N.-W.F.P. Mining Concession Rules 1976

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NORTH‑WEST FRONTIER PROVINCE MINING CONCESSION RULES, 1976

[Gazette of N: W. F. P., Extraordinary, 1st February 1977]

No. M.D. (S. O. II) 7‑14/73.‑In exercise of the powers conferred by section 2 of the Regulation of Mines and Oilfields and Mineral Development (Govern ment Control) Act. 1948 (ActXXIV of 1948), and in supersession of the Pakistan Mining Concession Rules, 1960 in their application to the North -West Frontier Province, the Government of the North‑West Frontier Province are pleased to make the following rules, namely :‑---

**1. Short title and commencement.‑(1)**These rules may be called the North‑West Frontier Province Mining Concession Rules 1976.

(2) They shall come into force at once.

  1. Definitions.‑In theserulesand in every prospecting licence and mining lease issued hereunder, unless there is anything repugnant in the subject or context.‑---

(a) "Act" means the Regulation of Mines and Oilfields and Mineral Development (Government Control) Act, 1948;

(b) "assignee" means a person or a party to whom a lease is assigned, transferred or mortgaged under these rules;

(c) "Collector" means the Chief Revenue Officer incharge of the District;

(d) "Government' means the Government of the North‑West Frontier Province:

(e) "Lessee" means a person to whom a mining lease under these rules is granted and includes his successors‑in‑interest;

(f) Licensee means a person to whom a prospecting Licence under these rules is granted and includes his successor‑in‑interest;

(g) "Licensing Authority" means the authority to whom applications for prospecting licences and mining leases are to be submitted under rule 6 of these Rules; and who has the powers to grant mining concessions and take action as provided under these rules;

(h) "mineral" for the purpose of these rules means all surface and sub surface natural deposits of ores and metals and other metallic and non‑metallic substances but shall not include;

(i) radioactive minerals necessary for the generation of nuclear energy except Beryl;

(ii) mineral oil;

(iii) minor minerals, that is ordinary sand, bajri, gravel, etc.; and

(iv) natural gas;

(i) "mines" means any surface or underground excavation where any operation for the purpose of searching for or obtaining a mineral has been or is being carried on and includes all works, machinery, tramways, ropeways and sidings, whether above or below ground, on or adjacent or belonging to or appertaining to a mine; but does not include the manufacturing or processing plant;

(j) "mininglease" Means a lease granted under these rules to worn, develop and commercially exploit a mineral deposit in accordance with the scheme of development and exploitation approved by the licensing authority;

(k) "pit's mouth "means a place within the property leased, or licensed where the mineral is collected, stored or taken charge of immediately after it has been mined;

(l) "prospecting licence" means a licence granted under these rules to prospect for a mineral;

(m) "quarry" means to dig or bore on, into or under the land, exposed to surface, to win, extract or collect any mineral therefrom in any manner; and

(n) "Schedule" means a Schedule appended to these rules.

3. Grant of licences and leases.‑‑No licence to prospect for any mineral and no lease for mining any mineral shall be granted otherwise than in accordance with these rules.

  1. Existing licences and ***leases to***continue.‑Any prospecting licence or mining lease granted or renewed by a competent authority under any law for the time being in force and existing immediately before the coming into force of these rules shall be deemed to have been granted or renewed for the sub sisting period in accordance with the provisions of these rules as if these rules were in force at the time such licence or lease was granted or renewed and shall be treated accordingly.

  2. Persons by whom, application may be made.‑Any person may apply for the grant of a prospecting licence or a mining lease for minerals covered under these rules.

  3. Manner in ***which***application may be made.‑Every application for a prospecting licence or a mining lease shall be made in writing in the form set out in the First and Second Schedules respectively and shall be addressed to the licensing authority and presented at his Office against a receipt or sent by post under a registered cover.

  4. Particulars of application.‑(1) The licensing authority to whom an application is submitted shall maintain separate registers of applications for prospecting licences and mining leases containing the following columns, specifying ;‑

(a) Serial No.

(b) Date and time of receipt of the application.

(c) Name of the applicant.

(d) Complete address of the applicant.

(e) Whether a national of Pakistan or a company incorporated in Pakistan.

(f) Mineral for which prospecting licence or lease is required.

(g) Period for which the licence or lease is required.

(h) District or Districts in which licence or lease is required.

(i) Place and total area applied for.

( j ) Applicationfee paid.

(k) Final disposal of the application.

(l) Remarks.

(2) The register and the Master Plan or topo sheet or index map showing the area for which the mining leases or prospecting licences have been granted shall be opened to public for Inspection on payment a fee of Rs. 20.00 for topo sheet or master plan or index map.

(3) Every application for a prospecting licence or a mining lease shall inter alia contain ‑

(a) in case of an application by an individual, his name, father's name, address, place of domicile (Domicile Certificate to be attached), nationality and occupation; and

(b) in case of a firm an authenticated copy of partnership deed, and in the case of a Registered Firm, a copy of the Registration Certificate.

[Note‑‑Firm shall include company registered under the Companies Act, 1913].

(4) An application by an alien or a company incorporated outside Pakistan, shall contain, in addition to the matters specified in sub‑rules (1) and (3), full particulars of the company to be incorporated in Pakistan under rule 13 for the purpose of receiving the grant of and working any licence or lease which may be granted in pursuance of the application.

(5) Every application for the grant of a prospecting licence or a mining lease shall be accompanied by a sketch prepared by the applicant from the Survey of Pakistan Topo Sheet of the scale 1,50,000 or the nearest scale available, duly signed by the applicant, showing boundaries, gridlines, grid numbers, location and the acreage of the area in respect of which the licence or lease is applied for. The licensing authority shall prepare ten copies of the plan of the area applied for, in every case, as per sketch supplied by the applicant, on payment of fee of Rs. 200 as cost of the plan. This fee shall be deposited by the applicant alongwith the application fee and shall be non‑refundable. The fee on account of preparation of plans maybe revised from time to time by general or special order of Government.

(b) The applicant for a mining lease shall furnish with .[ifs application evidence of his financial and technical qualifications and his ability to comply with the terms and conditions in the model clauses set out in the Third Schedule relating to the lease for which application is made. In case of an alien firm or a company incorporated outside Pakistan, sufficient evidence of technical and financial soundness will have to be furnished to the licensing authority to prove the ability and competence to work, operate or develop any area. The applicant shall also state whether any application for such lease has been submitted by him in the past in any other country and the result thereof. The applicant shall also furnish upon request by the licensing authority such further evidence relating to such matters, as may be necessary and ff such further evidence is not furnished to the satisfaction of the licensing authority within three months of the request thereof, the application shall, unless the licensing authority otherwise determines, be deemed void.

(7) The information supplied or furnished to the licensing authority in pursuance of an application made in accordance with these rules other than that incorporated in the register referred to above in sub‑rule (1) shall be treated as confidential by the licensing authority.

