|
COLONY OF I assent, W.
A. C. GOODE, Governor. 11TH
OCTOBER, 1960. No. 20 of 1960 An
Ordinance to repeal and replace the Mining Ordinance. (Chapter 79 of the Revised Edition). Date of commencement. [1st January,
1961] ENACTED by the Legislature of
North Borneo as follows:- 1. Short
title and commencement. This Ordinance may be cited
as the Mining Ordinance, 1960, and shall come into operation on the first day
of January, 1961. PART I PRELIMINARY 2. Interpretation. In this Ordinance, unless the
context otherwise requires alienate,
Director, owner and rent have the meanings assigned to them by the Land
Ordinance [Cap. 68.]; Chief Inspector means such person as the Minister may, by notice in the Gazette, appoint to be the Chief Inspector of Mines; lease
means a mining lease granted under section 14 and lessee means the holder of
such a lease; licence
means a licence to prospect granted under section 6 and licensee means the
holder of such a licence; mine
includes any place, excavation or working whereon, wherein or whereby any
operation in connexion with prospecting or mining is carried on; minerals means all minerals
and mineral substances other than mineral oil as defined in subsection (4) of
section 24 of the Land Ordinance, and may be precious metals, precious stones
or non-precious minerals but does not include earth, gravel, stone, coral,
shell, guano, sand, loam or clay, nor any bricks, lime, cement or other
commodities manufactured from the materials aforesaid or such other mineral
substances as the Minister may by notification in the Gazette declare not to be minerals for the purposes of this
Ordinance; Minister means the Minister
for the time being responsible for matters relating to natural resources; prospecting
permit means a permit granted under subsection (2) of sections 4; State land means any land
which is not for the time being vested in any person or authority other than
the State or reserved for a public purpose under any written law. timber
and forest produce have the meanings assigned to them by the Forests
Ordinance [Cap. 169] ; to
mine means intentionally to win minerals and includes any operations necessary
for the purpose; to
prospect means to search for minerals and includes such working as is
reasonably necessary to enable the prospector to test the mineral-bearing
qualities of the land. 3. Prospecting
and mining restricted. Save as provided in this
Ordinance no person shall prospect or mine in, under or upon any lands or under
any waters within the State. PART II PROSPECTING 4. General
prospecting permits. (1) The lessee, or any person holding the
written consent of the lessee, of any land alienated otherwise than for mining
purposes may at any time prospect such land for metals or minerals provided on
week's notice of his intention to do so is given to the Director, and thereupon
in respect of such land shall have the same rights as the holder of a permit
under subsection (2) has in respect to State land. (2)
It shall be lawful for the Director
with the approval of the Minister to grant permits in the form of the First
Schedule to prospect State land for metals or minerals on payment of such fee
as may be prescribed. 5. Conditions
of permit. (1) A prospecting permit shall not be
transferable and unless otherwise provided therein shall expire on the 31st
December of the year in which it is granted. (2) A prospecting permit shall convey to the
holder the right - (a) to enter any State land and undertake and
continue such work only as may, in the opinion of the Director, be reasonably
necessary to enable him to test the mineral bearing qualities of the land; (b) upon payment of such royalty or export
duty (if any) as may be payable under the provisions of any written law, to
remove from the land and dispose of all metals or minerals raised in the course
of work as aforesaid. (3) A prospecting permit shall convey to the
holder no right - (a) to prospect lands
other than State lands except with the consent in writing of the Director. (b) to prospect lands
which are subject to a licence without consent in writing of the Director which
shall not be given contravention of the conditions of such licence; (c) to obtain a
licence or lease in respect of any land. (4) When the holder of a prospecting permit
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. 6. Prospecting
licences. (1) It shall be lawful for the Director with
the approval of the Minister to grant licences to prospect for metals or
minerals subject to such terms, conditions and limitations and upon payment of
such fee as may be prescribed. (2) For the avoidance of doubt it is hereby
declared that State land over which a licence has been issued does not thereby
cease to be State land. 7. Application
for licence and particulars to be given. (1) Every application for a licence or permit
shall be in writing addressed to the Director and shall contain the following
particulars - (a) the position,
approximate area and boundaries of the land in respect of which the application
is made; (b) the metals or
minerals for which it is proposed to prospect; (c) the extent of the
area in respect of which the applicant desires the prior right to receive a
lease. (2) Priority of application shall give no
claim or priority of claim to a licence or permit. 8. Conditions
of licence. (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; (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. 9. Reservation
of right to alienate land for purposes other than mining. Nothing in this Part shall
limit the alienation under the provisions of the Land Ordinance [Cap. 68.] of State
land for any purposes or the granting under the provisions of the Forests Ordinance
[Cap. 169.] of licences to cut, take
or remove timber and forest produce from any land notwithstanding that the land
