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of Government lands not mined by the Government, and which a mining party has been authorized to mine, the Government interest therein may be called "Government land shares."
Section 16.- -(a.) Class mines may be worked only by land-owner.
The surface proprietor shall be authorized to mine on his own account any mineral products upon his private land coming under class (a) of section 11. If the land in question is Government land, the General Bureau must be moved to grant permission before any mine can be worked. Taxes will continue to be paid in accordance with former provincial Regulations, and no annual rental need be collected or pit-
mouth tax.
Section 17.-(b.) Class mines: procedure with regard to partnership.
In the event of mineral products falling under class (b) of section 11 existing in Government land, they will belong to the Government. Where such land is private property the proprietor is to have the first option of mining there. If he is unable to do so he may enter into a partnership with any persons for mining purposes and inake use of his land as his share in the concern. Of the resultant profits, after deducting all working expenses, which in this class of mine are inconsiderable, the land-owner shall receive 30 per cent, and the mining partner 70 per cent. The Government will only receive the annual rental and mine tax according to regulation. They will not touch the profits of the land-owner.
Section 18.-(c.) Class mines: procedure with regard to partnership.
The procedure in the case of (c) class mineral products shall be the same as in the case of (b) class, but the land-owner's share in the net profits, after deducting working expenses, shall be 25 per cent., that of the State 25 per cent, and that of the mining partner 50 per cent.
Section 19. Statistics of products of mines.
The total quantity of all mineral products, no matter whether from Government land or private land, whether publicly or privately exploited, must be declared quarterly to the Mine Deputy, and by him reported to the General Bureau of Mines for the information of the Board, in order that statistics may be prepared of the total annual output of the Empire.
Section 20. Prohibition of private sale or mortgage of mine lands.
Persons engaged in mining enterprises may not privately transfer or purchase mining property, or mortgage such properties as security for loans, but must when occasion arises make representations to the office originally issuing the permit, and upon satisfying the Mine Deputy and obtaining his sanction they can act as directed. Any breach of this Regulation will lead to punishment under the law prohibiting private sale and purchase of mines. But this rule does not apply to any property such mining party may otherwise possess.
PART VII-Land us Shares.
Section 21. Mining land to be considered as "preferential" shares.
Any owner of mine lands may use his property as capital and enter upon a partnership therewith with any person willing to engage in mining. His mining land then becomes the equivalent of a "preferential" share. His exact share of the capital of the mine will depend upon the kind of mineral produced; if (b) class, then the mining partner shall receive 70 per cent. and the laud-owner 30 per cent. of the net profits; if (c) class, then the mining partner shall receive 50 per cent, and the owner of the land 25 per cent., no matter whether the mine be large or small, difficult to work or easy, the universal procedure shall be to deduct rent, taxes, and working expenses, and for the land-owner, as owner of land shares, and the mining partner, as owner of money shares, to divide the net profits in accordance with the above scale.
If the mine is on Government land, then, after deducting the share due to the mining party, the Government shall receive the remainder. Unless the mining party is agreeable to this practice he shall be prohibited from engaging in any mining concern
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whatever. In all cases where persons enter into mining partnership with mining land ag their share in the concern, all business connected with the working of the mine shall be the concern of the mining party subscribing the capital. Any loss shall solely concern the mining party, but the declaration of a loss ipso facto deprives the land-owner of any profit on his own account. The land-owner shall, however, enjoy the right to examine at any time the accounts of the receipts and disbursements of the mining party so as to ascertain whether the business has been run at a loss or whether it shows any profit, and with a view to avoiding disputes.
Government property forms the share of the Government, and applicants to mine such property, whether Chinese or foreign, can only obtain one-half of the shares in such mines, and may not hold a greater share than the Government. Profits on Government shares will be in accordance with the scale above noted, and a Govern- ment official will be stationed at such mines to audit the accounts and watch the working.
Where land-owners have also money shares in a concern they will be liable for no losses in respect to their land shares, but will otherwise be in the same position as regards their money shares as the general public or the Government.
PART VIII-Permits.
Section 22. Necessity for obtaining permits to work mines, and restrictions
regarding.
Class (a) mines excepted, all persons wishing to obtain permission to mine such mineral products as come under categories (b) and (c) of section 11 must first apply to the Provincial General Bureau of Mines for a mining permit before starting work. Salt, however, is a Government monopoly, and China has never included it among the other mining products. Holders of permits may not mine salt, nor may they transfer the privileges granted by their permits to third parties.
Section 23. Permits to be of two kinds.
Permits are of two kinds-(1) prospecting permits, which will be supplied in advance by the Board to all Provincial Bureaux for issue; and (2) mining permits, which will be issued by the Board and sent to the Provincial Bureaux to be handed to applicants. Application may be made by single individuals, by a group of persons in partnership, or by Joint-stock Companies.
(A.) Prospecting Permits.
Section 24. Procedure on application for prospecting permit.
Applicants for prospecting permits must supply full particulars regarding themselves and of the ground they propose to prospect, together with the mineral products they expect to discover, to the General Bureau of Mines, and must produce in addition a plan of the ground to be prospected, with a Memorandum, and await the result of the report of the local authorities and the Mining Deputy to the General Bureau.
In the event of the applicant being unable to fulfil the requirements of the Regula- tions or of the existence of some other objection to the particular ground applied for, no permit can be issued. If reason for suspicion exists, the applicant may be required to produce a guarantee.
Section 25. Time limit for prospecting permits and restrictions regarding. Prospecting permits shall be good for one year. In cases of urgency a six months' extension of time may be allowed. If within two months after receipt of a permit a fully qualified mining engineer has not been appointed to proceed to the spot to prospect, no extension of time shall be allowed on any pretext. Each prospecting perniit shall authorize the prospecting of an area of ground not exceeding 30 square Chinese li in extent, such area to be wholly within a single hsien district. If more than one person applies for a prospecting permit in respect of the same ground, such permit shall be granted to the first applicant. Such permit, once issued shall not be hypothe. cated, exchanged, or sold, neither may it be utilized for any other unauthorize.i
purpose.
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