MINES AND MINERALS



MINES AND MINERALS
A LAW TO PROVIDE FOR THE VESTING OF THE ABSOLUTE OWNERSHIP OF CERTAIN MINERALS IN THE REPUBLIC, TO REGULATE THE MINING OF, PROSPECTING FOR, COLLECTION, PROCESSING, SALE AND EXPORT OF MINERALS, TO PROVIDE FOR THE HEALTH, SAFETY AND WELFARE OF WORKERS IN MINES, TO ENABLE THE COMPULSORY ACQUISITION OR REQUISITION OF IMMOVABLE OR MOVABLE PROPERTY FOR ANY CORPORATION ESTABLISHED TO DEVELOP THE MINERAL INDUSTRY, AND TO MAKE PROVISION FOR OTHER MATTERS CONNECTED WITH OR INCIDENTAL TO THE MATTERS AFORESAID.
Law Nos,
4 of 1973
[24th February
, 1973
]
Short title.

1. This Law may be cited as the Mines and Minerals Law.

PART I
OWNERSHIP OF MINERALS AND GRANT OF LICENCES
Ownership of minerals.

2.

(1) Subject as hereinafter provided the absolute ownership of all minerals is hereby vested in the Republic.

(2) The provisions of subsection (1) relating to the vesting of minerals shall have effect notwithstanding any right of ownership or otherwise which any person may have to the soil on or under which minerals are found or situated.

This Law not to affect certain Acts.

3. The provisions of this Law shall not apply to any mineral to which the provisions of the State Gem Corporation Act or the Ceylon Petroleum Corporation Act or the Radioactive Minerals Act, apply.

Mining, &c., to be under the authority of a licence.

4.

(1) No person shall mine, prospect for, process, collect, remove, sell or export any mineral except under the authority of a licence issued in that behalf under the provisions of this Law and the regulations made thereunder:

Provided that any person who prior to the date of commencement of this Law had commenced to mine, prospect for, process or collect any mineral may, notwithstanding that he is not the holder of a licence, continue to do so for a period of three months from that date or, where he has applied for a licence within such time, until the final determination of his application, but any mineral mined after that date shall not be removed from the mine or disposed of except with the prior written permission of the Director.

(2) A licence issued to any person under this Law to mine any mineral may transfer to the licensee the ownership of any mineral mined under the authority of the licence.

Application for licence.

5. Every application for a licence or the renewal of a licence under this Law shall be a made to the Director in the prescribed form and shall be accompanied by such documents as may be prescribed.

Issue of licence.

6.

(1) On receipt of an application made under section 5 for a licence, the Director may issue a licence on payment of the prescribed fee or may refuse to issue a licence.

(2) A licence issued under this Law shall be in such form as may be prescribed and shall be subject to any conditions set out therein.

(3) Any licence issued under this section shall remain in force for such period as shall be specified therein and shall be renewable.

(4) A licence issued under this Law shall not be transferable.

Appeal from refusal to grant licence.

7. Any person aggrieved by the decision of the Director refusing to issue or renew a licence may, within thirty days of such refusal, appeal to the Minister against such refusal. The decision of the Minister on such appeal shall be final and conclusive and shall not be called in question in any court of law by way of writ or otherwise.

Termination of licence.

8.

(1) Where the holder of a licence being a limited liability company becomes bankrupt or is adjudicated an insolvent or goes into liquidation, the licence and all rights conferred by such licence shall terminate forthwith.

(2) Where the holder of a licence dies or becomes bankrupt or is adjudicated an insolvent, the licence and all rights conferred by such licence shall terminate forthwith.

(3) Where the holder of a licence being a partnership is dissolved such licence and all rights conferred by such licence shall terminate forthwith.

(4) Where the holder of a licence is a partnership and one of the partners die such licence and the rights conferred by such licence shall terminate forthwith :

Provided, however, that where the death of one of the partners does not operate as to dissolve a partnership the licence and the rights conferred by such licence shall remain unaffected.

Cancellation of licence.

9. The Director may cancel a licence-

(a) if any of the conditions specified in such licence is contravened;

(b) if any specific direction given to the holder of a licence is not carried out;

(c) if wasteful mining is carried on despite prior warning against such mining; or

(d) where mining operations have been suspended for a period of over six months without the permission of the Director.

Opportunity to show cause cancellation of licence.

10. Before a licence is cancelled the Director shall give an opportunity to the holder of such licence to show cause either cancellation of in person or by representative against the cancellation of such licence.

Right of appeal against cancellation.

11. A person aggrieved by the decision of the Director cancelling a licence may within thirty days of such cancellation appeal to the Minister against such cancellation. The decision of the Minister on such appeal shall be final and conclusive and shall not be called in question in any court of law by way of writ or otherwise,

Ownership of minerals on termination or cancellation of licence.

12. Where a licence terminates or is cancelled under the preceding provisions of this Law, the ownership of all minerals mined under the authority of such licence and not disposed of on the date of such termination or cancellation shall vest in the Director who shall give directions as to their disposal,

Restriction of the Director’s powers to issue licenses.

13.

