Northern Areas Mining Concession Rules, 2003
S.R.O. 957(1)/2003, dated 13.9.2003.— In exercise of the powers conferred by Section 2 of the Regulation of Mines and Oilfields and Mineral Development (Federal Control) Act, 1948 (XXIV of 1948), the Government of Northern Areas is pleased to make the following rules namely:-

THE NORTHERN AREAS MINING CONCESSION RULES, 2003

1. Short title, extend and commencement.- (1) These rules may be called the Northern Areas Mining Concession Rules, 2003.
(a) They shall apply to whole of Northern Areas.
(b) They shall come into force at once.
2. Definitions.- In these Rules and in every licence and mining lease issued hereafter, unless there is anything repugnant to the subject or context:-
(a) “assignee” means a person or a party to whom a licence or lease is assigned, transferred or mortgaged under these rules;
(b) “Chief Executive” means the Chief Executive of Northern Areas;
(c) “Chief Secretary” means the Chief Secretary of Northern Areas;
(d) “Collector” means the Chief Revenue Officer Incharge of District;
(e) “Concession” means the Reconnaissance Licence, Exploration Licence (EL) Mineral Deposit Retention Licence (MDRL) or Mining Lease;
(f) “Exploration Licence” means a licence granted under the rules to explore for a mineral deposit;
(g) “Government” means the Government of Northern Areas;
(h) “lessee” means a person to whom a lease under these rules is granted and includes his successor in interest;
(i) “licencee” means a person to whom a Reconnaissance Licence, EI or MDRL, is granted under these rules and includes his successor in title;
(j) “mine” means an excavation where any operation for the purpose of searching or obtaining mineral has been or is being carried on and includes all works, machinery, ropeways, roadways and sidings, whether above or below ground, in or adjacent or belonging to or appurtenant to a mine;
(k) “Mines Committee“ means the committee appointed by the Government by notification in the official Gazette, to discharge all or any of the functions provided in these rules;
(l) “Mines Sub-Committee means the Sub-Committee appointed by the Government by notification in the official Gazette to discharge all or any of the functions provided in these Rules and which are not the concern of the Mines Committee;
(m) “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;
(ii) mineral oil; and
(iii) natural gas;
(n) “Mineral Deposit Retention Licence” means a licence granted under the rules for relating to deposit after its exploration;
(o) “Mining Lease” means a lease granted under these Rules to commercially exploit a mineral deposit in accordance with an approved exploration scheme;
(p) “Pits-mouth” means a place within or adjacent to the property leased or licenced where the mineral is collected, stored or taken charge of immediately after it has been mined;
(q) “Reconnaissance Licence” means a licence to reconnoiter large areas in a short span of time by using modern techniques of satellite imagery, aerial photographs, aeromagnetic and regional geochemical surveys;
(r) “quarry” means to dig or bore on or into or under the land to win, extract or collect any mineral therefrom in any manner;
(s) “Secretary” means the Secretary P&D, Industries and Minerals of Northern Areas;
(t) “Table” means any of the tables annexed to these rules;
(u) “Licensing Authority” means the Authority to whom the application for Reconnaissance Licence (RL), Exploration Licence (EL), Mineral Deposit Retention Licence (MDRI) and Mining Leae (ML) shall be submitted under rule 7;
(v) “Schedule” means any schedule annexed to these rules.
3. Grant of licence and lease.- Except with the previous sanction of Licensing Authority no licence to prospect for any mineral and no lease of mines and minerals shall be granted otherwise than in accordance with these rules.
4. Existing licences and leases to continue. — Any licence or mining lease granted or renewed by a competent authority under the Northern Areas Mining Concession Rules 1963, shall be deemed to have been granted or renewed in accordance with the provision 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.
5. Appeals. — Any person aggrieved by a decision of the Licensing Authority may file an appeal to the Chief Secretary against the decision in respect of any matter or dispute regarding the licence or lease within thirty days of the issue of the letter announcing the decision. The decision of the Chief Secretary shall be final.
6. Application.— (1) Any person may apply in accordance with these rules for:
(a) a Reconnaissance Licence (Reconnaissance Licence) as set out in the first schedule;
(b) an Exploration Licence (EL) as set out in second schedule; and;
(c) a Mineral Deposit Retention Licence Mineral Deposit Retention Licence (MDRL) as set out in third schedule;
(d) a Mining Lease (ML) as st out in the fourth schedule
(2) Any person may apply for and obtain a licence or a mining lease provided that he is a national of Northern Areas/Pakistan or of a country the laws and customs of which permit subjects of Northern Areas/Pakistan to apply for an obtain similar licence or lease on conditions which in the opinion of the Licensing Authority are comparable with those in Northern Areas or Pakistan.
7. Manner in which application may be made.— Every application for Reconnaissance Licence, Exploration Licence (EL) Mineral Deposit Retention Licence (MDRL), Mining Lease shall be made in wiring in the form set out in the respective schedules and shall be addressed to the Director Industries Mineral Development (Licensing Authority) Northern Areas and presented at its office against a receipt or sent by registered post acknowledgement due.
8. Particulars of application.— (1) The Licensing Authority to whom the applications are submitted shall maintain separate registers of application for Reconnaissance Licence, Exploration Licence (EL), Mineral Deposit Retention Licence (MDRL) and Mining Leases containing the following column specifying:
(i) Serial No.
(ii) Date of receipt of application.
(iii) Name of the applicant.
(iv) Complete address of the applicant.
(v) Where a national of Northern Areas/Pakistan or a incorporate inside/outside Pakistan.
(vi) Mineral or minerals for which Reconnaissance Licence, Exploration Licence (EL) Mineral Deposit Retention Licence (MDRL) or Mining Lease is required.
(vii) In case of mining lease the period for which the lease is required.
(viii) District or districts in which the licenses or lease is required.
(ix) Place and total area applied for.
(x) Application fee paid.
(xi) Final disposal of the application.
(xii) Remarks.
This Register and the Master-Plan showing the areas over which mining lease or licenses have been granted shall be open to public for inspection on payment of a fee of Rs.20/- for every hour of time spent on inspection or part thereof, no other document can be inspected alongwith the Register
9. Application Fee.— Every application for a Reconnaissance Licence, Exploration Licence (EL) Mineral Deposit Retention Licence (MDRL) or a Mining Lease shall be accompanied by a non refundable fee of:
(a) Rs.15000/- in the case of Reconnaissance Licence.
(b) Rs.25000/- in case of Exploration Licence.
(c) Rs.1,00,000/- in case of Mineral Deposit Retention Licence (MDRL)
(d) Rs. 1,00,000/- in case of Mining Lease.
(2) Every application for a Reconnaissance Licence, Exploration Licence (EL) Mienral Deposit Retention Licence (MDRL) or a Mining lease shall inter alia state:–
(a) In case of an application by an individual his name, father’s name, address nationality and occupation
(b) In case of a partnership firm an authenticated copy of partnership deed, and in the case of a Registered Firm, a copy of the Registration Certificate from Registrar of the Firm Companies.
(3) An application by an alien, or a company incorporated outside, Northern Areas Pakistan, shall contain in addition to the matters specified in sub-rule (2) full particulars of the company to be incorporated in Northern Areas. Pakistan in accordance with Rule 16 for the purpose of receiving the grant of and (sic) any licence or lease which may be granted in pursuance of the application.
(4) Every application for the grant of a Reconnaissance Licence, Exploration Licence, Mineral Deposit Retention Licence or a Mining Lease shall be accompanied by ten copies of the map duly signed and showing the boundaries and areas of the land in respect of which the licence or lease has been applied for. The map shall be prepared from the Survey of Pakistan Map of the scale 1:50,000 or nearest scale available. It will be sufficient compliance of the sub-rule if only one copy of the map or sketch plan of the area showing grid lines with the application in the first instance and the remaining copies are furnished within a month. Copies of plans can also be prepared by the Licensing Authority on payment of Rs.1000/- for the time being, later on decided fee will be prescribed by the Licensing Authority by a general or special order. Failure to supply the requisite number or copies of map or plan within the prescribed time shall render the application liable to rejection.
(5) The applicant who is not a national of Pakistan shall with his application furnish an undertaking that he will abstain from all political activity whatsoever effecting the sovereignty or security of Northern Areas/Pakistan or which may be tantamount to interference in its internal affairs and that specially he will achieve all espionage.
(6) The information comprised in 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 in rule 8, shall be treated as confidential by the Licensing Authority.
(7) The applicant for a mining lease shall furnish with his application evidence to his financial and technical qualifications and his ability to comply with the terms and conditions in the model clauses set out in the fourth schedule relating to the lease for which application is made and in the case of an application by an alien or a company, incorporated outside NA and Pakistan the like evidence in relation to the company, if any required to be incorporated in Northern Areas and Pakistan in accordance with rule 16 for the purpose of receiving of the grant of and working any lese which may be granted in pursuance of the application. The applicant shall also state whether any application for licence or lease has been submitted in the past in any country for such licence or lese and the result thereof. The applicant shall also furnish upon request by the Licensing Authority, further evidence relating to such matters. If 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.
10. Areas granted by In-advertence.— If at later stage it is found that the Reconnaissance Licence, Exploration Licence, Mineral Deposit Retention Licence or Mining Lease has been granted by inadvertence, the lessee or licensee shall release unconditionally area or part thereof granted under a Reconnaissance Licence. Exploration Licence, Mineral Deposit Retention Licence or a Mining Lease if so desired by the Licensing Authority, and shall have no claim for any compensation.
11. 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 this rule shall prevent more than one licence or lease being granted to the same person.
12. Assignment.— (a) (i) A licence shall not be assigned, alienated or subject in any form by the licensee.
(ii) A lease shall not be assigned, alienated in any form without the previous consent in writing of the Licensing Authority. In case the application is rejected reasons for rejection shall be stated unless their disclosure is against public interest.
(iii) A Mining Lease shall not be sublet by the lessee to any party in any way.
(iv) Notwithstanding the provision in sub-rules (1), (2) and (3) the licensee or lessee may, under intimation to the Licensing Authority assign, sublet 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 institutional approved by the Licensing Authority in that behalf.
(b) The Licensing Authority may permit a licence or a lessee to start work in anticipation or the formal execution of the deeds pertaining to the licensee or the mining lease, as the case may be.
13. Order subject to approval of Licensing Authority.— Any order passed by an officer who has been delegated the powers under special order shall be subject to revision by the Licensing Authority.
14. Method of making application for assignment.— (1) An application by a licensee, or lessee for the assignment of a licence, or lease shall be addressed in writing to the Licensing Authority and shall be accompanied by a fee of Rs.5000/-. The applicant shall furnish in the application the same particulars in respect of the proposed assignee as are required in the case of applicant for licences and leases under rule 9.
(2) A copy of Sixty Schedule duly filled in and signed by the proposed assignee shall 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 or any other financial institution, a formal application under sub-rule (1) and execution of deed under sub-rule (2) will not be necessary and it will be sufficient if the notice of assignment is given by the Industrial Development Bank or the financial institution concerned to the Licensing Authority. IN case the licensee or lessee fails to repay the loan etc; the Industrial Development Bank of Pakistan or the financial institution shall get the assignment registered with the Licensing Authority and in such a case the Industrial Development Bank of Pakistan or the Financial Institution shall acquire all the rights and shall be liable to all the obligations of the original licensee or lessee, as the case may be.
(3) The Licensing Authority may declare in respect of any specified area, that in lieu of furnishing the particulars required in rule 9, the applicant for licenses or a mining lease shall adopt the procedure set forth below or such modifications thereof as the Licensing Authority may prescribe.
(4) He shall, before forwarding his application to the Licensing Authority demarcate the area applied for in the following method.
(5) At every angle or corner of each boundary line on as near thereto as is practicable, he shall fix pegs of substantial material, standing not less than two feet above the surface of the ground, and being not less than three inches square or three inches in diameter.
(6) If pegs be not obtainable, he may use instead cairns of stones or mound of earth, having in each case a height not less than two feet and diameter at the base, of not less than two fee.
(7) The direction of the boundary line on each side of each cairn or mound 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 the trenches cannot be conveniently cut, the direction of the boundary lines shall be indicated by finger posts, or in any other manner suitable for the purpose.
(8) The pegs, cairns or mounds shall bear or have affixed thereto some distinguishing mark, which shall be described in the application.
(9) (a) Pegs, cairn mound or other mark employed in marking out the land applied for shall not be removed or defaced after the application shall have been filed without the permission of the Licensing Authority.
(b) The application shall be accompanied by an amount of Rs.1000/- for the time being, later on exact rate of cost of survey of the areas will be prescribed by the Licensing Authority by a general or special order.
(c) Unless the Licensing Authority is of opinion that it is not expedient to grant the licence, or the lease, as the case may be, he shall as soon as possible after the receipt of the application cause the land applied for to be surveyed at the expense of the applicant, and the area and all other details ascertained in the course o such survey, shall be presumed to be correct: Provided that the Licensing Authority may, at his discretion, dispense with such survey, if the boundaries of the area applied for conform to the boundary already ascertained in a Government survey, e.g. the boundaries of survey numbers in a revenue survey.
15. Reciprocity.— A licence or lease shall not be granted to or held by any person who is or becomes, controlled directly or indirectly by a national of or by a company incorporated in a country, the laws and customs of which do not permit subject of Northern Areas or Pakistan or companies incorporated in Northern Areas or Pakistan to acquire, hold and operate mining concessions other than petroleum and natural gas on conditions which, in the opinion of the Licensing Authority, are reasonably comparable with the conditions upon which such rights are granted to Northern Areas or Pakistan nationals.
16. Application by an alien or a company incorporated outside Pakistan. (Northern Areas)..— (1) In the case of an application for a licence or lease by an alien or a company incorporated outside Northern Areas or Pakistan or in the case of an application by a licensee, or lessee for the Government’s consent to the assignment of a licence or lease to an alien or a company incorporated outside Northern Areas or Pakistan, such licence or lease shall only be granted or assigned to a company incorporated in Northern Areas or Pakistan, for the purpose of receiving and working any such licence of lease.
(2) Priority.—If more than one application for grant of any licence or mining lease, in respect of the same land are made then unless the Licensing Authority in his discretion decides otherwise preference shall be given to the applicant who has in accordance with these rules, filed his application first.
17. Acknowledgment of application.— On receipt of the application under rule 6, the Licensing Authority or such officer as he may authorize in his behalf shall note thereon the date and time of its receipt and shall deliver to the applicant an acknowledgement stating the date and time of receipt of the application in addition to postal acknowledgment to be given by the Licensing Authority or his authorized officer shall clearly state the documents received alongwith the application viz. Prescribed form treasury Challan, at least one copy of the plan or sketch of the area applied for; etc.
18. Inquiry.— (1) On receipt of application the Licensing Authority shall as soon as practicable inquire whether the grant of licence or lease applied for is inexpedient either on the ground that the land described in the application is required for a public purpose or otherwise.
19. Refusal to grant licence etc.— If in the opinion of the Licensing Authority it is not expedient to grant a licence or lease it shall refuse it and such a decision will be communicated to the applicant within a period of six months of the receipt of the application complete in all respects. The reason for refusal will be conveyed unless it is inexpedient to do so in the public interest.
20. Lapse of right to lease.— If the lease deed is not executed within three months of the communication of the approval fo the application for a mining lease the right of the applicant to such lease shall be deemed to have lapsed unless the lessee is able to explain to the satisfaction of Licensing Authority that the delay was due to reasons beyond his control. A fee of Rs.500/- shall be deposited by the lessee for the execution of Lease Deed.
21. Right of surrender.— (1) The licensee or lessee shall be at liberty to surrender or determine whole or part of his licence or lease, at any time giving not less than ninety days notice in writing to the Licensing Authority and upon the expiration of such notice, provided that all lawful orders issued by the Licensing Authority, and the Chief Inspector of Mines have been complied with and all the sums due on account of licence or lease have been paid the licence or lease shall be determined. The licensee or lessee shall be responsible for all payments due from him on account of acts of and commission during the term of licence or lease even after its determination. Any such notice shall be accompanied with a fee of Rs.50/- only:
Provided that where the licence or lese has 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 consent in writing of the Bank or the Financing Institution concerned.
(2) On the surrender of area held under the Reconnaissance Licence, Exploration Licence, Mineral Deposit Retention Licence or Mining Lease as provided in rule 21 (1) the licensee or lessee as the case may be, shall become entitled to a proportionate reduction in rent, provided that such reduction in rent shall not take effect during the half year in which he surrenders the area.
22. Notification and form of licence and mining lease.— (1) As soon as possible, after the grant, surrenders, determination or assignment of any licence or lease under these rules the Licensing Authority shall publish notice of such grant, surrender, determination or assignments in the official Gazette stating the name of licensee or lease or assignee and a brief description of the area concerned.
(2) The Reconnaissance Licence, Exploration Licence, Mineral Deposit Retention Licence and Mining Lease shall in the form set out in the first, second, third and fourth schedule, hereto and shall include such additional clauses relating to ancillary matters as Government may deem fit to insert.
23. Security deposit.— (1) No Reconnaissance Licence, EL, Mineral Deposit Retention Licence or Mining Lease shall take effect unless the following security deposits have been made:–
(a) in case of licences at the rate of Rs.2/- per acre subject to a minimum of Rs.2000/- and
(b) in case of mining lease at the rate of Rs.5/- per acre subject to a minimum of Rs. 4000/-
(2) If the application for a lease relates to an area for which the applicant holds licences, any amount held in deposit under sub-rule (1) in respect of such licences shall be adjusted to the account.
24. Refund of security deposit.— If a mining lease is granted to a person who has made deposit under rule 23, 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 rent and royalties or deposits payable under the lease. If he 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 in rule 35 and 38 have been complied with and on his furnishing the Licensing Authority with the information required by clause (e) of rule 73.
25. Ascertainment of area etc.— On receipt of an application the Licensing Authority shall as far as possible, before granting the RL, EL, MDRL or Mining Lease applied for, ascertain that the area applied for does not overlap with any other area already covered by a licence or lease. In the event of overlapping with the area (s) already granted, the application shall be rejected.
26. Reconnaissance Licence (RL) PART-II.— To enable the mining companies to reconnoiter large areas in a short span of time using modern techniques of satellite imagery, aerial photograph, aeromagnetic and regional geochemical surveys, an Reconnaissance Licence will be granted over an area of 100 to 10,000 Sq. Km. In respect of a mineral or a group of minerals. Unless stipulated otherwise the licence will be non-exclusive for a period of 12 months and will not be renewable. However, the Licensee will have right to an exploration licence over 10% of the area held under a Reconnaissance Licence provided that the criteria for the grant of such a licence and other requirements of the law are met. The Licensing Authority will take a decision on the application for a Reconnaissance Licence within 120 days from the date of filing of complete application. The application fee for an Reconnaissance Licence will be Rs.15,000. The Licensee will be obliged to carry out an approved work program and comply with other conditions of the Reconnaissance Licence.
