ACT, No. 66 OF 2009

66of2009.pdf
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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
—————————
MINES AND MINERALS (AMENDMENT)
ACT, NO. 66 OF 2009
—————————
[Certified on 17th November, 2009]
Printed on the Order of Government
—————————
Published as a Supplement to Part II of the Gazette of the Democratic
Socialist Republic of Sri Lankaof November 20, 2009
PRINTEDATTHEDEPARTMENTOFGOVERNMENTPRINTING,SRILANKA
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Mines and Minerals (Amendment) 1
Act, No. 66 of 2009
[Certified on 17th November 2009]
L. D.—O. 8/2007.
ANACT TO AMEND THE MINES AND MINERALS
ACT, NO. 33 OF 1992
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows:—
1. This Act may be cited as the Mines and Minerals Short title.
(Amendment) Act, No. 66 of 2009.
2. Section 4 of the Mines and Minerals Act, No. 33 of Amendment to
section 4 of Act,
1992 (hereinafter referred to as the “principal enactment”) is
No. 33 of 1992.
hereby amended as follows:—
(1) in subsection (1) of that section by the substitution
for the words “following five members” of the words
“following seven members”; and
(2) by the repeal of paragraph (a) of subsection (1) and
the substitution therefor of the following
paragraph:—
“(a) (i) the Secretary to the Ministry of the
Minister in charge of the subject of
industries or his representative;
(ii) the Secretary to the Ministry of the
Minister in charge of the subject of
environment or his representative;
(iii) three members who appear to the Minister
to have demonstrated practical
experience and possess knowledge in the
fields of Geology, Mining, Business
Management, Finance and Law.”.
2 Mines and Minerals (Amendment)
Act, No. 66 of 2009
Amendment 3. Section 5 of the principal enactment is hereby
of section 5 amended in subsection (2) by the substitution for the words
of the
principal “Board shall be three” of the words “Board shall be five”.
enactment.
Amendment 4. Section 6 of the principal enactment is hereby
of section 6 amended as follows:—
of the
principal
enactment. (1) by the repeal of subsection (1) of that section and
the substitution therefor of the following
subsection:—
“(1) The Minister shall appoint in
consultation with the Board, a person having at
least twelve years of demonstrated professional
and applied experience as a geologist or a mining
engineer with a postgraduate degree or Charter
as the Director General of the Geological Survey
and Mines Bureau.”;
(2) in subsection (2) of that section by the substitution
for all the words from “the Director of Geological
Survey and Mines” to the words “principal technical
officer” of the words “The Director-General of the
Geological Survey and Mines (hereinafter referred
to as the “Director-General”) shall be the Chief
Executive Officer and principal technical officer,”;
and
(3) in subsection (3) of that section by the substitution
for the worlds “a period of six years” of the words
“a period of three years”.
Amendment 5. Sections 8 of the principal enactment is hereby
of section 8 amended by the repeal of subsection (1) of that section and
of the the substitution therefor of the following subsection:—
principal
enactment.
“(1) The Board may delegate to the
Chairman, the Director General or an employee
of the Bureau or to any other person who is an
employee of the public sector, by name or by
office, any or all of the powers, duties or
Mines and Minerals (Amendment) 3
Act, No. 66 of 2009
functions, conferred or, imposed on, or assigned
to, the Bureau by this Act, other than the power
conferred by this subsection.”.
6. Section 12 of the principal enactment is hereby Amendment of
amended as follows:— section 12 of the
principal
(1) in paragraph (d) of that section by the substitution enactment.
for the words “minerals and the processing, trading
in” of the words “minerals and the processing,
transport, storing, trading in”;
(2) by the repeal of paragraph (e) of that section and
the substitution therefor of the following new
paragraphs:—
“(e) to advise the Minister on measures to be
adopted for the promotion, extraction, value
addition through development of mineral
based products and export of such mineral
based products on a commercial basis;
(f) to disseminate in appropriate media,
information and data acquired during the
exercise of functions under the Act, in
particular, under paragraphs (a), (b) and (c) of
this section; and
(g) to undertake projects in regard to engineering
geology and provide advice and remedial
measures caused in respect of geological
hazards and disasters.”.