(1) The Director shall not issue a licence to any person-

(i) without the approval of the Minister, to mine or prospect for any mineral upon-

(a) any burial ground or cemetery within the meaning of the Cemeteries and Burial Grounds Ordinance;

(b) any land forming part of an aerodrome or any land situated within such distance of an aerodrome as may be prescribed;

(c) any land reserved for a railway track or any land situated within such distance of a railway track as may be prescribed;

(d) any land situated within such distance of a tank or bund as may be prescribed;

(e) any reservation belonging to the Republic within the meaning of the State Lands Ordinance; or

(f) the foreshore within the meaning of the State Lands Ordinance ; or

(ii) without the approval of the Minister and the Minister in charge of the subject of Defence, to mine or prospect for any mineral upon any land vested in such Army, Navy or Air Force; and

(iii) without the approval of the Minister and the Minister in charge of the subject of Local Government, to mine or prospect for any mineral upon any land vested in any local authority.

(2) In addition to any conditions that may be imposed by regulations made under this Law, the Minister or Ministers, as the case may be, may approve the grant of any licence under subsection (1), subject to such further conditions as may be determined by such Minister or Ministers. Where approval is granted subject to any conditions, the Director shall cause such conditions to be specified in the licence.

Areas in respect of which no licenses shall be issued.

14 The Director shall not issue a licence to any person to mine or prospect for minerals upon-

(a) any land situated within the distance prescribed under section 24 of the Antiquities Ordinance; and

(b) any land declared under section 33 of that Ordinance to be an archaeological reserve for the purposes of that Ordinance.

PART II
ADMINISTRATION
Administration of this Law.

15. The Director of Geological Surveys shall be the officer in charge of the administration of this Law.

Delegation of Director’s powers and duties.

16. The Director may delegate any of the powers or duties conferred on him by or under this Law to any officer either generally or specially and such officer shall be empowered to exercise such power or perform such duty.

Powers of Director.

17. Subject to the provisions of this Law the Director shall have the power to-

(a) inspect any mine and carry out such investigation or survey as he deems necessary;

(b) supervise mining operations and give directions as to the working of any mine;

(c) ascertain whether any nuisance has or is being caused as a result of mining operations;

(d) take such steps or give such directions for the purpose of enforcing the provisions of this Law or to abate or remove any nuisance ;

(e) examine books, records and other documents relating to any mine or mining operations;

(f) to collect samples or specimens of minerals from any mine;

(g) to obtain any information from any person employed in any mine or engaged in any mining operations.

Recovery of fees.

18. The Director may demand, receive and recover all fees which may become due in accordance with the provisions of any regulation made in respect of the issue or renewal of licenses.

Right of entry into mines.

19. The Director or any officer to whom he has delegated any power under section 16 may at all reasonable hours enter any mine or land where mining operations are being carried on and may exercise-

(a) in the case of the Director, any of his powers; and

(b) in the case of any officer, such powers as may be delegated to him.

Powers to require. production of records

20. The Director may require the holder of a licence to produce for his perusal and examination such records, books and other documents, including production and sales records, as he deems necessary:

Provided, however, that the holder of a licence shall not be compelled to produce records relating to unpatented processes or processes upon which research work is being carried out.

Surveys and prospecting by Director.

21.

(1) For the purposes of carrying out any surveys or ascertaining the existence of minerals the Director or any officer authorized in that behalf in writing by the Director may-

(a) enter at all reasonable hours any land, other than unalienated land belonging to the Republic, with such machinery as may be necessary for the purpose of carrying out such surveys or for the searching of such minerals;

(b) break up the surface of the land or sink such bore-holes as may be necessary to ascertain the existence of minerals; and

(c) collect and remove such samples and specimens of soil, rocks or minerals as he deems necessary.

(2) The Director shall in writing and by notification published in the Gazette give the owner and occupier of the land notice of his intention to enter such land for the purpose specified therein at least fourteen days before the date of such entry.

(3) The Director shall take all reasonable precautions to minimize the damage to the land and inconvenience to the owner and occupier thereof.

(4) The owner, occupier or both such owner and occupier of the land, as the case may be, shall be paid such compensation in respect of any damage caused as may be determined by the Director.

(5) The Director shall at the termination of the survey cause all machinery and equipment to be removed from such land and all excavations to be covered.

Surveys or prospecting on lands belonging to the Republic.

22. No prospecting for minerals on unalienated land belonging to the Republic shall be carried out by the Director without the concurrence of the Minister in charge of the subject of Lands.

Special power of Director.

23.

(1) Where the Director is satisfied that due to any flooding or caving that has occurred or is likely to occur in any mine or by reason of the non-compliance of the provisions of this Law there is danger of injury to any person in any mine or in the vicinity of a mine he may by order in writing served on the licensee or manager of the mine prohibit further work to be carried out in such mine, until he revokes such order after being satisfied that the cause for the danger has been removed.

(2) An order served under subsection (1) shall take effect as soon as it is served.

(3) Where any mine is worked in contravention of an order served under subsection (1) the manager as well as the licensee shall be guilty of an offence.

Prevention of wasteful mining.

24. Where the Director is satisfied that wasteful mining methods are being used in any mine, he shall give directions to the manager of such mine not to use such mining methods and may give directions as to the methods to be used to prevent wasteful mining and the manager shall comply with such directions.

Annual inspection of machinery.