27. Exploration Licence (EL) PART-III.— (1) An exploration licence will be granted over an area not exceeding 1,000 Sq. Km. for a period not exceeding three years where the applicant meets the specified criteria. The application must provide adequate information about the applicant, description and a sketch map of the area, work program and expenditure to be undertaken and technical and financial resources available to the applicant.
(2) Subject to satisfactory completion of work program and compliance with other conditions of the Exploration Licence (EL) it will be renewed for a period not exceeding three years over 50% of the area of the original EL. Where it can be demonstrated that a further extension is necessary for the completion of full feasibility study prior to applying for a mining lease, the Exploration Licence (EL) will be renewed over 50% of the area held for a period not exceeding 3 years. The applicant will be obligated to submit, with the application, work programme and give valid reasons for such a renewal. The applicant for an EL or its renewal shall be granted/refused within 120 days from the date of filing of complete application.
(3) An application fees for EL will be Rs.25,000 and fee for each renewal will be Rs.50,000. In additional, rent of the land over which the licence is granted will have to be paid. The rent will increase progressively each year.
(4) Where more than one application are made in respect of the same area, the Licensing Authority shall make a decision on the grant of an EL to one of the applicant on the basis of the best minimum work programme submitted and other financial terms offered and demonstrable technical and financial competence to execute the work programme and meet the other obligations of the Exploration Licence (EL) regardless of the order in which the applications were received.
(5) The EL shall not, during the first two years of its term, be assigned or transferred by the Licensee to any party, other than to an affiliate. Assignments to an affiliate will be subject to the prior approval of the Licensing Authority.
(6) The Licensee shall have the right, after a period of two years, to assign or transfer all or part of its interest in the EL to any third party subject to the prior written consent of the Licensing Authority. Such consent shall not be withheld except for good reasons, for example, where the Licensing Authority is reasonably satisfied that the proposed assignee does not meet the criteria for the grant of an EL; the proposed assignee is unwilling to provide an unconditional undertaking to assume all the obligation of the assignor, or to comply with any reasonable condition of the assignment; or the assignment or transfer is reasonably considered by the Licensing Authority to be against national interest.
28. Exploration Licence.— (1) Exploration Licence shall, subject to the conditions contained in the licence confer on the licensee the sole right to mine, quarry, bore, dig and search for, win and work any specified mineral or minerals lying or being within under or throughout the land specified in the licence.
(2) No mineral won during the currency of the Exploration Licence will be sold or carried away from the area concerned by the Licensee without the prior permission in writing of the Licensing Authority.
29. Rights under Exploration Licence.— (1) An exploration licence shall, subject to these rules and additional conditions, if any, prescribed by the Licensing Authority at the time of grant of any licence confer on the Licensee of the sole right:–
(a) to mine, quarry, bore, dig and search for, win, work, carry away and dispose of any specified mineral lying or being within under or through the land specified in the licence and to clear undergrowth and bushwood and make road (s) on the said land;
(b) subject to the approval of the Government, to appropriate and 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, but so that in the exercise of the privilege the Licensee shall not deprive any lands, villages, houses or watering places for cattle of a reasonable supply of water as heretofore accustomed; and
(c) to erect and bring upon the lands demised under exploration licence such temporary huts, sheds and structures, machinery and conveniences, cattels and effects as shall be proper and necessary for effectually carrying on the exploratory 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.
30. Particulars of register of exploration licence.— The Licensing Authority shall maintain a register of exploration licences granted by it specifying:–
(a) number of exploration licences.
(b) name of the Licensee.
(c) address of the Licensee.
(d) date of grant of licence.
(e) mineral for which licence is granted.
(f) period for which licence is granted.
(g) situation and boundaries of the area.
(h) total area.
(i) amount of security deposit.
(j) particulars of disposal or refund of deposit.
(k) date of first renewal.
(l) date of second renewal.
(m) date of assignment or transfer of the licence and fees paid thereof and names of the parties thereto.
(n) date of conversion of exploration licence into mining lease; and
(o) remarks.
31. No objection certificate .— (1) Each area in respect of which an exploration licence is granted, shall as far as possible, be a compact area and shall either be limited by well-marked permanent physical boundaries, be bounded by straight lines, and the shape of the area shall be determined by the Geological Setting. The possession of the area in respect of which the exploration licence is granted shall be given, as far as possible in association with the D.C. (Collector) of the concerned district and the D.F.O. concerned in case the Forest Department is concerned in any way with it. Provided that if No Objection Certificate is not received from the Department concerned within a period of two months it will be assumed that the Department concerned have no objection for the grant of exploration licence or mining lease.
(2) In case there is a difference of opinion between Licensing Authority and Revenue or Forest Department over the issuance of No Objection Certificate and the Licensing Authority has got legitimate reasons to believe that it is in the interest of Government; to grant exploration licence/mining lease in that area the Licensing Authority will refer such cases to the Chief Secretary whose decision shall be final.
32. Pre-emption.— Government shall at all times have the right of pre-emption of the minerals lying upon the land in respect of which the licence has been granted or elsewhere under the control of the licensee, provided that price considered fair by Government shall be paid to the licensee for all Minerals taken in pre-emption.
33. Working obligations.— (1) The licensee shall in respect of the area covered by each licence prepare within three months of the grant of the licence a scheme of prospecting for the approval of the Licensing Authority, and shall not commence the operations unless the scheme has been so approved. The licensee shall, in respect of the area covered by the licence carryout the prospecting work in accordance with the approved prospecting scheme.
(2) If the licensee fails to submit a prospecting scheme within the prescribed period or in case of rejection of the same, a revised scheme within a period of two months from the date of rejection, the prospecting licence shall be cancelled with out notice.
(3) The licensee shall submit to the Licensing Authority in such form as may be prescribed by the Licensing Authority quarterly reports about the progress of work carried out by him and shall abide by the instructions issued by the Licensing Authority from time to time in respect of the prospecting work.
(4) If, in the opinion of the Licensing Authority the licensee has failed to fulfill the working obligation including acceptance of terms and conditions of the letters of allotment, payment of Government dues, demarcation of the area, submission of prescribed progress reports, or has not carried out reasonable prospecting works, the licensee shall forfeit the right of renewal of the licence or grant of mining lease over whole or any part of the area covered by the licence.
(5) If at any time it is found on inspection or otherwise that the licensee is not conforming to the provisions of prospecting scheme he shall be liable to a penalty of Rs.1000/- in the first instance. If the defects of irregularities re not removed within a period of thirty days from the imposition of this penalty the licence shall be terminated.
34. Royalty.— The licensee shall pay royalty at the rates specified in the Table-III on all minerals won and carried away over and above the quantity, which is allowed in the Table-IV which, can be taken free for the purpose of experiment.
35. Compensation.— The licensee shall make and pay such reasonable satisfaction and compensation, as may be assessed by lawful Authority in accordance with the law in force on the subject applying to the lands over which the licence has been granted, for all damage, injury or disturbance which may be done by him in exercise of the powers granted by the licence, and shall indemnify the Government against all claims which may be made by third parties in respect of any such damage, injury or disturbance.
36. Not to cut or injure any tree.— The licensee shall not cut or damage any tree on unoccupied and unreserved land without the permission in writing of the Licensing Authority or of a such officer(s) as he may appoint and not without the permission of the Licensing Authority shall disturb the surface of any road or enter on any public pleasure ground, burning or burying ground or place held sacred by any class of persons or interfere with right-of-way, well or tank.
37. Power to assess and claim compensation for damage to mineral property.— In the event of any damage caused to the mineral property due to unscientific working, lack of supervision of any other omission or commission on the part of the licence, the Licensing Authority shall, as the sole judge, assess the extent of the damage and the compensation payable therefore by the licensee and the licensee shall be liable to pay the compensations so assessed in the same manner as arrears of rents and royalties.
38 To plug bore holes 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, he shall, within ninety days next after the determination o the licence or the date of abandonment of the under taking which ever shall occur first, securely plug any bore-holes and fill up or fence holes or excavations 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 35.
39. Operation in the reserved and protected forests.— All operations 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 operation within reserved or protected forests, thirty days notice shall be given to the Divisional Forest Officer for the intention to commence operation and the operation shall be conducted subject to any conditions regarding the use of the fire that he may prescribe.
40. Right of the licensee to a mining lease.— On or before the determination of his licence, the licensee shall have a right to a mining lese in accordance with the terms contained in these rules for mining lease, provided he has carried on operations to the satisfaction of the Licensing Authority in 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 so much land comprising the whole or part of the area for which the licence was granted as shall not exceed area specified with respect to mining leases under rules 45 and 46.
41. -MINERAL DEPOSIT RETENTION LICENCE (MDRL) PART-IV.— (1) On completion of a full feasibility study, if the holder of an EL can demonstrate that the deposit, though potentially viable, cannot be commercially developed, due to depressed metal/mineral prices utilizing proven technology or with financing on commercial terms which are reflective of current market conditions for other mining projects, he may, within 180 days before the expiry of the Exploration Licence (EL) apply for a Mineral Deposit Retention Licence Mineral Deposit Retention Licence. The application must be accompanied with full justification and data and the prescribed fee. The applicant for a Mineral Deposit Retention Licence will have to demonstrate that the exploration operation had progressed as far as practicable and that the applicant is able and willing to comply with the conditions of the Mineral Deposit Retention Licence and has complied with the terms and conditions of the EL.
(2) The application fee for a Mineral Deposit Retention Licence or its renewal will be Rs.100,000 each and the licensee shall, in respect of the Mineral Deposit Retention Licence area, pay in advance, for each year, the rent applicable fo the corresponding period of the EL.
(3) The application for a Mineral Deposit Retention Licence will be considered within 180 days and may be granted for a period not exceeding two years subject to specified conditions. It may be renewed for a period not exceeding one year subject to payment of a renewal fee and land rent. However, the licensee must justify annually to the Licensing Authority the basis for continuation of the renewal of the Mineral Deposit Retention Licence. The data generated by the licensee will be placed on a open file and the feasibility study will be placed on a confidential file at the office of the relevant Licensing Authority and will be opened to bona fide interested third parties for inspection.
(4) In the event of another company for a mining lease over a deposit covered by Mineral Deposit Retention Licence, the licensee will have the right of first refusal to obtain a mining lease. If the licensee is unable to match the terms offered by third party, the Mineral Deposit Retention Licence (MDRL) shall stand terminated.
42. MINING LEASE (ML) PART-V.— (1) The holder of an EL or the Mineral Deposit Retention Licence (MDRL) may apply for a mining lease over an area subject to a maximum of 250 Sq. Km. within the EL or Mineral Deposit Retention Licence (MDRL) in respect of the mineral /minerals discovered. The application shall be accompanied by detailed information including technical and financial resources available for development of the mine, work programme for development and operation of the mine, production schedule, financing plan, environmental protection plans, proposals for procurement and use of local goods and services, training of nationals and the prescribed application fee. The application will be considered, in accordance with specified criteria, within 120 days after receipt of the application or receipt of any additional information requested. The licensee will remain valid while the application is under consideration.
(2) The Licensing Authority shall not unreasonably refuse the application for the grant of an ML. Where the Licensing Authority considers that the applicant has satisfied the specified criteria for assessment and grant of an ML, the ML will be granted. The Licensing Authority will not refuse an application by a licensee for an ML unless the authority has notified the applicant of the proposal to refuse the ML and has given the applicant a reasonable opportunity to modify the proposals or mining plans or make representation or otherwise remove the grounds for refusal.
(3) The application fee for an ML or its renewal will be Rs.100,000 each and the land rent will be Rs.3000 per Sq. km/Year to be paid in advance each year .
(4) The ML will be granted for the lesser of a period of 30 years or the estimated life of the mine. An ML may be renewed for a period not exceeding 10 years or the life of the mine whichever is lesser in the light of the circumstances prevailing at that time.
(5) Where an application for a mining lease is made by an applicant not holding an EL or Mineral Deposit Retention Licence (MDRL), the decision will be made within 180 days, unless extended further up to 180 days by the Government. The lessee will be obligated to carryout mining operations in accordance with good international mining industry practice, provide acceptable working conditions and take measures to protect health, safety and welfare of employees and the environment. The lessee will be required to commence mining operations within six months of the grant in accordance with the approved mining development plan.
(6) A lessee shall have the right to assign an ML with prior consent of the Licensing Authority. Such consent will not be unreasonably withheld or delayed, if the proposed assignee meets certain specified criteria and conditions similar to those applicable for assignments of ELs.
(7) A lessee shall have the right to market and export minerals products subject to satisfaction of the internal requirements of Pakistan. The price to be paid for any minerals or mineral products purchased by the Government shall be the fair market price. The fair market price shall be determined by agreement on the basis of specified criteria and failing agreement by reference to a mutually acceptable expert or to arbitrators.
43. Grant of Mining lease.— (1) With the previous approval of mines committee or sub mines committee the Licensing Authority may grant a lease for a mineral of minerals on the land specified therein provided that applicant:–
(a) hold an EL or MDRL in respect of the mineral or minerals in that area for which a mining lease is applied; and
(b) furnishes Bank certificate for such sums as the Licensing Authority may in his discretion fix at time of scrutinizing the scheme submitted under clause a, and
(2) If the applicant does’t hold an EL or MDRL in respect of the mineral or minerals for which the mining lease is applied, he submits, in addition to documents mentioned in sub-rule (1) satisfactory evidence (such as report of the Geological Survey of Pakistan or from a qualified Geologist or Mining Engineer) a discovery report accompanied by a representative sample of the mineral as proof of the existence of the mineral or minerals applied for and submits for the approval of the Licensing Authority a complete scheme for working and exploiting the mineral or minerals applied for under technically qualified personnel;
(3) The exploration scheme shall inter alia include:–
(i) a statement of expenditure incurred by the licensee during exploration duly audited and certified by Registered Firm of Auditors/Chartered Accountants;
(ii) detailed map of the area of which at least one third would show the Geology of the area in detail on the scale of mile minimum;
(iii) location and description of the deposits;
(iv) estimates of proved an 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 a various stages of exploration.
(viii) details of roads and other surface as well as underground construction such as store and lamp room, workshop, benefaction or mineral dressing plants, offices, residential accommodation and other amenities, for staff and labor to be constructed, etc.
(ix) estimated phased expenditure on the scheme; and
(x) furnish banker’s certificate for such reasonable sums as the Licensing Authority may fix at the time of scrutinizing the scheme submitted under sub-rule (2).
(4) The Licensing Authority may approve the exploration scheme subject to such modifications as the Licensing Authority may prescribe. No change in the approved exploration scheme shall be made by the lessee without prior approval in writing of the Licensing Authority.
(5) If the scheme or exploration does not fulfill all the requirements of rule 43, it shall be rejected. The applicant whose scheme has been rejected shall submit a revised scheme of exploration within three months from the date of rejection failing which his application for the grant of mining lease shall be rejected and the licence shall also be stand cancelled.
(6) a copy of approved exploitation scheme shall be kept by the lessee at the mine.
(7) In addition to information supplied above, the applicant shall also, here necessary, as required by the Licensing Authority furnish plans or sections to illustrate justify or amplify the exploration scheme.
44. Register of Mining lease.— The Licensing Authority shall maintain a register of mining leases granted by him specifying:–
(a) number of the mining lease.
(b) name of the lessee.
(c) address of the lessee.
(d) date of grant of lease.
(e) minerals for which lease granted.
(f) period for which granted.
(g) situation and boundaries of the land.
(h) total area.
(i) fee and royalty payable under Rules 49, 50, 51 or 52.
(j) amount of security deposit.
(k) particular of disposal or refund of deposits.
(l) date of first renewal.
(m) date of Second renewal.
(n) date of assignment of transfer of the lease and fees paid thereof and names of the partners thereto; and
(o) remarks.
45. Comprehensive Mining lease.— The lease shall not be granted in respect of any area for more than 250 sq. Km.
46. Shape of area.— (1) Each separate area in which a mining lease is granted shall as far as possible, be a compact area and shall either be limited by well-marked permanent physical boundaries or be bounded by straight lines, and he shape of area shall be determined by the Geological setting.
(2) The possession of the area in respect of which a mining lease is granted shall as far as possible be given in association with the D.C. (collector) of the concerned district and the D.F.O. in case the forest department is concerned in any way with it.
47. Vertical boundaries of the area.— The boundaries of the areas covered by a mining lease shall run vertically downwards below the surface towards the center of the earth
48. Period.— (1) 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 the Government for a further period not exceeding ten years on an yearly dead rent and surface rent, not exceeding twice the original yearly dead rent and surface rent, respectively, the royalty payable being that which may, on the day next following that on which the original lease determine, be in force.
(2) The term of the lease is liable to be terminated by the Licensing Authority without notice if the working obligations as specified in rule 53 are not carried out.
(3) The term of the lease is liable at any time to be terminated by Government, on payment of such compensation as may be determined by the Government.
49. Royalty.— A lessee shall pay royalty in respect of a mineral at the rate fixed for that mineral in Table-III.
50. Yearly dead rent. — A lessee shall pay a fixed half yearly dead rent in advance on the first of January and the first day of July each year and proportionate advance dead rent for lesser periods, if any, at the commencement of and termination of the lease, at the rates laid down in Table-II.
51. Surface rent. — The lessee shall also pay for all land which he may use or occupy superficially for the purposes of the operation conducted under the lease, a surface rent at the rate assessed under the Revenue and Rent law in the district in which the land is situated and water rates, if any, ordinarily assessed under any irrigation Rules which would have applied to the land if it had not been occupied for the winning of the mineral. If the rent cannot be assessed under the laws of the district the Licensing Authority may fix the rate.
52. Other payments. — The lessee shall make and pay such reasonable compensation, as may be assessed by the lawful authority in accordance with the law in-force on the subject applying to the land over which the lease has been granted, for all damage, injury or disturbance which may be done by him in exercise of the powers granted, by the lease and shall indemnify the Government against all claims which may be made by the third parties in respect of any such damage, injury or disturbance. In case of any dispute arising out of the mining lease about compensation, the matter shall be referred to the Licensing Authority for arbitration as a sole arbitrator in the matter.