  1. Application fee.‑Every application for a' prospecting licence or mining lease shall be accompanied by a non‑refundable fee of :‑-----

(a) Rs. 150 in the case **of a prospecting license;**and

(b) Rs. 300 in the case of a mining lease or for conversion of a prospecting licence into a mining lease.

*9. Demarcation of the area in special cases.‑ (1)*The licensing authority may declare in respect of any particular area that in lieu of furnishing the particulars required under sub‑rule (5) of rule 7 by the applicant for a pros pecting licence or a mining lease, the area shall be demarcated by the licensing authority by adopting the procedure set forth below or such modifications thereof as it may prescribe, namely :‑

(a) At every angle or corner of each boundary line or as near thereto as is practicable, the applicant shall affect the fixation of pillars of substantial, material standing not less than two feet above the surface of the ground, and being not less than two feet square or diameter at the base, at his expense.

(b) The direction of the boundary line on each side of each pillar shall be indicated with reasonable care by a trench having a length of four feet, and a breadth and depth of not less than six inches; provided that if trenches cannot be conveniently cut, the direction of the boundary lines shall be indicated by finger posts, or in any other manner suitable forthe purpose.

(c) The pillars shall bear or have affixed thereto some distinguished marks.

(d) In the case of an application for land on the river bank, it shall not be necessary to mark out the land below flood level.

(e) Nopillar employed in marking out the land applied for shall be removed or defaced after the application has been filed without prior permis sion of the licensing authority.

(2) The applicant shall deposit the demarcation fee at such rate or rates as the licensing authority may by general or special order prescribe to meet the cost for survey of the area;

Provided that if no rate is prescribed by the licensing authority, the application shall be accompanied by a minimum fee of rupees one thousand and five hundred a;

Provided further that the depositing of fee shall not confer upon the applicant any right in respect of grant of the licence or the lease, as the case may be.

(3) Unless the licensing authority is of the opinion that it is not expedient to grant the licence or lease, as the case may be. it shall, as soon as possible after the receipt of application, cause the land applied for to be surveyed at the expense of the applicant at the rates provided rule 5 (2) and the area and all other details ascertained in the course of such survey shall be presumed to be correct.

10. Separate application to be made for each area and each mineral.‑---(1) When an applicant requires a licence or lease for two or more areas, or more than one mineral a separate application shall be made in respect of each area and for each mineral.

(2) Nothing in these rules shall prevent more than one licence or lease being granted to the same person.

11. Assignment.‑(1) Alicence shall not be assigned, alienated or sublet in any form by the‑licensee.

(2) A lease shall not be assigned or alienated in any form without the previous consent in writing of the licensing authority. Such a consent shall be granted or refused within a period of three months after the receipt of such application. In cast the application Is rejected, reasons for rejection shall be stated unless their disclosure is against public interest.

(3) A mining lease shall not be sublet by the lessee to any party, in any way.

(4) Notwithstanding the provisions of sub‑rules (1), (2) and (3) above the licensee or lessee may, under intimation to and with the consent of the licensing authority assign, sublet, mortgage or charge the lease or licence to or in favour of Industrial Development Bank of Pakistan or its successor‑in- interest or its assignee or to any other Bank or Financing Institution approved by the licensing authority in that behalf

12. Method of making application for assignment.‑(1) An application by a lessee for the assignment of a lease shall be in the form set out in the Second Schedule, addressed in writing to the licensing authority and shall be accompanied by a non‑refundable fee of Rs. 300 or fee as prescribed by the licensing authority from time to time. The applicant shall furnish in the application the same particulars in respect of the proposed assignee as are required in the case of applicants for lease under rule8.

(2) An agreement in the form set out in the Seventh Schedule duly executed by the proposed assignee, shall also accompany the application referred to in sub‑rule (1);

Provided that where any assignment is proposed to be made in favour of the Industrial Development Bank of Pakistan or any other Financing Institution, a formal agreement under sub‑rule (2) will not be necessary, and in. such a case it will be sufficient if the notice of assignment is given by the Industrial Development Bank of Pakistan or the Financing Institution con cerned to the licensing authority. In case the lessee fails to repay the loan, etc., the industrial Development Bank of Pakistan or the Financing Institu tion shall get the assignment registered with the licensing authority and in such a case the Industrial Development Bank of Pakistan or the Financing Institution shall acquire all the rights and shall be liable to all the obligations of the original lessee.

*13. Companies to be incorporated in Pakistan.‑~1)*In case of a company, a licence or lease shall only be granted if the company is incorporated in Pakistan. (2) An Alien(s) shall not be eligible for grant of mining concession under these rules, unless the alien(s) forms a company incorporated in Pakistan.

14. Acknowledgementof application.‑On receipt of the application under rule 6, the licensing authority, or such Officer as it may authorize in this behalf, shall note thereon the date and time of its receipt and shall issue to the applicant an acknowledgement stating the date and time of receipt of the application. Acknowledgement to be given by the licensing authority or his authorized officer shall clearly state the documents received alongwith the application.

  1. Priority.‑If more than one application for the grant of prospecting licence or mining lease in respect of the same land is made. then unless the licensing authority in his discretion decides otherwise, preference may be given to the applicant who has, in accordance with these rules, filed his appli cation first, subject to the fitness of the applicant and his suitability which play be proved or established to the satisfaction of the licensing authority.

  2. Inquiry.‑On receipt of an application the licensing authority shall, as far as possible, ascertain that the area applied for does not overlap with any other area already covered by a licensee or lease of any other applied for area. In case the applied for area is involved in overlapping with the already granted area(s), the application shall be considered for the grant of the free available area, if any in accordance with the rules.

17. Refusal to grant *licence, etc.‑If,*in the opinion of the licens ing authority, it is not expedient to grant a licence or a lease, it shall refuse it and the refusal will be communicated to the applicant within a period of one month of taking such a decision. The reason for refusal will also be conveyed to the applicant unless it is inexpedient to do so in the public interest.

18. Lapse of right to lease.‑Ifthe lease deed is not executed within three months of the communication of the approval of the application for a mining lease. the right of the applicant to such lease shall be deemed to have lapsed, after a reasonable opportunity has been provided to the lessee by the licensing authority to explain the delay; provided that such right shall not he deemed to have lapsed if the licensing authority considers that the delay is not attributed to any fault of the applicant.

  1. Right of *surrender.‑(1)*Subject to sub‑rules (2) and (3) the licensee or lessee shall be at liberty to surrender his licence or lease in whole or in part of licensed or leased area at any time on giving not less than ninety days notice in writing to the licensing authority. Upon the expiry of ninety days, the licence or lease shall be determined; provided that all lawful orders issued by the licensing authority and the Chief Inspector of Mines have been complied with and all sums due on account of the licence or lease have been paid and the shape and size of the area remaining after surrender conform to the rules.

(2) The licensee or lessee shall be responsible for all payments due from him on account of acts of omission and commission during the term of the licence or lease even after its determination.

(3) Where the licence or lease have been assigned or sublet to or charged in favour of Industrial Development Bank of Pakistan or its successor‑in- interest or assignee or any other bank or Financing Institution approved by the licensing authority, the licensee or lessee shall not surrender the licence or lease except with the consent in writing of the bank or the Financing Institution concerned.