25. The Director shall cause the machinery used in every mine to be inspected and tested once in every period of twelve months by any engineer authorized by him in writing.

PART III
GENERAL DUTIES OF LICENSEES AND MANAGERS
Appointment of manager.

26.

(1) The licensee of a mine shall-

(a) in the case of a mine opened prior to the date of commencement of this Law within one month of such date, and

(b) in the case of a mine opened on or after such date within one month of the date of such opening,

appoint a competent person as manager who shall have the control and management of the mine.

(2) Where any manager relinquishes or is removed from office, the licensee shall within one month of such date appoint a new manager.

(3) The name and address and details of qualifications and experience of any person appointed as manager under this section shall be communicated to the Director.

Furnishing of information as to opening of mine.

27. The manager of every mine opened after the date of commencement of this Law shall within one month of such date furnish the Director with the following information:-

(a) the location of the mine;

(b) the date on which the mine was opened;

(c) details of the minerals to be mined;

(d) a programme of work proposed to be carried out during the first three months;

(e) the quantity of minerals proposed to be mined during the first three months; and

(f) the purposes for which the minerals are to be utilized.

Quarterly returns.

28. The manager of every mine shall, in the months of January, April, July and October in each year, furnish the Director with the following:-

(a) details relating to the output of minerals during the preceding three months;

(b) the number of workers employed during the preceding three months;

(c) the depth of the mine at the end of the preceding three months ; and

(d) information relating to any accidents that may have occurred during the preceding three months.

Programme on mining operations.

29. The manager of every mine shall at the beginning of each year furnish the Director with a detailed programme of the mining operations proposed to be carried out in that year.

Log book and register.

30. The manager of every mine shall keep in such form as may be approved by the Director-

(1) a log book for the use of the Director and other officers;

(2) a register of all persons employed in the mine showing in respect of each such person-

(a) his address and the name and address of his closest relative;

(b) the nature of his employment; and

(c) his hours of work and periods of rest; and

(3) a register or map showing in what part of the mine any worker is employed at any particular time.

Restrictions on the sinking of shaft

31. No shaft in a mine shall be sunk within twenty feet of any other shaft without the written permission of the Director, and no shaft shall be sunk within two hundred feet of the centre of any public road or path or railway line.

Ventilation.

32.

(1) The licensee or manager of a mine shall not employ any worker in any underground working in the mine, which, in the opinion of the Director, is not adequately ventilated.

(2) The prescribed precautions against noxious gases shall be adopted in every mine before work is resumed in any shaft which has remained unused for any period exceeding such time limit as may be prescribed.

Ladders, c.

33. All ladderways, travelling roads, windlasses, brakes, ropes, winding gear, and timbering shall at all times be kept in a state of proper repair and efficiency.

Approved baskets and slings

34. For the purpose of raising and lowering miners and materials in the shafts, no basket, cage or bucket shall be used which is not of a pattern approved by the Director. Chairs shall not be used in any mine for the purposes of any hoist or lift or hauling or winding machinery.

Timbering, fencing and other precautions.

35. In every mine-

(1) all shafts, adits, levels, galleries and underground passages shall, at all times when necessary, be timbered and supported, in a manner capable of ensuring the safety of all persons working in or passing through them;

(2) all such fencing shall be erected and maintained as may be necessary to prevent any danger or damage to man or beast;

(3) such ladderways or other means shall be provided and maintained as will furnish effectual means of exit from any underground working, or of ascent or descent without the aid of winding machinery;

(4) the mouth of every shaft, which for the time being is out of use or used only as an airshaft, shall be surrounded with a substantial wall or fence;

(5) every abandoned shaft shall be filled in as soon as it ceases to be required for any further use ; and

(6) every shaft which is not being worked shall be kept securely fenced until it is filled in.

Restrictions on storage of explosive and inflammable substances.

36.

(1) No blasting powder, high explosives or petroleum or other inflammable oil in bulk, or other substance of an explosive or dangerous nature, shall be stored, placed, or used in or near any mine or mining area or building, except in such place, in such quantities, in such manner, and under such conditions, as may be prescribed.

(2) No detonator, match or fuse or highly inflammable substance or liquid shall be stored together with any other explosive or inflammable substance or liquid in or near any mine or mining area or building.

Information as to accidental explosions, c.

37. When any accidental explosion, ignition, outbreak of fire or irruption of water or gas occurs in or about a mine, the licensee or manager of the mine shall give such notice of the occurrence to such authorities, and in such form, and within such time, as may be prescribed.

Notice of serious accidents.

38. If in any mine any accident occurs which causes the death of any person or any bodily injury to any person resulting in incapacity to work during the seven days immediately after the accident, or which is of such other nature as may be prescribed, the manager of the mine shall, within forty-eight hours from the occurrence of the accident, send notice of the accident to the Director in such form as may be prescribed.

Satisfactory level of production to be maintained.

39. The Manager of every mine shall take all such steps as may be necessary to maintain such level of production as the Director considers satisfactory, and shall carry out any direction given by the Director for maintaining such level of production.

Suspension of production-

40. Where production ceases or is suspended in any mine, the manager of such mine shall in writing notify the Director of such cessation or suspension and state the reasons for such cessation or suspension.