so alienated or affected maybe, at the date of alienation, within the area
described in any prospecting licence. 10. Preservation
of timber. A prospecting permit or
licence shall convey to the holder or licensee the right to destroy, cut or
take from State land such timber and forest produce as may, in the opinion of
the Conservator of Forests, be necessary for the proper pursuit of prospecting
operations, including the construction of temporary housing, but no right to
remove any such timber or forest produce from the licence area. 11. Preservation
of water-courses and public works. A prospecting permit or
licence shall convey to the holder or licensee no right to interfere with the
flow or with the banks of any river, creek, stream, water-course or the sea
shore or to undertake any work within five chains of any public railway, road,
canal, navigable river, reservoir, irrigation work, aqueduct, building, garden
or burial ground without the consent in writing of the Director and in
accordance with such terms and conditions as the Director may impose. 12. Production of permits and licences,
inspection, etc. (1) Every holder of a prospecting permit and
every licensee shall produce his permit or licence at all reasonable time when
required to do so by the Director or by any person duty authorised by him in
that behalf. (2) Every licensee, holder of a prospecting
permit or person prospecting under the provisions of subsection (1) of section
4 shall permit the Chief Inspector or any person duly authorized by him, at all
reasonable times, to inspect any prospecting operations, and shall, at his own
cost and expense - (a) render, at such
times and in such form as the Chief Inspector may specify, such documents and
information relating to the prospecting operations as the Chief Inspector may
require; (b) within one month of the expiration of his
licence or permit, or the completion of such prospecting, as the case may be,
render to the Chief Inspector a full, true, particulars and just account of the
results of his prospecting operations. (3) Any documents or information rendered
under paragraph (a) of subsection (2)
shall, during the term of the licence or permit, or continuation of prospecting
under subsection (1) of section 4, as the case may be, be treated as confidential
by the Chief Inspector save in so far as the person by whom, or on whose behalf,
the same are rendered may permit, which permission shall not be unreasonably
withheld: Provided
that the Chief Inspector shall, without such permission, be entitled at any
time to make use of any information so received for the purpose of preparing
and publishing aggregated returns and general reports or for the purpose of
arbitration or litigation between the Government and the licensee. 13. Cancellation
of permits and licences. Every prospecting permit or
licence shall be liable to be cancelled by the Director upon proof of the
breach of any of the conditions thereof or of any of the provisions of this Ordinance. PART III MINING 14. Mining
Leases. Subject to the provisions of
this Ordinance the Minister may alienate State land for mining purposes for
such period and on payment of such premia, royalty,
rent and on such other conditions as may be specified in the lease. 15. Application
for mining lease. Every application for a lease
of land for mining purposes shall be made to the Director in the form for
applications for land prescribed by the Land Ordinance [Cap. 68.], and shall be
dealt with as prescribed in such Ordinance. 16. Land
laws to apply generally. Every lease of land for
mining purposes shall be subject to the provisions of the Land Ordinance [Cap. 68.] except
where the same are inconsistent with the provisions of this Ordinance or with
the terms of the lease. 17. Implied
rights of lessee. Every lease shall vest in the
lessee thereof in the absence of any express provision to the contrary the
following rights - (a) the right to work such metals and minerals
as are specified in the lease and are found upon or beneath the land, and, subject
to the provisions of paragraph (c),
to remove, dispose of, dress, and treat the same during such term as may be
mentioned in the lease; (b) the right to use such portion of the land
as may be required for the purpose of erecting houses, labourers quarters,
sheds or other building or of growing such plants and vegetables as may in the
opinion of the Chief Inspector be reasonable for the purposes of the mine or
for the use of the labourers; (c) subject to the provisions of paragraph (a) of subsection (1) of section 30 of
the Land Ordinance [Cap. 68.] the
right to all timber and other forest produce upon the land but no right, unless
authorised under any other written law, to remove beyond the boundaries of the
said land for any purpose (excepting only for the extraction therefrom of any metal or mineral ore) any timber or other
forest produce or any earth, gravel, stone, coral, shell, guano, sand, loam or
clay or any bricks, lime or other commodities manufactured from the material
aforesaid. 18. Implied
conditions on part of lessee. There shall be implied in
every lease in the absence of any express provision to the contrary the
following covenants and conditions on the part of the lessee - (a) that the lessee will duly pay the rent and
any royalty that may become due to the Government at such time and place in
such manner as may be specified in the lease, and to such persons as may from
time to time be authorised to receive the same; (b) that the lessee will clear, demarcate and
maintain on the ground the boundaries of the mining lease and will plot such
boundaries on a map on a scale of 1:12,500 and deliver such map and field notes
on which it is based to the Director; (c) the mining
operations shall be commenced upon the land within a period of six months from