7. Section 13 of the principal enactment is hereby Amendment of
amended in subsection (2) of that section as follows:— section 13 of the
principal
enactment.
(1) by the repeal of paragraph (d) of that section and the
substitution therefor of the following paragraph:—
“(d) to issue licences for—
(i) explorations consequent to the receipt
of an application or by the advertising
and calling for Expressions of Interest:
4 Mines and Minerals (Amendment)
Act, No. 66 of 2009
(ii) mining;
(iii) transport;
(iv) trade-in;
(v) storing; and
(vi) export of minerals”;
(2) in paragraph (h) of that subsection, by the
substitution for the words “the Bureau” of the words
“the Bureau; and”;
(3) by the insertion immediately after paragraph (h) of
the following new paragraph:—
“(i) to serve as a member of any Technical
Evaluation Committee of any Ministry,
department or statutory organization as the
case may be, wherein any project proposal
relating to geology or minerals is being
evaluated.”.
Insertion of the 8. The following new section is hereby inserted
new section 20A immediately after section 20, of the principal enactment
of the principal
and shall have effect as section 20A of that enactment:—
enactment.
“Exemption 20A. The Minister shall, with the
of the concurrence of the Minister in charge of subject
Bureau from
payment of of Finance exempt the Bureau from the payment
taxes, duties of any duty, levy and any tax on the profits and
&c,. income of the Bureau to such extent as is
permitted in terms of the Inland Revenue Act,
No. 10 of 2006 or in terms of any other written
law for the time being in force governing the
imposition of any such duty, levy or tax as the
case may be.”.
Mines and Minerals (Amendment) 5
Act, No. 66 of 2009
9. Section 27 of the principal enactment is hereby Amendment of
section 27 of the
amended by the substitution for the words “and the State
principal
Gem Corporation Act, No. 13 of 1971 apply.”, of the words enactment.
“and the State Gem Corporation Act, No. 13 of 1971 apply:
Provided however, for the purposes of paragraph (b) of
section 12 of this Act, the Bureau shall receive data and
reports of all surveys and investigations pertaining to the
search of hydrocarbons and gems carried out within the
territory of Sri Lanka.”.
10. Section 28 of the principal enactment is hereby Amendment of
section 28 of the
amended as follows:— principal
enactment.
(1) in subsection (1) of that section by the substitution
for the words “No person shall explore for, mine,
transport, process, trade in” of the words “No person
shall explore for, mine, transport, process, store, trade
in”;
(2) in subsection (3) of that section by the substitution
for the words “may transfer” of the words “shall
transfer”; and
(3) in subsection (4) of that section by the substitution
for the words “on or from such land”, of the words
“on or from such land, if such mineral is used for
the construction of a building for the personal use
of such owner, occupant or holder.”.
11. Section 29 of the principal enactment is hereby Amendment of
section 29 of the
amended as follows:—
principal
enactment.
(1) by the substitution for the words “No licence to
explore for, mine, transport, process, trade in” of
the words “No licence to explore for, mine,
transport, process, store, trade in”; and
6 Mines and Minerals (Amendment)
Act, No. 66 of 2009
(2) by the addition immediately after sub-paragraph
(iv) of paragraph (a) of the following new sub-
paragraph:—
“(v) is a member of the Parliament or a member
of a Provincial Council or a member of a
local authority.”.
Amendment of 12. Section 30 of the principal enactment is hereby
section 30 of amended as follows:—
the principal
enactment.
(1) by the repeal of paragraph (a) of that section;
(2) in paragraph (c) of that section by the substitution
for the words “distance of a lake, stream or a tank”
of the words “distance of a lake, river, stream or a
tank”;
(3) by the repeal of paragraph (h) of that section and
the substitution therefor of the following new
paragraphs:—
“(h) any land falling within the coastal zone
within the meaning of the Coast Conservation
Act, No. 57 of 1981, without the approval of
the Minister and the Minister in charge of the
subject of Coast Conservation;
(i) any land falling within any special area
declared under section 3 of the Mahaweli
Authority of Sri Lanka Act, No. 23 of 1979,
without the approval of the Minister in
charge of the subject of Mahaweli
Development;
(j) any land falling within any reserved forest
or village forest declared or constituted under
the Forest Ordinance, (Chapter 451) without
the approval of the Minister in charge of the
subject of forests;
Mines and Minerals (Amendment) 7
Act, No. 66 of 2009
(k) any land falling within an Urban
Development Area declared under section 3
of the Urban Development Authority Law,
No. 41 of 1978, without the approval of the
Minister in charge of the subject of Urban
Development;
(l) any land falling within a national reserve or
sanctuary declared under section 2 of the
Fauna and Flora Protection Ordinance,
(Chapter 469) without the approval of the
Minister in charge of the subject of Wild Life
Conservation.”.
