Malaysia legislation

Section 81

of Mineral Enactment 1999

Section 81

(1)

An application for a proprietary mining licence shall be made by the owner of any alienated land to the Minister in the prescribed form.

(2)

No proprietary mining licence shall be granted in respect of any area within a prospecting or exploration area in respect of which a prospecting licence or exploration licence has been granted except with the written consent of such licence holder.

(3)

An application for a proprietary mining licence shall include a pre-feasibility study which shall include -

(a)

a general description of the proposed mining scheme;

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(b)

the expected commencement date of mineral production (to be stated as the number of months from the date the proprietary mining licence is issued);

(c)

a schedule of estimated annual raw ore production for the term of the proprietary mining licence; and

(d)

such other information as may be prescribed or requested by the

Committee.

(4)

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

(5)

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

(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.

(6)

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 applicant has complied with the requirements of this Enactment; and

(ii)

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

(b)

refused.

(7)

On receipt of the report and recommendation by the Committee under subsection (6), the Minister may, subject to subsection (9), approve or refuse the application whether or not the Committee recommends the approval of the application or the refusal thereof and its decision shall be final.

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(8)

The Minister shall notify –

(a)

the applicant;

(b)

the Committee; and

(c)

the Director, in writing of its decision under subsection (7).

(9)

The Minister shall, subject to this Enactment, grant the proprietary mining licence if –

(a)

the applicant is also the holder of a prospecting licence or exploration licence, as the case may be, covering such land; and

(b)

the Committee has recommended that the application be approved.

(10)

If the application for a proprietary mining licence is approved the Director shall, as soon as practicable after being notified under paragraph (8)(c), and upon payment of the prescribed fee, register the instrument of proprietary mining licence in

Form G as set out in Schedule I subject to such terms and conditions as may be specified therein or as may be prescribed.

(11)

If the applicant fails to pay the prescribed fee for a proprietary mining licence within sixty days after being notified of its approval, such approval shall be deemed revoked.

(12)

Upon the registration of a proprietary mining licence in the register of proprietary mining licences –

(a)

the Director shall record or cause to be recorded an entry of such registration in the register wherein the title to the land licensed to be mined is recorded; and

(b)

the Registrar shall inform the Director of any entry, note or memorial made or cancelled in the register document of title in respect of which the proprietary mining licence has been issued and the Director shall, upon being so informed, make such necessary changes in the licence.

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(13)

The rights and obligations of a proprietary mining licence shall, while such licence continues in force, attach to and be inseparable from the registered title to the land so licensed to be mined.

(14)

A proprietary mining licence shall not be transferable or charged or dealt with otherwise than by means of an incidental to a transfer or charge of, or other dealing with, the title to the land licensed to be mined:

Provided that every transfer or charge of, or other dealing with, the said title shall extend to and include the mining rights conferred by such licence.

Relevant provisions on mining lease authorising small scale operation to apply.