Discovery of other minerals

41. Where any person authorized by a licence to mine any mineral specified in such licence discovers any other mineral which he is not authorized by such licence to mine, he or the manager of such mine shall notify the Director of such discovery and shall carry out any directions given by the Director with regard to the mining, storage and disposal of such mineral.

PART IV
HEALTH, SAFETY AND WELFARE OF WORKERS IN MINES
Restriction on employment of females.

42. No female, irrespective of age, shall work or be engaged or permitted to work underground at any time in any mine.

Restriction on employment of young persons.

43.

(1) No young person shall work or be engaged or permitted to work underground in a mine except as hereinafter provided.

(2) No young person who has not completed the age of sixteen years shall work or be engaged or permitted to work underground in any mine.

(3) On the application of any young person who has completed the age of sixteen years and who wishes to work in a mine, or of the parent or guardian of such young person, or of the manager, of the mine where the young person wishes to work, the medical officer shall examine the young person, and if he is satisfied that that person has completed sixteen years of age and is fit for a full day’s work in a mine, shall issue a certificate of fitness accordingly.

(4) No young person shall work or be engaged or permitted to work in a mine, unless a certificate of fitness issued in respect of that young person is first deposited with the manager of the mine.

(5) At the time of the engagement of a young person as a worker, the manager of the mine shall issue to the young person a token bearing a reference to the certificate of fitness deposited under subsection (4).

(6) No young person shall work or be permitted to work in a mine unless he carries on his person while he is at work the token issued to him under subsection (5).

(7) Any young person working in a mine may, at the instance of an Inspector of Mines or of any other officer duly authorized by the Director, be examined at any time by the medical officer, and if upon such examination he is found to be no longer fit to work in the mine, his certificate of fitness shall be revoked by the medical officer.

(8) Every young person whose certificate of fitness is revoked under subsection (7) shall forthwith be discharged from employment by the manager of the mine.

Hours of work for young persons.

44.

(1) No young person shall work or be permitted to work during the night in any mine.

(2) No young person shall be ordered or compelled to work underground in a mine for more than eight hours on any one day, inclusive of one hour for meals and rest, or for more than forty-four hours during any six consecutive days.

(3) The hours of work of every young person in a mine shall be so arranged that they shall not spread over more than ten hours on any one day.

(4) No young person shall work or be permitted to work in any mine on any day on which he has already worked in any other mine for the maximum number of hours prescribed by subsection (2) for any one day.

Hours of work for adults.

45.

(1) No adult worker shall be ordered or compelled to work underground in a mine for more than eight hours on any one day, inclusive of one hour for meals and rest, or for more than forty-eight hours during any six consecutive days.

(2) The hours of work of every adult worker in a mine shall be so arranged that they shall not spread over more than ten hours on any one day.

(3) No adult worker shall work or be permitted to work in any mine on any day on which he has already worked in any other mine for the maximum number of hours prescribed by subsection (1) for any one day.

(4) In the case of mines generally, or of any one or more specified mines, other limits extending the hours of work of adult workers set out in subsection (1) may be prescribed by regulation ; and this section in its application to such mine or mines,

shall accordingly be construed as if, for the limits set out in subsection (1), the limits so prescribed had been substituted.

Time spent in descent and ascent.

46. For the purposes of this Law, the time spent by a worker in descending a mine and ascending therefrom shall be deemed to be time spent in work underground in the mine.

Sanitary and medical equipment.

47.

(1) There shall be provided for the use of the workers in each mine, in such manner and according to such standards and specifications as may be prescribed-

(a) a supply of water fit for drinking and water for washing;

(b) latrine accommodation; and

(c) a supply of splints, bandages and other medical requirements.

(2) On the premises of every mine in which workers are ordinarily employed-

(a) there shall be provided and maintained, for the purposes of first-aid treatment in the event of an accident, a special room conforming to such standards and fitted with such equipment of stretchers, instruments, drugs and accessories as may be prescribed; and

(b) a member of the permanent staff, trained in first-aid treatment up to such standard as may be prescribed, shall be on duty at all times when any work is carried on below ground in the mine.

Regulation in respect of health, safety and welfare of workers.

48. The Minister may by regulation provide for other matters relating to the health, safety and welfare of workers in mines.

PART V
CORPORATIONS FOR DEVELOPING MINING INDUSTRY
Provisions of this Law to apply to corporations established to develop mining industry.

49. Where the Minister establishes a Corporation by Order made under section 2 of the State Industrial Corporations Act for setting up and carrying on an industrial undertaking for the purpose of mining or prospecting for, processing, sale and export of any mineral specified in the Order, the provisions of this Law shall, in addition to the provisions of that Act, apply to such Corporation. An industrial undertaking for any such purpose is hereinafter referred to as a ” specified undertaking “.

Power of Minister by Order to vest in the Corporation exclusive rights to engage in or carry on specified undertaking.

50.

(1) The Minister may, from time to time, by Order published in the Gazette declare that, with effect from such date as shall be specified in the Order, the right to engage in or carry on any specified undertaking of the Corporation as shall be specified in that Order shall vest exclusively in such Corporation. Any such Order may be amended, varied or revoked by the Minister by a like Order.

(2) So long as an Order made by the Minister under subsection (1) is in force in respect of any specified undertaking of the Corporation specified in such Order, no person other than such Corporation shall engage in or carry on such specified undertaking.