  1. *Reduction of rent,*etc.‑On the surrender of area held under the prospecting licence or mining lease as provided in rule 19, the licensee or lessee shall become entitled to a proportionate reduction in rent provided that such reduction in rent shall not take effect during the year in which he surrenders the area and for which rent has either been paid or has accrued.

21. Publication.‑Assoon as possible, after the grant, surrender, determination or assignment of any licence or lease under these rules, the licensing authority shall publish notice of such grant, surrender, determination or assignment in the official Gazette stating the name of the licensee or lessee or assignee and a brief description of the area concerned.

22. Terms and conditions of leases.‑The mining lease shall be in the form set out in the Third Schedule and may include such additional clauses not inconsistent with these rules and the *Act,*relating to ancillary matters as the licensing authority may deem fit to insert.

  1. Security deposit.‑(1) In case of a prospecting licence the security deposit will be at the rate of Rs. 2.50. per acre subject to a minimum of Rs. 1,000. In the case of a mining lease the security deposit will be at the rata of Rs. 2.50 per acre, subject, to a minimum of Rs. 1,000 and maximum of Rs. 10,000.

(2) If the application for a lease relates to an area for which the appli cant already holds a prospecting licence, any amount held in deposit under sub‑rule (1) of this rule in respect of such prospecting licence shall be carried to his account.

24. Adjustment of Security.‑If a mining lease is granted to a person who had made a deposit under rule 25 the amount of the deposit after making such deductions or compensation for surface damage penalty or otherwise, as the licensing authority may order, shall be carried to his credit and adjusted towards the rents, royalties or other deposits payable under these rules. If be declines to receive or fails to obtain any such lease, as aforesaid, the amount will be returned to him on his satisfying the licensing authority that the conditions of rules 32 and 34have been complied with and on hip furnishing the licensing authority with the information required by rules 37 and 70. ,

PART II‑PROSPECTING LICENCE

25: Rights under a prospecting licence.‑Alicence to prospect for minerals, hereinafter called prospecting licence shall, subject to these rules and the conditions, if any, prescribed by the licensing authority at the time of grant of prospecting licence, confer on the licensee the sole right‑

*(a)*to mine, quarry, bore, dig and search for, win, work and carry away and dispose of any specified mineral or minerals laying or being within, under or throughout, the land specified in the licence and to clear undergrowth and bush-wood and make road or roads on the said land;

(b) subject to the approval of the licensing authority to use for the purpose aforesaid the water upon or within any of the said lands and to collect and impound the same for such purpose in such manner that in the exercise of this privilege ' the licensee shall not deprive any lands, villages, houses or water places for cattle of a reasonable supply or water as heretobefore accustomed;

(c) subject to the approval of the licensing authority, to erect and bring upon the lands demised under prospecting licence such temporary huts, sheds and structures, machinery and conveniences, chattels and effects as shall be proper and necessary for effectually carrying on the prospecting operations and to enclose with a fence the lands occupied by the aforesaid construction; provided that such fence does not interfere with existing or projected rights of way or roads.

*26. Area.‑‑(1)*Except as otherwise decided by Government a prospecting licence shall not be granted in respect of an area more than five square miles.

(2) Eacharea in respect of which a prospecting licence is granted, shall' be as far as possible, a compact area and shall either be limited by well, marked permanent physical boundaries or be bounded by straight lines, and the shape of the area shall be determined by the geological: setting.

27. Maintenance ofregisters.‑The licensing authority shall maintain a register of prospecting licences granted by it, containing the following information :‑

  1. Number of the prospecting licence.

  2. Name of the Licensee.

  3. Address of the Licensee.

  4. Date of grant of Licensee.

  5. Mineral for which licence is granted.

  6. Period for which granted.

  7. Situation and boundary of the land.

  8. Total area.

  9. Annual fee payable under rule 31.

  10. Amount of security deposit.

  11. Particulars of disposal or refund of deposit.

  12. Date of first renewal.

  13. Date of second renewal.

  14. Date of conversion of prospecting licence into mining lease.

  15. Remarks.

  16. Period.‑A prospecting licence shall in the first instance be valid for a period not exceeding two years and not less than one year. The total period of the prospecting licence shall not exceed five years.

  17. Renews/.‑Subject tothe licensee having carried out his working obligations under rule 30, the licensing authority may, in its discretion, grant further renewals of prospecting licence for a period of twelve months at a tame to enable the licensee to complete the prospecting work to the satisfac tion of the licensing authority provided the licensee had applied to the licensing authority in writing at least two months before the expiry of the initial period of the prospecting licence.

*30. Working obligations.‑(1)*The licensee shall, in respect of the area covered by the licence, carry out the prospecting work with due diligence and in a workman like manner in accordance with the general conditions of carry ing out prospecting operations in the Area, up to the entire satisfaction of the licensing authority and in accordance with specified instructions, if any, accompanying the letter notifying the grant of the licence. The licensee shall submit to the licensing authority. in such form as may be prescribed by it, quarterly reports about the progress of work alongwith layout plans indicating the position of working carried out by the licensee and shall abide by the instructions issued by the licensing authority from time to time in respect of the prospecting work. The licensee shall also maintain at the mines the accounts of the minerals won and carried away from the site in the pres cribed form.

(2) If, in the opinion of the licensing authority, the licensee has failed to fulfil the working obligations including acceptance of terms and conditions of letter of allotment, work orders, payment of Government dues, demarcation of the area and submission of prescribed progress reports or has not carried out reasonable pros pecting operations up to the satisfaction of the licensing authority or has committed any other breach, the licensee shall forfeit the right of renewal of the prospecting licence or grant of a mining lease over whole or any part of the area covered by the licence and in such case the licence may also be liable to cancellation at any time during the currency of a term. This is in addition and not in lieu of any other punishment provided under these rules.

  1. Annual fee.‑(1) Thelicensee shall pay a fee of rupees two per acre per year or part thereof for the land covered by the licence during the first two years of the licence. This fee shall be doubled each time the licence is renewed beyond the initial period of two years;

(2) The annual fee shall be payable for each mineral separately even if the area under prospecting licences for different minerals is the same.

  1. Compensation.‑The licensee shall make and pay such reasonable compensation, whether recurring or fixed as may be assessed by the licensing authority, for any damage, injury or disturbance which may be done by the licensee to exercise of the powers granted by the licence, to the party(ies) effected by such damage, injury or disturbance and shall indemnify Govern ment against all claims which may be made by third parties in respect of any such damage, injury or disturbance.

  2. Operations in the reserved and protected forests.‑Alloperations conducted under the authority of these rules within a reserved or protected forest shall be subject to such conditions as Government may by general or special order from time to time prescribe. It shall be a condition of every licence granted under these rules that before the commencement of prospecting operations within a reserved or protected Forest, 30 days' notice shall be given by the licensee to the Divisional Forest Officer of the intention to commence operations and that the operation shall be conducted subject to any condi tions that he and licensing Authority may prescribe.