13. Section 31 of the principal enactment is hereby Amendment of
amended as follows:— section 31 of the
principal
enactment.
(1) in paragraph (a) of that section by the substitution
for the words “(Chapter 188); and” of the words
“(Chapter 188);”;
(2) in paragraph (b) of that section by the substitution
for the words “the said Ordinance.” of the words
“the said Ordinance;”; and
(3) by the addition at the end of that section of the
following paragraphs:—
“(c) any land situated within a Botanic Gardens
within the meaning of the Botanic Gardens
Ordinance (Chapter 446) or any area declared
under subsection (2) of section 2 of that
Ordinance;
(d) any National Heritage Wilderness Area
declared under the National Heritage
Wilderness Areas Act, No. 3 of 1988; and
(e) any burial ground or cemetery within the
meaning of the Cemeteries and Burial
Grounds Ordinance (Chapter 231).”.
8 Mines and Minerals (Amendment)
Act, No. 66 of 2009
Amendment of 14. Section 33 of the principal enactment is hereby
section 33 of the amended in subsection (1) of that section by the substitution
principal
for the words from “No licence to explore” to the words
enactment.
“Beryllium, lithium coral” of the words “No licence to
explore for or mine, transport, process, store, trade in or export
minerals containing radioactive elements and coral”.
Amendment of 15. Section 35 of the principal enactment is hereby
section 35 of the amended as follows:—
principal
enactment.
(1) in subsection (2) of that section—
(a) in paragraph (b) thereof, by the substitution
for the words “explore for or mine, transport,
process, trade in or export minerals” of the
words “explore for or mine, transport, process,
store, trade in or export minerals”;
(b) in paragraph (c) thereof, by the substitution
for the words “exploration, mining,
transportation, processing, trading in or
exporting” of the words “exploration, mining,
transportation, processing, storing, trading in
or exporting is authorized”;
(c) by the repeal of the proviso to that subsection
and the substitution therefor of the following
proviso:—
“Provided however that an industrial
mining licence or a licence to explore, for
minerals may be transferred or given as
security subject to such conditions as may be
specified in such licence.”;
(2) in subsection (4) of that section—
(a) in paragraph (a) thereof, by the substitution
for the words “that the exploration, mining
processing, trading in and” of the words “that
the exploration, mining, transport, processing,
storing, trading in and”;
Mines and Minerals (Amendment) 9
Act, No. 66 of 2009
(b) in paragraph (e) thereof, by the substitution
for the words “exceeding six months” of the
words “exceeding three months”.
16. Section 37 of the principal enactment is hereby Amendment of
amended in paragraph (d) of subsection (1), by the section 37 of
the principal
substitution for the words “a period of over six months” of
enactment.
the words “a period of over three months”.
17. Section 42 of the principal enactment is hereby Amendment of
amended by the substitution for the words “for his personal section 42 of
the principal
use” of the words “for his personal use, not being a commercial
enactment.
purpose”.
18. Section 44 of the principal enactment is hereby Amendment of
amended by the repeal of paragraph (d) of that section, and section 44 of
the principal
the substitution therefor of the following paragraph:—
enactment.
“(d) to enter into and inspect any land, mine or other
premises in respect of which a licence has been
issued under this Act and—
(i) to carry out such investigations or surveys
thereon; and
(ii) to make such inspections and examinations
of any plant, equipment, machinery, books
of accounts, plans or other documents found
thereon,
as may be necessary to ascertain whether the terms
and conditions of such licence or any provision of
this Act or of any regulation made thereunder, are
being complied with.”.