Notice of claim or disclaimer in respect of property required for purposes of the Corporation.

51.

(1) Any officer of the Corporation authorized by the Minister may, by notice (in this Law referred to as a “notice of claim “) published in the Gazette, declare that such immovable or movable property, other than money, as has been, or is being, or is, or was intended to be, used by any person for the purpose of engaging in or carrying on any undertaking which is similar or substantially similar to any specified undertaking of the Corporation, is required for the purposes of the Corporation. Such property is in this Law referred to as ” notified property “.

(2) The publication of a notice of claim made under subsection (1) in respect of any property shall be conclusive proof that such property is required for the purposes of the Corporation.

(3) Where a notice of claim is published under subsection (1), any officer of the Corporation authorized by the Minister may from time to time, by notice (in this Law referred to as a ” notice of disclaimer “) published in the Gazette, disclaim the need, for the purposes of the Corporation, of the whole or any part of the property included in the notice of claim and specified in the notice of disclaimer.

(4) No person shall lease, hypothecate, alienate, transfer or dispose of in any manner whatsoever to any person, other than the Corporation, the whole or any part of

(a) any property which is specified in a notice of claim and is not disclaimed by a notice of disclaimer; or

(b) any rights in respect of that property.

(5) Any lease, hypothecation, alienation, transfer or disposal made or effected in contravention of the provisions of subsection (4) shall be null and void, and shall be of no force or avail in law.

(6) Any person shall, if requested by any authorized officer so to do, furnish to such person as shall be specified in the request information with regard to any movable or immovable property included in a notice of claim as shall be so specified.

(7) Any person who

(a) leases, hypothecates, transfers or otherwise disposes of any notified property in contravention of subsection (4); or

(b) willfully fails to furnish the information referred to in subsection (6), or who willfully withholds all or any part of such information, or who furnishes information knowing such information to be false or inaccurate; or

(c) willfully or negligently destroys or damages or causes to be destroyed or damaged any notified property; or

(d) removes, changes the situation or location, or alters the character, or causes such removal, change or alteration, of any notified property, shall be guilty of an offence under this Law.

(8) Regulations may be made under this Law

(a) empowering any person authorized in that behalf by the Corporation to inspect any notified property, and requiring the persons in whose possession or custody such property is to allow and assist the inspection thereof;

(b) providing that a report as to the condition of any notified property may be made, and may be subsequently amended, by or under the authority of the Corporation;

(c) providing for the service of copies of such report or any amendment thereof on persons having an interest in the property to which the report relates;

(d) requiring persons on whom copies of the report or any amendment thereof have been served to notify the Corporation whether or not they are in agreement with such report or amendment, and, if they are not in agreement, to specify any objections they may have and the grounds of such objections and to produce all documents relied on by them in support of such objections;

(e) prohibiting the making of any improvements or alterations to any notified property without the prior approval of the Corporation; and

(f) providing for all matters connected with or incidental to the matters aforesaid.

(9) For the purposes of this section, the expression ” authorized officer ” means the Chairman of the Board of Directors, or any Director or officer of the Corporation authorized in that behalf by such Chairman.

Compulsory transfer to the Corporation of certain property.

52.

(1) The Minister may, by Order (in this Law referred to as a ” vesting Order”) published in the Gazette, vest in the Corporation, with effect from such date as shall be specified in the Order, any such notified property as has not been disclaimed by a notice of disclaimer.

(2) Before a vesting Order takes effect, the Minister may from time to time, after consultation with the Board of Directors, alter, by Order published in the Gazette, the date on which such vesting Order takes effect.

(3) A vesting Order shall have the effect of giving the Corporation absolute title to any property specified in the Order with effect from the date specified therein and free from all encumbrances.

Requisitioning of notified property for the purpose of the Corporation.

53.

(1) The Minister may by Order (in this Law referred to as a ” requisitioning Order “) published in the Gazette, requisition, with effect from such date as shall be specified in the Order, any notified property as is movable or immovable property in order that it may be temporarily used by the Corporation for the purposes of any specified undertaking of the Corporation.

(2) Before a requisitioning Order takes effect, the Minister may from time to time, after consultation with the Board of Directors, alter, by Order published in the Gazette, the date on which such requisitioning Order takes effect.

(3) A requisitioning Order shall have the effect of authorizing the Corporation, with effect from the date specified in the Order, to take possession of the property specified in the Order and to use such property temporarily for the purposes of any specified undertaking of the Corporation.

(4) Where any property is requisitioned by a requisitioning Order, the Minister may, by Order (hereinafter in this Law referred to as a ” derequisitioning Order “) published in the Gazette, derequisition such property with effect from such date as shall be specified in the derequisitioning Order.

(5) Before a derequisitioning Order takes effect, the Minister may from time to time, after consultation with the Board of Directors, alter, by Order published in the Gazette, the date on which such derequisitioning Order takes effect.

(6) Where, immediately before the date on which any property is requisitioned for the Corporation, a person, other than the owner of such property, was entitled to possession of such property under the terms of any lease, that lease shall be deemed for all purposes to have expired on that date.

(7) Where any property is derequisitioned by a derequisitioning Order, such Order shall be deemed to have the effect of reviving any lease subsisting on the date on which the property was requisitioned, and any question which may arise as to any right, title or interest, in or over that property shall be determined accordingly.

