Section 8 — Mining Ordinance 1960

(1)

A licence shall be substantially in the form of the Second Schedule.

(2)

A licence shall not be transferable except with the permission of the Yang di-Pertua Negara and shall be for such term, to be specified in the licence, as the Minister may think fit. Provided that a licence may be renewed for a further period on proof, to the satisfaction of the Minister, that the licensee has done a sufficient amount of prospecting work to entitle him to such renewal.

(3)

A licence shall convey to the licensee the exclusive right to prospect for metals and minerals specified in the licence within the area described therein.

(4)

A licence shall convey to the licensee the prior right during the term of such licence to select and receive a lease for a block of mining land, of an area stated in the licence, from any part of the land being State land described therein on proof, to the satisfaction of the Minister that the licensee has done a sufficient amount of prospecting work, to entitle him to such lease:

Provided that –

(a)

such area is available at the date of application for such lease and is not otherwise the subject of a licence;

(b)

that such right shall be exercised within three months from the date of expiry of the original licence or of any renewal thereof under subsection (2)

(5)

A licence shall convey to the licensee the right -

(a)

to undertake and continue such work only as may in the opinion of the

Chief Inspector, be reasonably necessary to enable him to test the mineral bearing qualities of the lands in respect of metals or minerals specified in the licence;

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(b)

to remove from the land and dispose of all metals or minerals specified in the licence raised in the course of work as aforesaid.

(6)

A licence shall convey to the licensee no right -

(a)

to prospect lands other than State lands expect with the consent in writing of the Director;

(b)

to enter upon any land which shall at the date of such licence be subject to, or the subject of an application for, a mining lease.

(7)

(a)

the licensee shall, as and when so required by the Director, clear and demarcate on the ground the boundaries of the licence area, except where in the opinion of the Director suitable natural boundaries of the licence render this unnecessary, and plot such boundaries on a map on a scale 1:12,500 and deliver such map and field notes on which it is based to the Director;

(b)

any dispute or difference between the Director and the licensee arising out of the demarcation and plotting of the boundaries under this section shall be referred to the Minister whose decision shall be final;

(c)

the boundaries cleared and demarcated in accordance with the provisions of this section shall be maintained throughout the period of the licence by the licensee to the satisfaction of the Director.

(8)

Where the holder of a licence duly empowered in that behalf prospects any land other than State land he shall be liable to make compensation to the lessee or lawful occupier thereof, and in the case of reserved land to the person having the control thereof, for any disturbance or damage caused by such prospecting operations; and such compensation shall, unless settled by mutual agreement between the parties concerned, be assessed by the Director.

(9)

A licence may impose upon the licensee an obligation to carry out a minimum amount of work thereunder and may require such form and amount of surety as may be considered necessary to ensure that such obligation is fulfilled.

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Reservation of right to alienate land for purposes other than mining.