the date of issue of the lease; (d) that thereafter the lessee shall not at
any time during the term of the lease fail for a period of more than six
consecutive months substantially and efficiently to carry on mining operations
on the land; (e) that if at any time there shall be
discovered on any portion of the land which is in process of being worked for
alluvial deposits any mineral in the form of lodes, beds, pockets, stock-works
or similar formations and the lessee be required in writing by the Minister to
work the same, he shall commence to do so in a proper and workmanlike manner
within twelve months from the date of receipt of such requisition and in
default of so doing he shall be bound to surrender to the State, if so required,
such portion of the land as the Minister may direct: Provided
that he shall receive reasonable compensation in respect of such loss or
damage, if any, as may have been sustained by him in consequence of such
surrender, but so that such compensation shall not include any sum on account
of the value of any mineral deposit which he has so failed to work as
aforesaid, and such compensation shall be assessed in the manner provided by
the Land Acquisition Ordinance [Cap. 69.],
for the assessment of compensation for land acquired for public purposes; (f) that the lessee will carry on all his
mining operations in an orderly, skilful and workmanlike manner and in
particular but without prejudice to the generality of the foregoing, so that
the mine will not cause danger or damage to persons employed in or about the
mine or the owners or occupiers of other lands; (g) that the lessee
will not use or permit to be used any portion of the land for any purposes
other than those mentioned in section 17 without the written authority of the
Director; (h) that the lessee shall cause to be kept true
and sufficient books of account of the mining and other business carried on
upon the land, and of the disposal of the metals and minerals obtained and
will, if so required, produce or cause to be produced such books for the
inspection of the Chief Inspector or of any person duly authorised by him that behalf; (i) that the lessee shall allow over the land
such access to adjoining land as shall not in the opinion of the Chief Inspector
unduly interfere with his rights under the lease; (j) that all Government officers duly authorised
in that behalf shall at all reasonable times have free access to the land and
to all workings and building in or upon the same and to any treatment plant used
in connection with mining, and that all such officers be permitted to make examination
by boring, taking samples or otherwise and shall receive from the lessee all
reasonable facilities for making such examinations; (k) that the lessee will forthwith report to
the Director the discovery of any mineral oil (as defined in subsection (4) of
section 24 of the Land Ordinance[Cap.
68.]) or of any mineral of economic value other than that for which the
lease was granted. (l) that the lessee
will render to the Chief Inspector as and when required such documents and
information relating to the mining operations as the Chief Inspector may
require: Provided
that the provisions of subsection (3) of section 12 shall, mutatis mutandis apply to all such documents and information. 19. No
transfer of lease without consent. A lessee shall not transfer
or assign his lease or any part thereof without the consent of the Minister
signified by endorsement thereon. 20. Power
to Chief Inspector to close mine. (1) If at any time it is shown to the
satisfaction of the Chief Inspector that a mine is in such condition as to
render mining dangerous to the safety or health or persons employed in or about
such mine, the Chief Inspector may order either that such mine shall be closed,
and a notice to that effect be published in the Gazette, or that such work be executed as will enable mining to be
carried out with due regard to the safety or health of persons in or about such
mine. (2) Any person who fails to comply with any
order made under this section shall be guilty of an offence and shall be liable
to a fine of ten thousand dollars and imprisonment for one year and in addition
shall be liable to a further fine of two thousand dollars for every day during
which the default continues. 21. Liability
to forfeiture. Breach of any of the
covenants and conditions described in section 18 shall render the lease liable
to forfeiture, but no such forfeiture shall be enforced unless the lessee shall
have failed to remedy any such breach within three months of the receipt of a
notice in writing from the Director calling upon him to do so. 22. Receipt
of rent not to prevent forfeiture. In any case in which a lease
has become liable to forfeiture such forfeiture may be enforced notwithstanding
the fact that rent may have been received in respect of the said lease, but, if
the forfeiture is enforced, any rent received in respect of the year in which
the forfeiture is enforced shall be repaid to the lessee. 23. Control
of water. (1) The entire property in and control of all
rivers, creeks, streams, water-courses and the sea shore below high water mark
is reserved to the State and no person shall in the course of mining operations
interfere with the bank of any river, creek, stream, water-course or sea shore
or divert, contaminate or diminish or otherwise interfere with the flow of any
river, creek, stream, water-course or sea shore without the consent in writing
of the Director and upon such terms and conditions as the Director may impose. (2) Nothing in this section shall be deemed to
derogate from the provisions of the Water Supply Ordinance 1961, or shall be
read as authorising the Director to give any consent or impose any terms or
conditions in contravention of any of the provisions of such Ordinance. 24. Resumption