  3. To plug mines, etc.‑Save in the case of land over which the licensee shall have been granted a mining lease on or before the determination of the licence, ho shall within one month next after the determination of the licence or the date of abandonment of the undertaking, whichever shall occur first, securely plug all mines and fillup or fence any holes or excavation that he may have made in the land to such extent as the licensing authority may require and shall to the like extent restore the surface of the land and all buildings thereon which he may have damaged in the course of prospecting; provided that the licensee shall not be compelled to restore the surface of land or any buildings in respect of which full and proper compensation has already been paid under rule 32.

  4. Structure of property left for more than two months after determina tion of licence.‑If threemonths after the expiry or determination of a pros pecting licence, there shall remain in or upon the area of the prospecting licence any machinery, buildings or structures or minerals or mineral ores or other property which the licensee is entitled to remove from the area, the same shall become the property of Government.

  5. Right ofthe licensee to a mining lease.‑The licensee shall have a preferential right to a mining lease in accordance with the terms contained in these rules for mining leases, provided that he has carried on prospecting operations to the entire satisfaction of the licensing authority its accordance with the working obligations, paid all Government dues regularly and paid compensation to the third parties as provided in these rules. Such lease may include the whole or a part of the area for which the prospecting licence was ranted. The licensing authority may in its discretion grant the conversion of prospecting licence into mining lease for any period not exceeding 30 years or arc of the area, covered under the prospecting licence or refuse for whole p the grant of mining lease by giving sufficient reason for refusal.

  6. Disclosing the i nformation acquired by the licensee during the course of life operations. if so required by the licensing authority the licensee shell, before the fee deposited by him under rule 23 is returned to him, disclose to the licensing authority all information acquired in the course of the operations carried on under the licence, regarding the minerals contained therein, or the geological formation of the area.

PART III**‑MINING LEASE**

*38. **Application.‑(1)***An applicant for a mining lease shall submit alongwith the application a complete development and exploitation scheme for the approval of the licensing authority for working and exploiting the qualified personnel. The scheme shall be prepared mineral under technically and authenticated by qualified technicians having technical qualifications prescribed in the Fourth Schedule.

(2) The development and exploitation scheme shall inter alia include‑---

(i) a statement of expenditure incurred by the licensee during prospecting, duly audited and certified by a Registered Firm of Auditors/Chartered Accountants;

(ii) detailed maps of the area of which at least one‑third would show the geology of the area m detail on a scale of 5 ‑‑‑1 mile minimum;

(iii) location and description of major deposits;

(iv) estimates of proved and probable reserves;

(v) minimum rate of production;

(vi) method of mining including machinery and equipment to be used ;

(vii) technical personnel to be employed at various stages of exploitation;

(viii) details of roads and other surface as well as underground workings, and construction work, such as stores and lamp rooms, workshops beneficiations or mineral dressing plants, office and residential accommodation and other amenities for staff and labour to be provided;

(ix) estimated phased expenditure on the scheme; and

(x) development and exploitation scheme.

(3) The applicant shall also furnish banker's guarantee for such reason able sums as the licensing authority may fu at the time scrutinizing the scheme submitted under sub‑rule (1).

(4) The licensing authority may approve the development and exploitation scheme subject to such modifications as it may prescribe; provided that if no changes are made, the development and exploitation scheme shall be approved three months of its receipt. No change in the approved development within exploitation scheme shall be made by the lessee without prior approval and in writing of the licensing authority. A copy of the approved development and an exploitation scheme shall be kept by the lessee at the mine.

39. Register of mininglease.‑The licensing authority shall maintain a register of mining leases granted by it specifying.

  1. Number of the mining lease.

  2. Name of the lessee.

  3. Address of the lessee.

  4. Date of grant of lease.

  5. Mineral for which lease granted.

  6. Period for which granted.

  7. Situation and boundaries of the land.

  8. Estimated total cost of exploitation scheme.

  9. Rents and rate of royalty payable under these rules.

  10. Date of third renewal.

  11. Date of assignment transfer of the lease and fee paid therefor and names and addresses of the partners of the assignee.

  12. Remarks.

  13. Area.‑The lease shall not be granted in respect of any ‑ area of more than five square miles.

  14. Period.‑The initial term of a mining lease shall not exceed thirty years but the lease shall contain a clause permitting renewal at the discretion of Government for a further period not exceeding thirty years on the terms and conditions in accordance with the rules in force.

  15. Dead Rent.‑The lessee shall pay a fixed half‑yearly dead rent in advance by the last day of January and last day of July each year and proportionate advance dead rent for the broken periods, it any, at the commencement of and termination of the lease at a rate not less than that laid down in the Sixth Schedule, provided that the lessee shall not pay both royalty and dead rent in respect of the same lease but only such one of them as may be of the greater amount.

  16. Compensation.‑The lessee shall make and pay such reasonable compensation, as may be assessed by the Licensing authority for any damage, injury or disturbance which may be done by the lessee in exercise of the powers granted by the lease, to the party(ies) affected by such damage, injury or disturbance and shall indemnify Government against all claims which may be made by the third parties in respect of any such damage, injury or disturbance.

  17. *Working Obligations‑Commencement of operations,*etc.‑Unless the licensing authority for good and sufficient reasons of which it shall be the sole judge, otherwise directs, the lessee shall commence operations according to the approved development and exploitation scheme within six months from the date of the grant of mining lease within the granted area and shall thereafter carry them out effectively in a proper, scientific, skilful and work manlike manner, up to the entire satisfaction of the licensing authority and shall not depillar or abandon the mine without obtaining the prior approval of the licensing authority. It shall be deemed to be a breach of this condition if the lessee within one year of the commencement of the operations, without good and sufficient cause, fails to work the mine so as to produce sufficient mineral for which the royalty accrued is at least equal to the dead rent. In case of breach of any condition of working obligations by the lessee, his case shall be liable to cancellation at any time during the currency of a term,

PART IV‑MISCELLANEOUS

  1. Surface Rent.‑The licenseeor lessee shall also pay for all land ‑which he may use or occupy superficially for the purpose of the operation conducted under the licence or the lease, a surface rent at the rate as mutually agreed by the licensee or lessee and the land owners or at such rate or rates as are determined by the Licensing authority. While determining such rate or rates the licensing authority shall have due regard to the nature of the area, soil conditions, mineral value, land value, extent of the area and other relevant factors. Such determination by the licensing authority shall be final and binding on all concerns.

  2. Auction of areas with proved mineral resources.‑In case of cancella tion or termination of a prospecting licence or a mining lease over an area which bas proved mineral reserves, or in respect of an area in which the existence of economic quantities of mineral has been established through efforts of a public, semi‑public or private agency, not being licensed or leased by the competent authority, the licensing authority may auction the area for ,grant of a mining lease on such terms and conditions as the licensing authority may determine, or grant it to any deserving party by adopting usual procedure.

47. Boundarymarks.‑The licensee or lessee shall, at his own expense, erect and at all times maintained and keep in repair boundary marks and pillars according to the demarcation to be shown on a plan annexed to his licence or lease.

