CO129-335 - Governor Nathan - 1906 [8-10] — Page 68

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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