WORKING OBLIGATIONS
53. Commencement of operations etc. — (1) Unless the Licensing Authority for good and sufficient reasons of which it shall be the sole judge otherwise directs, the lessee shall commence operation according to the approved exploration scheme within six months from the date and the grant of mining lease and shall thereafter carry them out effectually in a proper skillfull and workmanlike manner and shall not dipillar or abandon the mine without obtaining the prior approval of the Licensing Authority. It shall be deemed to be a breach of his condition if the lessee without good and sufficient cause fails to work so as to produce sufficient mineral to earn royalty at least equal to the dead rent within one year on the commencement of the operations or continue to do so thereafter.
(2) If at any time it is found on inspection or otherwise that the lessee is not conforming to the provisions of exploitation scheme he shall be liable to penalty of Rs.3,000/- in he first instance. If he defects or irregularities are not removed within a period of thirty days from the imposition of this penalty the lease shall be terminated.
54. Power to assess and claim compensation for damages to mineral property.—In the event of any damage caused to the mineral property due to unscientific working, lack of supervision, negligence or any other omission or commission on the part of lessee the Licensing Authority shall, as the sole Judge, assess the extent of the damage and the compensation payable therefore by the lessee and the lessee shall be liable to pay the compensation so assessed in the same manner as arrears of rent and royalties.
MISCELLANEOUS
55. Disclosing the Information by the licensee during the operations. — If so required by the Licensing Authority the licensee shall, before the deposit made under rule 23 is returned to him, disclose confidentially to Licensing Authority all information acquired in the course of the operations carried on under the licence, regarding the minerals contained in or the geological information of an area not covered by him under a mining lease.
56. Boundary mark and boundary disputes etc.— (1) The licensee or lessee shall, at his own expenses, erect and at all maintain and keep in repair, boundary marks and pillars according to the demarcation to be shown in a plan annexed to his licence or lease. The pillars and the boundary marks shall be erected according to the procedure set forth in rule 14(3).
(2) No pillar or pegs, cairns or mounds employed in marking out the land applied for shall be removed or defaced after the application has been filed without the permission fo the Licensing Authority.
(3) In case of boundary dispute between two or more licensees or lessees, the decision of the Licensing Authority shall be final.
57. Checking of boundary demarcation.— (1) A licensee or lessee shall within sixty days of the issue of a licence or lease, cause the area granted to him under such licence or lease to be accurately demarcated on ground according to the survey data and submit a certificate on the prescribed form signed by a surveyor of having carried out the said boundary demarcation himself to he best of his ability and in accordance with the relevant survey data.
(2) On receipt of certificate referred to in sub-rule (1) above the Licensing Authority as soon as practicable, may cause the boundary demarcation done by mine surveyor to be physically checked by a competent official, which official shall after obtaining permission from the Licensing Authority, make any correction in the demarcation survey, of the mine surveyor, if necessary. It the Licensing Authority after giving reasonable opportunity to the mine surveyor to explain his side is satisfied that mine surveyor in question has committed a gross negligence, deliberately or otherwise, in the discharge of his work it shall proceed to take action under the penalty rules.
(3) A licensee or lessee shall deposit a sum of Rs.1000/- for meeting the expenses of the check survey referred to in sub-rule (1) in the head of account notified by the Licensing Authority from time to time. In case a licensee or lessee request Licensing Authority to demarcate his area he shall be required to pay a sum of Rs.3000/- as demarcation fee.
58. Not to construct building upon any public place. — The licensee or lessee shall not erect any building or carry on any surface operation upon any public pleasure ground burning or burying ground or place held sacred by any class or persons, or any house or village site or public road or any other place which the Licensing Authority may exclude from building or such operations.
59. Not to work within 100 years from any reservoir etc. — The licensee or lessee shall not carry on or permit to be carried on any mining operations at or upto any point within a distance of one hundred yards from any reservoir canal or other public works or buildings and ot any point within a distance of fifty yards from his lease boundary except with the previous permission or the Licensing Authority.
60. Weighing machine. — The licensee or lessee shall provide a properly constructed and efficient weighing machine or to other suitable means for determining the weight or quantity of the mineral produced.
61. Keeping of Accounts and their inspection and Submission of Production returns etc. — (1) The licensee or lessee shall keep correct account at the mine premises showing the quantity and particulars of the mineral obtained and dispatched from the mine, the number of persons employed therein and complete plans of the mine, and shall allow any officer authorized by the Licensing Authority in that behalf at any time to examine such accounts and plans.
(2) The details of production and sales etc shall be maintained in forms prescribed by the Licensing Authority from time to time.
(3) After the grant of permission to commence exploratory operations or mining operations in respect of exploration licence or a mining lease the licensee or lessee will send the production returns to the Licensing Authority on the prescribed form as notified by the Government from time to time in respect of the areas held by the concessionaire under exploration licence or a mining lease. In case there is no production from he area, a NIL production return has to be submitted by the concessionaire. The production returns should reach the Licensing Authority before the 7th of each ensuing month. If a lessee or licensee is irregular to submission of production returns or on checking the Licensing Authority is of the view that the production returns are not correct the exploration licence or the mining lease shall be cancelled without any notice.
62. Strengthening and supporting of 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 supporting is needed for conservation and economic development of the mineral.
63. Discovery of other minerals.— The licensee or lessee shall without delay report to the Licensing Authority the discovery on or within any of the lands of mines demised by the licence or a lease of any mineral (s) not specified in the licence or lease but he shall not, unless a fresh licence or lease in respect of the minerals so discovered is granted to him under these Rules, have any right to these minerals. The licensee or lessee will, however enjoy preferential right to the grant of a exploration licence or mining lease for such other mineral (s) discovered and reported by him subject to the discretion of the Licensing Authority.
64. Inspection.— The licensee or lessee shall allow any officer authorized by the Licensing Authority in that behalf to enter upon the premises comprised in the lease for he purpose of inspecting the same.
65. Access to other licensees or lessees.— The licensee or lessee shall allow existing and future licence or lease holders of any land which is comprised in or adjoins or is reached by the land held by the lessee, all reasonable facilities of access thereto.
66. Delivering of Mines, etc in good condition.— All the end or sooner determination of the lease the lessee shall deliver up the said premises and all mines if any dug therein in a proper and workmanlike state save in respect of any working as to which the Licensing Authority may have sanctioned abandonment.
67. Preemption.— Government shall at all times have right of pre-emption of the mineral lying upon the land in respect of which a lease had been granted or elsewhere under the control of the lessee, provided that a price condition fair by Government shall be paid to the lessee for all minerals taken in pre-emption.
68. Power of distress.— If the royalty or rent reserved or made payable by the lessee be not paid within sixty days next after the date fixed in the lease for the payment of the same the Licensing Authority may enter upon the said premises and distrain all or any of the minerals or moveable property therein and may order the sale of the property so distrained or so much be of it as will be sufficient for the satisfaction of the rent or royalty due and all costs and expenses occasioned by the non-payment thereof, and if any royalty or rent remain at any time unpaid for one hundred and eighty days after date on which it falls due, the Licensing Authority may determine the lease and take possession of the premises comprises therein.
69. Operation within reserved areas.— (1) All operations conducted under the authority of these Rules within a reserved or protected forest shall be subject to such conditions as Government may from time to time by general or special order prescribe. It shall be condition of every lease granted under these Rules that, before the commencement of work within reserved or protected forests, thirty days notice shall be given to the Divisional Forest Officer of the intention to commence operations. The operations shall be conducted subject to such condition regarding the use of the fire as he may prescribe.
70. Mining Lease to specify to falling of timber, etc. — Every mining lease which includes any portion of a reserved or protected forest shall specify whether the lease is authorized to fell timber for mining purposes and shall also specify the area within which or the quantity upto which and the terms and condition on which he may exercise that authority.
71. Right of surrender. — The lessee shall be at liberties to determine the lease at any time on giving not less than ninety days notice in writing to the Licensing Authority and upon the expiration of such notice, provided that all sums due on account of the lease shall have been paid, the lease shall be determined.
72. Encroachment other areas. — If a licensee or lessee while working on surface or underground is found encroaching upon:–
(a) any area not include in his licence or lease, the Licensing Authority shall have the power to stop such the operation by the such measures as it deems fit and the licensee or lessee shall also be liable to a penalty under rule and;
(b) any subsequent violation of such measures as specified in clause (a) shall render the licence or lease liable to cancellation.
73. Powers of Licensing Authority. — (1) If and when any of the outstanding dues, rents and royalties payable by the licensee or lessee be not paid within six months next after the date fixed for the payment of the same, the Licensing Authority shall have the power to cancel the licenses or mining lease without any notice and proceed to recover the dues as arrears of land revenue.
Provided that if the licence or mining lease has been assigned to or mortgaged in favour of the Industrial Development Bank of Pakistan or its successor in interest and or assignee or any other Bank of Financing Institution 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 apply the said proceeds first towards the sale and or legal charges which the Licensing Authority may have incurred, that to wards the satisfaction of the dues of the financial institution and out of the balance pay to the Government its dues. If the amount recovered from the sale of auction of the lese does not satisfy the claim of the Government, the Licensing Authority shall have the powers to recover the dues as land revenue arrears fro the defaulters and also have authority to institute a civil suit to recover the arrears.
(2) To require the licensee or lessee to pay a penalty on exceeding an amount equivalent to twice the amount of the annual fee or dead rent as the case may be and cancel the licence or lease and forfeit in whole or part the security deposit made by the licensee or lessee under rules 23 if the licensee or lessee violates and undertaking given in the accordance with rules (5) or fails to remedy any breach of the provisions of the licence or lease within ninety days from the date such breach is brought to his notice by the Licensing Authority provided that such breach be not the subject of any question or dispute under reference to Government or a court of law;
Provided further that where the licence has been assigned or subject to or charges in favour of Industrial Development Bank of Pakistan or its successor in interest or assignee or any other Bank or Financing Institution the Licensing Authority shall inform the Industrial Development Bank of Pakistan or Financing Institution, as the case may be of its intention to cancel the licence or lease and action will be taken according to rule 73 sub-rule (1).
(3) To require the licensee or lessee to employ nationals of NAs/Pakistan in his organization in all grades and in all branches including technical and administrative units and to arrange for the training in NAs/Pakistan to fill up the aforesaid appointments. The number of NAs/Pakistan nationals to be employed or trained being determinable in consultation with Government while making appointments or engaging unskilled, semi-skilled or skilled laborers preference shall always be given to NAs people.
(4) To require the licensee or lessee to submit to the Licensing Authority at the end of every year balance sheet audited by an approved auditor and such other information and periodical returns as may from time to time be prescribed by the Licensing Authority.
(5) To require the licensee or lessee to submit statistical data and such information as may be required for the purpose of planning and development to all Government approved Statistical Organizations in such forms as may be prescribed.
(6) To require the licensee or lessee to merge his licence of lease with other licensee or lessee for the purposes of joint exploration, the term and condition of such merger will be mutually decided by the concerned licensee or lessee. In case of disagreement, the case will be referred to the Licensing Authority whose decision shall be final.
(7) To require the licensee or lessee to grade, beneficiate, refine and concentrate the mineral to attain the standards fixed by a general or special order of the Licensing Authority or Government or to set up a plant within time limit prescribed by the Licensing Authority, the product of which requires the use of mineral for which licence or mining lease is held as a major raw material. Violation of any order made by the Licensing Authority in exercise of its rights under (h) and (i) shall render all the concessions held by him liable to cancellation.
(8) To require licensee or lessee to meet the internal requirements of NAs, to the satisfaction of Licensing Authority before exporting any mineral or its products to other countries.
(9) Subject to any law for the time being in force to require the licensee or lessee to associate Government capital to the extent of 51 per cent of all the classes of capital and debentures issued by him from time to time.
(10) To require the licensee or the lessee to associate the capital furnished by such resident or residents of NA, wherein the licensed or lease area is situated, to such extent as may be approved by the Licensing Authority.
(11) To require the licensee or lessee, his agent or distributor to sell or offer for sale the mineral to a particular party or parties or general public at a price fixed by Government.
(12) To require the licensee or lessee to submit claim for compensation the property to be acquired.
74. WORK ORDER. — (1) No licensee or lessee shall commence exploration or mining operations in the area granted under licenses or lease unless he is permitted to do so in writing by the Licensing Authority. Such written permission shall be known as “WORK ORDER”.
(2) No work order shall be issued unless the demarcation certificate referred to in sub-rule (1) of rule 57 has been submitted to and accepted by the Licensing Authority.
75. Priority. — (1) When application for licenses are presented in respect of same area, the priority shall, unless the Licensing Authority decide otherwise in any particular case, be deemed to be with the application who after compliance with the procedure prescribed by Rules shall have been the first to file his application with the Licensing Authority.
The same procedure shall be followed when applications for a mining lease are presented in respect of the same area by applicants not holding licences over the same area. The provisions shall be subject to provisions of rule 76.
(2) Priority will also be given to such licensee/lessee who is prepared to process the mineral or utilize it for industrial purposes directly/indirectly within NAs, territory.
(3) In case of an application for mining lease for an area not held under a licence, the Licensing Authority may in its discretion, instead of granting a lease in the first instance grant a licence.
Explanation. – For the purpose of this Rule the return of the plan or map for correction of overlapping or survey data will not affect the original priority of the applicant.
76. Determination of suitability of the applicant. — While granting licences or a mining lease to an applicant the Licensing Authority take into consideration the following the determining the suitability or otherwise of the applicant.
(a) past performance in respect of previous concessions;
(b) outstanding Government dues;
(c) submission of accounts and other returns;
(d) number of concessions already held by him;
(e) any other ground which in the opinion of the Licensing Authority renders the party unfit for any such grant.
77. Licensee or lessee to pay royalty as specified by the Government. — (1) The licensee or lessee shall on the first day of January and the first day of July each year pay royalty at the rates to be notified by the Government from time to time of all minerals extracted by him.
(2) In case of non payment of royalty on the dates mentioned in the above sub-rule the following procedure shall be observed:–
(a) the first two months shall be treated as grace period.
(b) penalty at the rate of 6% of royalty dues shall be charged in case the payment is made after the expiry of the second month next after the due date.
(c) in case royalty along with penalty is not paid until expiry of the fourth month from the due date, the licensee or lessee shall be liable to pay a further penalty of up to Rs.5000/- or as double the amount of outstanding dues, determined and decided by the Licensing Authority.
(d) in case royalty alongwith penalty is not paid until the expiry of the six months after the date it first become due as stated in sub-rule (1) above, the licenses or mining lease shall be cancelled forthwith subject, however, to the provisions of rule 73.
78. Rewards for discovery of minerals. — (1) Any person other than a public servant directly concerned with prospecting, exploration, exploration or development of mines and minerals discovering a commercially exploitable mineral deposit shall be entitled to a cash reward or option for taking out an exploration licence if he discovers a commercially exploitable mineral deposit other than the one for which he already holds an appropriate licence or mining lease.
(2) The discoverer may register his claim with the Licensing Authority giving the particulars of the area where the mineral occurs, furnishing details of his discovery including samples of the mineral found, a copy of plan showing survey details on the scale of 1:50,000 or the nearest scale available showing the area of the occurrence of the mineral. The discoverer may also submit a rough sketch, making the physical features and whereabouts of his discovery identifying various landmarks in the around the discovery.
(3) The registration shall confer on the discoverer a right to get a licences over the area independently or in association with other suitable persons within these rules, provided a formal application for the purpose is received by the Licensing Authority within three months of the date of registration of the discovery.
(4) In case the discoverer does not apply for a licence within the term specified in sub-rule (3) above, the Licensing Authority may release the information for the benefit of the public through a press note.
(5) In case of (4) above an initial reward, to be determined by the Licensing Authority will be paid to the discoverer by the party who is granted licence over the area. If no private party comes forward to take licence after the information of the discovery has been released through a press note the Licensing Authority will evaluate the discovery and pay the reward to the discoverer.
(6) The scale of reward shall be as under:–
SIZE OF DEPOSIT AMOUNT OF AWARD

(i) Big deposit of which the workable reserve is
evaluated at more than Rs.50 Lac Rs. 20,000

(ii) Medium size deposit evaluated at Rs.20 to 50 Lac. Rs. 10,000

(iii) Small deposit evaluated at Rs. 10 to 20 Lac. Rs. 5,000

The amount of such reward shall be recovered from the beneficiaries of the discovery.

(a) Radioactive minerals, which are already covered by a reward plan of the Atomic Energy Commission, Government of Pakistan are excluded from the purview of the above Rule. Limestone, sandstone, gypsum calcareous and the other minerals of the common occurrence are also excluded from the purview of this Rule. Anything the value of which is less than that given in clause (iii) sub-rule (6) above shall be considered as uneconomic. To encourage prospecting for mineral even uneconomic discovery will be rewarded by the Licensing Authority at the rate of Rs.1000 per discovery provided that it is proved to be a new discovery and in option of the Licensing Authority is also of some economic importance or of academic interest.

(b) The payment of rewards to the discoverer of mineral shall be made within fifteen months of the registration of the discovery of a mineral deposit. Every registration will be duly acknowledged by the Licensing Authority.

