THE PAKISTAN MINING CONCESSION RULES, 1960

Notification No. BMR (II) 4(1), dated 15th June, 1960, (Gaz. Pak, Ext. 1960, pp. 501-522).— In exercise of the powers conferred by section 2 of the Regulation of Mines and Oilfields and Mineral Development (Federal Concession) Act, 1948, and in supersession of the Pakistan Mining Concession Rules, 1919, the Central Government is pleased to make the following Rules:–

PART 1
GENERAL

1. Title.— (1) These rules may be called the Pakistan Mining Concession Rules, 1960.
(2) They shall come into force at once.
2. Definitions. — In these Rules and in very prospecting licence and mining lease issued hereunder, unless there is anything repugnant in the subject or context,-
(a) “Collector” means the Chief Revenue Officer in charge of the District;
(b) “lessee” means a person to whom a lease under these Rules is granted and includes his successor-in-interest;
(c) “licensee” means a person to whom a licence under these Rules is granted, and includes his successor in title;
(d) “licensing authority” means the authority to whom applications for prospecting licences and mining leases are to be submitted under rule 7;
(e) “mineral” excludes petroleum and natural gas; and
(f) “Schedule” means Schedule annexed to these Rules.
3. Grant of licenses and leases. — (1) Except with the previous sanction of the Central Government, no licence to prospect for minerals and no lease of mines and minerals shall be granted, otherwise than in accordance with these Rules.
(2) The Central Government may, by notification in the official Gazette, delegated power to grant a prospecting licence or a mining lease to the Provincial Government or the Collector in respect of any minerals or minerals.
4. Existing licences and leases to continue. — Any prospecting licence or mining lease granted or renewed by a competent authority under the Pakistan Mining Concession Rules, 1949, or the West Pakistan Mining Concession Rules, 1948, and in force prior to the promulgation of these Rules shall be deemed to have been granted or renewed in accordance with the provisions of these Rules as if these Rules were in force at the time such licence or lease was granted or renewed and shall be treated accordingly.
5. Order of Collector subject to approval of Central Government. — Any order passed by the Collector under these Rules shall be subject to revision by the Central Government.
6. Persons by whom applications may be made: — Any person may apply for —
(a) a prospecting licence as set out in Part 1 of the Second Schedule; and
(b) a mining lease as set out in Part II of the Second Schedule.
7. Manner in which application may be made. — Every application for a prospecting licence or mining lease shall be made in writing in the form set out in the First Schedule nd shall be addressed to the Director General, Bureau of Mineral Resources, Government of Pakistan, or in the case of minerals notified under sub-rule (2) of rule 3, to the Provincial Government for the Collector, as the case may be, in accordance with these Rules.
8. (1) The Licensing Authority to whom these applications are submitted shall maintain separate registers of applications for prospecting licenses and mining leases containing the following columns, specifying:–
(1) Serial No.
(2) Date of receipt of the application.
(3) Name of the applicant.
(4) Complete address of the applicant.
(5) Whether a national of Pakistan or a company incorporated outside Pakistan?
(6) Mineral or minerals for which prospecting licence or mining lease is required.
(7) In case of a mining lease, the period for, which the lease is required.
(8) District or Districts in which licence or lease is required.
(9) Place and total area applied for.
(10) Application fee paid.
(11) Final disposal of the application.
(12) Remarks.
(2) This register shall be open to inspection on payment of a fee of Rs.5 per hour.
9. (1) Every application for a prospecting licence or a mining lease shall state–
(a) in the case of an application by an individual, his address, nationality and occupation;
(b) in the case of an application by a company, the authorized, subscribed and paid-up capital of the company, the nature of and the principal place of business of the company, the names and nationality of the Directors thereof and the names of the principal shareholders, with the number of shares held by them.
(2) An application by an alien or a company incorporated outside Pakistan, shall contain, in addition to the matters specified in sub-rule (1), full particulars of the company to be incorporated in accordance with rule 16 in Pakistan for the purpose of receiving the grant of and working any licence or lease which may be granted in pursuance of the application.
(3) The application shall be accompanied by a fee of—
(a) Rs. 50 per mineral for the first sq. mile and Rs. 10 per mineral for each additional sq. mile or part thereof, in case of application for a prospecting licence, and
(b) Rs. 100 per mineral in case of application for a mining lease.
If application for a prospecting licence or a mining lease is refused, half of fee paid therewith shall be refunded.
(4) Ever application for the grant of a prospecting licence or a mining lease shall be accompanied by ten copies of the map showing the boundaries and areas of the land in respect of which the licence or lease applied for. The map shall be prepared from the Survey of Pakistan may of appropriate scale. It will be prepared from the Survey of Pakistan map of the appropriate scale. It will be sufficient compliance with this sub-rule if only one copy of such map is attached in the first instance and the remaining nine copies are furnished within a month.
(5) The applicant shall furnish with his application evidence as to his financial and technical qualifications and his ability to comply with the terms and conditions in the model clauses set out in the Second Schedule relating to the licence or lease for which application is made in the case of an application by an alien or a company incorporated outside Pakistan, the like evidence in relation to the company, if any, required to be incorporated in accordance with rule 16 in Pakistan for the purpose of receiving the grant of and working any licence or lease which may be granted in pursuance of the application. The applicant shall also state whether any application for licence or lease has been submitted by him in the past in any other country for such licence or lease and the result thereof. The applicant shall also furnish upon request by the Licensing Authority such further evidence relating to such matters, and if such further evidence is not furnished to the satisfaction of the Licensing Authority within three months of the request therefore, the application shall, unless the Licensing Authority otherwise determines, be deemed void.
(6) The applicant who is not a national of Pakistan shall, with the application, furnish an undertaking that he will abstain from all political activity/activities whatsoever affecting the sovereignty or security of Pakistan or that which may be tantamount to interference in its internal affairs and the specially he will eschew all espionage.
(7) The information comprised in or furnished to the Licensing Authority to 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.
10. The Licensing Authority may declare in respect of any specified area that in lieu of furnishing the particulars required in sub-rule (4) of rule 9, the applicant for a prospecting licence or a mining lease shall adopt the procedure set forth below or such modifications thereof as the Licensing Authority may prescribe namely:
(1) He shall, before forwarding his application all Licensing Authority, demarcate the area applied for in the following method:–
(a) At every angle or corner of each boundary line or as near thereto as in practicable, he shall fix pegs of substantial material, standing not less than 2 feet above the surface of the ground not less than 3 inches square or 3 inches in diameter.
(b) If pegs be not obtainable, he may use internal cairns of stones or mounds of earth, having in each case a height of not less than 2 feet and a diameter at the base of not less than 2 feet.
(c) The direction of the boundary line on each side of each peg, cairns or mound shall be indicated with reasonable care by a trench having a length of 4 feet, and a breadth and depth of not less than 6 inches; provided that if trenches cannot be conveniently cut, the direction of the boundary lines shall be indicated by finger points, or in any other manner suitable for the purpose.
(d) The pegs, cairns or mounds shall bear or have affixed thereto some distinguished mark which shall be described in the application.
(e) In the case of an application for land on the sea-shore, it shall not be necessary to mark out the land below high water level.
(f) No peg, cairn mound or other mark employed in making out the land applied for shall be removed or defaced after the application shall have been filed without the permission of the Licensing Authority.
(2) The application shall be accompanied by a deposit at such rate of rates as the Licensing Authority, by general or special order, prescribe to meet the cost of survey of the area.
(3) 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 expense of the applicant, and the area and all other details ascertained in the course of such survey shall be presumed to be correct.
Provided that the Licensing Authority may, at his discretion, dispense with such survey of the boundaries of the area applied for conform to boundaries already ascertained in a Government survey, for example, the boundaries of survey numbers in a revenue survey.
11. Separate application to be made for each area..— Where an applicant requires a licence or lease for two or more areas, a separate application shall be made in respect of each area.