Compulsory acquisition of requisitioned property.

54. Where any property requisitioned for the Corporation is permanently required for the purposes of any specified undertaking of the Corporation, such property may be vested in the Corporation by a vesting Order.

Revocation of vesting Orders.

55.

(1) Not with standing that any movable or immovable property has vested in the Corporation by virtue of a vesting Order, the Minister may, at any time before a determination as to compensation is made in respect of that property under this Law, by subsequent Order published in the Gazette (in this section referred to as a ” divesting Order”) revoke that vesting Order.

(2) The following provisions shall apply in any case where a vesting Order in respect of any movable or immovable property is revoked by a divesting Order:

(a) that property shall be deemed never to have vested in the Corporation by virtue of that vesting Order, and any question which may arise as to any right, title or interest, in or over that property shall be determined accordingly;

(b) that property shall be deemed to have been and to be property which was requisitioned by a requisitioning Order with effect from the date on which that vesting Order took effect and was derequisitioned by a derequisitioning Order with effect from the date of the revocation of that vesting Order;

(c) all claims made under this Law to the compensation payable in respect of that property and all proceedings taken under this Law in regard to such claims before that vesting Order was revoked shall be deemed to be null and void, and fresh claims to compensation in respect of that property may be made under this Law, and fresh proceedings in regard to such fresh claims to compensation in respect of that property may be taken under this Law.

(3) The preceding provisions of this section shall have effect notwithstanding anything in any other provision of this Law or in any other written law.

Taking possession of property vested in or requisitioned for the Corporation.

56.

(1) Any officer of the Corporation specially or generally authorized in that behalf by the Chairman of the Board of Directors may take possession of any property vested in or requisitioned for the Corporation.

(2) Any officer of the Corporation authorized in that behalf by the Chairman of the Board of Directors shall, by notice given to the person in occupation or in possession of any property vested in or requisitioned for the Corporation or exhibited in some conspicuous place on or in the vicinity of such property,

(a) inform such person that such authorized officer intends to take possession of such property for and on behalf of the Corporation on such date and at such time and place as shall be specified in the notice; and

(b) require any person interested or his authorized agent to be present on the date and at the time and place so specified, and to allow and assist such authorized officer to take possession of such property for and on behalf of the Corporation.

Where such property is a motor vehicle, the notice aforesaid may be given to the registered owner of that vehicle within the meaning of the Motor Traffic Act and to any person whose name is registered with the Registrar of Motor Vehicles instead of being given to the person in possession of that motor vehicle.

(3) Any notice required to be given to any person under the preceding provisions of this section shall be deemed to be given to him if such notice is sent to him by registered letter through the post.

(4) Any person who contravenes any requirement of any notice given to him under this section shall be guilty of an offence under this Law.

Prevention of or obstruction to taking possession of property for and on behalf of Corporation.

57.

(1) Every person who

(a) prevents, obstructs, or resists, or

(b) directly or indirectly causes anyone to prevent, obstruct or resist,

any person from or in taking possession, under section 56, of any property for and on behalf of the Corporation shall be guilty of an offence under this Law.

(2) Where an officer authorized by the Chairman of the Board of Directors under section 56 to take possession of any property for and on behalf of the Corporation is unable or apprehends that he will be unable to take possession of such property because of any obstruction or resistance that has been or is likely to be offered, he shall on his making an application in that behalf to the Magistrate’s Court having jurisdiction over the place where that property is ordinarily kept or situated, be entitled to an order of the Court directing the Fiscal to deliver possession of that property to him for and on behalf of the Corporation.

(3) Where an order under subsection (2) is issued to the Fiscal by a Magistrate’s Court, he shall forthwith execute that order and shall in writing report to the Court the manner in which that order was executed.

(4) Where an order under subsection (2) is issued to the Fiscal by a Magistrate’s Court, the execution of such order shall not be stayed in any manner by reason of any step taken or proposed to be commenced in any court with a view to questioning, varying or setting aside such order.

(5) For the purpose of executing an order issued by a Magistrate’s Court under subsection (2), the Fiscal or any person acting under his direction may use such force as may be necessary to enter any place where any movable property to which that order relates is kept and seize such movable property, or to enter any land, building, structure or other immovable property to which that order relates and eject any person in occupation thereof, and to deliver possession of such movable property, land, building, structure or other immovable property to the person who is authorized to take possession thereof for and on behalf of the Corporation.

Compensation in respect of property vested in the Corporation.

58. The amount of compensation to be paid under this Law in respect of any property vested in the Corporation shall be determined in accordance with the following provisions:

(a) where such property consists of land, the amount of compensation shall be equal to the price which in the opinion of the Chief Valuer such property (excluding any buildings standing thereon) would have fetched if it had been sold in the open market on the day on which that property was vested in the Corporation.

(b) Where such property consists of any building, anything attached to the earth or permanently fastened to anything attached to the earth, or any other fixed asset, or any vehicle or furniture, the amount of such compensation shall be

(i) where the owner of the property immediately prior to its vesting purchased it and the actual amount paid by him for such property, other than for any land, can be ascertained, such amount less any sum which the Chief Valuer considers reasonable for the depreciation of the property, or

(ii) the net book value of such property as shown in the last audited balance sheet prior to the date of its vesting in the Corporation, less any sum which the Chief Valuer considers reasonable for the depreciation of the property since the date of preparation of such audited balance sheet,


whichever is less.