19. Section 46 of the principal enactment is hereby Amendment of
amended as follows:— section 46 of the
principal
(1) by the repeal of the marginal note to that section enactment.
and the substitution therefor of the following
marginal note:—
“Powers of
officers &c to
10 Mines and Minerals (Amendment)
Act, No. 66 of 2009
carry out
geological and
mineral
investigations.”.
Insertion of new 20. The following new section is hereby inserted
section 46A in immediately after section 46 of the principal enactment and
the principal
enactment. shall have effect as section 46A of that enactment:—
“Powers of 46A. The Bureau may, where it considers it
authorized necessary for the purpose of discharging the
officers to functions of the Bureau, authorize in writing
enter, search
any officer of the Bureau (hereinafter referred
and inspect
&c. to as the “authorized officer”) to—
(a) enter, search and inspect any site, premises,
or place in which any mining, exploration
for, processing, storing, trade in or export
of any mineral is being carried on under
the authority of a licence issued under this
Act for the purpose of ascertaining the
compliance of the provisions of this Act;
(b) enter, search and inspect any site, premises
or place where the authroized officer has
reason to believe that any mining,
exploration for processing, storing, trade
in, or export of any mineral is being carried
on without the authority of a licence under
this Act ;
(c) stop, enter and inspect any vehicle or
vessel in which authorized officer has
reason to believe that any minerals are
being transported or exported as the case
may be, in contravention of the provisions
of this Act or regulations made
thereunder.”.
Mines and Minerals (Amendment) 11
Act, No. 66 of 2009
21. Section 47 of the principal enactment is hereby Replacement of
repealed. section 47 of the
principal
enactment.
22. Section 48 of the principal enactment is hereby Amendment of
section 48 of the
amended by the addition at the end of that section of the
principal
following new subsections :— enactment.
“(3) Where the holder of a licence to explore for
minerals determines that a mineral may be developed
and mined on a commercial basis in the area in respect
of which such licence has been issued, he shall have
the exclusive right to apply for and obtain an industrial
mining licence and artisanal mining licence in respect
of such area, if he has complied with the conditions
attached to the licence issued to him to explore for
minerals and is otherwise not disqualified under any
other provision of this Act from obtaining a licence
for mining minerals.
(4) The Secretary shall on a request made by the
holder of a licence to explore for minerals and with
the prior approval of the Minister, enter into an
Investment Agreement with such holder. Every such
Investment Agreement shall be in such form as shall be
prescribed and shall contain such terms and conditions
as may be prescribed.”.
23. Section 49 of the principal enactment is hereby Amendment of
section 49 of the
amended by the substitution for the words “right to mine for
principal
all minerals in the area specified in such licence and to trade enactment.
in and export such minerals” of the words “right to mine
only the minerals specified in such licence and to trade in
and export such minerals wherever possible after product
development.”.
12 Mines and Minerals (Amendment)
Act, No. 66 of 2009
Amendment of 24. Section 51 of the principal enactment is hereby
section 51 of the
amended by the substitution for all the words from “provided
principal
enactment. that” to the words “except with the consent of such owner”
of the words “Provided that where the owner or state
organization of any such area of land is in possession of
such area of land, the holder of the licence shall not exercise
the rights conferred on him by this section except with the
consent of such owner or state organization”.
Amendment 25. The heading to the Part III of the principal enactment
of the heading is hereby amended by the substitution for the words “health,
to Part III of
the principal safety and welfare of workers in mines” of the words “health,
enactment. safety and welfare of workers mining for minerals”.
Amendment of 26. Section 55 of the principal enactment is hereby
section 55 of the
amended as follows :—
principal
enactment.
(1) by the renumbering of that section as subsection
(1) of that section ; and
(2) by the addition immediately after the renumbered
subsection (1) of the following subsection :—
“(2) Nothing in subsection (1) shall apply to—
(a) any female engaged in a managerial
capacity ;
(b) any female engaged in providing health
or welfare services ; or
(c) any female who, as part of any course
of study, is required to be familiar with
underground mining activities.”.
