Sessional_Paper_1938 — Page 310

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Argentiferous Galena in quartz veins is being mined, with which are associated pyrites and chalcepyrites in small quantities; modern type of milling plant installed of 150 tons per day capacity.

M.L. 8. Issued 1st April, 1931 period 50 years. Lessee-New Territories Iron Mining Company. Area-One square mile. Magnetite Iron ore. Being worked by Chinese on small scale. M.L. 9. Issued 9th May, 1936 period 21 years. Lessee--Marsman Hong Kong China Limited. Area-540 acres.

Wolframite in four major quartz veins, with which molybdenite is associated in small quantities, is being mined on a contract basis.

6. Since 1936 some 20 prospecting applications have been received. Of these 10 have been approved and the remainder are still under consideration. Attached plan B** indicates the locations of those approved (coloured pink) and under consideration (outlined pink).

7. Six applications for mining licences have been received (as indicated outlined blue on plan B*). All these are still under consideration.

8. It would appear that the present tendency is for scientific deep prospecting and mining backed by adequate capital as compared with the shallow scratchings of the past. This should be encouraged as far as possible by the issue of titles at low fees and, where necessary, the remission of royalty, either wholly or in part, during the development stages.

9. MINING LAW AXIOMS.

There are two fundamental axioms of inining law.

(i) The right of the miners to a perfectly secure title to their property so long as they fulfil certain specified conditions, the fulfilment or non ful- filment of which is absolutely within their own control.

(ii) The right of the state, or other landlord, to certain rents, royalties, or taxes on the profits of the mines, and to the reasonably constant coL- tinuation of effective work on the mines.

10. MINING LAW relates principally to the acquisition and tenure of mines, whilst MINING REGULATIONS more especially concern the methods of working, the safety of the men, and the conduct of mining operations generally. Both alike exist for the collective good of the community, and the present Hong Kong mining laws are lacking in this respect.

11. HONG KONG MINING LAWS.

The only mining law in force is "Ordinance No. 7 of 1906" and is cited as the Prospecting and Mining Ordinance, 1906, which gives the Governor in Council power

to:

12.

(i) Issue prospecting licences.

(ii) Issue mining licences.

(iii) Issue mining leases.

(iv) Make regulations for payment of fees, rents and royalties; and to impose

fines not exceeding $200.

Under this ordinance, the necessary regulations were made for :

(i) New Territories on 10th July, 1906.

(ii) Hong Kong on 5th April, 1907.

* Not printed.