12. Grant of more than one licence or lease to the same person.— Nothing in these Rules shall prevent more than one licence or lease being granted to the same person.

13. Licence or lease not assignable without consent.— A licence or lease shall not be assigned without the previous consent in writing of the Licensing Authority.

14. Method of making application for assignment.— 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. 50. The applicant shall furnish in the application the same particulars in respect of the proposed assignee as are required in the case of applicants for licences and leases under rule 9.
Provided that the application for assignment to an alien or to a company incorporated outside Pakistan or to a foreign company incorporated in Pakistan shall, in all cases, be addressed to the Director General, Bureau of Mineral Resources, Government of Pakistan.

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 any country the laws and customs of which do not permit subject of Pakistan or companies incorporated in Pakistan to acquire, hold and operate mining concessions other than petroleum and Natural Gaston conditions which in the opinion of’ the Central Government are reasonably comparable with the conditions upon which such rights are granted to nationals of the country in Pakistan.

16. Application by an alien or a company incorporated outside Pakistan.—In the case of an application for a licence or lease by an alien or a company incorporated outside 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 Pakistan such licence or lease shall only be granted or assigned to a company incorporated in Pakistan for the purpose of receiving and working any such licence or lease.

17. On receipt of the application under rule 6, the Licensing Authority or such officer, as he may authorize in this behalf, shall not thereon the date and time of its receipt and shall deliver to the applicant and acknowledgement stating the date and time of receipt.

18. On receipt of the application the Licensing Authority shall ascertain himself that the area applied for does not overlap with any other area already covered by a licence or a lease or an application for such licence or lease, before grating the concession applied for.

19. If in the opinion of the Licensing Authority, it is not expedient to grant a licence or a lease, he shall refuse it.

20. Priority. — If more than one application for the grant of prospecting 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.

21. Lapse of right to licence or lease.— If a licence or lease is not executed within three months of the communication of the approval of the application by the Licensing Authority the right of the applicant to such licence or lease shall be deemed to have lapsed, unless the Licensing Authority considers that the delay is not attributable to the fault of the applicant.

22. Right of surrender. — Licensee or lessee desiring to surrender his licence or lease in whole or in part shall give the Licensing Authority prior notice of his intention to do so as prescribed in the relevant rules and Schedules. On the expiry of the said notice he shall have the right to surrender his licence or lease in whole in part and on such surrender he shall become entitled to a proportionate reduction in the rent provided that such reduction shall not take effect during the year in which he surrenders and for which rent has either been paid or has accrued.

23. Publication.— As soon as may be, after the grant, surrender, determination or assignment of any licence or lease under these Rules, the Licensing Authority shall publish notice of such grant, surrender, determination or assignment in the official Gazette stating the name of the Licensee or Lessee or Assignee and the description of the area concerned.

24. Terms and conditions of licences and leases.— The prospecting licence and mining lease shall be in the form set out in Parts I and II respectively, of the Second Schedule hereto and shall include such additional clauses relating to ancillary matters as the Central Government may deem to insert. subject to satisfactory compliance with the terms and conditions of the licensee, the holder of a licence shall have the right to receive a mining lease in the form set out in Part II of the Second Schedule which may be in force on the day previous to that on which the licence was issued.

25. Security deposit.¬– 1(a) Every applicant shall, before the prospecting licence is granted, deposit as security in respect of such licence, a sum of Rs.100 per sq. mile or part thereof covered by the licence for due compliance with the terms and conditions of the licence.

(b) In the case of application for mining lease for metalliferous minerals, the amount of such deposit shall be Rs.1,000 and in case of minerals other than coal, Rs. 500. For coal such deposit shall be at the rate of Rs. 5 per acre subject to a minimum of Rs. 1,000 and maximum of Rs.10,000.

(2) If the application relates to an area for which the applicant holds a prospecting licence, any amount held in deposit under sub-rule (1) in respect of such prospecting licence be carried to his account.

26. If a mining lease is granted to a person who has made a deposit under the foregoing rules, the amount of the deposit, after making such deductions or compensation for surface damage, penalty or otherwise as the licensing authority may order shall be carried to his credit and adjusted towards the rents, royalties or the deposit 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 Rules 39 and 43 have been complied with an on his furnishing the Licensing Authority with the information required by clause (e) of rule 76.

27. A licence or lease shall be granted only in respect of lands in which the mines and minerals are the property of Central Government.

PART II
PROSPECTING LICENCE

28. licensee’s right under a prospecting licence.— A licence to prospect the minerals, hereinafter called a prospecting licence, shall, subject to the conditions contained in the licence, confer o the licensee the sole right to mine, quarry, bore, dig and search for, for win work land carry away any specified mineral or minerals lying or being within under or throughout the land specified in the licence.

29. Grant of prospecting licence.— The Licensing Authority may grant a prospecting licence over the land specified therein provided the applicant is considered fit.

30. Area.—Except as otherwise decided by the Central Government a prospecting licence shall not be granted in respect of any area of more than 10 sq. miles.

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

32. Licensing Authority shall maintain a register of prospecting licences granted by him, specifying:

(1) Number of the prospecting licence.

(2) Name of the licensee.

(3) Address of the licensee.

(4) Date of grant of licence.

(5) Mineral for which licence is granted.

(6) Period for which granted.

(7) Situation and boundary of the land.

(8) Estimated total area.

(9) Fee and royalty payable under rules 37 and 38.

(10) Amount of security deposit.

(11) Particulars of disposal or refund of deposit.

(12) Date of first renewal.

(13) Date of second renewal.

(14) Date of third renewal.

(15) Date of assignment or transfer of the licence and fees paid therefore and names of the parties thereto.

(16) Date of application for mining lease.

(17) Remarks.

33. Period. — A prospecting licence shall in the first instance be valid for one year.

34. Renewal. — Subject to the licensee having carried out his working obligations under rule 36. The Licensing Authority shall on application made by the licensee on one month’s notice in writing, grant renewal of a prospecting licence for a further term of 12 months in respect of the whole of the licensed area or any part or parts thereof which comply with rule 31. The Licensing Authority may in its discretion grant a further renewal for a period 12 months to enable the licensee to complete the prospecting work to the satisfaction of the Licensing Authority.

35. Right of the Licensee for renewal of his prospecting licence on applying for a mining lease. — The Licensee having before the expiry of a prospecting licence applied for a mining lease shall have the right to renewal of the prospecting licence until the mining lease applied for has been granted or refused.

36. Working obligations. — (1) The Licensee shall in respect of the areas 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 scheme should inter alia, include; (i) location and description of major deposits; (ii) methods of prospecting including machinery and equipment to be used; (iii) technical personnel to be employed; (iv) details of roads, residential accommodation for staff and labourers to be constructed; and (v) estimated expenditure on the scheme and it should be accompanied by necessary maps, plans, etc. The Licensing Authority will make sure that the approval of the scheme is communicated to the licensee within three months of this receipt.

(2) If, in the opinion of Licensing Authority, the licensee fails to fulfill the working obligations as required by this scheme the licensee, shall forfeit the right to the renewal of the licence or the grant of a mining lease over, any part of the area covered by the licence.

37. Annual fee. — The Licensee shall pay a fee of Re. 1 per acre of the land covered by the licence for each year or a portion thereof for the term for which the licence is granted. This fee will also be payable for the period for which the licence is renewed from time to time, but o fee shall be payable for an extension of the term of licence under rule 35. The fee may be reduced, at the discretion of the Licensing Authority to a minimum of annas 0-4-0 per acre, but in all such cases the Licensing Authority shall record his reasons for fixing the fee at less than Re. 1 per acre.