48. Weighing machine etc. ‑The licensee or losses shall provide at or near the mine or quarry a properly constructed and correct weighing machine or other suitable means for determining the weight or quantity of the mineral produced.

49. Keeping of accounts *and their inspections.‑(1)*The licensee or lessee shall keep correct accounts at the mine premises showing the quantity and particulars of the minerals obtained and dispatched from the mine, the number of persons employed therein and complete plans of the mine, and shall allow any Officer anthorized by the licensing authority in that behalf at any time to examine such accounts and place.

(2) The detail of production, despatches, sales, etc., of minerals shall be maintained in forms prescribed by the licensing authority from time to time.

50. Strengthening and supportingof mines.‑The licensee or lessee shall strengthen and support to the satisfaction of the licensing authority whole ,or any part of the mine when in its opinion such strengthening or support is needed for conservation and economic development of the mineral or for any other reason.

51. Discovery of otherminerals.‑The licensee or lessee shall without ,delay report to the licensing authority the discovery of any other mineral not covered under the licence or lease, on or within any of the lands or mines demised by the licence or lease, he shall not, unless a fresh licence or lease ,in respect of the mineral(s) as discovered is granted to him under these rules, have any right to those minerals. Subject to the discretion of the licensing authority the licensee or lessee may, upon application, be granted prospecting licence/mining lease for such other mineral(s) discovered and reported by him.

52. Delivery of mines, etc., In goodcondition.‑On determination of the licence or lease the licensee or lessee shall deliver to the licensing authority the said premises and all mines (if any) dug therein in a proper and workable state, save in respect of any sanctioned abandonment.

  1. Pre‑emption.----‑Government shall at all times have the right of pre‑ emption over the mineral laying upon the land in respect of which licence or lease has been granted or elsewhere under the control of the licensee or lessee; provided that the fair market price shall be paid to the licensee or lessee for all minerals taken in pre‑emption.

  2. Right toacquire.‑Government shall have the right to acquire any mine for public purposes on payment of reasonable compensation to be determined by the licensing authority.

  3. Shape ofarea.‑Each area in respect of which a prospecting licence or mining lease is granted shall be as far as possible, a compact area and may either be limited by well‑marked physical boundaries or be bound by lines.

  4. Limitation ofworking area.‑(1) The licensee or lessee shall not carry on or permit to be carried on any prospecting or mining operations at or up to any point whether on surface or underground, within a distance of fifty yards inside his licensed or leased boundaries, except with the previous permission in writing of the licensing authority and in accordance with the conditions, if any. if may impose, provided that the restriction shall not apply to a common boundary of the said lands and of any contiguous area leased/ licensed to the lessee/licensee.

(2) The licensee or lessee shall not carry on or permit, to be carried on any prospecting or mining operations at or up to any point within a distance of r00 yards from any railway line, reservoir, canal or other public works or buildings.

  1. Construction of buildings prohibited inpublic places, ate.‑The licensee or lessee shall not erect any building or carryon any surface operations upon any public pleasure ground, burning or burying ground or place held sacred by any class of persons or any house or village site, or public road or any other place which the licensing authority may exclude from such operations.

58. Damageto trees.‑The licensee or lessee shall not cut or damage any tree on unoccupied land or unreserved forest without the permission in writing of the licensing authority or of such Officer as it may appoint not shall he, without the permission of the licensing authority, disturb the surface of any road, or enter upon any public pleasure ground, burning or burying ground or place held sacred by any class of persons or interfere with any right of way, well or tank.

  1. Operations in tie reserved andprotected forest.‑All surface operations conducted under the authority of these rules within a reserved or protected: forest shall be subject to such conditions as the Forest Department and the: licensing authority may by general or special order prescribe from time to time Instruction and guidance to this effect shall be obtained from the Forest Department by the licensing authority shall be final.

  2. Access to other licensees orlessees.‑The licensee or lessee shall allow existing and future licence or lease holders of any area which is com prised in or adjoins or is reached by the land held by the licensee or lessee all reasonable facilities of access thereto.

  3. Priority.‑When applications for a prospecting licence or a mining lease area presented in respect of the same area, by applicants not being in possession of a prospecting licence or a mining lease over the same area, the priority may unless the licensing authority decides otherwise in any particular case. be deemed to lie with the applicant, who, after compliance with the procedure prescribed by these rues shall have been the first to file his appli cation with the licensing authority or is otherwise considered suitable for such grant;

Provided that if the prior right the prospecting licence or mining lease is held to lie with an applicant for a lease the licensing authority may in its discretion grant him a licence, instead.

Explanation.‑For the purpose of this rule the return of the plan/map for correction of overlapping or survey data will not affect the original' priority of the applicant.

  1. Fitness of applicant.‑The licensing authority may grant a prospect ing licence or mining lease to an applicant, provided be is considered fit for such grant. Where an applicant is already holder of some prospecting licences or mining leases, his performance in respect of such licences or leases shall be taken into account while finding his fitness.

  2. Inspection.‑The licensee or lessee shall provide the licensing authority or any other Officer authorised by the licensing authority all reasonable facilities to enter upon the mine premises including inspection of records at the mines and elsewhere, carry out survey, measurement, exami nation or enquiry about any matter auxiliary or incidental to the matters set out in these rules and the Act.

  3. Royalty.‑(1) Government may from time to time, fix rates of royalty for various minerals by Notification in the official Gazette.

(2) The licensee or lessee shall pay royalty at the prescribed rates quarterly by 7th day of April, July, October and January on the mineral extracted by him during the preceding three months. Failure on the part of lessee of licensee to pay the royalty within the prescribed time may result in the penalty including the cancellation of prospecting licence or mining lease and the outstanding dues shall be recoverable as arrears of land revenue.

  1. *Submission of production returns.‑(1)*After the grant of permission to commence prospecting or mining operations the licensee or lessee will send to the licensing authority or any Officer authorised by the licensing authority in this behalf monthly production returns of the mineral in the prescribed form so as to reach the licensing authority or the authorised Officer, as the case may be by the 7th of each month following the month to which it relates. In case no production is made in a particular month a "Nil" report shall be submitted containing reasons thereof.

(2) A penalty of up to Rs. 500 may be imposed by the licensing authority for non‑submission of a monthly production return in time. In case returns are not submitted for three consecutive months the prospecting licence or ‑mining lease will be liable to cancellation.

66. Recovery ofroyalty.‑If the licensing authority has reason to believe that royalty on the production of minerals has not been paid by a licensee or lessee either by reason of non‑submission of monthly production returns or ‑.by submitting incorrect returns, it may assess the quantity of such mineral through measurement, inspection or by any other means and direct the licensee or lessee through a notice to pay royalty on the quantity of mineral so assessed. If the royalty so demanded is not paid by the due date mentioned in the notice the provisions of rule 67 shall apply.