(c) Every discovery shall be registered on a prescribed form obtainable from the office of the Licensing Authority or the nearest post office.
79. Penalty for unauthorized working or obstruction. — (1) If any person starts mining of any mineral outside the area granted to him or in an area for which he has not obtained a licence or a mining lease in accordance with these Rules or illegally obstructs free access of licensee or the lessee to the licenced or leased area, directly or indirectly tries to interfere with the operations by licensee or lessee or any person or persons found in possession of unauthorizedly extracted minerals, he shall be punishable with imprisonment for a term which may extend to 3 years or with fine which may extend to Rs.20,000 or with both. This offence shall be cognizable under the criminal procedure code.
(2) Besides the punishment and fine as mentioned in sub-rule above, the total value of the mineral extracted unauthorizedly shall be liable to be recovered from such person. The total value of unauthorized excavated or mined mineral shall be estimated by the Licensing Authority.
80. Refusal to grant licence in case of outstanding dues. — (1) The Licensing Authority may in its discretion refuse to grant any licence or lease to an application against whom Government dues under these rules are outstanding.
(2) Where Government dues are outstanding against one or more of the partners in a firm, the application of the firm for the grant of licence or lease may also be rejected by the Licensing Authority.
81. Other Penalties. — (1) The licensee or lessee, as the case may be shall be liable to penalties for the violation of different Rules as under:–
(a) Violations of rule 33 (working obligation). The penalty may extend to Rs.1,000/- or cancellation of the licence.
(b) Violation of rule 39, 69 (Operation in reserved and protected Forests). The penalty may extend to Rs.2,000/- or cancellation of the licence.
(c) Violation of rule 38 (To plug mines etc.). The penalty may extend to Rs.2,000/-
(d) Violation of rule 53 (Commencement of operation). The penalty may extend to Rs.3,000/- or cancellation of the lease.
(e) Violation of rule 56 (boundary marks). The penalty may extend to Rs.1,500/-
(f) Violation of rule 61 (Keeping of accounts and their inspection). The penalty may extend to Rs.2,000/-
(g) Violation of rule 62 (Strengthening and supporting the mines). The penalty may extend to Rs.10,000/-
(h) Violation of rule 63 (discovery of minerals). The penalty may extend to Rs.2,000/-
(i) Violation of rule 66 (delivery of mines etc in good condition). The penalty may extend to Rs.10,000/-
(j) Violation of rule 72 (Encroachment in other areas). The penalty may extend to Rs.3,000/-
(k) Violation of rule 85, 59. The penalty may extend to Rs.3,000/-
(l) Violation of rule 58 (Not to construct building on any public place). The penalty may extend to Rs.3,000/-
(m) Violation of rule 64 (Willful obstruction to inspection). The penalty shall be the cancellation of concession besides such penal action as is provided in NAs penal code.
(n) Violation of rule 73 & 36. The penalty may extend to Rs.5,000/-
(o) Violation of rule 84 (Access to other licensee or lessee). The penalty may extend to Rs.3,000/-
(p) Violation of rule 73(10 and 73(3). The penalty may extend to cancellation of licence.
(q) Violation of rule 73(4) (Submission of accounts & periodical Returns). The penalty may extend to Rs.1,000/- for non-submission of annual.
(r) Violation of rule 73(4) & 73(5) (submission of statistical data etc.). The penalty may extend to Rs.1,000/- for each violation of this sub-rule.
(s) Violation of rule 83 (Non-employment of technical personnel). The penalty may extend to Rs.3,000/-
(t) Violation of rule 86 (Maintenance of plans). The penalty may extend to Rs.2,000/-
(u) Violation of rule 57 (Submission of demarcation certificate). The penalty may extend to Rs.2,000/- in case the demarcation is subsequently found to be incorrect or irregular.
(2) An order imposing penalties in accordance with sub-rule (1) shall be issued under the signature of the Licensing Authority after the opportunity has been provided to the licensee or lessee concerned to explain his position. An appeal against the order of the Licensing Authority shall lie to Chief Secretary within one month of the issue of the order of the Licensing Authority imposing penalty. The decision of the Chief Secretary shall be final.
82. Persistent violation of rules. — If licensee or a lessee persists on the violation of any of the rules he may in addition to any penalty under rule 81 be served with a thirty day’s notice for remedying the violation and if the violation is not remedied within the prescribed period the licence or lease shall be cancelled subject to provision to rule 73.
83. Employment of technical persons. — (1) No area demised under a licence or a mining lease for any mineral other than coal, the average monthly production of which exceeds 400 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 class/2nd class mine manager’s certificate of competency or degree/diploma certificate in mining engineering obtained from a recognized university or Institution or any other body approved by the Government. The minimum requirements of technical persons and their requisite qualification shall be determined at the time of approval of the exploration scheme.
Provided that where the Licensing Authority is satisfied that on account of the peculiar nature of the mineral deposit the operation of this rule is likely to create undue hardship for the licensee or lessee it may, by an order in writing grant exemption to licensee or lessee in this behalf
(2) Every licensee or lessee of coal shall appoint a duly qualified person to act as Mine Manger provided that:–
(a) no person shall act as manager of a coal mine, the average monthly output of which exceeds,2,500 tons unless he holds a first class mine manager’s certificate of competency granted under mines Act, 1976 and the Rule and Regulations made thereunder;
(b) no person shall act as manager of a coal mine the average monthly output of which exceeds 600 tons unless he holds a first or second class mine manager certificate of competency granted under mines Act 1976 and rule and regulation made thereunder.
Provided further that if any exemption to the above is granted by a competent authority under the Mines Act, 1923 (IV of 1923) the Licensing Authority may also afford likewise exemption to the concerned licensee or lessee.
84. Access to other licensee or lessee. — The licensee or lessee shall allow existing and future licence or lease holders of any area which is comprised in or adjoins or reached by the land held by the licensee or lessee all reasonable facilities or access thereto.
85. Not to work within the distance of 50 yards from the boundary line. — The licensee or lessee shall not carry out any operation at or upto any point within a distance of fifty yards from his licence or lease boundary, except with the previous permission in writing of the Licensing Authority and in accordance with the conditions, if any, that it may impose.
86. Plans of working. — (1) All plans to be prepared by the qualified mine surveyor in accordance with the provisions of this rule shall:-
(a) bear the name of mine, number of the licences or mining lease and the name of the licensee or lessee.
(b) show the scale together with the magnetic meridian and the relevant data.
(c) be properly inked on durable paper or on tracing cloth.
(d) be on a scale on inch to 100 feet: and bear the name, signature, address and registration number of the surveyor with the Licensing Authority:
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 plan of the workings of each mine in the area over which he holds a licence or lease. The position of the working at the time of the last survey shall be shown by a dotted line drawn through the working and such dotted line shall be marked with the date of last survey. The plan shall also show all shafts and inclines opening all areas from where mineral has been excavated the limit of the ore body or mineral deposit, where possible, and all important features within the boundaries such as roads, rivers, streams tanks, buildings and the reservoirs which overlie any part of workings or any points within 600 feet or any part of the working measured on horizontal plan also the general direction an rate of strata the depth of every shaft, a section of the seam or vein being worked 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 or vein and each separate section or level of each seam or vein.
(3) The licensee/lessee shall also keep a separate tracing of 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 working measured on the horizontal plan.
(4) The licensee or lessee shall also keep a separate plan showing the system of ventilation in mine and in particular the general direction of the air currents, the points where the quantity of air is measured and the principal devices for the regulation and distribution of the air. So far as practicable the intake airways shall be colored blue and the return airway red. The positions of any underground ambulance stations and telephones shall be indicated on the plan.
(5) The plans required by this rule shall be kept in the office at the mine. These shall be accurate and maintained upto date within six months:
Provided that where any mine or coal seam or vein is abandoned or the working thereon has been, discontinued the plan shall, before such abandonment or discontinuance as the case may be, made upto date unless such abandonment or discontinuance has been caused by circumstances beyond the control of the licensee or lessee in which case the fact that the plan is not upto date shall be recorded on it.
(6) The licensee or lessee shall at any time on the request of the Licensing Authority produce to it at the office at the time such plan and section, and also, on the like request, mark on such plans and sections, the then state of the working of the mine, and the Licensing Authority or the officer authorized by it in that behalf, shall be entitled to examine the plans and the section and for official purpose to make or have a copy made of any part thereof respectively.
(7) Where any mine, seam or vein is abandoned or the working thereof has been discontinued over a period exceeding one year, the person who was then owner of the mine 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 vein upto the time of the abandonment of discontinuance showing the pillars of mineral unworked and all other features required in compliance with these rules.
Provided that if a change of ownership occurs after the abandonment, or discontinuance and before the expiry of the three months aforesaid, as the case may be such plans and section shall be sent forthwith.
(8) After the expiry of ten years from the date of abandonment or discontinuance of working in any mine or seam or vein or where the consent of the owner of the mine for the time being has been obtained prior to the expiry of the said period, the Licensing Authority may, on such conditions as it thinks fir to impose permit, any person having an interest in the said mine or seam or vein to inspect the plans or section of such mine or seam or vein sent to it in accordance with the provisions of sub-rule (7) and it may further, on such conditions as it thinks fit to impose, supply to any such person or persons copies of the like plan or section.
87. To ascertain and verify the value of precious stones etc. — The Licensing Authority may from time to time ascertain and verify in such manner as it may deem fit, the value of all precious stones and other minerals, ores and metals dressed or extracted by the licensee or lessee for the purpose of ascertaining the royalty payable under these rules.
88. Not to dipillar or abandon the mine. — The licensee or lessee shall not dipillar or abandon the mines without obtaining prior approval, in writing of the Licensing Authority.
89. Notice of fresh issue of capital. — The licensee or lessee shall report to the Licensing Authority 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 or Articles of Association or in the constitution of the licensee or lessee.
90. None payment of other dues. — In case the dues are outstanding against the licensee or lessee in respect of annual fee or dead rent, surface rent, or any penalty etc. imposed under the rules, have not been deposited from the date(s) it first became due the following procedure shall be observed namely:–
(a) The first two months shall be treated as grace period.
(b) penalty at the rate of 06% of outstanding dues shall be charged in case the payment is made after the expiry of the second month next after the due date.
(c) in case outstanding dues alongwith penalty is not paid until expiry of the fourth month from the due date, the licensee or lessee shall be liable to pay a further penalty of upto Rs.5,000/- or as determined and decided by the Licensing Authority; and
(d) in case outstanding dues alongwith penalty is not paid until the expiry of the six months after the date it first became due as stated in sub-rule (a), the licence or mining lease shall be cancelled forthwith subject however, to the provisions of rule 73.
91. Exclusion of land for public purposes. — If any or all of the area held under licence or mining lease is required at any time for public purpose whatsoever, the licensee or lessee shall forthwith release to the Licensing Authority such area to such extent as may be required by the Licensing Authority under such terms and conditions as it may prescribe.
Provided where any areas excluded as above become subsequently available for the purpose of grant under a licence or mining lease the previous licensee or lessee shall have prior right over such area.
92. Power to assess and claim compensation for damage to mining property. — (1) In the event of any damage caused to the mineral property due to unscientific working; lack of supervision, negligence for any other omission or commission on the part of the licensee or lessee, the Licensing Authority shall assess the extent of damage and may impose a penalty on the licensee or lessee or such amount as may be determined by the Licensing Authority.
(2) The penalty imposed shall include the extent of damage and such other amount as the Licensing Authority may include by way of punishment. The penalty shall be recoverable as arrears of land revenue. An appeal against the decision of the Licensing Authority shall lie with the Chief Secretary.
93. Membership of an association. — Every licensee/lessee shall become and continue to be a member of an association representing the interest of the private sector of the mining industry as a whole. There shall be only one such association for the whole of areas over which these rules apply. The failure on the part of licensee or lessee to become such member or continue to be so will be treated as a violation of these rules and the terms and conditions fo the grant of lease.
94. 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 under ground and above ground, and to prepare plans or working 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 104 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.
(4) It at any time the Licensing Authority has reason to believe that a registered mine surveyor has committed gross negligence or misconduct in the 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 facilitation 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 referred to in sub-rule (1), (2) and (3) above shall be prepared out of candidates possessing the minimum qualifications as prescribed by the Licensing Authority by notification from time to time who shall make application for registration to the Licensing Authority shall be accompanied by a non-refundable fee of Rs.50/-
95. Auction of areas with proved mineral reserves. — In case of cancellation or termination of the licence or a mining lease with respect to the area which has proved mineral reserves the Licensing Authority shall have discretion to auction the area, for the grant of a fresh licence or a mining lease, and transfer all rights in respect of the area to the successful bidder. The Licensing Authority shall have the power to lay qualifications for parties who may be allowed to take part in such auction.
96. New exploration schemes for the existing mining leases. — In case of the existing mining leases for all the minerals the lessee shall submit, within a period of three months from the notification of these rules a new scheme of exploration in respect of the area held by them. If the scheme is not approved or is rejected, a revised scheme shall be submitted within a period of two months of such rejection or disapproval. If the lessee fails to remove the deficiencies in the revised scheme of exploration, the lease shall stand terminated.
97. Non-conservational mining activity. — If during inspection or otherwise the Licensing Authority is of the opinion that the non-conservational activities are being undertaken by a lessee or licensee in respect of the areas or part of the area, the Licensing Authority shall stop work in that area or part of the area the working of which in his opinion will jeopardize the conservation of mineral wealth. Provided that no action will be taken under these rules unless the licensee or lessee is given a notice to remove the defects, arising out of his non-conservational mining activities, within a period which may extend to six months. If after the period given in such notice, the Licensing Authority, is satisfied that such defects have been removed, the Licensing Authority may not stop the work in that area or part of the area.
Provided further that if the licensee or lessee, any time after the final order of stoppage of work, removes the defects to the satisfaction of the Licensing Authority, such Licensing Authority may permit the licensee or the lessee to restart such work.
98. Production of documents, inspection and penalty etc. — (1) Any individual or agency dealing in the purchase or sale of any mineral shall on demand by the Licensing Authority or by an officer appointed by the same a special or general order, produce for inspection and otherwise disclose all the documents and all relevant material signifying the source and quantity of the mineral. Failure to comply with the provisions of this rule shall render the mineral liable to confiscation by the Licensing Authority.
(2) The Licensing Authority may in addition impose penalty up to Rs.3000/- on the individual or agency guilty of violation of this rule. The confiscated mineral shall be sold by public auction an the proceed appropriated by the Government. Unless within a week after the confiscation of the mineral, the individual or the agency furnishes the required information, in which case the mineral may be released subject to the imposition of the penalty as stated in this rule.
99. Black listing for misuse of import licences. — If the Licensing Authority is of the view that the import facilities granted to a licensee or lessee for the import of machinery and equipment for use in mines has been misused the licensee or lessee shall be liable to a fine which will be equivalent to the value of the licence by the Licensing Authority and he may also disqualify such licensee or lessee for grant of a new Licence or a mining lease for a period of five years.
100. Arbitration. — Any question or dispute between a foreign investor and the Government arising out of or in connection with the terms of an agreement or of a granted mineral title shall be settled amicably. Failing an amicable settlement within a reasonable period, such dispute shall be submitted to International Center for Settlement of Investment Disputes (ICSID) for arbitration. Disputes solve involving Pakistani parties will be settled by arbitration in Pakistan and under the provision of the Arbitration Act, 1940 (X of 1940).
101. Environment. — (1) With the increasing focus on the environment and international obligations, Pakistan, in common with other countries, wishes to pursue and approach of sustainable development consistent with environmental priorities. Companies will be expected to ensure that their mining operations are carried out in an environmentally acceptable and safe manner and that such operations are property monitored.
(2) Accordingly, mining companies will be obligated to take adequate steps to prevent and minimize environmental damage and to make good any damage caused, during and on completion of mining operations, submit the Government an environmental impact assessment (EIA) and environmental management plans for each stage of their operations; carry out site rehabilitation as necessary; comply with applicable laws and internationally acceptable environmental standards; and ensure adequate compensation for injury to persons or damage to property caused by the effects of mining operations:
(i) Mining companies will also be required to submit to the Licensing Authority periodic environmental reports detailing the measures taken by them for compliance with environmental requirements.
102. Grant of mineral titles to foreign nationals. — Foreign companies will be free to apply for an be granted licences without the need for incorporation locally. However, no mining lease will be given until the foreign company is incorporated locally.
103. Mineral Agreements. — (1) The Provincial Governments may enter into an agreement with an investor, within the framework of the law, to stabilize the terms or to predetermine procedures with respect to certain matters relating to the carrying out of operations under a licence/lease, if Government is satisfied that substantial foreign investment in exploration and mining operations is likely to be made and it is desirable in the interest of the development of mineral resources, to do so. The federal Government may also become signatory to such an agreement, if so requested by a provincial government, after independently examining viability of the project and credit worthiness of the party.
(2) The agreement may cover, for example, the right of the licensee to obtain a mining lease, assignment rights, the circumstances in which a licence or lease may be terminated or cancelled, the valuation of minerals of an arms-length basis, the levying of additional profit tax and additional royalty, in case agreed and its terms, the circumstance and conditions on which rights of pre-emption to minerals may be exercised by the Government, the settlement of disputes through a mutually agreeable sole expert or through international arbitration, etc.
104. Fiscal regime. — (i) The federal and provincial governments have agreed to adopt and maintain a joint approach towards the fiscal terms which are applied to mining operation so as to ensure that on overall basis it yields a level of return to the investor which is commensurate with the risk and internationally competitive, and as well provides equitable “take” for the provincial and Federal Government through royalties on minerals and federal income from mining ventures.
(ii) The fiscal regime, including royalty, would be structured to have a progressive character to allow exploration or less profitable mineral deposits.
105. Infrastructure. — Mechanism will be developed to provide infrastructure support in special circumstances and under certain terms and conditions; for example, for the development of a large marginal grade mineral deposit, which is capable of being economically, developed only with such support.
106. Small-scale mining. — (1) Investment in small-scale mining (capital employed less than Rs.300 million) will be confined to Pakistan nationals.
(2) To improve the working of small-scale mining:-
(a) the provincial Inspectorates of Mines will provide basic personal safety equipment to small-scale mine operators on a no-profit-no-loss basis. Failure by the mine operators to acquire the prescribed safety equipment may result in closure of their operations.
(b) Corporate merger of small-scale mine operators will be encouraged.
(c) Provincial Inspectorates of Mine will monitor the working of small-scale mines and ensure compliance with the provisions of the Mines Act, 1923 and the environmental protection laws. Penalties will be imposed for violation of these provisions.
(d) small-scale mines will be required to carry out or participate in collective environmental rehabilitation programmes introduced by regulatory agency.
(e) small-scale mining operators will be expected to make appropriate contributions towards upgrading the social infrastructure of the area where they are operating.
107. Joint ventures. — There will be no mandatory state participation. However, the Governments will encourage joint ventures between foreign and local private investors. Such joint ventures could also be entered into with agencies of the Federal and Provincial Governments.
108. Relaxation. — The Licensing Authority may for reasons to be recorded in writing to relax any or all the provisions of these Rule sin cases of individual hardship and under special circumstances to be recorded in writing and on terms and conditions to be fixed by it.
109. Repeal. — The NA mining concession rules, 1963 are hereby repealed.
———————————–

FIRST SCHEDULE
Application form for a Reconnaissance Licence:-

(1) Name (s) of applicant (s) in full
_________________________________________
(2) If application is by an individual
(a) Address
__________________________________________
(b) Nationality
_________________________________________
(c) Occupation
_________________________________________
(d) Capital available (enclose Bank Certificate showing latest credit balance and other documentary proof.
_____________________________________________
(3) If application is by a partnership or firm:
_____________________________________________
(a) Principal place of business: ___________________________________________

(b) If principal place of business in outside NA/Pakistan name and address of duly authorized agent in NA/Pakistan

_________________________________________________________________
_________________________________________________________________
(c) Capital available (enclose Bank Certificate showing latest credit balance and other documentary proof):-
_________________________________________________________________
_________________________________________________________________

(d) Main business of applicant(s) (enclose a certificate copy of partnership deed and registration certificate issued by Registrar of Firm:-
_____________________________________________
_____________________________________________

Name of the partners Nationality Share & Amount Contributed

___________________ ___________________ _______________________
___________________ ___________________ _______________________
___________________ ___________________ _______________________
___________________ ___________________ _______________________
___________________ ___________________ _______________________
___________________ ___________________ _______________________

(4) If application is by a company:

(a) Principal place of business
__________________________________________
(b) If principal place of business is outside NA/Pakistan name and address of duly authorized agent in NA/Pakistan
_____________________________________________
_____________________________________________
(c) Nature of Business
________________________________________________________________
(d) Authorized, subscribed and paid up Capital (enclosed Bank Certificate showing latest credit balance and certified copies of Incorporation)
_____________________________________________
_____________________________________________
(e) Name of Directors Nationality
___________________________ _________________________

(f) Name of Principal Nationality Amount of share held by shareholders.
________________ _________________ _______________________
________________ _________________ _______________________
(5) State mineral or minerals for which Reconnaissance Licence is required. ____________________________________________________________________

(6) Period for which Reconnaissance Licence is required
____________________________________________________________________
____________________________________________________________________

(7) Situation and size of the area for which application is made (the name of village, khasra numbers, tehsil and district, appropriate revenue record, sketch of the area and topographic map on 1:50,000 scale with geographic bearing must accompany).
_______________________________________________________________________

(8) Brief particulars of previous experience in mining giving details of licences or mining leases or both already held or applied for in or outside NA/Pakistan.
_____________________________________________
_____________________________________________
(9) Situation and approximate size of the area for which application is made (the name of the district and sub-division should be stated).
_____________________________________________
(10) Give details of any licence/mining lease already held in or outside NA/Pakistan.
____________________________________________________________________
____________________________________________________________________

(11) Do you desire the Licensing Authority to prepare a map of the area for you at your expenses? ______________________________________________
Any special remarks ______________________________________

(i) XXXI-industries mineral Receipts arising out of Mines and oil fields and Mineral Development (Federal Control Act, 1948.