(c) Where such property consists of any movable property (other than vehicles and furniture) or any current asset, the amount of such compensation shall be the actual cost incurred in the purchase or production of that property or the price which in the opinion of the Chief Valuer such property would have fetched if it had been sold in the open market on the day on which it was vested in the Corporation, whichever is less.

(d) Where such property is any right, interest or benefit in any movable or immovable property derived under the terms of any arrangement (formal or informal), lease or notarially executed instrument, the amount of such payment shall be the actual price paid by the holder or his predecessor for the acquisition of such right, interest or benefit:

Compensation in respect of property requisitioned for the Corporation.

59. In respect of any property requisitioned for the Corporation, the Corporation shall pay compensation equal to the amount which might reasonably be expected to be payable for the temporary use of such property.

No compensation for damage or loss incurred by reason of the fact that the exclusive right to engage in or carry on any specified undertaking is vested in the Corporation.

60. No person shall be entitled to compensation for any loss incurred by him, whether directly or indirectly, or by way of business or otherwise, by reason of the fact that the exclusive right to engage in or carry on any specified undertaking has been vested in the Corporation by virtue of the operation of the provisions of section 50 or any Order made thereunder.

interest on compensation.

61. Any compensation payable, less any deductions that may be made from such compensation under this Law, shall carry interest, as from the date on which it accrues due until payment, at such rate as may be determined by the Minister with the concurrence of the Minister in charge of the subject of Finance.

Date of commencement of accrument of compensation

62. The compensation payable in respect of any property shall be considered as accruing due from the date on which that property was vested in or requisitioned for the Corporation.

Mode of payment of compensation

63. The mode of payment of compensation shall be determined by the Minister in consultation with the Minister in charge of the subject of Finance.

Determination of compensation.

64.

(1) The Board of Directors shall refer to the Chief Valuer the determination of compensation payable in respect of any property, and such Valuer shall submit his determination to the Board of Directors.

(2) The Chief Valuer shall, before making his determination of the compensation payable in respect of any property, give the person from whom that property was acquired or requisitioned for the Corporation, as well as the Chairman of the Board of Directors, an opportunity to adduce before such Valuer, by himself or by a representative authorized by him in that behalf, evidence with regard to the value of that property.

(3) The Board of Directors shall communicate in writing to the person from whom any property was acquired or requisitioned for the Corporation the determination of the compensation payable in respect of that property made by the Chief Valuer.

(4) The Board of Directors shall cause a notice to be published in the Gazette and in at least one newspaper, specifying the compensation that it proposes to pay in respect of any property, being the compensation determined by the Chief Valuer, and inviting any person who had any interest in that property, immediately before that property was vested in or requisitioned for the Corporation and who claims any compensation in respect of that property to communicate to the Chairman of the Board of Directors his claim in writing, stating the nature and the basis thereof, before such date as shall be specified in the notice.

Payment of compensation

65.

(1) Where no claim to the compensation payable in respect of any property is received in response to the notice under section 64 from any person other than the person from whom that property was acquired or requisitioned for the Corporation, the Chairman of the Board of Directors shall cause such compensation, less any sum required by or under this Law to be deducted therefrom, to be paid to the person from whom that property was so acquired or requisitioned.

(2) Where any claim to compensation payable in respect of any such property is received in response to the notice under section 64 from any person other than the person from whom that property was acquired or requisitioned for the Corporation, then, if every such claimant and the person from whom that property was so acquired or requisitioned amicably agree in writing as to the persons entitled to the compensation and the apportionment of the compensation among them, the Chairman of the Board of Directors shall cause the compensation, less any sum required by or under this Law to be deducted therefrom, to be apportioned and paid to such persons according to such agreement. If there is no such agreement, the Chairman of the Board of Directors shall cause the compensation, less any sums required by or under this Law to be deducted therefrom, to be paid to any District Court or Primary Court, according as the amount to be so paid exceeds or does not exceed one thousand five hundred rupees, to be drawn by the persons entitled thereto.

Provision for cases where compensation is not accepted c.

66. Where any compensation payable to any person under this Law is not accepted by him when it is tendered to him, or where such person in dead or is not in existence or is not known, it shall be paid to any District Court or Primary Court, according as the amount of compensation exceeds or does not exceed one thousand five hundred rupees, to be drawn by the person or persons entitled thereto.

Deductions from compensation.

67.

(1) Where a person is entitled to compensation in respect of any property vested in or requisitioned for the Corporation, the Board of Directors shall pay from the amount of such compensation to the Commissioner-General of Inland Revenue any sum certified under the hand of the Commissioner-General of Inland Revenue to the Corporation to be due from such person as any tax or levy under any written law which is or was administered by the Commissioner-General of Inland Revenue.

(2) For the purposes of this section, the expression ” compensation” includes any interest which has accrued due on such compensation.

PART VI
GENERAL
Curtailment of production.

68. The Minister may, if he considers it necessary to do so in the national interest, direct the owner and manager of any mine to curtail production of any mineral to such extent as he may specify.