Mines and Minerals (Amendment) 13
Act, No. 66 of 2009
27. Section 57 of the principal enactment is hereby Amendment of
amended by the addition immediately after subsection (3) section 57 of the
principal
thereof of the following new subsection :—
enactment.
“(4) The recruitment for such purposes shall be
in accordance with the labour laws and regulations
for the time being in force.”.
28. Section 58 of the principal enactment is hereby Amendment of
amended in subsection (1) of that section, by the substitution, section 58 of the
principal
for the words “shall be ordered or compelled”, of the words
enactment.
“shall, except in the case of an accident, be ordered or
compelled.”.
29. Section 61 of the principal enactment is hereby Amendment of
section 61 of the
amended in subsection (3) of that section by the substitution
principal
for the words “subsection (1)” of the words “subsection (2)”. enactment.
30. Section 63 of the principal enactment is hereby Amendment of
section 63 of the
amended as follows :— principal
enactment.
(1) in paragraph (a) of subsection (1) of that section by
the substitution for the words “or mines, processes,
transports, trades in or exports” of the words “or
mines, processes, stores, transports, trades in or
exports,”;
(2) in subsection (1) of that section by the substitution
for all the words from “before a Magistrate be liable
to a fine not exceeding five hundred thousand
rupees” to the words “for a term not exceeding one
year” of the words “before a Magistrate be liable to
a fine not less than fifty thousand rupees and not
exceeding five hundred thousand rupees and in the
case of a second or subsequent offence, to a fine not
less than one hundred and fifty thousand rupees
and not exceeding two million rupees or to
imprisonment for a term not exceeding two years”;
14 Mines and Minerals (Amendment)
Act, No. 66 of 2009
(3) by the insertion immediately after subsection (1) of
that section of the following new subsections :—
“(1A) Where a Magistrate convicts any person
for an offence under this Act for exploring for, or
mining, minerals on any land, without a licence
in that behalf issued under this Act, he may in
addition to any fine or imprisonment, imposed on
such person, order such person to restore or
rehabilitate such land to the state it was in, prior
to the commencement of such exploration or
mining operation.
(1B)A Certificate under the hand of the
Director-General, to the effect that the land
described therein, being a land in respect of which
an order has been made under subsection (1A), has
been restored to the state it was in prior to the
commencement thereon of the exploration or
mining operation. Shall be admissible in evidence
and shall be prima facie evidence of the facts
stated therein.”.
(4) in subsection (2) of that section by the substitution
for all the words from “before a Magistrate be liable”
to the words “not exceeding six months” of the
words “before a Magistrate be liable to a fine not
less than five thousand rupees and not exceeding
seventy five thousand rupees or to imprisonment
for a term not exceeding twelve months”;
(5) in subsection (3) of that section by the substitution
for the words “a fine not exceeding twenty five
thousand rupees” of the words “a fine not less than
ten thousand rupees and not exceeding fifty
thousand rupees.”.
Mines and Minerals (Amendment) 15
Act, No. 66 of 2009
31. The following new sections are hereby inserted Insertion of new
sections 63A,
immediately after section 63 of the principal enactment and
63B, 63C and
shall have effect as sections 63A, 63B, 63C and 63D of that 63D of the
enactment :- principal
enactment.
“Powers of 63A. (1) A police officer who has reasonable
seizure. grounds to believe that an offence has been
committed under this Act may, with or without
a warrant, seize any mined mineral quantity of
mineral which has been mined, or any
machinery, equipment or material used in or in
connection with, the commission of that
offence.
(2) Where any mineral, machinery,
equipment or material is seized by a police
officer in pursuance of the powers conferred
on him by this section, he shall forthwith
produce such mineral, machinery, equipment
or material before, or make it available for
inspection by, a Magistrate, who shall make
such order as he thinks fit relating to the
detention or custody of such mineral,
machinery, equipment or material, pending the
conclusion of a prosecution instituted in
respect of such mineral, machinery, equipment
or material :
Provided however, that where any mineral,
machinery, equipment or material so seized is
subject to speedy decay, the Magistrate may
order that such mineral, machinery, equipment
or material be sold and the proceeds of such
sale be deposited in Court.