(ii) 10 copies of the plan/rough sketch of the applied for area signed and prepared from the survey of Pakistan Sheet No.
_____________________________________________

SECOND SCHEDULE

Application form for An Exploration Licence:-

(1) Name (s) of applicant (s) in full
_________________________________________
(2) If application is by an individual
(a) Address
__________________________________________
(b) Nationality
_________________________________________
(c) Occupation
_________________________________________
(d) Capital available (enclose Bank Certificate showing latest credit balance and other documentary proof.
_____________________________________________
(3) If application is by a partnership or firm:

(a) Principal place of business: ___________________________________________

(b) If principal place of business in outside NA/Pakistan name and address of duly authorized agent in NA/Pakistan

_________________________________________________________________
_________________________________________________________________
(c) Capital available (enclose Bank Certificate showing latest credit balance and other documentary proof):-
_________________________________________________________________
_________________________________________________________________

(d) Main business of applicant(s) (enclose a certificate copy of partnership deed and registration certificate issued by Registrar of Firm:-
_____________________________________________
_____________________________________________

Name of the partners Nationality Share & Amount Contributed
___________________ ___________________ _______________________
___________________ ___________________ _______________________
___________________ ___________________ _______________________
___________________ ___________________ _______________________
___________________ ___________________ _______________________
___________________ ___________________ _______________________

(4) If application is by a company:

(a) Principal place of business
__________________________________________
(b) If principal place of business is outside NA/Pakistan name and address of duly authorized agent in NA/Pakistan

(c) Nature of Business
________________________________________________________________
(d) Authorized, subscribed and paid up Capital (enclosed Bank Certificate showing latest credit balance and certified copies of Incorporation)
_____________________________________________
_____________________________________________
(e) Name of Directors Nationality
___________________________ _________________________

(f) Name of Principal Nationality Amount of share held by shareholders.
________________ _________________ _______________________
________________ _________________ _______________________
(5) State mineral or minerals for which Reconnaissance Licence is required. ____________________________________________________________________

(6) Period for which Reconnaissance Licence is required
____________________________________________________________________
____________________________________________________________________

(7) Situation and size of the area for which application is made (the name of village, khasra numbers, tehsil and district, appropriate revenue record, sketch of the area and topographic map on 1:50,000 scale with geographic bearing must accompany).
_______________________________________________________________________

(8) Brief particulars of previous experience in mining giving details of licences or mining leases or both already held or applied for in or outside NA/Pakistan.
_____________________________________________
_____________________________________________
(9) Name and qualifications of technical experts or advisers who have prepared or certified the Exploitation Scheme and will be available for supervision (enclose two copies of Exploitation Scheme prepared or certified by Expert).
________________________________________________________________________
(10) Situation and approximate size of the area for which application is made (the name of the district and sub-division should be stated).
_____________________________________________
(11) Give details of any licence/mining lease already held in or outside NA/Pakistan.
____________________________________________________________________
____________________________________________________________________

(12) Do you desire the Licensing Authority to prepare a map of the area for you at your expenses?
______________________________________________________________________
(i) Any special remarks
______________________________________________________________________

(ii) XXXI-industries mineral Receipts arising out of Mines and oil fields and Mineral Development (Federal Control) Act, 1948.

(iii) 10 copies of the plan/rough sketch of the applied for area signed and prepared from the survey of Pakistan Sheet No.

THIRD SCHEDULE

Application form for a Mineral Deposit Retention Licence Mineral Deposit Retention Licence (MDRL):-

(1) Name (s) of applicant (s) in full
_________________________________________
(2) If application is by an individual
(e) Address
__________________________________________
(f) Nationality
_________________________________________
(g) Occupation
_________________________________________
(h) Capital available (enclose Bank Certificate showing latest credit balance and other documentary proof.
_____________________________________________
(3) If application is by a partnership or firm:

(a) Principal place of business:
___________________________________________

(b) If principal place of business in outside NA/Pakistan name and address of duly authorized agent in NA/Pakistan

_________________________________________________________________
_________________________________________________________________
(c) Capital available (enclose Bank Certificate showing latest credit balance and other documentary proof):-
_________________________________________________________________
_________________________________________________________________

(d) Main business of applicant(s) (enclose a certificate copy of partnership deed and registration certificate issued by Registrar of Firm:-
_____________________________________________
_____________________________________________ __________________________________________________________________________________________

Name of the partners Nationality Share & Amount Contributed
___________________ ___________________ _______________________
___________________ ___________________ _______________________
___________________ ___________________ _______________________
___________________ ___________________ _______________________
___________________ ___________________ _______________________
___________________ ___________________ _______________________

(4) If application is by a company:

(a) Principal place of business
__________________________________________
(b) If principal place of business is outside NA/Pakistan name and address of duly authorized agent in NA/Pakistan

(c) Nature of Business
________________________________________________________________
(d) Authorized, subscribed and paid up Capital (enclosed Bank Certificate showing latest credit balance and certified copies of Incorporation)
_____________________________________________
_____________________________________________
(e) Name of Directors Nationality
___________________________ _________________________

(f) Name of Principal Nationality Amount of share held by shareholders.
________________ _________________ _______________________
________________ _________________ _______________________
(5) State mineral or minerals for which Mineral Deposit Retention Licence (MDRL) Licence is required. ____________________________________________________________________

(6) Detailed justification for Mineral Deposit Retention Licence (MDRL)
____________________________________________________________________
_____________________________________________
(7) Period for which Mineral Deposit Retention Licence (MDRL) Licence is required
____________________________________________________________________
____________________________________________________________________

(8) Situation and size of the area for which application is made (the name of village, khasra numbers, tehsil and district, appropriate revenue record, sketch of the area and topographic map on 1 inch to a mile with geographic bearing must accompany).
_______________________________________________________________________

(9) Brief particulars of previous experience in mining giving details of licences or mining leases or both already held or applied for in or outside NA/Pakistan.
________________________________________________________________________
________________________________________________________________________
(10) Name and qualifications of technical experts or advisers who have prepared or certified the Exploitation Scheme and will be available for supervision (enclose two copies of Exploitation Scheme prepared or certified by Expert).
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(11) Situation and approximate size of the area for which application is made (the name of the district and sub-division should be stated).
________________________________________________________________________
(12) Give details of any licence/mining lease already held in or outside NA/Pakistan.
____________________________________________________________________

(13) Do you desire the Licensing Authority to prepare a map of the area for you at your expenses?
______________________________________________________________________ Special Remarks
_______________________________________________________________________
_______________________________________________________________________
(i) XXXI-industries mineral Receipts arising out of Mines and oil fields and Mineral Development (Federal Control) Act, 1948.

(ii) 10 copies of the plan/rough sketch of the applied for area signed and prepared from the survey of Pakistan Sheet No.

FOURTH SCHEDULE

Application form for a Mining Lease:-

(1) (a) Name (s) of applicant (s) in full
_________________________________________
(b) In case of individual, father’s name
__________________________________________

(2) If application is by an individual or individuals:-
(a) Address
_________________________________________
(b) Nationality
_________________________________________
(c) Occupation
________________________________________________________________________
(3) If application is by a company:

(a) Principal place of business:
___________________________________________

(b) If principal place of business in outside NA/Pakistan name and address of duly authorized agent in NA/Pakistan
_____________________________________________________________________________
_____________________________________________________________________________
(c) Nature of Business
_________________________________________________________________
(d) Authorized, subscribed and paid up capital ___________________________

(e) Name of Directors Nationality
___________________________ _________________________
___________________________ _________________________

(g) Name of Principal Nationality Amount of share held by shareholders.
________________ _________________ _______________________
________________ _________________ _______________________
(4) State mineral for which mining lease is required: ____________________________________________________________________

(5) Period for which lease is required
____________________________________________________________________
____________________________________________________________________

(6) Situation and approximate size of the area for which application is made (the name of district and sub-division should be stated)

(7) Brief particulars of previous experience in mining giving details of licence or mining lease already held in or outside NA/Pakistan.
________________________________________________________________________
(8) Brief particulars of any application for licence or lese which has been submitted in the past in any country and its disposal
________________________________________________________________________
________________________________________________________________________

(9) Name and qualifications of technical experts or advisers :-
________________________________________________________________________
________________________________________________________________________

(10) If the applicant is an alien, or a company incorporated outside NA/Pakistan, state full particulars of the company to be incorporated by the applicant in NA/Pakistan for the purpose of receiving the grant of any licence or lease which may be granted including particulars similar to these specified in (3) (d) (e) (f) and (9) above and amount of the capital proposed.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Documentary evidence of incorporation of the company in Northern Areas/Pakistan should be furnished alongwith a copy of the Memorandum and Articles of Association and prospectus of the company as soon as the company has been incorporated in Northern Areas / Pakistan.

(11) Do you desire the Licensing Authority to prepare a map of the area for you at your expenses:-
____________________________________________________________________

(12) Any special remarks
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

The following enclosures are attached:-

(i) Treasury Challan for Rs. ___________ (Rupees ___________________________ word) as application for under the Head of account XXXII industries mineral Receipts arising out of Mines and oil fields and Mineral Development (Federal Control) Act, 1948.

(ii) 10 copies of the plan/rough sketch of the applied for area signed and prepared from the survey of Pakistan Sheet No.__________________________________ _________________________________________________________________

(i) Authenticated copy of partnership deed duly registered with the Sub-Registrar concerned.
(In case of Partnership Firm only)

(ii) A copy of Memorandum and Articles of association alongwith an attested copy of the Certificate of Incorporation/registration of the Company (in case of limited Companies only).

