Section 4
Mining within the continental shelf
No person shall explore, prospect or bore for or carry on any operations for the getting of petroleum in the sea-bed or subsoil of the continental shelf except under and in accordance with the Petroleum
Mining Act 1966 [Act 95].
(2)
For the purposes of the following subsections, the expression
“minerals” shall be construed to mean minerals other than petroleum.
(3)
No person shall explore, prospect or bore for or carry on any operations for the getting of minerals in the sea-bed or subsoil of the continental shelf except in pursuance of a licence issued under the following subsections.
(4)
The Minister may from time to time, on an application made in that behalf, grant to any person a licence authorizing the person to explore, prospect, bore and mine for and to carry on operations for the getting of minerals of any specified kind in any specified area of the continental shelf.
(5)
Every application for a licence and every licence granted under subsection (4) shall be in such form and subject to the payment of such fees and other payments as may be prescribed by the Minister and be subject to such conditions as the Minister, when granting the licence, thinks fit to impose in the circumstances of each case, including, but without limiting the generality of the foregoing provisions of this section, conditions requiring the licensee—
(a)
to comply with such conditions as to safety as are specified in the licence; and
(b)
to pay to the Federal Government in respect of any minerals recovered by the licensee from the continental shelf such royalties as are specified in the licence.
(5A)
The Minister may terminate any licence if the licensee—
Continental Shelf 9
(a)
has failed to comply with any provisions of this Act or any regulations made under this Act;
(b)
has failed to comply with any conditions of the licence; or
(c)
has been convicted of an offence under this Act or any regulations made under this Act.
(6)
The grant of a licence under subsection (4) shall in every case be in the absolute discretion of the Minister and any number of licences may be granted to the same person; and every licence may be so granted that the rights thereunder are to be enjoyed by the licensee in common with other licensees to whom licences under subsection (4) may have been granted or may thereafter be granted.
(7)
Any person who explores, prospects, bores or mines for, or carries on operations for the recovery of any minerals in the seabed or subsoil of the continental shelf otherwise than in pursuance of a licence under subsection (4) and in accordance with the conditions of the licence (not being a condition relating to the payment of royalties to the Federal Government) shall be guilty of an offence, and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding ten years or to both; and all machinery, tools, plant, buildings and other property together with any minerals or other products which may be found upon or proved to have been obtained from the area of the continental shelf so unlawfully explored, prospected or mined shall be liable to forfeiture.