65
mineral.
By this arrangement it is hoped to avoid the
difficulties pointed out by Your Lordship as likely to
arise from making provision for the payment of a royalty on
net profits and at the same time it will also be possible
to avoid claiming a royalty which would be so large a pro-
portion of those profits that it would unduly cripple the
industry. The only mineral which has hitherto been found
in quantities believed to be workable is iron ore and it
will be readily understood that the cost of bringing this
to the stage when it will be ready for exportation or for
smelting or reducing will form so large a proportion of
its estimated market value when so ready that it may not be
H
advisable to claim full 5% royalty on that value.
8.
A
Your Lordship's suggestion that it might be
desirable to specify the rate to be charged for the general
rent of the area covered by a mining lease has been met by
reserving in the 12th. regulation and in the form of mining
lease a. Crown Rent at the rate of $2 for each acre or part
of an acre payable in respect of the whole of the leased
area and a Crown Rent at the rate of $50 per acre for so
much thereof as may from time to time be occupied by work-
ings or buildings or used for storage. These rates have
been fixed with due regard to those at which lands are
leased