FIFTY SCHEDULE
LEASE DEED

This Deed made the _______________________ day of ___________________ in the year _________________between the Chief Executive Northern Areas (hereinafter referred to as the “Chief Executive” which expression shall where the context so admits be deemed to include his successor in office and assigns) of the one part and
____________________________________________________________________________________________________________________________________________________________ (hereinafter referred to as the lessee which expression shall, where the context so admist be deemed to include his heirs, executors, administrators, representatives and assigns) of the other part;
WHEREAS, the lessee in accordance with the conditions laid down in the Rules, for the time being inforce for the granting of mining leases has applied to the Chief Executive through Licensing Authority for a mining lease in respect of the lands specified in part 1 of the Schedule marked ‘A’ hereunder written (hereinafter referred to as the said land) and deposited a sum of Rs.________________ as the prescribed security in respect of such lease conditional on the due compliance with the terms and conditions of this Deed and the provisions of the Northern Areas Mining Concession Rules 2003.
AND WHEREAS, the Chief Executive has found that there is no objection to granting the said lease for hits deed witness as follows:
In consideration of the rents, royalties, covenants and agreement hereinafter reserved and contained on the part of the lessee to be paid and observed, the Chief Executive hereby demises upto the lessee all or any _________________ (hereinafter referred to as the said mineral) lying or being, within, under or throughout the said lands hereby grants the liberties, powers and privileges to be exercised in connection with the said mineral subject to the restrictions and conditions which are specified in part III of the said Schedule marked ‘A’ Northern Areas Mining Concession Rules 2003.
To hold, exercise and enjoy all and the singular the premises liberties, powers and privileges hereby granted and demised upto the lessee from the __________ day of ________ 20 ______ for the term of __________________ years thence next ensuing, yielding and paying free and clear from rates, taxes, charges, and deductions, the several rents, royalties and sums of money mentioned and specified in part V of said Schedule marked ‘A’ subject to the provision relating to rents and royalties contained in part VI of the said schedule marked ‘A’ and the lessee hereby covenants with Chief Executive as in part VII of the said schedule marked ‘A’ is expressed and the Chief Executive hereby covenants with the lessee as in part VIII of the said schedule marked A is expressed and is hereby mutually agreed and declared by and between the parties hereto in part IX of the said Schedule marked ‘A’ is expressed and is hereby declared that the Schedule marked ‘A’ hereunder written shall be deemed part of the presents and be read and construed accordingly. (In witness whereof these presents have been executed in manner hereunder appearing the day and the year first above written).
THE SCHEDULE MARKED ‘A’ HERE BEFORE REFERRED TO PART – I THE LAND REFERRED TO IN THIS LEASE
Description of the said lands.
All that tract of land situated in ____________________________________________________ ____________________________________________________________________________________________________________________________________________________________ Shown on survey of Pakistan topo sheet No. __________________________________________ containing an area of __________________ or thereabouts delineated on the plan hereto annexed and thereon colored _______________________________ and bearing the survey data as follows:-
PART-II – LIBERTIES, POWERS AND PRIVILEGES TO BE EXERCISED OR ENJOYED BY THE LESSEE, BUT SUBJECT TO THE RESTRICTIONS AND CONDITIONS IN PART III
1. Liberty work mines. — Liberty and power to enter upon the lands referred to in part 1 (hereinafter referred to as the said lands) and to search for, win, work, get, raise convert and carry away the said mineral, save as hereinafter provided.
2. To appropriate water, etc. — Subject to approval of Govt. to appropriate and use for any purpose connected with the mining or refining operations connected therewith, the water upon or within any of the said lands and to collect, impound and bore for the same for the purpose of working the said borings of works or carrying out refining operations but so that in the exercise of this privilege the lessee shall not deprive any lands, villages, houses or watering places for cattle, of a reasonable supply of water as here to fore accustomed.
3. To appropriate surface or land or work, etc.— Liberty and power to enter upon, use and occupy a sufficient part of the said land adjoining the mines, pits, works for the purposes of stacking, heaping or depositing thereon any produce of the mines or works carried on and all the earth soil and other substance brought to the surface and for to the wise carrying on the works of the said mines, pits, works, or operations under the liberties and powers mentioned in this part.
4. To erect houses etc.— Liberty and power to erect, set up and make in or upon the said lands workman houses, sheds, engines, machinery, furnaces, buildings, erections, pipe-lines, telephone lines, tram roads and other roads and works necessary or convenient for the effective working of the said mines, pit works or refining operations connected therewith, and the exercise of the several liberties and powers hereby granted.
5. To dig gravel, etc. — Liberty and power to search for, dig and get free of charge gravel, sands and stone within the said lands for the purposes mentioned on this part of this schedule but not for sale provided that at the expiration of this lease any excavations shall be fenced or filled in or leveled and left otherwise fit for cultivation and occupation, as for as may be reasonably practicable if so required by the Chief Executive.
6. To cut timber etc.— Liberty and power to cut down the bushwood and undergrowth and with the consent of the Chief Executive or of an officer authorized by him in his behalf to fall now standing or growing, or which at any time here after may grow on the said lands, for the purpose of facilitating ingress and agrees to and from the said lands, and also for the purposes of clearing lands for the erections of machinery and plant in connection with the purposes mentioned in this part of the Schedule and also for the purpose of clearing lands for protection against damage by fire and for erecting and making habitable the said workman’s houses, and also for clearing land for the purposes of making pastures for the animals used by the lessee for he operation herein specified, provided that:-
(a) The clearing for any single pasture shall not exceed ten acres; and
(b) The lessee shall pay a reasonable price for all timber and undergrowth cut down or felled by him for the purpose of making pastures or tavens or used by him such price to be assessed, in default of agreement by the Licensing Authority. This clause shall not apply to any land that may have been proclaimed to be the Forest Reserve, without the consent of the Government in writing first had and obtained.
7. To enclose with a fence.— Liberty and power to enclose with a fence the surface or any of the said lands in respect of which the rents reserved in clause of (Surface Rent) of this Schedule are being paid provided that the liberties and powers reserved to the Chief Executive in part IV of this Schedule and all rights of way shall not thereby be affected.
PART III – RESTRICTIONS AND OCNDITIONS AS TO THE EXERCISE OF THE ABOVE LIBERTIES, PWOERS AND PRIVILEGES
8. Notice to be given before entering on lands for surface purposes. — (i) Before occupying any land for surface operations of clearing any land for the purpose of making pasture under clause 6 (to cut timber etc) of this Schedule the lessee shall give to the Licensing Authority one month’s previous notice in writing specifying by name or other sufficient designation and by quantity the land proposed to be occupied and the purpose for which the same is required.
(ii) The Licensing Authority shall at any time within one month form the receipt of such notice state the objections, if any, on grounds, of public interest to the proposed site and the lessee shall not proceed with any of the operations mentioned in sub-clause (1) of this clause till the objections are removed.
9. No building etc. upon certain place.—No building or structure shall be erected, set up or placed and no surface operations shall be carried on in or upon any public pleasure grounds and burning or burial 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 determine on public grounds to bring within this restriction nor in such a manner as to injure or prejudicially affect any buildings, works, property or rights of other person and no land shall be used for surface operations which is already occupied by persons other than the Chief Executive for works, or purposes, not included in the leases, if any other land not so occupied is suitable and available for such surface operations.
10. Compensation to occupiers. — The lessee shall before occupying any land for surface operations pay or tender reasonable compensation to the occupiers thereof and shall thereupon, be entitled to occupy the lands but shall nevertheless, be bound to pay the amount of compensation which, in case of dispute, shall be referred to and decided by the Licensing Authority.
11. Sale or lease of surface to third parties. — (1) The Government or any officer authorized by the Government from the Mineral Concession Department may at any time or times give notice in writing to the lessee that application has been made to the Chief Executive for purchase or lese of the surface or such portion of the lands referred to in this lese as in mentioned in such notice.
(2) If the lessee shall not within ninety days after service of such notice on him give to the Chief Executive notice in writing that the objects to the Chief Executive according to such application on the ground that the proposed sale or lease will prejudicially affect his right under this lease it shall be lawful for the Chief Executive at any time or times after the expiration of that period to sell or lease all or any part of the surface specified in such first mentioned freed and discharged from all rights of the lessee hereunder and the lessee shall thereupon be relieved of all liabilities and obligations hereunder in respect of the areas specified in such first mentioned notice excepting such liabilities and obligations as may have occurred before the date of service of such notice.
(3) If any such objection as aforesaid shall be made by the lessee within the period aforesaid and the Chief Executive shall not with standing such objection desire to make the sale or lease, the question whether the proposed sale or lease should or should not be made shall be determined in terms of clauses of this Schedule.
(4) Where sale or lease of the surface of a portion of the lands has been made by the Chief Executive under this clause the lessee shall have a prior right to have the land again included in lands subject to this lease if it shall subsequently become available for this purpose.
12. Distance of miners or pits from boundaries of the said lands. — No mining operations or working shall be carried on by the lessee in or under the said lands at or to any point within a distance of 50 yards from the boundaries of the said lands except by permission in writing of the Licensing Authority and subject to such conditions, if any, it may impose, provided that the restriction shall not apply to the common boundary of the said lands and of any contiguous area leased to the lessee.
13. Operation in the Reserved and Protected Forests. — The lessee shall conduct all surface operation under the authority of this lease within a reserved or protected forest subject to such conditions as the Forest Department by general or special order prescribes from time to time. In case of disagreement between the Forest Department and the lessee, the matter shall be referred to the Licensing Authority whose decision shall be final.
PART IV – LIBERTIES AND POWERS OF CHIEF EXECUTIVE AND OTHERS
14. These presents or any thing herein contained shall not prejudice or affect the exercise from time to time of all or any of the following liberties and powers that is to say:-
(1) Chief Executive may work other minerals, etc. Liberty and powers for the Chief Executive or any other person authorized by him in that behalf to enter into and upon the said lands and to search for, win work, dig, etc. raise (convert) and carry away any minerals or substances other than the said mineral upon or under the said lands and for the purpose aforesaid to sink, drive, make, erect, construct, maintain and use such pits, shafts, inclines, drifts levels, drain, watercourses, tunnels, buildings, engines or machinery, wagon-way and other ways works and conveniences upon, through so under the said lands and he shall deem necessary or expedient provided always that the said reserved liberties and powers to work for minerals or substances other than _______ shall be exercised and enjoyed in such a manner as not to hinder or interfere with the rights and privileges of the lessee under these presents and provided also that a fair and proper compensation shall be paid y the Chief Executive for all loss, damage or injury which the lessee may sustain or be put to by reason or in consequence of the exercise of the said reserved liberties and powers to work for minerals or substances other than ……………….. …………………………………………………………………………………………………………
(2) Chief Executive may enter lands to make roads, sidings etc. liberty and power for the Chief Executive or any other person authorized by him in that behalf to enter into and upon the said lands and to make and maintain upon, over or through the said lands such reservoirs, pumping stations, generating stations, water ways, roads, tramway, telegraph, telephone lines and pipelines or other works as he may deem necessary or expedient for any purpose and to obtain from and cut of the said lands such stone, earth and other materials as may be necessary or requisite for making repairing or maintaining the same or any of them and at all times to draw water from the said lands and to have free access thereto, and to pass and re-pass at all times over and along the said lands for all such purposes as occasion shall require provided always that the said reserved liberties and powers shall be exercised and enjoyed in such a manner as not to hinder or interfere with the rights and privileges of the lessee under these presents. And provided also that fair and proper compensation shall be paid by the Chief Executive for all loss, damage or injury (not, however, including the value of earth or other minerals taken) which the lessee may sustain or be put to by a reason or in consequence of the exercise of the said reserved liberties and powers.
(3) Chief Executive may grant or demise said lands to third parties subject to lessee’s rights liberty and power for the Chief Executive to grant or demise to any person all or any part of the said lands for any purpose so that such grant or demise be made subject to the rights of the lessee hereunder.
PART V – RENTS AND ROYALTIES RESERVED BY THIS LEASE
15. Half Yearly Dead Rent. — (1) The lessee shall pay a fixed half yearly dead rent in advance on the first day of January and the first day of July in each year during the term of lease hereby granted at the rate of Rs. ________ per acre or part of acre per annum
(2) Payment of the fixed half yearly rent reserved by this lease, shall be made half in advance on the first day of January and the first day of July in each year and the first payment of the sum of Rs. _________ in respect of the first half yearly of the term hereby granted shall be made on the execution of this lease.
16. Royalties. — (1) The lessee shall, during the subsistence of this lease, shall pay on the first day of January and the first day of July in each year royalty at the rate to be notified by the Government from time to time on all _______ extracted from the said land during the half year preceding the said dates.
17. Surface Rents. — (1) The lessee shall pay to the Chief Executive in respect of Government owned land the further yearly rent at the rate assessable under the revenue and rent law in district _______ of all lands, the surface whereof be actually used or occupied superficially for any of the purposes of this demise and water rate, if any, at the rate ordinarily assessable under any Irrigation Rules which would have applied to the said lands per acre or part of acre, if the land had not been occupied for the winning of __________ the said rent, water rates, etc, to be paid by equal half yearly payments on the first day of January and the first day of July in every year.
The first of such payments to be made on whichever of the said days shall happen next after such occupation or use shall commence, and the last half yearly payment thereof to be made on whichever of the said days shall happen next after such occupation or use shall have ceased.
(2) If the land belongs to a private person or the Forest Department, the lessee shall pay surface rent to the land owner or the Forest Department, as the case may be, for the area of land the surface where of be actually used or occupied superficially by the lessee for any of the purposes of this demise, at such rate or rates and in such manner as may be mutually agreed upon between the lessee and the Land Owner or the Forest Department and in case of disagreement between the aforesaid parties, at such rate or rates and in such manner as may be determined by the Licensing Authority.
PART VI – PROVISION RELATING TO RENTS AND ROYALTIES
18. Place of payment. — The rents and royalties mentioned in part V of this Schedule shall be paid free from any deductions to the account of the Licensing Authority under the head of account specified by it at any Government Treasury or the National Bank of Pakistan within the jurisdiction of NA or to such other Officer of the Mineral Concession Department and at such other place as the Government from time to time may notify.
19. Refund of Certain Half Yearly Rent on Determination or Surrender. — (1) Upon the determination by the lessee of the term hereby granted or any renewal thereof or upon the surrender by him of the rights granted by this lease in respect of any part or part or parts of the said lands, the Chief Executive will refund to the lessee an apportioned part of half-yearly rent paid by the lessee in advance in respect of the said lands or any such part or parts thereof, provided that such reduction in rent shall not take effect during the year in which he surrenders and for which rent has either been paid or has accrued.
(2) Upon release by the lessee of any lands or areas under the provision of Rule 10 (Release of lands included by inadvertence in the said lands) of this Schedule, the Chief Executive will refund to the lessee an apportioned part of any certain half yearly rent paid by the lessee during the term hereby granted in respect of the said lands.
(3) The lessee shall pay the rents and royalty and other dues reserved by this lease at the time and in the manner provided in part V of this deed and shall also pay and discharge all taxes, rates, assessments and imposition whatsoever being in the nature of public demands which shall, from time to time be charged, assessed or imposed upon or in respect of the mines or works of the lessee or any part thereof by authority of the Government or other-wise, except demands for land revenue and shall also pay simple interest at the rate …………. per cent per annum subject to such change in the interest rate as Government may notify from time to time, on all arrears of such rents or royalty from the date whereon the same ought to be paid under these presents provided that no interest will be payable if rents, royalties and other dues are paid by the lessee within two months from the date whereon the same ought to have been paid under these presents.
In case of non-payment of rent, royalty and other dues on the date mentioned above the following procedure shall be observed as in the Rule 73, 77.
PART VII – THE LESSEE’S COVENANTS
20. Payments of Rents, Rates, Royalties, Taxes, etc. — The lessee shall pay the several rents and royalties hereby reserved at the time and in the manner above appointed in that behalf.
21. To provide weighing machine. — The lessee shall provide and at all time keep at or near the pits-heads or each of the pit heads at which the said mineral shall be brought to bank, a properly constructed and efficient weighing machine and shall weight or cause to be weighed thereon all the said mineral from time to time raise and brought to the bank, and at the close of each day cause total weights ascertained by such means of the said minerals raised during the previous twenty four hours to be entered in the books of accounts and will permit the Licensing Authority at all times during the said term to employee a person or persons to be present at the weighing of the said mineral as aforesaid and to keep accounts thereof and to check the accounts kept by the lessee.
22. To ascertain and verify the value of precious stone etc. — To ascertain and verify in such manner as the Licensing Authority may from time to time prescribe the value of all precious stones and other minerals, ores and metals from time to time won, dressed or extracted by concessionaire which may be required to be valued for purpose of ascertaining the royalty payable under these Rules.
23. To allow test of weighing machine. — The lessee shall allow any person or persons appointed in that behalf by the Licensing Authority at any time or times during the said term to examine and test every weighing machine to be provided and kept as aforesaid and weights used therewith in order to ascertain whether the same respectively are correct and in good repair and order and if upon any such examination or testing any such weighing machine or weights shall be found incorrect or out of repair or order the Licensing Authority may require that the same be adjusted, repaired and put in order by and at the expenses of the lessee and if such requisition be not complied with within fourteen days after the same shall have been make the Licensing Authority may cause such weighing machine or weights to be adjusted, repaired and put in order and the expenses of so doing shall be paid by the lessee to the Licensing Authority on demand along with such penalty not exceeding Rs.1,000/- as the Licensing Authority may provide and if upon any such examination testing as aforesaid any error shall be discovered in any weighing machine or weights to the prejudice of the Chief Executive such error shall be regarded as having existed for three calendar month previous to the discovery thereof or from the last occasion of so examining and testing the same weighing machine and weights in case such occasion shall be within such period of three months and the said rent and royalty shall be paid and accounted for accordingly.
24. The lessee shall not make any alteration in the method or methods of measurements of weighing used by him or any appliance used for that purpose without first informing the Licensing Authority and the Licensing Authority may, in any case, require that an alteration shall be made save in the presence of an Officer authorized by the Licensing Authority.
25. To keep books of accounts and furnish abstracts, etc. — The lessee shall at all times during the said term, keep or cause to be kept at an office to be situated upon or near the said lands correct and intelligible books of accounts upon such plan or principle and in such form as may be prescribed by that Licensing Authority which books shall contain accurate entries showing from time to time (1) the quantity of the said mineral realized from the said lands, (2) the quantity of the said mineral sold and exported respectively, (3) the quantity of the said mineral otherwise disposed of and the manner and purpose of such disposition, (4) the prices and other particulars of all scales of the said mineral, (5) the number of persons employed in the mines or works in or upon the land, and (6) all such other facts, particulars and circumstances as the Licensing Authority may consider necessary for conveniently ascertaining the amount of the royalty from time to time payable under these presents. The lessee shall also furnish free of charge to such officer and at such times as the Licensing Authority may appoint, true and correct abstracts of all or any of the books aforesaid as the Licensing Authority may prescribe and shall, at all reasonable time allow such officer as the Licensing Authority shall in that behalf appoint to enter into and have free access to the said office for the purpose of examining and inspecting the said books of accounts and to take copies there of and make extracts there from. The lessee shall within two months after the end of each year of the terms hereby granted or any renewal thereof, deliver to the Licensing Authority an abstract in a form from time to time prescribed by the Licensing Authority, of the said accounts for each such year together with a statement in the like form of all rent and royalties payable in respect of each such year.
26. Establishment of boundary marks. — The lessee shall, unless the Licensing Authority otherwise determine, at his own expenses forthwith erect at all time maintain and keep in repair substantial boundary marks of brick, stone or concrete not less than two feet high and not less than 2 ft, square/diameter at the base at every angle or corner of the boundary line of the said land. Such boundary marks shall be referred by survey to at least two readily identifiable points in such a manner that the boundaries of the said lands can be accurately traced on the ground. The lessee shall ensure that the area demarcated on the ground conforms as closely as possible to that area delineated on the plan hereto annexed.
27. The lessee shall during the said term, well and sufficiently secure and keep open with timber or other durable means all pits, shafts and workings that may be made or used in the said lands and make and maintain sufficient fences around every such pit or shaft and also shall, at all times during the said term, keep all workings in the said lands, except such as may be abandoned, free from water and foul air as far as possible.
28. The lessee shall on notice from the Licensing Authority strengthen and support to its satisfaction any part or parts of the mine when in its opinion such strengthening and support is needed for the conservation of mineral deposit or scientific and economic development of the safety for any reservoir, canal or other public work or any building, weather the said reservoir, canal or other public work or other building shall be already existing or constructed after the said part of the mine have been worked out. Such strength and support shall be made and done at the expense of the lessee if these are needed for the conservation of mineral deposit or scientific and economic development or the safety or any railway, reservoir, canal or other public work or any other building as aforesaid already existing at the time of the working of the said part or parts of the mine by reason of the lessee having conducted mining operations within the limits prohibited by clause 12 of this Schedule.
29. Resident Manager and Service of Notices on Leases. — The lessee shall before commencing any operation in the said lands furnish to the Licensing Authority the name and address of the Manger resident in the locality to be carried on. Every notice by these presents required or authorized to be given to the lessee may be given to such Manager at such address or to any person in the employ of the lessee who may be found upon the said lands or if no person be found then the same may be left at the said office of the lessee upon the said lands or affixed in some conspicuous part of the building or erection in occupation of the lessee upon the said lands.
30. Compensation. — The lessee shall make and pay reasonable satisfaction and compensation for all damage or injury to the property and right of other parties, which may be done by him, his agents and or servants in the exercise of he liberties and powers conferred by this lease.
31. Indemnity against third party claims. — The lessee shall at all time, indemnify and keep harmless the Chief Executive and every Officer of the Government against all actions costs, charges, claims and demands whatsoever which may be made or brought by any third party in relation to or in connection with this lease or any matter or thing done or purported to be done in pursuance thereof.
32. Release of lands included by inadvertence in the said lands. — In the event of the inclusion by inadvertence in part 1 of this Schedule of lands or areas over which it may subsequently be proved that the Government is not entitled to the mineral rights or of lands or area or areas in respect of which the mineral rights have already been granted to other individuals or companies, or of lands or areas which were in use for public purposes, whatsoever, the lessee shall immediately release to the Chief Executive any such lands or areas when required to do so by the Licensing Authority, unconditionally, and will not be entitled for any compensation.
33. Lessee not to Cultivate etc. — The lessee shall not except with the consent of Chief Executive cultivate or use the said lands in any manner save for the purpose of this demise and the rights hereby granted.
34. Exclusion of lands for public purposes etc. — (1) Notwithstanding the rights conferred on the lessee under this lease, the Chief Executive shall have power to require the exclusion from the lands included in part I of this schedule of any area or areas which may, from time to time, be required for villages, new villages extension, water reservoirs or any other public purposes whatsoever provided that during the subsistence of this lease the areas excluded shall not exceed in all __________% of the total area of the said lands and provided further the exclusion of any area or areas upon which any active operations such as working any mine, road construction, water works or other works relating to the working of _______ have previously been commenced or be in progress shall not be required but in lieu thereof an equal area upon which any active operations as aforementioned have not already been commenced or are not for the time being in progress shall be excluded, provided that such alternative area or areas are in the opinion of the Chief Executive suitable for the public purposes aforementioned and the lessee shall thereupon be relieved of all liabilities and obligation hereunder in respect of any such area or areas excluded under the provision of this clause excepting such liabilities and obligations as may have accrued before such exclusion.
(2) Where any area or areas have been excluded under this clause the lessee shall have prior rights to have such lands or areas included in the lands subject to his lease if they shall subsequently become available for this purpose.
35. Advertisements, prospectuses, etc. — No statement shall be made either in any notice, advertisements, prospectus or other documents issued by or to the knowledge of the lessee or in any other manner claiming or suggesting whether expressly or by implication that the Chief Executive or any Government Department or any person or body acting on behalf of the Chief Executive has or have formed or expressed any opinion that the said lands are from their geological formation or otherwise likely to contain.
36. Notice of Fresh Issues of Capital. — The lessee shall report to the Chief Executive 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 or in the constitution of the lessee.
37. Consent to Assignment. — The lessee shall not grant or assign any interest under this lease nor part with the possession of any of the right hereby granted to any person or persons whomsoever without the previous consent in writing of the Chief Executive or of any officer authorized by him in this behalf who may, without prejudice to his rights to make such consent subject to any conditions he may think fit, require as a condition of giving such consent, the assignee or assignees at his or their expense to execute a deed or covenant to observe and perform the covenant’s and conditions on the part of the lessee and in these present contained nor shall the lessee allow this lease or any interest thereunder to be attached or sold in any manner provided that the assignee sublet or charge the lease to or in favor of Industrial Development Bank of Pakistan or its successor in interest and/or assignee or to any other Bank or financing institution approved by the Licensing Authority in that behalf.
38. Assignment of Lease. — The lessee shall not assign or attempt to assign the rights granted by this lease to any person other than a citizen of NA/Pakistan of a company incorporated in NA/Pakistan.
39. Lessee ceasing to be a NA/Pakistan subject. — If the lessee shall cease to be a NA/Pakistan national or company incorporated in NA/Pakistan the lessee shall forthwith inform the Chief Executive and apply to him within a period of one month, or his consent to an assignment of the rights granted by this lease in accordance with clause 37 (consent to assignment) of this schedule failing which the Chief Executive may revoke this lease. The revocation of this lease in pursuance of this clause shall be subject and without prejudice to any obligation or liability imposed by or incurred under the terms and conditions thereof.
40. Reciprocity. — This lease shall be determined if the lessee shall be or become controlled directly or indirectly by a national of NA or by a company incorporated in any country the laws and customs of which do not permit national of NA/Pakistan or companies incorporated in NA/Pakistan or companies incorporated in that country and controlled directly or indirectly by nationals of NA/Pakistan or companies incorporated in NA/Pakistan to acquire, hold and operate mining concessions on conditions which in the opinion of the Chief Executive are reasonably comparable with the addition of conditions corresponding to those imposed by this clause and those included in NA Mining Concession Rules, 2003.