38. Royalty. — The Licensee shall pay royalty at the rates specified in the Third Schedule on all minerals won and carried away over and above the quantity which is allowed in the Fourth Schedule which can be taken free for purposes of experiment.

39. Compensation. — The Licensee shall make any 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 which may be made by third parties in respect of any such damage, injury or disturbance.

40. Not to cut or injure any tree.— The Licensee shall not cut or injure any tree on unoccupied and unreserved land without the permission in writing of the Licensing Authority or of such officer or officers as he may appoint; nor without the permission of Licensing Authority shall he disturb the surface of any road or enter on any public pleasure ground burring or burying ground or place held sacred by any class of person, or interfere with any right of way well or tank.

41. Pre-emption. — The Central Government shall at all times have the right of pre-emption over 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 the fair market price shall be paid to the Licensee for all minerals taken in pre-emption.

42. 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, negligence or any other omission or commission on the part of the Licensee, 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 compensation to assessed in the same manner as arrears of rents and royalties.

43. To plug boreholes, 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 six months next after the determination of he licence or the date of abandonment of the undertaking, whichever shall occur first, securely plug any bores and fill up or fence any holes or excavations that he may make in the and to such extent as the Licensing Authority may require and shall to the like extent restore the surface of the and all buildings thereon, which he may have damaged in the course of prospecting:

Provided that he Licensee shall not be complied to restore the surface the land or any buildings in respect of which full and proper compensation has already been paid under rule 39.

44. 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 the Central Government may be general or special order from time to time prescribe. It shall be a condition of every licence granted under these Rules that before the commencement of prospecting operations within a reserved or protected forest, 30 day’s notice shall be given to the District or Divisional Forest Officer of the intention to commence operations, and that the operations shall be conducted subject to any conditions regarding the use of fire that he may prescribe.

45. Right of the Licensee to a mining lease. — On or before the determination of hs licence the Licensee shall have a right. —

(a) in the case of minerals other than precious stones, to a mining lease in accordance with the terms contained in the Rules for mining lease; and

(b) in the case of precious stones, to the first offer such mining lease as the Central Government may think fit to grant.

Such lease may include so much land, comprising the whole or a part only o the area for which the prospecting licence was granted, as shall not exceed the area specified with respect to mining lease in rule 49.

46. Disclosing the information acquired by the Licensee during the course of his operations. — If so required by the Licensing Authority, the Licensee shall before the deposit made under clause (a) of sub-rule (1) of rule 25 is returned to hi, disclose confidentially to the Licensing Authority all information acquired in the course the operations carried on under the licence, regarding the minerals contained in or the geological formation of any area not taken up by him under a mining lease.

PART III
MINING LEASE

47. Grant of mining leases.— The Licensing Authority may grant a mining lease for mineral or minerals on the land specified therein provided the applicant is considered fit.

48. Register of mining leases. — The Licensing Authority shall maintain a register of mining leases granted by him specifying:

(1) Number of the mining lease.

(2) Name of the lessee.

(3) Address of the lessee.

(4) Date of grant of lease.

(5) Mineral for which lease granted.

(6) Period for which granted.

(7) Situation and boundaries of the land.

(8) Estimated total area.

(9) Fee and royalty payable under Rules 53, 54 and 55.

(10) Amount of security deposit.

(11) Particulars of disposal or refund of deposit.

(12) Date of first renewal.

(13) Date of second renewal.

(14) Date of third renewal.

(15) Date of assignment or transfer of the lease and fees paid therefore and names of the partners thereto.

(16) Remarks.

49. Comprehensive mining lease. — The lease shall not be granted in respect of any area of more than five sq. miles save in case where special exemption is granted by Central Government.
50. Shape of area.— Each separate area in which a mining lease is granted, shall be so far as possible compact and shall either be limited by well-marked permanent physical boundaries or be bounded by straight lines and the shape of the area shall be determined by the geological setting.

51. The boundaries of the area covered by a mining lease shall run vertically downwards the centre of the earth.

52. Period.— The initial term of a mining lease shall not exceed thirty years but the lease shall contain a clause permitting renewal at the discretion of the Central Government for a further period not exceeding 30 years, on an yearly and surface rent not exceeding twice the original years and surface rent respectively, the royalty payable being that which may on the day next following that on which the original leas determined, be in force.

53. Royalty. — A lessee shall pay royalty in respect of a mineral at the rate fixed for that mineral in the Third Schedule.
54. Yearly dead rent. — The lessee shall pay a fixed half yearly dead rent in advance on the first day of January and the first day of July each year and proportionate advance dead rent for the broken periods, if any, at the commencement or termination of the lease, at a rate not less than that laid down in the Fifth Schedule: provided that no Lessee shall pay both royalty and dead rent in respect of the same lease, but only such one of them as may be of the greater amount.
55. 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 no such rent is assessable under the laws of the district, the rate may be fixed by the Licensing Authority, subject to a maximum of Rs.2,000 per sq. mile.
56. Other payments. — The Lessee shall make and pay for such reasonable satisfaction and 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 Central Government against all claims which may be made by the third parties in respect of any such damage, injury or disturbance.

