Malaysia legislation

Section 75

of Mineral Enactment 1999

Section 75

(1)

The lessee shall commence development work within nine months from the date of registration of the lease:

Provided that where the lease is subject to a condition or requirement under this

Enactment prohibiting the commencement of development work until such condition or requirement is satisfied, the lessee shall commence development work within nine months of the date on which such condition or requirement has been satisfied.

(2)

The Minister may forfeit the mining land under section 76 if the lessee fails to commence mining on the land in respect of which the mining lease has been granted within one year from the production commencement date specified –

(a)

in the case of a mining lease authorising a small scale operation, in the pre-feasibility study submitted under section 63; or

(b)

in the case of a mining lease authorising large scale operation, in the mine feasibility study submitted under section 73.

(3)

The Minister may forfeit the mining land under section 76 if the level of annual ore production is less than twenty per cent of the planned raw ore production for that year as stated –

(a)

in the case of a mining lease authorising a small scale operation, in the pre-feasibility study submitted under section 63; or

(b)

in the case of a mining lease authorising a large scale operation, in the mine feasibility study submitted under section 73, for two consecutive years, if in the year following that two-year period the annual ore production is twenty per cent or less of the planned raw ore production level for that year as stated in the said study.

49

Liability to forfeiture.