41. Lessee not to obstruct working of other minerals. — The lessee shall exercise the liberties and powers hereby granted in such a manner as to offer no necessary, or reasonably avoidable obstruction or interruption to the prospecting, development and working within the said lands adjacent thereto of any mineral not included in lease and shall at all times afford to the Chief Executive or his representative and to the holders of any licence or mining leases in respect of any such mineral in the said land or any mineral within any lands adjacent to the said lands reasonable means of access and safe and convenient passage upon land across the said lands to such mineral for the purpose of getting, working development and carrying away the same.
42. Notice of the site and commencement of operations. — As soon as the site of any mine has been decided and operation commenced the lessee shall notify the same to the Licensing Authority in writing and the mine shall be described by a certain number or name in the plans and records which the lessee is required to keep under the provisions of this lease. The lessee shall notify the Licensing Authority of any change of the number of name of any such mine, which may be made.
43. Abandonment and plugging of mine. — (1) No mines or pits shall be abandoned and no permanent form of mine support shall be withdrawn from any mine or pit which is proposed to be abandoned without the prior consent in writing of the Licensing Authority, such consent not to be unreasonably with-held, in the case of mines or pits which have become or are unproductive
(2) Every mine or pit which the lessee intends to abandon shall unless the Licensing Authority otherwise determine be so secured plugged by the lessee as to prevent ingress and egress of water in and from any portion of the strata bored through.
(3) The Licensing Authority may in any case require that no pit or mine shall be plugged or any works be executed for that purpose save in the presence or any officer authorized by the Licensing Authority.
44. Delivering the productive mines etc. — The lessee shall in good order at expiration or sooner determination of the said term deliver up to the Chief Executive all mines, pits, shafts, inclines, drifts, levels, waterways, airways and other works now existing and hereafter to be sunk or made under the said land, except such as may have been abandoned with the sanction of the Licensing Authority or in an ordinary and fair course of working, and all engine, machinery, plant buildings structures and other works and conveniences which at the commencement of the said term which were upon or under the fixture set up by the lessee below ground level which cannot be removed without causing injury to any mines or works under the said lands except such of the same as may with the sanction of the Licensing Authority have become disused and all bookings and structures of brick or stone erected by the lessee above ground level in good reair order and condition, and fit in all respects for further working of the said minerals, if so required by the Licensing Authority.
45. Plugging of mines on determination of lease etc. — Within two months after the expiration or sooner determination of this lese the lessee shall, if required to do so by the Licensing Authority, plug all mines and pits as provided in clause 43 (Abandonment and plugging or mines) of this Schedule.
46. Health and Safety of Workers and Employees. — The lessee shall comply with any instructions from time to time given by an officer authorized in this behalf by the Chief Executive in writing for securing housing accommodation, health, safety and welfare of person employed or in about the mines within the lease.
47. Commencement of Operations. — 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 Exploration Scheme within six months from the date of the grant of permission to start work or execution of the lease deed whichever is earlier, and shall thereafter carry them out effectually in a proper, skilful and workman like manner and shall not dipillar 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 with out good and sufficient cause fails to work so as to produce sufficient mineral to earn royalty at least equal to the dead rent within one year of the commencement of operations.
If in the opinion of the Licensing Authority, the lessee fails to fulfill the working obligations s required by the exploration scheme, submitted by the lessee and approved by the Licensing Authority, within one year of the approval and at any time during the subsequent years, the lease will be cancelled by the Licensing Authority.
48. To set up plant for economic development. — The lessee, if so required by the Licensing Authority, shall within such period as may be specified by him, set up a concentration, refining, smelting or processing plant for improving the quality of or plant the product of which requires the use of said mineral as major raw material in order to promote economic exploration of the mineral resources and shall observe and carry out all instructions issued by Chief Executive from time to time in the behalf.
In case the lessee fails to set up the above said plant within the specified time the lease may be cancelled by the Licensing Authority and granted to such other party as may under take to set up the said plant within such time as specified by the Licensing Authority and is considered suitable for the purpose.
49. Lessee to supply mineral to plants, smelter or factories. — If and when the Chief Executive or any organization sponsored by the Chief Executive directly/indirectly sets up a plant or smelter or factory requiring regular supply of the mineral hereby demised the lessee shall, if so required, by the Licensing Authority arrange regular supply of the mineral to the Chief Executive or to that organization at a price to be agreed upon mutually by them and, in default of such agreement, at such price as may be determined by the Government in the appropriate Department whose decision shall be final.
50. Plans. — (1) All plans prepared in accordance with the provision of this clause shall:-
(a) bear the name of mine, number of the lease and the name of lessee;
(b) Show the scale together with the magnetic meridian and the date of the later;
(c) Be properly inked on durable paper or on tracing cloth; and be on a scale of 1 inch to 100 feet.
(2) The lessee shall keep a plan of the working of each mine in the said lands. The position of the working at the time of the last survey shall be shown by dotted line drawn through the ends of the workings; such dotted line shall be marked with the date of the last survey. The plan shall also show all shafts and incline openings, all areas form where mineral has been excavated, the boundaries of the leasehold, the limits of the ore/body mineral deposits where possible, and all important features within the boundaries such as railways, roads, rivers, streams, water tanks, buildings and reservoirs which overlie any part of the working of any point within six hundred feet of any part of the workings measured on the horizontal plan, also the general direction and rate of dip of the strata, the depth of every shaft, a section of the seam/vein being worked and the portion of all faults and dykes with the amount and direction of their throw. There shall be separate plan of the workings of each seam or vein and or each separate section of each seam or vein.
(3) The lessee shall also keep a separate tracing of a surface plan showing all surface features referred to in such clause, (2) and in addition all buildings and erections on the surface and within the boundaries which overlie the working of the mine or any pint within six hundred feet of the working measured on the horizontal plan.
(4) (a) The 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 quantity of air is measured and the principal device for the regulation and distribution of air, so far as practicable the intake airways shall be colored blue and return airways red.
(b) The position of any underground ambulance stations and telephones shall be indicated on the plan provided that nothing in this sub-clause shall be deemed to apply to any mine in which the workings do not extend under the superjacent ground.
(5) The plan required by this clause be kept in the office at the mines. These shall be accurate and shall be maintained up to date within six months; provided that where any mine or coal seam or vein abandoned or the working thereof has been discontinued the plan shall, before such abandonment or discontinuance as the case may be, brought upto date unless such abandonment or discontinuance has been caused by circumstances beyond the control of the lessee, in which case the fact that the plan is not upto date shall be recorded on it.
(6) The lessee shall at any time, on the request of the Licensing Authority or any officer authorized by it in his behalf produce to him at the office or at the mine such plans and sections and also on the like request mark on such plans and sections the then state of the workings of the mine and the Licensing Authority or the officer authorized by it in that behalf shall be entitled to examine the plans and the sections and for official purposes to make or have a copy of any part thereof respectively.
(7) Where any mine or seam or vein is abandoned, or the working thereof has been discontinued over a period exceeding one year the lessee shall, within three months after the abandonment or within fifteen months after the 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 or vein upto the time of the abandonment of discontinuance showing the pillars of the mineral unworked and all other features required in compliance with this clause or a true and accurate copy of he same.
Provided that if a change of ownership occurs after the abandonment or discontinuance and before expiry of the three months or the fifteen months aforesaid as the case may be, such plans and sections shall be sent forthwith.
(8) After the expiry of ten years from the date of abandonment or discontinuance of working in any mine or seam or vein where the consent of lessee has been obtained prior to the expiry of the said period, the Licensing Authority may, on such conditions as it thinks fit to impose, permit any person or persons having an interest in any mineral in the said lands to inspect the plan or section of such mine or seam or vein sent to him in accordance with the provisions of sub-clause (7) and it may further on such conditions as it thinks to fit to impose to supply to any such person or persons copies of the like plan or section.
51. Lessee to keep samples of strata and minerals. — The lessee shall, as far as reasonably practicable correctly label and preserve for reference for a period of twelve months sufficient characteristic samples of the strata encountered in any mine or pit and samples of any mineral discovered in the said lands; and the Licensing Authority or its representative shall have access to such samples at all reasonable times and shall be entitled to require that representative specimen not exceeding one half of any such samples be delivered to it and to retain any specimen so delivered.
52. To report discovery of other minerals. — Wherever the lessee shall find in the said lands any mineral or product other than the said mineral, the lessee shall immediately report such discovery in writing to the Licensing Authority with full particulars of the nature and position of each mineral discovered other than for which this lease has been granted.
53. Periodical reports etc. — (1) The lessee shall furnish to the Licensing Authority half yearly or at such times as the Licensing Authority may appoint during the term hereby granted or any renewal thereof, a record in a form prescribed from time to time by the Licensing Authority, of the progress of his operation in the said lands, such records shall contain among other things:-
(a) a statement of the extent of workings in each mine or pit;
(b) a statement of any water, workable mineral or mine working encountered in the course of the said operations;
(c) a statement of all produced;
(d) a statement of any geological or geophysical work carried out on the said lands; and
(e) a statement showing the progress made in the implementation of the exploration scheme.
(2) Within two months after the end of each year comprised in the term hereby granted or any renewal thereof, the lessee shall furnish to the Licensing Authority a record in a form prescribed from time to time by the Licensing Authority of the operations conducted in the said lands during each year together with a plan required under sub-clause 50.
(3) The lessee shall furnish to the Licensing Authority such plans and information as to the progress of operation in the said lands as the Licensing Authority may from time to time require.
54. To report accidents. — The lessee shall without delay send to the Licensing Authority a report of any accident which may at any time occur at or in the said lands or any pit, shaft or workings therein.
55. Reports to be treated as confidential. — All logs, records, plans, maps, accounts and information which the lessee is or may be from time to time required to furnish under the provisions of this lease shall be supplied at the expense of lessee and shall except with the consent in writing of the lessee, which shall not be unreasonably withheld and subject to the provisions of sub-clause 50(8) be treated by the Licensing Authority as confidential. The Licensing Authority shall nevertheless, be entitled at any time to make use of any information received from the lessee for the purpose of preparing and publishing aggregate returns and general reports on the extent of prospecting or mining operation in Northern Areas and for the purpose and any arbitration and litigation between the Chief Executive and lessee.
PART VIII – THE CHIEF EXECUTIVE COVENANTS
56. For quiet enjoyment. — The lessee paying the rent and royalties hereby reserved and observing and performing all the covenants and the provisions herein contained and in his part to be observed and performed shall and may peaceably and quietly hold and enjoy the rights and privileges hereby demised for and during the term hereby granted without any unlawful interruption from or by the Chief Executive any person rightfully claiming authority from or under him.
57. Renewal. — The lessee having paid the several rents and royalties due and having observed and performed the terms and conditions herein contained, may be granted, on giving to the Chief Executive previous notice in writing in that behalf, of not more than two years not less than one year before the termination of the terms hereby granted at the discretion of the Chief Executive a renewal of this lease in respect of the whole of the said lands or any part thereof which complies with the Rules for time being in force for a further term not exceeding ten years from the expiration of the said term upon the terms and conditions contained in the rules in force at the time subject to such modifications or exclusion and enhancement of rates for royalties and rents as the Chief Executive may in his discretion determine.
58. Right of lessee to determine lease. — Without prejudice to any obligation or liability by or incurred under the terms and conditions hereof the lessee may, at any time during the term hereby granted or any renewal thereof, determine this lease giving to the Chief Executive less than twelve months previous notice in writing to that effect.
59. Right of lessee to abandon portion of the said land. — Without prejudice to any obligation or liability imposed by or incurred under the terms and conditions hereof the lessee shall be entitled at any time during the term of lease hereby granted or any renewal thereof by giving three months notice in writing to the Chief Executive to surrender the rights granted by the lease in respect of any part or parts of the said lands, provided that the part of the said lands in respect of which the said right are retained shall comply with the Rules for the time being in force as to the shape and size of areas in respect of which a mining lease may be granted.
PART IX – GENERAL PROVISIONS
60. Power to inspect plants, records, account etc. — Any person or persons authorized by the Licensing Authority shall be entitled at all reasonable time to enter into and upon any land for the time being possessed or occupied by the lessee in the said lands for the purpose hereinafter mentioned:-
(a) to examine the mines, pits, plants, appliances, buildings and works made or executed by the lessee in pursuance of this lease and state of repair and condition there of.
(b) To inspect and check the accuracy of the weighing or measuring appliances, weights, measurements, logs, records, plans, and maps which the lessee is required to keep or make in accordance with the provisions of this lease;
(c) To inspect and make abstracts or copies of any logs, records, plans, maps or accounts which the lessee is required to keep or make in accordance with the provisions of this lease;
(d) To inspect the samples of strata and minerals which the lessee is required to keep in accordance with the provisions of the lease; and
(e) To execute any works which the Licensing Authority may be entitled to execute in accordance with the provisions of this lease.
(f) Power of grant lease:-
The Director Industries and Mineral Resources (the Licensing Authority) will grant mining leases up to five years all minor minerals which are not specified.
61. Unit Development. — If at any time during the term hereby granted or any renewal thereof the Chief Executive shall be satisfied that the said lands or any part thereof, from part of a single geological structure or field (hereinafter referred to as a “a mine”) in respect of other parts of which other mining leases are then in force and the Chief Executive shall consider that it is in the interest of Northern Areas/Pakistan in order to secure the maximum ultimate recovery of and to avoid unnecessary competitive digging or drilling that the mine should be worked and developed as a unit in cooperation by all the persons including the lessee whose leases extend to or include any part thereof, the following provisions shall apply:-
(1) (a) The lessee shall, upon being so required by notice in writing by the Chief Executive cooperate with such other persons, being persons holding mining leases in respect of any part or parts of the mine (hereinafter referred to as “the other lessees”) in the preparation of scheme for the working and development of the mine as a unit by the lessee and the other lessees.
(b) The said notice shall also contain a description by reference to a map of the area or areas in respect of which the Chief Executive required a Development Scheme to be submitted and shall state the period within which such scheme is required to be submitted for approval by the Chief Executive.
(2) If a Development Scheme shall not be submitted to the Chief Executive within the period limited in that behalf by the said notice, or if a Development Scheme submitted in pursuance of the foregoing provisions of this clause shall not be approved by the Chief Executive, the Chief Executive shall himself prepare a Development Scheme which shall be fair and equitable to the lessee and other lessees of which Chief Executive shall be the sole judge, and the lessee and other lessees shall perform and observe all the terms and conditions thereof.
62. To take control of work, plants and premises, etc in the event of a state of National Emergency. — In the event of a state of national emergency of war, the Chief Executive shall be at liberty to take control of the works, plants, and premises of the lese and in such event the lessee shall conform to and obey all directions issued by the Chief Executive on his behalf. Compensation shall be paid to the lessee for any loss or damage that may be proved to have been sustained by the lessee by reason of the exercise by the Chief Executive of the powers conferred by this clause. Any such compensation shall be settled by agreement between the Chief Executive and lessee, or in default of Chief Executive agreement, by arbitration at the manner provided by clause 82 hereof.
63. Right of Pre-emption. — (a) The Chief Executive shall from time to time and at all times during the said term have the right, to be exercised by notice in writing to the lessee under the hand of any Secretary to Government, of Pre-emption of the said minerals all products here of, lying upon the said minerals and all the said lands hereby demised or elsewhere under the control of the lessee and the demurrage on the vessel or vessels engaged to convey the same, deliver all minerals or products of minerals purchased by the Chief Executive under the power conferred by this provision is the quantities, at the times, in the manner and at the place of shipment or storage specified in the notice exercising the said right.
(b) Should the right of pre-emption conferred by this present provisions be exercised and a vessel chartered to carry the minerals or products thereof, procured on behalf of the Chief Executive hereunder be detained on demurrage according to the terms of the charter of such unless the Chief Executive shall be satisfied that the delay is due to cause beyond control of the lessee.
(c) The price to be paid for all minerals or products of minerals taken in pre-emption by the Chief Executive in exercise of the right hereby conferred shall or the fair market price for the time being to be determined in default of agreement under the provision hereinafter in clause 83 of this schedule contained provided that in order to assist in arriving at the said fair market price the lessee shall if so required furnish to the Licensing Authority for the confidential information of the Government of NA’s particulars of the quantities, descriptions and prices for the said minerals or products there of sold to other customers and of charters entered in to for freight or carriage of the same and shall produce to such officer or officers as may be directed by the Licensing Authority original or authenticated copies or contracts and charter, parties entered into about the sale or freightage of such minerals or products.
(d) In the event of the existence of a state of war or of grave national emergency the lessee shall, on receiving a notice in writing form the Licensing Authority requiring him so to do use his utmost endeavors to increase the supply to or for the Chief Executive, of the mineral or product thereof purchased by him as aforesaid to the extent specified in such notice.
64. Internal requirements of Northern Areas/Pakistan. — The Chief Executive may, at his discretion, require the lessee to meet the internal requirements of Northern Areas/Pakistan to the satisfaction of the Government of Northern Areas before exporting the said mineral or any of its products to other countries and the lessee shall comply with the instruction issued by the Government in this behalf.
65. Associating of Northern Areas/Pakistan. — The Chief Executive may, at his discretion, require the lessee to associate NAs/Pakistan Capital to the extent of 51 percent of all classes of capital and debentures issued by him from time to time and the lessee shall comply with the instructions issued by the Chief Executive in this behalf.
66. Employment of Nationals of Northern Areas/Pakistan and their training’s. — The lessee shall employ and or train Northern Areas/Pakistan nationals in his organization in all grades as required by the Chief Executive from time to time. The number of Northern Areas/Pakistan nationals to be trained by the lessee will be determined by the Licensing Authority in consultation with the Government of Northern Areas.
67. Submission of Accounts and Periodical Returns. — The lessee shall submit to the Licensing Authority at the end of every year Balance Sheet audited by an approved Auditor and such further information and Periodical Returns as may from time to time be prescribed by the Licensing Authority.
68. Power to execute work. — If the lessee shall, at any time, fail to perform the obligations arising under the terms and conditions of any of the under mentioned clause of this schedule:-
(a) Clauses 21-23 (Measurement of minerals obtained from the said land);
(b) Clause 43 (Abandonment and plugging of mines);
(c) Clause 55 (Delivering up of productive mine etc, in good order);
(d) Clause 45 (Plugging of mines) etc;
(e) Clause 46 (Health and safety of workers and employees).
Then and in any such cause the Licensing Authority shall be entitled, after giving to the lessee reasonable notice in writing of such of its intentions to execute any works as in the opinion of the Licensing Authority or its agents may be necessary to secure the performance of the said obligations or any of them and to recover the costs and expense of so doing from the lease.
69. Power to assess and claim compensation of the damage to mineral property. — In the event of any damage caused to the mineral property due to unscientific working, lack of supervision, negligence or any other omission or commission on the part of the lessee the Licensing Authority shall, as sole judge, assess the extent of the damage and the compensation payable therefore by the lessee and the lessee shall be liable to pay the compensation so assessed in the same manner as arrears of rent and royalties.
70. Right of Distress. — If and when any of the rents and royalties payable by the lessee be not paid within six months next after the date fixed in the lease deed for the payment of the same, the Licensing Authority shall have the power to cancel the lease and proceed to recover the dues as arrears of land revenue:
Provided that if the lese has been assigned to or mortgaged in favor of the Industrial Development Bank of Pakistan or its successor in interest of assignee or any other bank or financing institution 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 said Bank or Financing Institution shall then be entitled to enforce the sale of the assigned or mortgaged property and apply the sale proceeds first towards the sale and or legal charges which the said Bank or Financing Institution may’ve incurred then towards the satisfaction of its own dues and out of the balance pay to the Government its dues.
71. NOTE. — There will be the provision in the Assignment/Mortgage Deed that in case, the Industrial Development Bank of Pakistan or the Financing Institution does not exercise this right the Bank or Financing Institution will then itself pay the Government dues and include the amount in the principal loan granted to the lessee.
72. Power of Revocation. — If there shall be any violation of the undertaking given in accordance with sub-rule (6) of rule 9 of the Northern Areas Mining Concession Rules, 2001 or any breach or non observance by the lessee of any of the terms and conditions of this lease or if the lessee shall become bankrupt or make or enter into any arrangement or composition with his creditors, or if, where the lessee is company, a receiver shall be appointed or the company shall enter into liquidation whether compulsory or voluntary (except a voluntary liquidation of a solvent company for purpose of reconstruction) or if the lessee shall fail to perform and observe the terms and conditions of any Development Scheme prepared in accordance with the provisions of clause 60 (Unit development of this Schedule) then and in any such case the Chief Executive may forfeit, I whole or in part, the security deposit made by the lessee under rule 22 of the Northern Areas mining concession rules, 2003, and or revoke this lease and thereupon the same and all the rights hereby granted shall cease and determine but subject nevertheless and without prejudice to any obligation or liability imposed by or incurred under the terms and conditions of this lease; provided always that, save as to the non-payment of rents or royalties, the aforesaid power shall not be exercisable unless and until notice has been given to the lessee specifying the particular breach complained of, and if the breach is capable of remedy, requiring the lessee to make compensation in money for the breach and if the lessee fails, within three months thereafter, to remedy the breach, if it is capable of remedy and to make reasonable compensation in money to the satisfaction of the Chief Executive for the breach. Provided further that the lessee committing any of the violation as mentioned above shall also be liable to he penalties as mentioned in rule 81 of the Northern Areas Mining Concession Rules, 2003.
73. Deposit of Un appropriated part of Security. — Whenever the said security deposit or any part thereof or any further sum hereafter deposited with the Licensing Authority in replenishment thereof shall be forfeited or applied by the Licensing Authority in pursuance to the power hereon above declared in that behalf the lessee shall forthwith deposit with the Licensing Authority such further sum as may be sufficient with the unappropriated part thereof to bring the amount in deposit with the Licensing Authority up to the sum of Rs. ……..
74. Employment of Technical Persons. — The lessee shall not work in any mineral or the property demised under this lease unless be meets with the requirements of rule 83 (Employment of Technical Persons) of Northern Areas Concession Rules, 2003 as modified and in force from time to time.
75. Training. — The lessee shall when asked to do so by the Licensing Authority, arrange and provide facilities for training of students of any mining engineering college or institute or any other person or persons associated with the profession of engineering, geology, or other related science.
76. Boundary dispute. — If at any time during the currency of this lease any dispute arise as to its boundary limits the decision of the Licensing Authority shall be final.
77. Power of lessee to remove plant etc. — Subject to the provision of clause 44 (Delivering of productive mines, etc, in good order) of this schedule the lessee may provide that all rents, royalties and other impositions payable by him by virtue of these presents have been paid and that all the covenants and conditions herein contained have been observed and performed at any time within six calendar months after the determination of this lease, whether by effusion of time or otherwise, enter into and upon the said lands or any part thereof for the purpose of taking down removing and disposing of, for his own use and benefit, all or any of the buildings, works, railways, pipelines, machinery utensils, implements, articles and things setup, and used or employed by him in or about the said lands which the Chief Executive shall have not elected to purchase property etc, of this Schedule, except buildings and erection or brick, stone of concrete, making reasonable compensation for all damage done to the said lands by such removal.
78. Power of Chief Executive to purchase property etc. — If the expiration or sooner determination of this lease, the Chief Executive shall be desirous of purchasing all or any of the building, works, pipelines, machinery, utensils, implements, articles or things, constructed set up or used or employed by the lessee in or about the said lands and which the lessee is not bound to deliver up under clause 44 (Delivering of productive mines, etc, in good order) of this schedule and shall signify his such desire by notice in writing to the least six calendar months before the expiration of this lease, or if this lease shall be determined under the power of revocation here in before contained at any time within three calendar months after he determination of this lease, the lessee shall sell to the Chief Executive the articles and things specified in such notice at a price which, failing agreement shall be fixed by arbitration as provided in clause 82 (Arbitration) of this Schedule.
79. Forfeiture of property left for more than six months after determination of lease. — If at the expiration of six months after the expiration of sooner determination of the lease there shall remain in or upon the said lands any engines, machinery, plants, buildings, structures, tramways, and other works, erections and conveniences or mineral ores or other property which the same lese is entitle to remove from he said lands the same shall, if not removed by he lessee within one calendar month after notice in writing requiring their removal be given to the lessee by the Chief Executive, be deemed to become the property of Chief Executive and may be sold or disposed of for the benefit of the Government of Northern Areas in such manner as the Chief Executive may deem fit without liability to pay compensation or to account to the lessee in respect thereof.
80. Lessee’s Right in Respect of other Minerals. — If any mineral not included in the lease shall, during the said term, be discovered within the said lands, the lessee shall not unless afresh lease in respect of the minerals so discovered is granted to him under the Northern Areas Mining Concession Rules, 2001 have any right to those minerals.
81. Force Majeure. — (1) Failure on the part of the lessee to fulfill any of the terms and conditions of this lease shall not give the Chief Executive any claim against the lessee or be deemed breach of this lease in so far as such failure arises from force majeure.
(2) In this clause the expression “force majeure” means the act of God, War, insurrection, riot, civil commotion, tide, storm, tidal wave, flood, lighting, explosion, fire, earthquake and any other happening which the lessee could not reasonably prevent or control.
82. Arbitration. — (a) Any question or dispute regarding the lease or any matter or thing connected therewith shall be referred to the Government in the appropriate department whose decision shall be final provided that any dispute concerning:-
(1) The cancellation of lease for any violation of the undertaking given in accordance with the Northern Areas Mining Concession Rules, 2003
(2) The price of minerals pre-empted by the Government.
(3) The price of plant purchased by the Government at the determination of the mining lease or earlier, or
(4) The compensation payable to the lessee for any loss or damage that may be proved to have been sustained by the lessee by reason of the Government taking control of works, plants and premises of the lease, or
(5) The compensation payable to the lessee on the Government taking over all the rights of the lessee under the mining lease, shall be determined by two arbitrators one to be nominated by the GOVERNMENT and the other by the lessee, and in the case of disagreement between the arbitrators by a judge of the Chief Court Northern Areas in writing and the decision of such arbitrators or such judge as the case may be shall be final…………………………..