WORKING OBLIGATIONS
57. Commencement of operations. — (1) The Lessee shall within six months of the grant of the lease submit to the Licensing Authority a scheme of development for the Licensing Authority and shall not commence operations unless the scheme has been so approved. The scheme should inter alia, include (i) location and description of major deposits, (ii) methods of mining including machinery and equipment to be used, (iii) technical personnel to be employed, (iv) details of roads, residential accommodation for staff and labourers to be constructed, and (v) estimated expenditure on the scheme; and it should be accompanies by necessary maps, plans, etc. The Licensing Authority will make sure that the approval of the scheme is communicated to the Lessee within three months of its receipt.
(2) If, in the opinion of the Licensing Authority, the Lessee fails to fulfil the working obligations as required by the scheme within one year of its approval, the lease will be cancelled by the Licensing Authority.
58. Boundary marks. — The lessee shall, at his own expense, erect and at all times maintain and keep in repair boundary marks and pillars according to the demarcation to be shown in a plan annexed to his lease.
59. Not to cut or injure trees. — The lessee shall not cut or injure any three reserved in the area under the lease.
60. Not to construct buildings upon any public place, etc. — The lessee shall not erect any buildings or carry on any surface operations upon any public pleasure ground, and burning or burying ground or place held sacred by any class of person or any house or village site, or public road or on any other place, within the Licensing Authority may exclude from building or such operations.
61. Not to work within 100 yards, from any railway line, etc. — The Lessee shall not carryon or permit to b carried on any mining operations at or upon any point within a distance of 100 yards from any railway, reservoir, canal or other public works or buildings except with the previous permission of the Licensing Authority.
62. Weighing machine. — The lessee shall provide a properly constructed and efficient weighing machine or other suitable means for determining the weight or quantity of the minerals produced.
63. Keeping of accounts. — The lessee shall keep correct accounts showing the quantity and particulars of the minerals obtained 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.
64. Strengthening and supporting of mines.— The lessee shall strengthen and support to the satisfaction of the Licensing Authority whole or any part of the mine when in the opinion such authority such strengthening or support in needed for the safety of any railway, reservoir, canal or any other public works or any building.
65. Inspection. — The 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.
66. Discovery of other minerals.— The lessee shall without delay report to the Licensing Authority the discovery on or within any of the lands of mines demised by the lease of any minerals not specified in the lease, but he shall not, unless a fresh lease in respect of the minerals so discovered is granted to him under these Rules have any right to these minerals.
67. Access to other Licensees or Lessees.— The 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.
68. 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 workman-like state, save in respect of any working as to which the Licensing Authority may have sanctioned abandonment.
69. Pre-emption.— The Central Government shall at all times have right of pre-emption of the minerals lying upon the land in respect of which a lease has been granted or elsewhere under the control of the Lessee, provided that a market-price shall be paid to the Lessee for all minerals taken in pre-emption.
70. 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, negligence for any other omission or commission on the part of the Lessee, the Licensing Authority shall, as the sole judge, assess the extent of damage and 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 rents and royalties.
71. Power of distress.— If the royalty or rent reserved or made payable by the lease be not paid within two months next after the date fixed in the lease for the payment of the same, the Licensing Authority or an officer so empowered by that authority and enter upon the said premises and distrain all or any of he minerals or so much of its 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 six calendar months after date on which it falls due the Licensing Authority may determine the lease and take possession of the premises comprises therein.
72. Operation within reserved areas.— All operations conducted under the authority of these Rules within a reserved or protected forest shall be subject to such conditions as the Central 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, 30 days’ notice shall be given to the District or Divisional Forest Officer of the intention to condition regarding the use of the fire as he may prescribe.
73. Every mining lease which includes any portion of a reserved or protected forest shall specify whether the Lessee is authorized to sell timber for mining purposes and shall also specify the area within which of quantity operation to which and the terms and conditions on which he may exercise that authority.
74. Right of surrender. — The lessee shall be at liberty to determine the lease at any time on giving not less than twelve calendar month’s 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.
PART IV
MISCELLANEOUS
75. Priority. — When application for prospecting licence or application for a mining lease are presented in respect of same area, by applicants for a mining lease not being in possession of a prospecting licence in respect of that area, the prior right to the concession whether licence or lease shall, subject to any order which the Licensing Authority may pass in any particular case, be deemed to lie with the applicant who, after compliance with the procedure prescribed by the rules, shall have been the first to file his application with the Licensing Authority:
Provided that if the prior right to the concession is held to lie with an applicant for a lease the Licensing Authority may, in his discretion grant him a licence instead.
76. Meeting the internal requirements of Pakistan. — The Central Government shall have the right :–
(a) to require the Licensee or Lessee to meet the internal requirements of Pakistan to the satisfaction of the Central Government before exporting any mineral or its products to other countries;
(b) Association of Pakistan capital — subject to any law for the time being in force to require the Licensee of the Lessee to associate Pakistan capital to the extent of 51% of all classes of capital and debentures issued by him from time to time;
(c) Employment of Pakistan Nationals – to require the Licensee or Lessee to employ nationals of Pakistan in his organization in all grades and in all branches including technical and administrative units and to arrange for the training in Pakistan or abroad of the nationals of Pakistan to fill up these aforesaid appointments. The number of Pakistan nationals to be employed or trained will be determined in consultation with the Central Government.
The holder of a mining lease may be required to employ Pakistan nationals as follows:–
For the first four of the lease … At least 1/6th of the total number of employees in various grades.
For the next four of the lease … At least 1/3rd of the total number of employees in various grades.
For the next four of the lease … At least 3/4th of the total number of employees in various grades.
For the next four of the lease … 100% of the total number of employees.
(d) Power of re-entry.—To require the Licensee or Lessee to pay a penalty not exceeding an amount equivalent to twice the amount of annual fee or deed rent respectively, and may cancel the licence or lease and forfeit in whole or in part the security deposit made by the Licensee or the Lessee under rule 25, if the Licensee or Lessee violates the undertaking given in accordance with sub-rule (6) of rule 9, or fails to remedy any breach of the provision of the licence or lease within 3 months 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 the Central Government or under arbitration in accordance with rule 77.
(e) Statements of accounts.—to require the Licensee or Lessee to submit to the Licensing Authority at the end of every year statement of account audited by an approved auditor, and such other information and periodical returns as may from to time be prescribed by the Licensing Authority.
77. Arbitration. — Any question or dispute regarding the licence or lease, and any matter of thing connected therewith shall be referred to the Central Government in the appropriated Ministry whose decision shall be final; provided that any dispute concerning:–
(1) the right of the Licensee to a prospecting licence or mining lease, or
(2) the cancellation of licence or lease for any violation of the undertaking given in accordance with sub-rule (6) of rule 9, or any breach of the provisions thereof, or
(3) the price of minerals pre-empted by the Central Government, or
(4) the price of plant purchased by the Central Government at the determination of the mining lese or earlier, or
(5) that 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 Central Government taking control of works, plant and premises of the Lessee, or
(6) the compensation payable to the Lessee on the Central Government taking over all the rights of the Lessee under any mining lease.
shall be determined by two arbitrators.—one to be nominated by the Central Government and the other by the Licensee or Lessee; and in the case of disagreement between the arbitrators, by a Judge of the Supreme Court of Pakistan to be appointed by the arbitrators in writing and the decision of such arbitration or such Judge as umpire, as the case may be, shall be final.
78. Penalties for unauthorized working of minerals. — If any person starts prospecting any of the minerals outside the area granted to him or in any area for which he has not obtained a prospecting licence or mining lease in accordance with these Rules, he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five thousand rupees, or with both.
FIRST SCHEDULE
APPLICATION FORM FOR A PROSPECTING LICENCE OR A MINING LEASE

(1) Name (s) of applicant (s) in full_______________________________________

(2) If application is by an individuals:

(a) Address __________________________________________

(b) Nationality_________________________________________

(c) Occupation _________________________________________

(d) Capital available (enclose bank reference or documentary proof _________ ____________________________________________________________

(3) If application is by a company:

(a) Principal place of business: ___________________________________________

(b) If principal place of business in outside Pakistan, name and address of duly authorized agent in Pakistan _______________________________________
_________________________________________________________________ _________________________________________________________________

(c) Nature of business _______________________________________________

(d) Authorized, subscribed and paid up Capital ______________________________
___________________________________________________________________
(e) Name of Directors Nationality
___________________________ _________________________
___________________________ _________________________
___________________________ _________________________

(f) Name of Principal Nationality Amount of share-holding
shareholders.
________________ _________________ _______________________
________________ _________________ _______________________
(4) State mineral or minerals for which prospecting licence or mining lease is required. _________________________________________________________

(5) State whether a prospecting licence or a mining lese is required.
____________________________________________________________________
____________________________________________________________________

(6) Period for which licence or lease is required______________________________ _______________________________________________________________________

(7) Situation and approximate size of the are for which application is made (the name of the Province, District and Sub-division should be stated ______________________ _______________________________ _________________________________________________________________

(8) Brief particulars of previous experience in mining giving details of any prospecting licence or mining leases already held in or outside NA/Pakistan.
____________________________________________________________
____________________________________________________________

(9) Brief particulars of any application for licence or lease which has been submitted in the past in any country and its disposal
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(10) Name and qualifications of technical experts or advisers
____________________________________________________________________
____________________________________________________________________

(11) State amount of capital for operation under the licence or lease applied for
__________________________________________________________________

(a) At present available _____________________________________

(b) Which applicant can make available and the source _____________________________________________________________
(Please give Bank reference or some documentary proof in support of your statement.)
_________________________________________________________________________________________________________________________________________

(12) If the applicant is an alien, or a company incorporated outside Pakistan, state full particulars of the Company to be incorporated by the applicant in Pakistan for the purpose of receiving the grant of any licence or lease which may be granted, including particulars similar the capital.