of alienated land. Notwithstanding
the provisions of subsection (1) of section 24 of the Land Ordinance [Cap. 68.], as to compensation to the lessee for surface
damage, all lands alienated otherwise than for mining purposes before or after
the commencement of this Ordinance may be resumed for mining purpose as if such
purposes were a public purpose within the provisions of the Land Acquisition
Ordinance [Cap. 69.]. PART IV GENERAL
PROVISIONS 25. Appeals. Any person aggrieved by any
Order or decision of the Director or the Chief Inspector may, within
twenty-eight days of such order or decision being communicated to him, appeal therefrom to the Minister whose decision shall be final. 25 A. Force Majeure. (1) Failure on the part of a licensee or
lessee to fulfil any of the terms and conditions of his licence or lease shall
not give the Government any claim against him or be deemed to be a breach of
the licence or lease in so far only as such failure arises from force majeure, and if through force majeure
such fulfilment is delayed the period of such delay shall be added to the
period fixed by the licence or lease. (2) For the purpose of this section, force majeure includes act of God, war, insurrection, riot,
civil commotion, storm, tidal wave, flood, lightning, explosion, fire,
earthquake, and any other happening which a licensee or lessee could not
reasonably prevent or control. 26. Radio-active
minerals. Any person, whether the
holder of a prospecting permit licence or lease or not, shall within one month
from the discovery of any radio-active mineral, being a substance specified in
the Third Schedule, report such discovery to the Chief Inspector, and shall therewith
and at the end of every month thereafter during which any further discovery or any
working of any radio-active mineral shall have taken place make a further
report to the Chief Inspector and shall, upon notice being served upon him
signed by the Director, provide all such detailed information in his possession
as the Director may require in addition to such other information as may be
required under any other provisions of this Ordinance. 27. Offences
and penalties. (1) Any person found to be prospecting or
carrying on mining operations upon any land, or doing any act with the view to
prospecting or carrying on mining operations upon the same, without having
received lawful authority to prospect the same or to carry on such mining
operations thereon under any of the provisions of this Ordinance, or in breach
of any of the conditions of such authority, shall be guilty of an offence and
shall be liable on conviction to a fine of one thousand dollars and one hundred
dollars for every day during which the offence continues and all machinery,
tools, plant, buildings or other property, together with any ore or other
product which may be found upon, or proved to have been obtained from, the said
land shall be liable to forfeiture. (2) Any person in breach of or contravening
any provision of this Ordinance for which no specific penalty is provided shall
be guilty of an offence and shall be liable on conviction to a fine of one
thousand dollars. 28. Power
to make regulations. (1) The Minister may make regulations to
provide for - (a) the
regulation of mining operations and regulating the quarrying of earth, gravel,
stone, coral, shell, guano, sand, loam and clay and the adoption in or about
mines or quarries of any precautions necessary for the prevention of accidents; (b) the prohibition
of the employment of specified classes of persons in underground working; (c) the furnishing by
owners or managers of mines of statistical returns and the keeping and
production by them of books and plans; (d) the appointment
of officers to carry out the duties assigned to the Chief Inspector or Director
and the appointment of Inspectors and the assignment to them of duties and
powers; (e) the service of
notices; (f) the fixing of premia, rents, royalties and fees for the purpose of this
Ordinance; (g) any other matters
required to be prescribed or as to which subsidiary may be necessary for giving
effect to the provisions of this Ordinance. (2) Any regulations under this section may
provide that a breach or contravention of any regulation shall constitute an
offence and may provide penalties by way of fine for such offence and such
regulation may also impose different fines in case of successive or continuous
contraventions but no such penalty shall for any one offence exceed one
thousand dollars and in the case of a continuing offence no penalty shall
exceed a fine of one hundred dollars for every day during which such offence
continued. (3) The Minister may, by order, add to, vary
or revoke any of the Schedules to this Ordinance. 29. Amendment
of section 24 of the Land Ordinance. Section 24 of the Land
Ordinance [Cap. 68.] is amended by deleting subsection (2) thereof and
substituting therefore the following subsection - (2)
It shall be lawful, and shall be
deemed always to have been lawful, for the Governor to grant licences under
this Ordinance to other to search for, win, carry away and dispose of mineral
oils and to grant leases of the same, together with the right to enter upon and
occupy any lands for the purpose of operations under any such licences or
leases, and all such other rights incidental or supplementary thereto as to him
may seem proper. 30. Repeal. The
Mining Ordinance [Cap. 79.], including
subsidiary legislation made thereunder, is repealed.
Passed
this 28th day of September, 1960. R.
A. LIND, Clerk of
Legislative Council. THIS PRINTED IMPRESSION has
been carefully compared by me with the Bill which has
passed the Legislative Council and found by me to be a true and correct copy of
the said Bill. R.A.
LIND, Clerk of
Legislative Council. July 2007 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||