Section 95

Subject to subsections (5) and (8), the holder of a mineral tenement shall pay to the State Government royalty on any mineral –

Subject to Clause (3B) of Article 110 of the Federal Constitution and subsections (3) and (4), the Minister may prescribe the rate of royalty to be paid on any mineral.

The amount of royalty for any mineral may be prescribed as –

The rate of royalty applicable to the lessee or holder of a proprietary mining licence shall be fixed for the first ten years of the lease or licence at the level prescribed as of the date the lease or licence was registered, and any change in the prescribed rate of royalty made after the date on which the lease or licence was registered shall not apply to the lessee or holder of the proprietary mining licence during the said ten year period.

The Minister may, in circumstances deemed to justify such a course of action, grant to the holder of a mineral tenement, on a yearly basis, a total or partial waiver of royalty.

The Minister or any officer authorised in writing by him may inspect and examine any book, record and account and obtain any information necessary to ascertain the quantity or value of minerals won in respect of a mineral tenement and any information necessary to verify the amount of any royalty payable.

Where a mineral tenement is held by more than one person, any person having an interest in the mineral tenement shall be held jointly and severally liable for the payment of the royalty in respect of the mineral tenement.

The Minister may commute any royalty for a commutation fee by notification in the Gazette stating –