Forfeiture. 63B. (1) Where any person is convicted of
an offence under this Act, the Magistrate may
make order that any mineral, machinery,
equipment or material used in, or in connection
16 Mines and Minerals (Amendment)
Act, No. 66 of 2009
with, the commission of that offence or the
proceeds of the sale of any such mineral, or
material deposited in court under the proviso
to section 63A, be forfeited to the State.
(2) Any mineral, machinery, equipment or
material forfeited by an order under subsection
(1), shall vest absolutely in the State upon the
making of such order.
(3) Such vesting shall take effect—
(a) if no appeal is preferred after the
expiration of the period within
which an appeal against the order
of forfeiture may be preferred to a
High Court established by Article
154p of the Constitution or the
Supreme Court; or
(b) where an appeal has been preferred
against the order of forfeiture, to a
High Court established by Article
154p of the Constitution or to the
Supreme Court, upon the
determination of such appeal,
either confirming the order of
forfeiture or setting aside the
appeal.
(4) The Court shall cause any mineral,
machinery, equipment or material which has
been vested in the State under subsection (2)
to be sold and the proceeds of such sale to be
deposited in Court.
Offences to 63C. Notwithstanding anything to the
be contrary in the Code of Criminal Procedure
cognizable
Act, No. 15 of 1979, every offence under this
offences.
Act shall be deemed to be a cognizable offence
within the meaning and for the purposes of
that Act.
Mines and Minerals (Amendment) 17
Act, No. 66 of 2009
Officers of 63D. Every officer of the Bureau shall be a
the Bureau
peace officer within the meaning of the Code
to be peace
officers. of Criminal Procedure Act, No. 15 of 1979, for
the purpose of exercising any of the powers
conferred upon peace officers by that Act.”.
32. Section 64 of the principal enactment is hereby Amendment of
amended by the repeal of subsection (1) of that section and section 64 of the
principal
the substitution therefore, of the following subsection :— enactment.
“(1) The Minister may make regulations in
respect of all matters which are required by this
Act to be prescribed or in respect of which
regulation are authorized to be made to give effect
to the principles and provisions of this Act, and in
particular in respect of all or any of the following
matters :—
(a) the health and safety of workers in and
around mines ;
(b) sanitary conditions in mines ;
(c) medical facilities to be provided in mines ;
(d) the management of waste, refuse and
poisonous substances in mines ;
(e) the appointment of Mine Managers ;
(f) the appointment Committees to oversee the
worker, health and safety of workers in
mines;
(g) the reporting of accidents and deaths
occurring in mines ;
(h) the maintenance of records and accounts in
relation to mining in mines ;
18 Mines and Minerals (Amendment)
Act, No. 66 of 2009
(i) the handling and use of explosives in mines ;
(j) the regulation of the use of plants or
machinery in mines ;
(k) storing of minerals ;
(l) demand and collection of royalties ;
(m) the preparation and submission of mine
environment and restoration plans and the
manner of compliance.”.
Amendment of 33. Section 68 of the principal enactment is hereby
section 68 of the
amended by the substitution for the words “The Quarries,
principal
enactment. Mines and Minerals” of the words “Mines, Quarries and
Minerals”.
Amendment of 34. Section 70 of the principal enactment is hereby
section 70 of the
amended by the insertion immediately after the definition
principal
enactment. of the expression “local authority” of the following
definition:—
“ “mine” means an opening upon, or an excavation in,
or a working of the ground, for the purpose of
exploring or mining for, and processing of,
minerals and includes all works, machinery,
plant, buildings, and premises below or above
ground used in connection with such
exploration, mining or processing
activities;”.
Sinhala text to 35. In the event of any inconsistency between the
prevail in the
Sinhala and Tamil texts of this Act, the Sinhala text shall
event of any
inconsistency. prevail.

Mines and Minerals (Amendment) 19
Act, No. 66 of 2009
Annual subscription of English Bills and Acts of the Parliament Rs. 885 (Local), Rs. 1,180
(Foreign), Payable to the SUPERINTENDENT, GOVERNMENT PUBLICATIONS BUREAU, DEPARTMENT OF
GOVERNMENT INFORMATION, NO. 163, KIRULAPONA MAWATHA, POLHENGODA, COLOMBO 05 before 15th
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