Proposed _______________________________________________________ ___________________________________________________________________________________________________________________________________________________________________________________________________
(Documentary evidence of the company in Pakistan should be furnished along a copy of the Memorandum and Articles of Association and prospectus of the company as soon as the company has been incorporated in Pakistan).

(13) Do you desire the Central Government to prepare a map of the area for you at your expense ____________________________________________________ ______________________________________________________________

(14) Any special remarks ____________________________________________ ________________________________________________________________________________________________________________________________________________

I/We hereby declare, that all the foregoing particulars are correct.

I/We hereby solemnly declare that in the event of the Central Government granting me/us the required licence/lease I/We will abstain from all political activity/activities whatsoever, affecting the sovereignty or security of Pakistan or such as may be tantamount to interference in its internal affairs and that I/We will eschew all espionage.

(In case the applicant is an alien or a company incorporated outside Pakistan) In the event of any violation of this undertaking by me/us the Government of Pakistan shall have the right to cancel the licence/lease; company as to whether any of my/our activities can be considered as a violation of this undertaking shall be subject to arbitration in accordance with rule 77 of the Pakistan Mining Concession rules, 1960, and the appropriate clause in the licence/lease.

Signature(s) of Applicant(s),

_____________________
Date _______________
(If the applicant is a Company state capacity in which form is signed.)

SECOND SCHEDULE
PART I
This Deed made the ______________ day of ___________ 19______ between the President of Pakistan (hereinafter referred to as the “President” which term shall where the context so admits include his successor in office and assigns) of the one part and ______________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ (hereinafter referred to as the “Licensee” which term shall where the context so admits include his heirs, executors, administrators, representatives and assigns) of the other part;
WHEREAS, the Licensee in accordance with the conditions laid down in the rules as from time to time in force for the grant of licences to prospect for minerals applied to the President for a prospecting licence in respect of the lands specified in the Schedule marked “H” hereunder written (hereinafter referred to as “the said lands”) and has deposited with the Licensing Authority a sum of Rs.________ as the prescribed security in respect of such licence conditional on the due compliance with the terms and conditions of this Deed and the provisions of the Pakistan Mining Concession Rules, 1960 as amended from time to time and has paid to the Licensing Authority the sum of Rs. _______ as the prescribed fee in respect of such licence.
AND WHEREAS, the President has found that there is no objection to grant of such licence.
In consideration of the rents, royalties, covenants and agreement hereinafter reserved and contained on the part of the Licensee to be paid and observed and performed, the President hereby grants unto the Licensee the sole right and licence (subject to the restrictions, conditions and provisions hereinafter contained):–
(1) to enter upon the lands described in the said Schedule marked ‘A’ and to mine, search, quarry, bore, dig for, win and work all or any ……….. lying or being within, under or throughout the said lands, without any interruption, claim o disturbance from or by the President or any other person or persons whomsoever, save as may be provided by the law or rules;
(2) to carry away and dispose of the produce thereof to and for the use and benefit of the Licensee;
(3) for the purposes aforesaid to clear undergrowth and brushwood and, with the sanction of he President previously obtained in writing to make any road on the said lands necessary for effectually carrying of the prospecting operations hereby licensed;
(4) subject to the approval of he President to appropriate and use for the purposes aforesaid the water upon or within any of the said lands and to collect and impound the same for such purposes but so that in the exercise of this privilege the Licensee shall not deprive any lands, villages, houses or watering places for cattle or a reasonable supply of water as herebefore accustomed;
(5) and subject to the like approval of President to erect and bring upon the said lands all such temporary huts, sheds and structures, steam and other engines, machinery and conveniences, chattels and effects, as shall be proper and necessary for effectually carrying on the prospecting operations hereby licensed 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;
RESERVING NEVER THELESS to the President or any other person authority by him in that behalf full liberty and power at all times to enter into and upon the said lands for all or any purposes other than those for which this licence is issued but subject to the rights hereby conferred and particularly (and without hereby in any way qualifying such general power and liberty) to make on, over or through the said lands such roads, tramways, railways, telegraph, any telephone lines and pipelines as shall be considered necessary or expedient for any purpose and to obtain from out of the said lands such stone, earth, timber or other materials as may be necessary or requisite for making repairing or maintaining such roads, tramways, railways, telegraph and telephone lines, and pipelines or for any other purpose and to pass and repass at all times over and along the said lands and such roads, tramways, railways and pipelines for all purposes as occasion shall require:
Provided always that the said reserved liberty and power in respect of the said lands shall be exercised and enjoyed in such a manner as not to hinder or interfere with the rights and privileges of the Licensee under the presents.
TO HOLD and enjoy the said rights, licence and other privileges hereby granted unto the Licensee for the term of one year from __________ day of ________ rendering and paying free and clear from all rates, taxes, charges and deductions the several frees and royalties hereinafter specified.
II – COVENANTS BY LICENSEE
1. Royalty. — The Licensee hereby covenants with the President as follows:–
2. Duty to pay and deposit in a Government treasury within two months after the end of each year of the term hereby granted or any renewal thereof the royalties hereunder specified:–
… … … … … … … … … … …
… … … … … … … … … … …
… … … … … … … … … … …
… … … … … … … … … … …
… … … … … … … … … … …
… … … … … … … … … … …
3. Measurement of the minerals obtained from the said lands.— At least once in every month and as many other as occasion may require well and truly to measure or weigh or cause to be measured or weighed upon some part of the said lands all minerals from time won from the said lands by the Licensee which may require to be measured or weighed for the purpose of ascertaining the royalty payable under these presents and to give ……….. days’ previous notice in writing to the Licensing Authority of every such measuring or weighing in order that he or some person in his behalf may be present thereat and shall not take away fro the said lands any minerals so won until the same shall have been measured or weighed, as the case may be.
If any measuring or weighing appliance shall at anytime be found to be false or unjust the same if the Licensing Authority to determines after considerating any representations in writing made by Licensing Authority be deemed to have existed in that condition during the period of three months period to the discovery thereof or the period elapsed since the last occasion un which the same was examined or tested whichever shall be the less and accordingly the royalties payable in respect of such period shall be adjusted.
4. Not to make any alteration in the methods of weighing.— Not to make any alteration in the methods of measurement of weighting used by him or any appliances used for that purpose without first informing the Licensing Authority and the Licensing Authority may in any case require that no alterations shall be made save in the presence of an officer authorized by the Licensing Authority.
5. To ascertain and verify the value of precious stones, etc. — To ascertain and verify in such manner as the Licensing Authority may from time to time prescribe the value of al precious stones and other minerals, ores and metals from time to time won, dressed or extracted by the Licensee which may require to be valued for the purpose of ascertaining the royalty under the presents.
6. Keeping of accounts.— To keep full and correct accounts in a form from time to time approved by the Licensing Authority of:–
(a) all ………………….. won and saved;
(b) all other minerals found and collected by the Licensee; and within one month after the end of the term hereby granted or any renewal thereof to deliver to the Licensing Authority an abstract in a form from time to time approved by the Licensing Authority of the accounts for each such year together with a statement in the like form of all royalties payable in respect of each such year.
7. Working obligations.— The licensee shall, in respect of the areas covered by each licence, prepare within three months of the grant of the licence a scheme of prospecting for the approval o the Licensing Authority, and shall not commence the operations unless the scheme has been so approved. The scheme should inter alia include, (i) locating and description of major deposit, (ii) methods of prospecting including machinery and equipment to be used, (iii) technical personnel to be employed, (iv) details of roads, residential accommodation for staff and labourers to be constructed, and (v) estimated expenditure on the scheme; and it should be accompanied by necessary maps, plans, etc. The Licensing Authority will make sure that the approval of the scheme is communicated to the Licensee within three months of its receipt.
