Malaysia legislation
Section 127
Section 127
(2)
The Fund shall be administered by the Committee.
(3)
The lessee shall pay into the Fund –
(a)
where the term of the mining lease authorising a large scale operation exceeds ten years –
(i)
an initial amount of ten per cent of the estimated total cost for rehabilitation specified in the mine rehabilitation plan before the commencement of development work but not later than one year from issuance of the lease:
Provided that where a mining lease authorising a small scale operation is altered to authorise a large scale operation, the initial amount shall be paid before the commencement of the large scale operation; and
(ii)
annual payments, nine months thereafter, of one tenth of the estimated total cost for rehabilitation specified in the rehabilitation plan; or
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(b)
where the term of the mining lease authorising a large scale operation is less than ten years –
(i)
an initial amount equal to the estimated total cost for rehabilitation specified in the rehabilitation plan divided by the term of the lease before the commencement of development work but not later than one year from issuance of the lease:
Provided that where a mining lease authorising a small scale operation is altered to authorise a large scale operation, the initial amount shall be paid before the commencement of the large scale operation; and
(ii)
annual payments, each year thereafter, equal to the estimated total cost for rehabilitation specified in the rehabilitation plan divided by the term of the lease.
(4)
Where at any time after the issuance of the mining lease the Committee determines that the estimated total cost to implement the approved mine rehabilitation plan is excessive or insufficient, it may –
(a)
refund any excess amount to the lessee; or
(b)
require the lessee to deposit an additional amount as it may specify, as the case may be.
(5)
Where the mining lease is renewed, the lessee shall pay into the Fund such annual amounts as may be specified in the modified mine rehabilitation plan.
(6)
The Committee may specify the manner of collection of payments under subsection (3).
(7)
The Legislative Assembly may appropriate such sum as it deems necessary to be deposited into the Fund which sum shall be subtracted from the estimated total cost for rehabilitation payable by the lessee under subsection (3).
(8)
Any sum deposited into the Fund under section 131 shall be subtracted from the estimated total cost for rehabilitation payable by the lessee under subsection (3).
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(9)
Any money paid into the Fund shall be deposited in any bank duly licensed under the Banking and Financial Institutions Act 1989 [Act 372.].
(10)
The Fund and any sum accruing therefrom shall be used only for the implementation of the rehabilitation plan to which it relates and the Committee may, for the implementation of the mine rehabilitation plan, authorise payments from the Fund to the lessee, or other party so designated in the rehabilitation plan.
(11)
The Committee shall –
(a)
keep proper accounts and other records in respect of the operations of the Fund;
(b)
cause to be prepared a statement of accounts in respect of each financial year; and
(c)
cause its accounts to be audited annually by the Auditor-General.
(12)
The lessee shall implement and perform the obligations described in the mine rehabilitation plan during the term of the mining lease.
(13)
Where the mine rehabilitation plan has been fully implemented and completed to the satisfaction of the Committee, any sum remaining in the Fund shall be refunded to the lessee.
(14)
In this section, "Fund" means the Mine Rehabilitation Fund established under subsection (1).
Non-payment into the Mine Rehabilitation Fund.