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Mines And Minerals - Financial (Ss 66-73)

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66.     Royalties

 

            (1) Subject to the provisions of this Part, the holder of a mineral concession shall be liable to pay royalties to the Government on any mineral obtained by him in the course of the exercise of his rights thereunder at the rates and in the manner prescribed under this section.

            (2) The royalties payable shall be the following percentages of gross market value as defined under subsection (3) below-

          Mineral Type

Percentage

          Precious stones

%

          Precious metals

5%

          Other minerals or mineral products

%

 

            (3) The term "gross market value" shall for the purposes of calculation of royalties be defined as the sale value receivable at the mine gate in an arms length transaction without discounts, commissions or deductions for the mineral or mineral product on disposal.

            (4) Royalty shall be paid on a mineral or mineral product on receipt of each payment or other consideration for such mineral or mineral product, and each royalty payment shall be accompanied by full particulars of the mineral or mineral product sold or disposed of and the terms of payment therefor:

            Provided that any disposal for other than monetary consideration or consideration deferred for a period beyond industry practice shall be referred to the Minister for determination of royalty in terms of subsection (5) below.

            (5) Where it appears to the Minister that minerals have been disposed of otherwise than in an arms length transaction, the Minister shall determine the royalty payable on the basis of prices ruling in the industry, and the royalty so determined shall be payable on demand:

            Provided that the royalty so determined and paid may be varied by court review or arbitration and the sum of any such variation shall thereupon become payable or repayable as the case may be.

            (6) For the purposes of this section, the expression "arms length transaction" shall mean a transaction between a willing buyer and willing seller in the open market where the purchase price for the sale is not influenced by any special relationship or other arrangement between the parties to the transaction and is not affected by any non-commercial considerations and specifically excludes any barter, swap, exchange, or transfer price arrangements, restricted or distress transaction which is associated with special financial, commercial or other considerations.

 

67.     Remission of royalties

 

            (1) The Minister may, in the public interest, remit all or part of any royalty payable on any mineral or mineral product for such period as he may determine.

            (2) The Minister may exempt from liability to royalty samples of minerals required for the purpose of assay, analysis or other examination.

 

68.     Deferred payment of royalty

 

            The Minister may, on application being made to him by the holder of a mineral concession, defer payment of any royalty due from such holder for such period and subject to such conditions as he may determine.

 

69.     Prohibition on disposal of minerals

 

            (1) If the holder of a mineral concession fails to pay any royalty due in respect of that concession on or before the due date or any extension thereof, or if the Minister has reason to believe that minerals have been produced from any area and royalties have not been paid in respect thereof, the Minister may, by order served on the holder of the mineral concession concerned, prohibit the disposal of any mineral from such area, or from any other area held by such holder under a mineral concession until all outstanding royalties have been paid or until an arrangement has been made, acceptable to the Minister, for the payment of such royalties.

            (2) Any holder of a mineral concession who contravenes or fails to comply with the provisions of an order given under subsection (1) and any person who, knowing of such an order and contrary thereto, receives any mineral from the area concerned, shall be guilty of an offence.

 

70.     Annual charges in respect of prospecting and retention licences

 

            (1) There shall be due and payable to Government by every holder of a prospecting licence or retention licence the non refundable annual charge prescribed in the Second Schedule.

            (2) The annual charge payable under the provisions of subsection (1) shall be payable on the issue of a prospecting licence or retention licence and thereafter annually on the anniversary thereof until the termination of such licence.

            (3) Where a prospecting licence or retention licence is granted over land in a tribal area, one-half of any moneys received under the provisions of this section shall be appropriated to the Land Board within the area in which the land is situated.

 

71.     Annual charges in respect of mining licences and minerals permits

 

            (1) There shall be paid by the holder of every mining licence or minerals permit an annual charge as prescribed in the Second Schedule.

            (2) The annual charge payable under the provisions of subsection (1) shall be payable on the issue of the licence or permit as the case may be and thereafter annually on the anniversary thereof until the termination of such licence or permit.

 

72.     Interest on overdue payments

 

            All overdue payments under this Act shall bear interest at the commercial bank prime lending rate ruling from time to time plus a premium of five percentage points.

 

73.     Security for compliance

 

            The Minister may, from time to time, make reasonable arrangements to secure that the holders of mineral concessions comply with the provisions of this Act, and, without prejudice to the generality of the foregoing, may require or accept guarantees, whether from shareholders or otherwise, in respect of such compliance.