Acquisition of immovable property.

69.

(1) The Minister may, where he is satisfied that the holder of a licence has been unable to acquire any land or any right in any land for the purposes of mining, approve by Order published in the Gazette the acquisition of such land or any right in such land.

(2) Where an Order is so published in terms of subsection (1) such property shall be deemed to be required for a public purpose and shall accordingly be acquired under the Land Acquisition Act and be transferred under that Act to the holder of the licence.

(3) Any sum payable for the acquisition of any land or any right in any land under the Land Acquisition Act or as compensation shall be paid by the holder of the licence.

Provisions regarding land belonging to the Republic and termination or revocation of licence.

70. Any land belonging to the Republic alienated under the State Lands Ordinance to the holder of a licence shall on the termination or cancellation of the licence under the preceding provisions of this Law revest in the Republic together with any improvements effected thereon and no person claiming through, from or under such licence holder shall have any claim to or claim any interest in such land or be entitled to any compensation for any such improvements.

Liability of licensee, agent and manager of mine.

71.

(1) The licensee or his agent and the manager of a mine shall be responsible for taking all such measures as may be necessary for ensuring that all operations carried on in the mine or in connexion therewith are conducted in accordance with the provisions of this Law and of the regulations made thereunder and applicable to such mine.

(2) In the event of any contravention of any of the provisions referred to in subsection (1), in addition to the person committing the contravention, the licensee or his agent and the manager of the mine shall be deemed to be guilty of such contravention, unless he proves that he had taken all reasonable precautions to prevent such contravention.

Offences.

72.

(1) Every person who fails, neglects or refuses to comply with any direction given in pursuance of this Law by the Director or an officer to whom the power to give such direction is delegated by the Director shall be guilty of an offence under this Law.

(2) Every contravention of any of the provisions of this Law or any regulation made thereunder or any of the conditions attached to a licence issued under this Law shall be an offence under this Law,

(3) Every person who obstructs, hinders or delays the Director while exercising any power or performing any duty conferred or imposed by this Law or any officer while exercising any power or performing any duty delegated to him under section 16 shall be guilty of an offence under this Law.

Penalties.

73. Every person who is guilty of an offence under this Law shall be liable, on conviction after summary trial before a Magistrate

(a) in the case of a first offence, to a fine not exceeding five hundred rupees or to imprisonment of either description for a term not exceeding six months or to both such fine and imprisonment; and

(b) in the case of a second or subsequent offence, to a fine not exceeding one thousand rupees or to imprisonment of either description for a term not exceeding one year or to both such fine and imprisonment.

Offences by bodies of persons.

74. Where an offence under this Law is committed by a body of persons, then

(a) if that body of persons is a body corporate, every director and officer of that body corporate; or

(b) if that body of persons is a firm, every partner of that firm,


shall be deemed to be guilty of that offence:

Regulations.

75.

(1) The Minister may make regulations for the purpose of carrying out or giving effect to the principles and provisions of this Law.

(2) In particular and without prejudice to the generality of the powers conferred by subsection (1), the Minister may make regulations

(a) in respect of all matters stated or required to be prescribed or in respect of which regulations are authorized or required to be made; and

(b) in respect of all matters relating to licences, including the rights of licence holders, the conditions subject to which licences are issued and the duration for which they are issued.

(3) Every regulation made by the Minister shall be published in the Gazette and shall come into operation on such date as may be specified in the regulation or if no such date is so specified on the date of such publication.

(4) Every regulation made by the Minister shall be brought before Parliament as soon as may be after the publication thereof by a motion that such regulation be approved.

(5) Every regulation which Parliament refuses to approve shall be deemed to be rescinded with effect from the date of such refusal but without prejudice to the validity of anything previously done thereunder.

(6) Notification of the date on which any regulation made by the Minister is deemed to be rescinded shall be published in the Gazette.

Interpretation

77. In this Law, unless the Context otherwise requires

” adult” means a person who has completed his eighteenth year;

“current asset” means cash and any asset acquired for the purpose of sale or for the purpose of producing any article for sale and includes any such asset in any stage of producing;

“day” means a period of twenty-four hours beginning at midnight;

” Director” means the Director of Geological Surveys; ” fixed asset” means an asset acquired for continuous use in the business, and not for conversion into cash;

” local authority ” includes a Municipal Council, Urban Council, Town Council or Village Council;

” manager” means the person, whether paid or unpaid, who has effective charge and control of a mine;

” medical officer” means a Government Medical Officer;

” mine ” means any excavation made on or below the surface of the ground for the purpose of searching for or obtaining any mineral;

” mineral” means any naturally occurring substance, whether in solid, liquid or gaseous form, in or on the surface of the earth or in the continental shelf but does not include hydrocarbons and water;

” night” means the period between seven o’clock in the evening and six o’clock in the morning;

” prescribed ” means prescribed by regulation made under this Law;

“worker” means any person employed whether for wages or not, in any of the actual processes or operations in a mine, or in cleaning any part of machinery or premises, or in any other processes or operations, but does not include any person employed solely in a clerical capacity;

” young person ” means a person who has completed his fourteenth but has not completed his eighteenth year. (Section 76 repealing the Mines and Machinery Ordinance, 1896, is omitted.)

Chapter 340