Section 63 — Mineral Enactment 1999

(1)

An application for a mining lease shall be made to the Minister in the prescribed form.

(2)

An application for a mining lease shall include a prefeasibility study which shall include –

(a)

a general description of the proposed mining scheme;

38

(b)

the expected commencement date of mineral production (to be stated as the number of months from the date of issuance of the mining lease);

(c)

a schedule of estimated annual raw ore production for the term of the mining lease;

(d)

such information as may be prescribed; and

(e)

such other information as the Minister may reasonably require for the discharge of his function in relation to the application.

(3)

Upon receipt of an application under subsection (1), the Minister shall refer the application to the Committee for its recommendation.

(4)

In considering an application for a mining lease for the purpose of making its recommendation, the Committee shall verify that the applicant –

(a)

has complied with the requirements of this Enactment; and

(b)

is technically and financially qualified to develop and mine the area to which the application relates.

(5)

The Committee shall, as soon as practicable after considering the application, transmit to the Minister its report and recommendation whether the application should be –

(a)

approved, in whole or in part –

(i)

confirming that the application has complied with the requirements of this Enactment; and

(ii)

specifying the terms and conditions subject to which the lease is to be granted; or

(b)

refused.

(6)

On receipt of the report and recommendation by the Committee under subsection (5), the Minister may, subject to subsection (8) and any other provisions of this Enactment, approve or refuse the application whether or not the Committee

39

recommends the approval of the application or the refusal thereof and his decision shall be final.

(7)

The Minister shall notify –

(a)

the applicant;

(b)

the Committee; and

(c)

the Director, in writing of his decision under subsection (6).

(8)

In the case where –

(a)

the Committee makes recommendation for the approval of a mining lease to two or more applicants;

(b)

the areas to which the applications relate overlap in whole or in part;

and

(c)

such area of overlapping is not subject to a prospecting licence or exploration licence, the Minister with the approval of the Cabinet may grant such overlapping area to the applicant which he deems best fit to mine the area.

(9)

A mining lease granted under this section shall specify whether the lessee is authorised to conduct –

(a)

a small scale operation; or

(b)

a large scale operation.

(10)

Any person who, at the time of the application –

(a)

holds a valid prospecting licence or exploration licence covering the area of land to which the application relates;

(b)

holds a valid mining lease authorising a large scale operation for the area of land to which the application relates and applies to alter such lease to a mining lease authorising a small scale operation;

40

(c)

holds a valid mining lease covering the area of land contiguous to the area of land to which the application relates; or

(d)

can show to the satisfaction of the Committee that the level of previous exploration or mining work, or both, in the area or area adjacent to the land which the application relates provides sufficient geological information to support the application, may be authorised to conduct a small scale operation.

(11)

Any person who, at the time of the application –

(a)

holds a valid prospecting licence or exploration licence covering the area of land to which the application relates; or

(b)

holds a valid mining lease authorising a small scale operation for the area of land to which the application relates and applies to alter such lease to a mining lease authorising a large scale operation, may be authorised to conduct a large scale operation.

(12)

If the application for a mining lease is granted the Director shall, as soon as practicable after being notified under paragraph (7)(c) –

(a)

upon payment of the prescribed fee;

(b)

upon payment of the first year's rent;

(c)

subject to the compliance with boundary survey requirements under section 65 and upon payment of the survey fee, if the survey was carried out by the Surveyor; and

(d)

upon payment of the fee for mining lease plan, issue to the applicant a mining lease in Form F as set out in Schedule I -

(i)

subject to such terms and conditions as may be specified therein or as may be prescribed; and

(ii)

stating whether the mining lease authorises a small scale operation or large scale operation.

41

(13)

If the applicant fails to pay the prescribed fee, the first year's rent and the survey fee required under subsection (12) within sixty days after being notified of the approval of the mining lease, such approval shall be deemed revoked.

(14)

Section 50 of the Land Ordinance [Cap. 68.] shall apply for the calculation of the amount of rent required to be paid under subsection (12).

Right to mine contingent on obtaining approval of mine feasibility study, plan for rehabilitation, etc.