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19. REMARKS ON THE APPENDIX.
In view of the wording of section 5 of Ordinance No. 7 of 1906, it should be noted that the suggested regulations contained in Appendix I, cannot be brought into force until that section has been amended as recommended in paragraph 15 section 5 of this report.
Part I.
From time to time it may be necessary to alter the rate of royalties, fees, etc., and the most convenient method is by notification in the Gazette.
In the initial development of a low grade mine, the temporary remission of royalty, either wholly or in part, may be necessary. This is provided for.
The premia and fees have been reduced to reasonable limits with a view to encouraging prospecting and mining. It is not from these that Government will benefit to any great extent, but from the royalty on the recovery of minerals.
Royalty should be paid on removal of the ore from the mine, based on the miners' or Government's assay value. If sales are made abroad, a deposit should be made on such assay values, to be adjusted on receipt of sales assay values from abroad. Any temporary remission of royalty can be made on express condition of the lease.
Part II.
Under present procedure, mining applications appear to be made to and dealt with by the Secretariat. It is suggested that in future they should be made to and registered in the local land office. After reference to the Military authorities and inspection of the area as regards local objections, the District Officer should forward his report and recommendations to the Secretariat, who can then refer to any other departments if necessary. All necessary data should then be available to enable the Governor to make his decision. It would facilitate matters if the Military authorities could supply the Secretariat and District Officers with a general regional map, con- fidential if necessary, indicating areas in which they are not prepared to permit mining. Two plans should be kept at the Secretariat and each district office, on which should be marked the position of (a) any lease issued (b) any prospecting licence issued, and each application should be dealt with in a separate file in which there should be a small tracing of similar scale indicating the area under application together with any conflicting rights or applications, so that it can be superimposed on the main plan for easy reference without having to mark them.
Such procedure is set forth in this part, together with the rights of and implied conditions on the part of a lessee, and other matters concerning a lease. These permit the issue of a simple standard form of mining lease, to which may be added any special conditions as may be necessary in any particular case.
Part III.
Procedure of application, rights and conditions of a prospecting licence are set out in this part. These also permit the issue of a simple form of permit, as in the case of a lease, and provide for the necessary measures of control of prospecting operations under the regulations.
The form of prospecting licence has been purposely so drafted as to omit any right or claim to the issue of a lease but merely priority of application. Prospecting operations under such licence however undoubtely carry a certain "moral right" to the issue of a lease, so no licence should be issued where Government does not intend to permit mining under lease.
Part IV.
Provides for the control and purification or water which is necessary in connexion with mining operations.
Part V.
Provides for the regulation of mining operations generally and for the safety of persons in particular, and is essential if mining operations are to be controlled in a satisfactory manner. In order to augment the general regulations of this part, provision is also made for the lessee or manager to frame, with the approval of Government, such detailed regulations as may be necessary for the safety of persons employed under any particular circumstances.