If, in the opinion of the Licensing Authority, the licensee fails to fulfill the working obligations as required by this scheme, the licensee shall forfeit the right to the renewal of the licence or the grant of a mining lease over any part of the area covered by the licence.
8. Licensee not to obstruct working of other minerals. — The Licensee shall exercise the liberties and powers hereby granted in such a manner as to offer no unnecessary or reasonably avoidable obstruction or interruption to the development and working within the said land or lands adjacent thereto, of any minerals not included in this licence and shall at all time as afford to the President or his representative and to the holders of prospecting licences or mining leases in respect of any such minerals or any mineral within any lands adjacent to the said lands, reasonable means of access and safe and convenient passage upon and across the said lands to such minerals for the purpose of getting, working, developing and carrying away the same.
9. Not to carry any operations within 100 yards from railway etc.—Not to work or carry on any operations hereby licensed in or under the said lands at or to any point within a distance of 100 yards from any railway, reservoir, canal or other public works or buildings or inhabited site shown on the plan hereto annexed except with the previous permission in writing of the President or some officer authorized by him in that behalf or otherwise that in accordance with such instruction, restrictions and conditions either general or special which may be attached to such permission. The said distance of 100 yards shall be measured in the case of a railway, reservoir or canal horizontally from the outer toe of the band or the outer edge of the cutting, as the case may be and in the case of a building horizontally from the plinth thereof.
10. Prospecting in reserved Forests. — Not to enter upon or commence prospecting in any reserved forest situate upon the said lands without thirty days’ previous notice in writing to the District or Divisional Forest Officer nor without obtaining the written sanction of that officer nor otherwise than in accordance with such conditions that officer may in his absolute discretion prescribe.
11. Not to disturb roads, public places, etc. — Not to disturb the surface of any road without the written permission to enter upon any public pleasure ground, burning or burying ground or place held sacred by any class of persons or interfere with any right of way, well or tank.
12. Not to cut trees, etc. — Not to enter upon any land in the occupation of any person without the consent of occupier nor to cut or in any way injure any trees, standing crop, buildings, huts, structures or other property of any kind of the occupier of any land or any other person without the consent of the owner, such occupier or person.
13. Not to cut or injure any timber or tree on any unoccupied or unreserved land without the written permission of the Licensing Authority.
14. Compensation and indemnity against third part claims. — To make any pay reasonable satisfaction ad compensation for all damage or injury to the property and rights of other parties which may be done by him, his agents and servants in the exercise of any of the liberties and powers conferred by this licence and to indemnify and kep indemnified the President and every Officer of the Central Government against all actions, costs, charges, claims and demands whatsoever which such damage or injury and shall costs and expenses in connection therewith.
15. Consent to assignment. — Not to grant, assign or attempt to grant or assign any right or interest under the licence nor part with the possession of any of the rights hereby granted to any person or persons whomsoever without previous consent in writing of the President who may (without prejudice to his right 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 exercise a deed of covenant to observe and perform the covenants and conditions on the part of the licensee in these present contained.
16. Notification of discovery of other mineral. — To report without avoidable delay to the Licensing Authority the discovery of ………. or bearing ……… strata or archaeological discovery of treasures.
17. Not to depillar or abandon the mines. — Not to depillar or abandon the mines without obtaining prior approval of the Licensing Authority.
18. Removal of the property after determination of the licence. — Upon the expiration or sooner determination of this licence or the abandonment of the operations hereby licensed, whichever shall first occur, to remove at the Licensee’s own cost all buildings, structures, plant, engines, machinery, implements, utensils and other property and effects therefore erected or brought by Licensee and then standing or being upon the said lands and also all mineral therefore won by the Licensee under the authority of these presents and then being upon the said lands. Provided that this covenant shall not apply to any part of the said lands which may be comprised in any mining lease granted to the Licensee during the subsistence of this licence.
19. Delivering up of productive boreholes, etc. in good order. — Within two montsh after the expiration or sooner determination of this licence or the date of the abandonment o the undertaking hereby licensed whichever shall first occur to deliver up to the President in good order, repair and condition and fit for further working all productive boreholes, mines and pits (unless ordered by the Licensing Authority to plug them as provided in clause 20 hereof and except such boreholes, mines and pits as shall have been previously abandoned with the consent of the Licensing Authority) which shall have been made by the Licensee under the liberty or power in that behalf hereinbefore contained together with all casings and other appurtenances to such boreholes, mines and pits below surface level and which cannot be moved without causing injury to the said boreholes, mines and pits and the Licensee shall also fill up or fence all holes and excavations that he may have made in the said lands to such extent as the Licensing Authority may require and shall to the like extent restore so far as may be to their natural and original condition the surface of the said lands and ll buildings and structures thereon which the Licensee may have damaged in the course of prospecting and shall have power during that period to enter on these lands for the purposes aforesaid: Provided that this clause shall not apply to any of the lands included in a mining lease which the Licensee may take up under the provisions hereinafter contained.
20. Plugging of boreholes on determination of licence. — Within six calendar months after the expiration or sooner determination of this licence or the abandonment of the operations hereby licensed whichever shall first occur and at the cost of the Licensee to plug securely all bores and to fill up of fence all holes and excavations made by the Licensee in the said lands to such extent as the Licensing Authority may require and to the like extent to remove waste and rubbish upon the said lands and restore to their natural or original condition the surface of the said lands and all buildings and structures thereon not belonging to the Licensee which stood thereon prior to the date hereof, and which may have been damaged or injured by the Licensee in the course of any operations hereby licensed: Provided that this covenant shall not apply to any part of the said lands which may be comprised in any mining lease granted to the Licensee during the subsistence of this licence nor to any disturbance of the surface or damage or injury in respect whereof the Licensing Authority shall be satisfied that proper compensation has been made by Licensee.
21. Licensee to keep records of boreholes, excavations, etc. — To keep accurate records in a form from time approved by the Licensing Authority of the drilling, deepening, plugging or abandonment of all pits, boreholes and well and of any alteration to the casing thereof. A log of all boreholes and wells shall be kept in a form from time to time approved by the Licensing Authority containing particulars of the following manners:-
(a) the strata and sub-soil through which the boreholes or well was drilled;
(b) the casing inserted in any borehole or well and any alteration to such casing;
(c) any petroleum, water, workable minerals or mine workings encountered; and
(d) such other matters as the Licensing Authority may from time to time require;
and to deliver copies of the said records and logs to the Licensing Authority as and when required.
22. Licensee to keep samples of strata and water. — To keep as far as reasonably practicable correctly appalled and preserved for reference for a period of twelve months sufficient characteristic samples of the any petroleum and/or any other mineral discovered I the said lands. The Licensing Authority or his representative shall have access to such samples at all reasonable times and shall be entitled to require that representative specimens not exceeding one-half of any sample be delivered to him and to retain any specimen so delivered.
23. Plans and records. — (1) To furnish to the Licensing Authority quarterly during the term hereby granted or any renewal thereof a record in a form from time to time approved by the Licensing Authority of the progress of the operations carried by the Licensee in the said lands.
(2) Within two months after the end of each year comprised in the term hereby granted or any renewal thereof to furnish to the Licensing Authority a record in a form from time to time approved by the Licensing Authority of the operations conducted in the said lands during each such year together with a plan upon a scale approved by the Licensing Authority showing to situation of all pits, boreholes or excavation, etc.
(3) To also keep accurate geological plans, maps and record relating to the said lands.
(4) To furnish to the Licensing Authority such other plans and information as to the progress of operations in the said lands as the Licensing Authority may from time to time reasonably require.