  1. Rights ofdistress.‑If and when any of the rents and royalties pay able by the lessee are not paid within three months next after the date fixed for the payment of the same, or where a notice is served under rule 66, in such time as is specified in the notice, the licensing authority may cancel the .licence or lease without any notice and proceed to recover the dues from the security deposited and in case of any balance still outstanding as arrears .of land revenue :

Provided that if the prospecting licence or mining lease has been assigned to or mortgaged in favour of the Industrial Development Bank of Pakistan or its successor. in‑interest or assignee or any other bank or Financial Institu tion approved by the licensing authority, the licensing authority shall inform the said Bank or Institution about the intention to cancel the lease and recover the dues. The licensing authority shall then be entitled to enforce the sale of the assigned or mortgaged property and adjust the sale proceeds first towards the sale and other charges which the licensing authority may ‑have incurred, and then proceed to adjust, out of such sale proceeds, the dues of the financing institution and out of the balance so remaining pay to the Government its dues. If the amount recovered from the sale or auction of the lease does not satisfy the claim of Government the licensing authority shall have all powers to recover the dues as arrears of land revenue from ‑the defaulters.

  1. Association of local capital.‑The licensing authority may require ‑the applicant for a prospecting licence or mining lease to associate capital furnished by residents of the District or the Division wherein the area applied for is situated to such extent as may be required by the licensing authority.

69. Employment of Nationals ofPakistan.‑The licensing authority may require the licensee or lessee to employ Nationals of Pakistan in his organisa tion in all grades and in all branches including technical and administrative .units and to arrange for the training in Pakistan or abroad of the Nationals of Pakistan to fill up those appointments.

70. Submission ofannual accounts and periodical returns.‑The licensee or lessee shall submit to the licensing authority at the end of every year Balance Sheet and such other information and periodical returns as may from time to time be prescribed by the licensing authority, provided that ,the licensing authority may require that the Balance Sheet to be submitted be audited by an approved auditor.

  1. Submission ofstatistical data to a statistical organisation.‑The licensee or lessee shall submit statistical data and such information as may ,be required for the purpose of planning and development to all statistical organisations approved by Government in such form as may be prescribed.

  2. Production target.‑The licensing authority may require the lessee to meet the target of production fixed by it.

  3. Beneficiation.‑The licensing authority may require the licensee or lessee to grade, beneficiate, refine and concentrate the mineral to attain the standard fixed by a general or special order of the licensing authority or Government within a time limit prescribed thereof.

  4. Power of revocation.‑Without prejudice to other powers the licensing authority may require the licensee or lessee to pay a penalty not exceeding an amount equivalent to twice the amount of the annual fee or dead rent, as the case may be, and may cancel the licence or lease, black‑list the licensee or lessee for further grants of mining concessions and forfeit in whole or in part the security deposit made by the licensee or lessee, if the licensee or lessee violates the undertaking given in accordance with these rules or fails to remedy any breach of the provisions of the licence or lease, within thirty days from the date such breach is brought to his notice by the licensing authority;

Provided that if the prospecting licence or mining lease has been assigned to or mortgaged in favour of the Industrial Development Bank of Pakistan or its successor‑in‑interest or assignee or any other bank or Financing Institu tion approved by the licensing authority, the licensing authority shall inform the said bank or Institution about the intention to cancel the lease. The licensing authority shall then be entitled to enforce the sale of the assignee or mortgaged property and apply the sale proceeds first towards the sale and other charges which the licensing authority may have incurred, then towards the satisfaction of the dues of the financing institution and out of the balance pay to Government its dues. If the amount recovered from the sale or auction of the lease does not satisfy the claim of the Government, the licensing authority shall have all powers to recover the dues as arrears of a land revenue from the defaulters.

75. Protection of the rights of discoverer.‑(1) Anyperson other than a public servant directly concerned with prospecting, exploration exploitation or development of mines and minerals discovering a commercially exploitable mineral, other than the one for which he already holds an appropriate licence or lease. may have a prior claim to get a licence under these rules or have option in case the discovered mineral is of the value of Rs. 10 lac or more to receive a cash reward in accordance with these rules.

(2) The discoverer may register his claim with the licensing authority giving the particulars of the area where the mineral occurs, furnishing details of the discovery including samples of the mineral found and a copy of the plan showing survey details of the area on the scale of 1:50,000or the nearest scale available. The discoverer may also submit instead a rough sketch marking the physical features and whereabouts of his discovery identifying various :and‑marks in and around the discovery.

(3) The registration may confer on the discoverer a right to get a prospect ing licence over the area independently or in association with other suitable party in accordance with these rules; provided that a formal application for the purpose is received by the licensing authority within three months of the date of registration of the discovery and all other conditions and formalities are completed by the applicant.

(4) .In case the discoverer does not apply for a prospecting licence within the time specified in sub‑rule (3), the licensing authority may release the information for the benefit of the public through a press note and invite applications for the grant of prospecting licence.

(5) If no application is received from the discoverer under sub‑rule (3) an initial reward, to be determined by the licensing authority will be paid to the discoverer by the party who is granted a prospecting licence over the area. The licensing authority shall then proceed to evaluate the discovery and after approval by Government arrange to pay the balance of the final reward to the discoverer in accordance with the value of the discovery.

(6) The scale of final reward shall be as under ;

(i) big deposit of valuable mineral evaluated at Up to Rs.

more than rupees fifty lacs. 20,000

(ii) medium deposit of valuable mineral evaluated at

more than Rs. twenty lacs but not more than Up to Rs.

rupees fifty lacs. 10,000

(iii) small deposit of valuable mineral evaluated

at rupees twenty lacs or less, but not less than Up to Rs.

rupees ten lacs. 5,000

The amount of such reward and the expenditure incurred by the licensing. authority in evaluating the discovery shall be recovered from the beneficiary of the discovery.

(7) Radioactive minerals which are already covered by a reward plan of the Atomic Energy Commission, Government of Pakistan are excluded from the purview of this rule, except Beryl. Limestone, sandstone, gypsum, cal carious minerals and other minerals of common occurrence are also excluded from the purview of this rule. Anything the value of which is less than that given in clause (lit) of sub‑rule (6) shall be considered as uneconomic.

(8) The payment of the reward to the discoverer of a mineral deposit shall be made within fifteen months of the registration of the discovery and the decision of the licensing authority shall be final.

(9) Every discovery shall be registered with the licensing authority on a prescribed form obtainable from the Office of the licensing authority or the nearest post office. Every registration will be duly ack nowledged by the licensing authority.

  1. Employment of technical persons.‑(1) No area demised under a licence or lease for any mineral other than coal the average monthly produc tion of which exceeds 600 tons or the total average monthly sales are above Rs. 50,000 shall be worked in any manner unless the licensee or lessee has on its staff the holder of 1st or 2nd Class Mine Manager's Certificate of Competency or Degree, Diploma or Certificate in Mining Engineering from a recognised University or Institution for supervision of operations under Mines Act, 1923.

(2) The minimum requirements of technical persons and their requisite qualifications shall be determined at the time of approval of the exploitation scheme.

(3) Every licensee or lessee of coal shall appoint a duly qualified person to act as Mine Manager in accordance with the provisions of Mines Act, 1921 and the rules and regulations made thereunder.