Signed by
…………………………
(Name and Designation)
For and on behalf of the Chief Executive Northern Areas in presence of:-

(1)
Witness
(2)
(1) Signed by the above named by his/their attorney in the presence of:-
(1)
Witness
(2)
(2) Signed in the name and on behalf of the above named by Director of the said Company in presence of:-
(1)
Witness
(2)
(3) Signed in the name and on behalf of the above named by their authorized agent in presence of:-
(1)
Witness
(2)
(4) Signed by the above named by their attorney/agent in the presence of:-
(1)
Witness
(2)
………………………………………………………………………………………
1. This clause is to be used where the lease is granted to one or more individuals (the name of the constituted attorney being filled in of the lessee or lessees do not sign personally)
2. This clause is to be used where the lease is granted to a registered company and if the signature is by an agent or attorney the appropriate designation should be inserted in place of word “Director”
3. This clause is to be used where the lese is granted to an un-incorporated syndicate.
4. This clause is to be used where the lese is granted to private firm (the name of the attorney or agent being filled in if the signature is not by a partner in the firm).
SIXTH SCHEDULE FORM OF AGREEMENT FOR USE IN CONNECTION WITH THE TRANSFER OF LEASE
An agreement dated ……………………. and made between the Chief Executive N.As (hereinafter referred to as the “Chief Executive” which expression shall where the context so admits, be deemed to include successor in office and assigns of the one part and ………………… hereinafter referred to as the Assignee (s) which expression shall when the context so admits be deemed to include his/their respective heirs, executors, administrators, representatives and assigns of the other part.
Whereas by virtue of an indenture of “Mining Lease” hereinafter referred to as the lease dated …………… and made between the Chief Executive (A __________________________________ ______________________________________________________________________________
And (B)
______________________________________________________________________________
And now vested by transfer in ______________________________________________________ ______________________________________________________________________________ hereinafter referred to as the lessee is /are entitled to search for and work the mines and minerals therein mentioned for the term and subject to the payment of rents/royalties and the observance and performance of lessee’s covenants and conditions in the lease reserved and contained including a covenant not to assign the lease or any interests there under without previous sanction of the Chief Executive and whereas the lessee(s) is/are desirous of transferring and the Chief Executive has at the request of the lessee(s) granted sanction to such transfer and assignment upon condition of the Assignee (s) entering into and agreement in and containing the terms and conditions hereinafter set forth.
NOW IT IS HEREBY AGREED AND DECLARED BY THE ASSIGNEE (S)
With and to the Chief Executive that from and after the transfer and assignment of the lease by the lessee (s) to the assignee (s) shall be bound and liable to perform and confirm and be subject respectively to all the provisions and conditions of all the covenants and stipulations on the part of the lessee (s) and condition in the lease contain in the same manner in all respect as if the lease had been granted to the Assignee (s) as the lessee (s) thereunder and hereby had originally executed it as such and the Assignee hereby under take (s) and agree (s) with the Chief Executive to perform and observe the same covenant, stipulations and conditions in all respect accordingly.
………………………………………………………………………………………………………………
A. The name of the authority who granted the lease (other than the Chief Executive).
B. If there has been no previous transfer, strike out the words in brackets here. If there has been a previous transfer fill in the name of the holder in the blank within the brackets.
As witness the Hands of parties:-
Signed by …………………………..
For and on behalf of the Chief Executive Northern Areas
1. …………………………………………
2. ………………………………………..

2. Signed by ……………………………………………………………………….
on behalf of the above named Assignee (s)
WITNESS
1. …………………………………………………
2. ……………………………………………….
BY THE ORDER OF THE CHIEF EXECUTIVE (N.As)
SEVENTY SCHEDULE
QUALIFICATON OF TECHNICIANS WHO CAN PREPARE EXPLORATION SCHEME
1. Coal. A degree, diploma or certificate in mining engineering from a recognized university or institution, with at least one year underground working experience in the coal mines in case of a degree holder and three years working experience in coal mines in case of diploma/certificate holder o with first or second class qualification not mentioned above which in the opinion of the Licensing Authority is euql to or comparable with the above.
2. Minerals other than coal. ……………. A degree, diploma or certificate in Mining Engineering from a recognized university or institution with one year’s underground working experience in mines in case of a degree holder and three years’ underground working experience mines in case of a diploma certificate holder, or experience in mines or any other qualification not mentioned above which in the opinion of the Licensing Authority is equal to or comparable with the above.

TABLE – 1
Broad Terms for Mineral Titles
S.No. Category Size sq.km Validity period Reewals Years Area Detention Decision within days*
1. Reconnaissance Licence Non-exclusive and non-renewable unless stipulated otherwise in the Reconnaissance Licence on application for exploration licence 100-10,000 One Nil 90% on application for exploration licence 120
2. Exploration Licence (EL) (Note-1). Exclusive rights to explore all minerals specified in EL
– First Renewal
– Second Renewal Not exceeding 1,000
Three

Three
Three

50%
50% of the remaining area 120

120
120
3. Mineral Deposit Retention Licence (On account of unfavorable economics to develop) (Note-2) Not exceeding area of Exploration Licence held by applicant Two One Nil 180
4. Mining Lease
(Note-3) Max 250 Thirty Ten — 120(a)**
180(b)**

Note -1 Exploration Licence cannot be assigned within the first two years. Renewable subject to fulfillment of working obligations.

Note -2 If a third party makes an offer to develop an area, Mineral Deposit Retention Licence (MDRL) shall stand terminated unless the holder matches the offer

Note – 3 The lessee shall have the right to assign the lese with prior approval of the Licensing Authority.

Note – 4 Applicable to all types of Licences/Leases. There shall be a minimum investment/work program for Reconnaissance Licence, Exploration Licence (EL) Mineral Deposit Retention Licence (MDRL) and minimum production commitment for ML

* To be reckoned from the date of filing of complete application. In case of direct application for ML (without EL or Mineral Deposit Retention Licence (MDRL)), the decision will be made within 180 days, unless extended further up to 180 days by the Government.

** (a) For holder of EL or Mineral Deposit Retention Licence (MDRL).

(b) For applicant not holding EL or Mineral Deposit Retention Licence (MDRL).

TABLE – II
Application Fee and Land Rent
S.No. Category Application Fee (Rupees Renewal (Rupees) Rent Rupees Fee Sq.Km. Period Year
1. Reconnaissance Licence 15,000 Not Renewable — —
2. Exploration Licence

— First Renewal

— Second Renewal 25,000

50,000

50,000 250
750

1000
1,250
2000
2,500 Year 1-3
Year 4

Year 5
Year 6
Year 7
Year 8
3. Mineral Deposit Retention Licence 100,000 100,000 3,000 2 + 1
4. Mining Lease 100,000 100,000 3,000 30+10

Note:
1. The Mining Concession Rules may provide that all grants, revocations, assignments, renewals and surrenders of mineral titles shall be published in the official gazette forthwith with complete details.

2. Foreign companies may be provided right of arbitration of International Center for Settlement of Investment Disputes.

3. Mineral Concession Rules may also have enabling provision to allow the Licensing Authority to enter into an agreement in case a foreign mining company so desires in consultation with MIFA and MIFB.

4. The Provincial Government may, after consultation amongst themselves suggest changes which they may consider appropriate.

TABLE III
ROYALTY
The Northern Areas Government is pleased to notify the flat rate of royalties under rule No.49 which are indicated below to be charged from licensee/lessee on the mineral (s) extracted by him.
A. INDUSTRIAL MINERALS
S.No. Name of the Mineral Royalty per ton
1. Coal Rs.50/-
2. Marble Rs.30/-
3. Granite Rs.30/-
4. Calcite Rs.30/-
5. Alum Rs.35/-
6. Arsenic Rs.50/-
7. Asbestos Rs.30/-
8. Feldspar Rs.30/-
9. China clay Rs.20/-
10. Graphite Rs.30/-
11. Soapstone Rs.30/-
12. Mica Rs.100/-
13. Barite Rs.35/-
14. Talc/soapstone Rs.35/-
15. Serpentine Rs.40/-
16. Limestone/dolomite Rs.20/-
17. Clays Rs.20/-
18. Magnesite Rs.30/-

B. Precious stones 10%
C. Precious metals and semi precious stones 3%
D. Base metals 2%
E. Others (other than B, C & D above) 1%

Royalty determination and payment

(i) Royalty will be calculated at the first point where the mineral is sold of otherwise disposed of, without any deduction from gross value

(ii) Royalty will be assessed and paid on a monthly basis.

(iii) In order to encourage investment in marginal or low grade mineral deposits, as well as the maintenance of mineral production in years of difficult cash flow, the Provincial Governments may adopt special royalty provisions which would allow them to reduce, defer or waive royalty payments on certain projects or minerals on certain terms and conditions in specified circumstances.

(iv) Enhanced royalty rates and be negotiated under an agreement with the investor of a mining project, which would apply only when the project achieves the agreed threshold level of profitability.

(v) Stocked minerals and by-products will not be subjected to royalty payment until sold.

Royalty in Lieu of Local Levies etc

Except for royalty, there will be not other Provincial or local levies or taxes imposed on minerals or mining operations. The claims of local bodies for any levy on minerals will be satisfied by the Provincial Governments from royalty collections.

TABLE – IV

MAXIMUM QUANTITIES REMOVABLE FREE OF ROYALTY

Class A Separated gold, platinum and other previous metals occurring
in the native State ………………………………. Nil
B Auriferous rocks and gravel ………………………… 2 tons
C Metalliferous ores worked for aluminum …………. 10 tons
D Metealliferous ore such as those worked for antimony,
arsenic bismuth, chromium, copper, lead nickel, tin and zink……… 5 tons
E Metalliferous ores such as those worked for mercury,
molybdenum, silver and thallium …………………. 2 tons
F Compound ores containing the metals of class E in
smaller quantities than those of class D ………………… 5 tons
G Concentrates of the ores enumerated in class D to F ……… 2 Cwt.
H Coal ……………………….. 50 tons
I Rare earth minerals ………………………… 5 Cwt.
J Minerals used in various arts such as bitumen, ores of
corundum, mercury, feldspar, fluorspar, barites and borax……….. ½ tons
K Minerals used in agriculture and chemical manufactures
such as bauxite, gypsum, iron pyrites and shales……………. 5 tons
L. Asbestos, graphite and native sulfur …………………….. 1 ton
M. Precious and semi-precious stones …………….. Nil
N. Mineral used in ceramic industry ………………………….. 1 ton
______________________________________________________________________________
[No. F.4/4/2001 – NA.II]
SAIF ALI
Deputy Secretary
______________________________________________________________________________
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