24. In the event of production of any radio-active minerals and/or minerals required for the production of nuclear energy, the Licensee shall give the Central Government the first option to purchase such minerals or part thereof and shall comply with such instructions in regard to their disposal, sale or export, as may be given to the Licensee by the Central Government.
III – OTHER CONDITION TO BE OBSRVED BY THE LICENSEE
25. Resident manager. — The Licensee shall before commencing any operations in the said lands furnish to the Licensing Authority the name and address of eh manager resident in the locality of the said lands under whose supervisions such operations are to be carried on. Any notice which the President or any person authorized by him in accordance with the terms of this licence required or entitled to serve upon the Licensee shall be sufficiently served if the same shall be delivered or sent by registered post to such manager at such address.
26. Advertisement, prospectuses, etc. — No statement shall be made either in any notice, advertisement, prospectus or other document issued by or to the knowledge of the Licensee or in any other manner claiming of suggesting whither expressly or by implication that the President or any Government Department or any person or body acting on behalf of the President has or have formed or expressed any opinion that the said lands are from their geological formation or other likely to contain ………………………….
27. Notice of fresh issues of Capital. — The Licensee shall report to the President 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.
28. Health and safety of the workers and employees.— The Licensee shall comply with any instructions from time to time given by the Chief Inspector of Mines in writing for securing the health and safety of persons, employed in or about said lands.
29. Release of lands included by inadvertence in the licensed area. — In the event of the inclusion by inadvertence in the said Schedule marked ‘A’ of lands or area over which it may subsequently be proved that the Central Government ore and entitled to the mineral rights, or of lands or areas in respect of which the mineral right have already been granted to other individual or company, the Licensee shall immediately release to the President any such lands or areas when required to do so by the Licensing Authority.
IV – POWERS OF PRESIDENT
30. Exclusion of lands for public purposes, etc. — (1) Notwithstanding the rights conferred on the Licensee under this licence, the President shall have power at any time to require exclusion form the lands included in the said Schedule marked ‘A’ of any area or areas which may from time to time be required for public purposes whatsoever, provided that during the subsistence of this licence the area or areas so excluded shall not exceed in all ….. and provided further that exclusion of any area or areas upon which any active operations such as well-drilling, road construction, water work and/or other work relating to the winning of ……..have previously been commenced or are in progress shall not be required but in lieu thereof an equal area or areas upon which active operation as aforementioned have not already been commenced or are not at the time being in progress shall be excluded, provided that such alternative area or areas are in the opinion of the President suitable for the public purposes aforementioned and the Licensee shall thereupon be relieved of all liabilities and obligations hereunder in respect of any such area or areas excluded under the provisions 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 Licensee shall have a prior right to have such area or areas included in the lands subject to this licence if they shall subsequently become available for this purpose.
31. Power to enter the premises. — Any person or persons authorized by the Licensing Authority shall be entitled at all reasonable times to enter into and upon any land for the time being possessed or occupied by the Licensee in the said lands for the purposes hereinafter mentioned:–
(a) to examine the boreholes, wells, plants, appliances, buildings and works made or executed be the Licensee in pursuance of this licence and the state of repair and conditions hereof;
(b) or inspect and make abstracts or copies of any logs, records, plans, maps or accounts which the Licensee is required to keep or make in accordance with the provisions of this licence;
(c) to inspect and make abstracts or copies of any logs, records, plans, maps or accounts which the Licensee is required to keep or make in accordance with the provisions of this licence;
(d) to inspect the samples of strata bearing …………..or water or any other mineral which the Licensee is required to keep in accordance with the provisions of this licence; and
(e) to execute any works which the Licensing Authority may be entitled to execute in accordance with the provisions of this licence.
32. Power to execute work. — If the Licensee shall at any time fail to observe or perform or shall act in contravention of any of the covenants and obligations arising under the terms and conditions of any of the under-mentioned clauses of this licence:–
(a) clause 3 (Measurement of the minerals, etc.),
(b) clause 17 (Not to depillar or abandon the mines),
(c) clause 18 (Removal of property, etc.),
(d) clause 19 (Delivering up of productive boreholes, etc. in good order),
(e) clause 20 (Plugging of boreholes, etc.),
(f) clause 28 (Health and safety of workers and employees),
then and in any such case the Licensing Authority shall be entitled after giving to the Licensee reasonable notice in writing of his such intention, to execute any works which in the opinion of the Licensing Authority or his agents may be necessary to secure the performance of he said obligation or any of them and to recover the costs and expenses of so doing from the Licensee.
33. Power to assess and claim compensation for 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 Licensee, 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 compensation so assessed in the same manner as arrears of rents and royalties.
34. Rights of distress. — If and whenever any of the certain yearly rents, fees or royalties reserved by this licence or any part thereof respectively shall be in arrear or unpaid for the space of two calendar months next after any of the days whereon he same ought to be paid (whether the same shall have been legally demanded or not) then and so often as the same may happen the Licensing Authority may (as an additional remedy and without prejudice to the power of distress and other rights and remedies to which he would be entitled) enter into and upon any land which shall for the time being to possessed or occupied by the Licensee for the purposes of this licence or the exercise of any of the rights thereby granted and may seize and distrain and sell as landlords may do for rent in arrear all or any of the stocks of ……… and products thereof, live and dead stocks, engines, machinery, tools, implements, chattels and effects belonging to the Licensee which shall be found in or upto the land so entered upon and out of the moneys arising from the sale of such distress may certain and pay all arrears of the said certain yearly rents, fees and royalties and also the costs and express incident to any such distress and sale rendering the surplus (if any) to the Licensee.
35. Forfeiture of plant, etc. — If any buildings, structures, plant, engines, machinery, implements, utensils or other property or effects or any minerals which ought to be removed by the Licensee from the said lands in accordance wit the covenant, in that behalf hereinbefore contained be not so removed within one calendar month after notice in writing requiring their removal shall have been delivered to the Licensee by the Licensing Authority or left by him upon the said lands the same shall be deemed to become the property of the Central Government and may be sold or disposed of for the benefit of the Government in is such manner as he shall deem fit without liability to pay any compensation or to account to the Licensee in respect thereof.
36. Pre-emption. — (a) The President shall, from time to time and all times during the said term, have the right (to be exercised by notice in writing to the Licensee under the hand of the Secretary to the Government of Pakistan in the appropriate Ministry) of pre-emption of the said minerals (and all products thereof) lying upon the said land or elsewhere under the control or the account of the Licensee and the Licensee shall with all possible expedition and so as to avoid demurrage on the conveyance, vessel or vessels engaged to convey the same, delivery all minerals or products of minerals purchased by the President under the power conferred by this provisions in 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 provision be exercised and a vessel chartered to carry the minerals or products thereof procured on behalf of the President hereunder be detained on demurrage at the port of loading the Licensee shall pay the amount due for demurrage according to the terms of the charter party of such vessel unless the President shall be satisfied that the delay is due to causes beyond the control of the Licensee.
(c) The price to be paid for all minerals or products of minerals taken in pre-emption by the President in exercise of he right hereby conferred shall be the fair market price for the time being to be determined in default of agreement under the provision hereinafter in clause 52 of thee presents contained PROVIDED THAT in order to assist in arriving at the said fair market price the Licensee that if so required furnish to the Licensing Authority particulars of the quantities, descriptions and prices of the said minerals, or products thereof sold to other customers and of charters entered into for freight for carriage of the same and shall produce to such officer or officers as may be directed by the Licensing Authority original or authenticated copies of contracts and charter parties entered into for the sale or freightage of such minerals or products.
