attendance of person acquainted with case

If any such person fails to attend as so required, the mines officer may report such failure to a Magistrate who may thereupon in his discretion issue a warrant to secure the attendance of such person.

A person attending as required under subsection (1) shall be entitled to be paid the reasonable travelling and subsistence expenses incurred by him and it shall be lawful for the Director General to pay such expenses.

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Power to examine person acquainted with case

Such person shall be bound to answer all questions relating to the case put to him by the mines officer:

Provided that such person may refuse to answer any question the answer to which would have a tendency to expose him to a criminal charge or penalty or forfeiture.

A person making a statement under this section shall be legally bound to state the truth, whether or not such statement is made wholly or partly in answer to questions.

The mines officer examining a person under subsection (1)

shall first inform the person of the provisions of subsections (2) and

.

A statement made by any person under this section shall, whenever possible, be reduced into writing and signed by the person making it or affixed with his thumb-print, as the case may be, after it has been read to him in the language in which he made it and after he has been given an opportunity to make any corrections he may wish, and where the person examined refuses to sign or affix his thumb-print on the statement, the mines officer shall endorse thereon under his hand the fact of such refusal and the reason therefore, if any, stated by the person examined.

Power of arrest, seizure and investigation

arrest any person found committing or attempting to commit or abetting the commission of an offence under this Act; and

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seize any thing which he considers necessary to seize in relation to the evidence necessary to establish the commission of any such offence.

A mines officer making an arrest under paragraph (1)(a) shall without unnecessary delay make over the person so arrested to the nearest police officer or, in the absence of a police officer, take such person to the nearest police station, and thereafter the person arrested as aforesaid shall be dealt with as provided by the law relating to criminal procedure for the time being in force as if he had been arrested by a police officer.

Search with warrant

Any mines officer acting under subsection (1) may if it is necessary so to do—

The mines officer seizing any mineral, box, trunk, receptacle, package, conveyance or thing under subsection (1) shall—

An order for the forfeiture or for the release of any thing seized in exercise of any power conferred under this Act shall be made by the court before which the prosecution with regard thereto has been held and an order for the forfeiture of the thing shall be made if it is proved to the satisfaction of the court that an offence under this Act has been committed and that the thing was the subject matter of or was used in the commission of the offence, notwithstanding that no person may have been convicted of such offence.

If there is no prosecution with regard to any thing seized in exercise of any power conferred under this Act, such thing shall be taken and deemed to be forfeited at the expiration of one calendar month from the date of service of a notice to the person from whom the thing was seized indicating that there is no prosecution in respect of such thing, unless before that date a claim thereto is made in the manner set out in subsections (4), (5) and (6).

Any person asserting that he is the owner of the thing referred to in subsection (3) and that it is not liable to forfeiture may personally or by his agent authorized in writing give written notice to the mines officer in whose possession such thing is held that he claims the same.

On receipt of the notice referred to in subsection (4), the mines officer shall refer the claim to the Director who—

The Magistrate to whom a matter is referred under paragraph

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the owner of the thing and the person from whom it was seized to appear before the Magistrate and upon their appearance or default to appear, due service of the summons being proved, the Magistrate shall proceed to the examination of the matter and on proof that an offence under this Act has been committed and that such thing was the subject matter of or was used in the commission of such offence shall order the same to be forfeited and shall, in the absence of such proof, order its release.

Any thing forfeited or deemed to be forfeited shall be delivered to the Director and shall be disposed of by the Director—

Where any thing seized in exercise of the powers conferred under this Act is of a perishable nature or is subject to speedy and natural decay or where the custody of such thing involves unreasonable expense and inconvenience, or is believed to cause obstruction or hazard to the public, the Director may direct that such thing be sold at any time and the proceeds of the sale be held to abide by the result of any prosecution or claim under this section.

Cost of holding seized thing

The person in control or in charge of the conveyance shall, if required to do so by the mines officer—

Any person who fails or refuses to cooperate with the mines officer to stop such conveyance or conduct a search of such conveyance shall be guilty of an offence.

the value of any mineral or mineral product;

the amount of fee, royalty, premium and other charges payable in respect of any mineral or mineral product; or

the costs of repairing any damage done by an offender, shall be prima facie evidence of such value, fee, royalty, premium, charge or cost, without proof of the signature of the Director to such certificate.

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Sample

by the court; or

by the accused, in which case the accused shall give notice to the prosecuting officer not less than three clear days before the commencement of the trial:

Provided always that in any case in which the prosecuting officer intends to give in evidence any such report he shall deliver a copy to the accused not less than ten clear days before the commencement of the trial.

In this section, “analyst” means—