77. Under groundBoundaries.‑The boundaries of the area demised under a licence or lease shall run vertically downwards below the surface towards the centre of the earth. The licensee or lessee shall work within the boundaries of his granted area even underground in accordance with rule 56.

  1. Training.‑The licensee or lessee shall, whenever required by the licensing authority, arrange and provide facilities for training of students of any mining engineering college or to other person associated with the profession of engineering, geology or other related science. The licensee or lessee shall pay the stipened per month to such trainees at the rate fixed by the licensing authority for such training, during their actual training period.

  2. Evaluation of preciousstones, minerals. etc.‑The licensing authority may from time to time ascertain and verify in such manner as it may deem fit, the value of all minerals, ores and metals dressed or extracted by the licensee or lessee.

  3. Approval for depillaring orabandoning the mine.‑The licensee or lessee shall not depillar or abandon the mine without obtaining prior approval of the licensing authority.

81. Notice of fresh Issue of capitals.‑The licensee or lessee shall report to the licensing authority the particulars of any fresh issues of capital which may from time to time be made by him and any alteration which may be made in the Memorandum and Articles of Association.

  1. Layout and working plans.‑(1) All layout and working plans shall be prepared by a Registered Mine Surveyor engaged by the licensee or lessee in accordance with the provisions of this Rule and shall‑

(a) bear the name of the mine, number of the licence or lease and the :name of the licensee or lessee

(b) show the sale together with the magnetic meridian and the date ;

(c) be properly inked on durable paper or on tracing cloth ;

(d) be on a scale of one inch to 100 feet ; and

(e) bear the signature and address and registration number of the surveyor;

Provided that where plans have been prepared on any other scale before the enforcement of these rules the licensing authority may on application by the licensee or lessee permit such plans to be maintained on that scale.

(2) The licensee or lessee shall keep a layout plan of the working of each mine in the area over which he holds a licence or lease. The position of the workings at the time of the last survey shall be shown by a dotted line drawn through the ends of the workings and such dotted line shall be marked with the date of the last survey. The plan shall also show all shafts tunnels and incline openings, all areas from where mineral has bean excavated, the limit of the ore body/mineral deposit, where possible, and all important features within the boundaries such as railway, roads, rivers, trams, tanks, buildings and reservoir which overlie any part of the workings or any horizontal plane, the general direction and rate of dip of the strata, the depth of every shaft, a section of the seam/vein being marked and the position of all faults and dykes with the amount and direction of their throw. There shall be a separate plan of the working of each seam/vein and each separate section or level of each seam/vein.

(3) The licensee or lessee shall also keep a separate tracing of a surface plan showing all surface features referred to in sub‑rule (2) and in addition all buildings and structures on the surface and within the boundaries which overlie working of the mine or at any point within six hundred feet of the workings measured on the horizontal plan.

(4) The licensee or lessee shall also keep a separate plan showing the system of ventilation in the mine and, in particular, the general direction of the air currents, the points where the quality of air is measured and the principal devices for the regulation and distribution of air. So far as, practicable the intake airways shall be coloured blue and the return airways red. The position of any underground medical posts and telephones shall be indicated on the plan. The code of signs set out in Eighth Schedule shall be utilized in plans under this rule ;

Provided that nothing in this sub‑rule be deemed to apply to any mine in which the workings do not extend underground.

(5) The layout and working plans required by these rules shall be kept in the office at the mine and shall be accurate and brought up‑to‑date in respect of advancement in working after every six months. The licensee or lessee shall submit the copy of the same layout plans, sections to the licensing authority for scrutiny and record purposes. Such plans shall invariably indicate the size ofadvancement in the mineral deposit and also along the host rocks:

Provided that where any mine or coal seam or vein is abandoned or working thereof has been discontinued due to circumstances beyond the control of the licensee or lessee the reason for the plan not being up‑to‑date shall be recorded on it.

(6) The licensee or lessee shall at any time on the request of the licensing authority or any other officer authorized in this behalf produce at the mine office such plans and sections with markings, indicating the present state of the working of the mine; and the licensing authority or the officer so authorized shall be entitled to examine the plans and the sections and for official purposes to make or have a copy made ofany part thereof:

(7) Where any mine or seam or vein is abandoned or the working thereof has been discontinued over a period exceeding one year, the licensee or lessee thereof at the time of the abandonment or discontinuance shall within three months after the abandonment or discontinuance of working, as the case may be. send to the licensing authority accurate plans and sections of the working of the mine or seam/vein up to the time of the abandonment or discontinuance showing the pillars of mineral and all other features required in compliance with these rules.

83. Release of lands included inadvertently in the licenced or leasedarea.‑In the event of the inclusion of an area inadvertently in the area demised under a licence or lease over which Government was not entitled to the mineral rights or in respect of which the mineral rights have already been pranced to other individual or company or due to any other reason the licensee or lessee shall immediately release to the licensing authority any such lands or, areas when required to do so by the licensing authority, and the licensee or lessee as the case may be, shall not be entitled to any compensation in respect thereof.

84. Exclusion of land for public purposes.‑Ifany or all of the area held under prospecting licence or mining lease is required at any time for any public purpose, the licensee or lessee shall forthwith release to' the licensing authority such area to such extent as may be required by Government under such terms and conditions may be prescribed;

Provided that if any area excluded as above becomes subsequently available for the purpose of grant under a prospecting licence or mining lease the licensee or lessee who released the area shall have prior right over such area.

85. Concessionaires ceasing to be Nationals of Pakistan.‑Ifthe licensee or lessee ceases to be a Pakistani National or a company incorporated in Pakistan the licensee or lessee would forthwith inform the licensing authority and apply to it within a period of one month for its consent to the assignment of the rights granted by the licensee or lessee, failing which the licensing authority may revoke the prospecting licence or mining lease. The revocation of the licence or lease in pursuance of this rule shall be without prejudice and not subject to any obligation or liability imposed by or incurred under the terms and conditions of the licence or lease.

86. Power to assets and claim compensation for damage to mineralproperty.‑In the event of any damage caused to the mineral property due to unscientific working, lack of supervision, negligence or any other act of omission or commission on the part of the licensee or lessee. the licensing authority shall assess the extent of damage and the compensation payable therefor by the licensee or lessee and the licensee or lessee shall be liable to pay on demand the compensation so assessed in the same manner as, arrears of rents and royalties.

*87. Registration of Mine Surveyors.‑(1)*The licensing authority shall maintain a list of suitably qualified Mine Surveyors who in its opinion are competent to carry out boundary demarcation surveys, mine surveys, both underground and above ground, and to prepare plans of workings as required under these rules.

(2) For the purpose of these rules, surveyors referred to in sub‑rule (1) shall be known as Registered Mine Surveyors.

(3) A boundary demarcation certificate required under rule 88 shall be accepted by the licensing authority only if the demarcation has been carried out by a Registered Mine Surveyor and the prescribed certificate is signed by him, indicating the date of actual demarcation.

(4) If at any time the licensing authority has reason to believe that a. Registered Mine Surveyor has committed gross negligence or misconduct in discharge of his duties under these rules, it may cancel the registration of such surveyor.

(5) The registration of surveyors as aforesaid will be done with the sole object of facilitating the operations and enforcement of these rules and should not be used as a qualification, academic or professional, by a Registered Mine surveyor.

(6) The list of surveyors shall be prepared out of candidates who may apply for registration to the licensing authority. The application for registration to the licensing authority shall be accompanied by a non refundable fee of Rs. 50.

88. Checking of boundary demarcation.‑(1) A licenseeor lessee shall, within sixty days of the issue of a licence or lease, cause the area granted to him to be accurately demarcated on the ground according to the survey data and submit a certificate on the prescribed form signed by a Registered Mine Surveyor of having carried out the said boundary demarcation himself to the best of his ability and in accordance with the relevant survey data.

(2) On receipt of certificate referred in sub‑rule (1), the licensing authority as soon as practicable, may cause the boundary demarcation done by a Registered Mine Surveyor to be physically checked by a competent official who shall after obtaining permission from the licensing authority make any correction if necessary in the demarcation survey of the Registered Mine Surveyor.

(3) A licensee or lessee shall deposit a sum of Rs. 1.500 for meeting the expenses of the check referred to in sub‑rule (2) under the head of account notified by the licensing authority from time to time.

(4) No licensee or lessee shall commence prospecting or mining operations in the area granted under a licence or lease unless he is permitted to do so in writing by the licensing authority. Such written permission shall be :known as "Work Order".

(5) No Work Order shall be issued unless the demarcation certificate referred to in sub‑rule (1) above has submitted to, and accepted by the licensing authority.

89. Boundarydisputes.‑In case of a boundary dispute between two or more licensees or lessees in respect of surface or underground workings or due to any other reason, the decision of the licensing authority shall be final and shall be binding on the parties to such dispute.

  1. Penalties.‑(1) Any licensee or lessee who contravenes or attempts to contravene‑---

(i) any provision of rule 30, 47, 58, 70, 71, 82 or 88 shall be punished with a fine which may extend to one thousand rupees for each such contravention ;

(ii) any provision of rule 34, 45, 49, 50, 52, 56, 57, 60 or 76 shall be punished with fine which may extend to two thousand rupees for each such contravention;

(iii) the provision of rule 63 shall render himself liable to cancellation of his licence or lease, as the case may be ;

(iv) any provision of these rules for the contravention of which no specific penalty is provided shall be punished with a fine which may extend to one thousand rupees for each such contravention.

(2) Any order imposing penalties in accordance with sub‑rule (1), shall be issued under the signature of the licensing authority after an opportunity has been provided to the licensee or lessee to explain his position. An appeal against the order of the licensing authority, shall lie with Government within one month of the issue of the order imposing the penalty.

  1. Non‑payment ofdues.‑In case the dues outstanding against a licensee or lessee relating to annual fee, royalty, dead rent or any other penalty imposed under these rules, have not been deposited from the date the first became due, the following procedure shall be observed :‑

(i) simple interest as prescribed by Government on outstanding dues shall be charged in case the payment is made after expiry of the second month next after the due date ;

(ii) in case of default in payment of penalty imposed under these rules, the penalty shall be enhanced by 50% for each month or part thereof in addition to simple interest as laid down by Government on the amount outstanding against defaulters ; and

(ii) in case outstanding dues alongwith penalty is not paid until the expiry of three months after they first become due the prospecting licence or mining lease shall be cancelled and the outstanding dues stall be recovered as arrears of land revenue in accordance with the provisions of rule 67.

92. Persistentviolation of rules.‑If a licensee or lessee persists in the violation of these rules, he may be in addition to any penalty under rule 90 be served with a notice for remedying the violation and if the violation is not remedied within a period of thirty days of the receipt of notice by the licensee or the lessee, the licence or lease shall be cancelled.

  1. Appeal.‑(1) Any person aggrieved by a decision given or order made by a licensing authority under these rules may, within thirty days of such decision or order, prefer an appeal to Government.

Explanation.‑In computing the period of thirty days mentioned in sub‑rule (1), the day on which the decision or order sought to be appealed against was given or made, and the time requisite for obtaining a copy thereof shall be excluded.

(2) Government may confirm, modify, alter or set aside any decision on order appealed against:

Provided that no order shall be passed in appeal except after giving the ‑aggrieved person an opportunity of being heard.

(3) Subject to the provisions of these rules, the decision of Government ,on an appeal shall be final.

*94. Force Majeure.‑(1)*Where the failure on the part of the licensee or lessee to fulfil any of the terms and conditions of these rules arises from Force Majeure, the licensee or lessee shall stand absolved of responsibility.

(2) For the purpose of this rule the expression "Force Majeure" means ran act of God, war, insurrection, riot, civil commotion, tide, storm, tidal wave, Flood, lightning, explosion, earthquake or any other happening which the licensee or lessee could not in the opinion of the licensing authority reasonably prevent or control.

95. Conservation of mineral properties.‑Ifat any time during the validity of prospecting licence or mining lease the licensing authority is satisfied that unscientific prospecting or mining operations of the licensee on lessee are resulting in the wastage of mineral property and are prejudicial to its conservation, the licensing authority may. by an order in writing, stop such unscientific operations forthwith and ask the licensee or lessee to carry out remedial measures of the type and nature to be specified by the licensing authority within a specified time limit. If such an order is made by the licensing authority, the licensee or lessee shall not commence prospecting or mining operations unless remedial measures have been carried out by the‑. licensee or lessee to the satisfaction of the licensing authority to ensure the conservation of the mineral property.

96. Penalty for unauthorized working or obstruction.‑(1) Ifany person starts or catries on prospection or mining operation, whether on surface or underground, of any mineral outside the area granted to him or in an area for which he has not obtained a prospecting licence or a mining lease in accordance with these rules, or illegally obstructs access of the licensee or lessee to the licensed or leased area directly or indirectly, or tries to interfere with the prospecting or mining operations by a licensee or lessee, or commits pilferage of any mineral directly or indirectly, he shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to twenty thousand rupees, or, with both.

(2) In case the person under sub‑rule (1) is guilty of unauthorised prospecting of mining, then in addition to the punishment prescribed under sub‑rule (1), the total value of the mineral extracted shall also be recovered from him. The decision of the licensing authority as to the total value of unauthorised excavated or mined mineral shall be final.

(3) In case the person guilty of any offence under sub‑rule (1) is a licensee or lessee, then any licence or lease granted to him shall be liable to cancellation and he may be black‑listed for further grants of mining concessions. The decision of the licensing authority under this sub‑rule. shall be final.

(4) If in the opinion of the licensing authority any licensee or lessee is persistently violating instructions conveyed to him from time to time or is habitually unresponsive to the demands for payment of royalty or has been concealing information with regard to the discovery of precious mineral or the quantity of sanctioned minerals produced by it, such licence or lease shall be liable to cancellation alongwith the penalty which the licensing authority may impose.

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