(d) In the vent of the exercise of a state of war or of grave national emergency (of which existence the President shall be the sale judge and a notification to this effect in the official gazette shall be conclusive proof) the Licensee shall on receiving a notice in writing under the hand of any officer appointed by the President in this behalf, requiring him so to do, use his utmost endeavours to increase the supply to or for the President of the minerals or products thereof purchased by him as aforesaid to the extent specified in such notice.
37. Taking possession of works, etc., in time of war or grave national emergency. — In the event of the existence of a state of war or grave national emergency (of which existence the President in his discretion shall be the sole judge and a notification to this effect in the official Gazette shall be conclusive proof) the President may forthwith after notice in writing to the Licensee under the hand of the Licensing Authority of his intention so to do take possession or assume control of the works, plant, machinery and premises of the Licensee on or in connection with the said lands or the mining operations under this licence and the Licensee shall conform to any obey all directions given by or on behalf of the President regarding the use or employment of such works, plant, premises, and minerals PROVIDED THAT fair compensation which shall be determined in default of agreement by arbitration as in clause 52 shall be paid to the Licensee for all loss or damage sustained by him by reason or in consequence of the exercise of such powers conferred by this clause and PROVIDED ALSO that the exercise of such power shall not determine the said terms hereby granted or affect the terms and provisions of these presents further than may be necessary to give effect to the provisions of this clause.
38. Power of revocation. — If the Licensee shall at any time violate the undertaking vien in accordance with the sub-rule (6) of rule 9 of the Pakistan Mining Concession Rules, 1960, or refuse or neglect to observe or perform or act in contravention of any of the terms and conditions of this licence the President may by notice in writing signed by him or any officer appointed by him in this behalf and served upon the Licensee forfeit in whole or in part the security deposit made by the Licensee under rule 25 of the Pakistan Mining Concession Rules, 1960, and/or summarily declare that the licence hereby granted shall thenceforth determine and the licence and all rights and liberties conferred hereby or enjoyed hereby or hereunder shall forthwith determine without prejudice to the rights and remedies of he President in respect of any prior breach or non-performance of any or all of the terms and conditions hereof on the part of the Licensee and in respect of the covenants on the part of the Licensee herein mentioned to be performed after the expiration or sooner determination of this licence or after the abandonment of undertaking here by licensed: Provided always that save as to the non-payment of fees, rents or royalties the aforesaid powers shall not be exercisable unless and until notice has been given to the Licensee specifying the particular breach complained of and if the breach and, in any case, requiring the Licensee to make compensation in money for the breach, and the Licensee within a period of 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 President for the breach.
39. Security deposit. — The Licensing Authority may from time to time appropriate and supply the said deposit of Rs. ……. or any part thereof or any further sum deposited under the Licensee’s covenant in that behalf hereinbefore contained in or towards payment or satisfaction of any claim to compensation which may be made by any persons against the Licensee and the President in respect of any damage or injury done by the Licensee in exercise of any of the powers conferred by this licence and in or towards payment of any damages, cost and expenses which may become payable as the result of or in connection with any suit or proceedings which may be instituted against the President in respect of any such damage or injury and also in or towards payment of the expenses of the carrying out or performance of any works or matter which the Licensee shall fail to carry out or perform after the determination of this licence or the abandonment of the operations hereby licensed in accordance with the covenant in that behalf herein before contained or in payment or satisfaction of any such claim, damages, costs and expenses.
Whenever the said security deposit of Rs……….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 pursuant to the power hereinabove declared in that behalf the Licensee 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……….
40. On such date within six calendar months of the determination of this licence as the Licensing Authority shall elect the amount then remaining in deposit with the Licensing Authority and not required by the Licensing Authority to be applied to any of the purposes in clause……..of these presents mentioned shall be refunded to the Licensee or at his option if the Licensee shall have obtained a mining lease of the said lands of any portion thereof be retained at the credit of the Licensee on account of the rents and royalties or deposit money to become payable under such lease.
V – LICENSEE’S RIGHTS
41. Rights of the Licensee to renewal of this licence. — The Licensee having before the expiration of this licence applied in accordance with the Rules in force for a mining lease o the said land or any part thereof, shall have the right to renewal of this licence until the mining lease applied for has been granted or refused and no fees shall be payable for such renewal of this licence.
42. Rights of the Licensee to a mining lease. — On or before the expiration of this licence or any renewal thereof the Licensee having paid the rents and royalties due and having observed and performed the terms and conditions herein contained shall have the exclusive right (subject to the provisions prescribed in the Rules in force at the date of this licence for grating mining leases) to a mining lease in respect of ………….in the form mining lease as prescribed under the Rules in force at that time, and in respect of any part or parts of the said lands if he shall comply with the Rules as to application for mining leases.
Provided that the part or parts of the said lands in respect of which a mining lease is granted shall comply with the Rules in force at the date of this licence as to the shape and size of areas.
43. Right of Licensee to determine licence. — Without prejudice to any obligation or liability imposed by or incurred under the terms and conditions hereof the Licensee may at any time during the term hereby granted or any renewal thereof, determine this licence by giving to the President not less than three months’ previous notice in writing to that effect.
44. Right of Licensee to abandon portion of the said lands. — Without prejudice to obligation or liability imposed by or incurred under the terms and conditions hereof the Licensee shall be entitled at any time during the term hereby granted or any renewal thereof giving three months’ notice in writing to the President to surrender the rights granted by this licence in respect of any part or parts of the said lands:
PROVIDED THAT:-
(a) the part of the said lands in respect of which the said rights 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 the prospecting licence may be granted; and
(b) the part of the said lands in respect of which the said rights are surrendered shall either be an area in respect of which a licence could be granted in accordance with the Rules for the time being in force or be of such shape and size as the President may determine.
45. Reduction of rent, etc. — On the surrender of the licence as provided in clause 44 hereof the Licensee shall become entitled to a proportionate reduction in rent provided that such reduction in rent shall not take effect during the year in which he surrenders and for which rent has either been paid or has accrued
VI – MISCELLANEOUS
46. Renewal. — The President may on an application made by the Licensee on one month’s notice in writing grant one renewal of this licence for a further term of 12 months in respect of the whole of the said lands or any part or parts, thereof which comply with rule 31 of the Pakistan Mining Concession Rules, 1960. The President may also grant such further renewal (each renewal for a period of 12 months) as may be necessary to enable the Licensee to continue to hold under this licence all the areas comprised in a geologically related group until the group has been tested in accordance with the a programme approved by the Licensing Authority, provided that the total period for which this licence shall be operative shall not exceed three years including the period for which the licence was originally granted.
47. Force majeure. — (i) Failure on the part of the Licensee to fulfill any of the terms and conditions of this licence shall not give the President any claim against the Licensee or be deemed a breach of this licence in so far as such failure arises from ‘force majeure’.
(ii) 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 Licensee could not reasonably prevent or control.
48. Reciprocity. — This licence shall be determined if the Licensee shall or become controlled directly or indirectly by a national of or by a company incorporated in any country the laws and customs of which do not permit nationals of Pakistan or companies incorporated in Pakistan to acquire, hold and operate mining concessions directly or indirectly on conditions which in the opinion of the President are reasonably comparable with the conditions upon which such rights are granted to nationals of that country in Pakistan with the addition of conditions corresponding to these imposed by this clause.
49. Licensee ceasing to be a national of Pakistan. — If the Licensee being a national of Pakistan or company incorporated in Pakistan shall cease to be a national of Pakistan or a company incorporated in Pakistan, he shall forthwith inform the President and apply to him for his consent to an assignment of the rights granted by this licence in accordance with clause 15 (consent to assignment) hereof and in thee vent of the Licensee failing to obtain such consent within such time as the President may in his discretion appoint, the President may revoke tis licence. The revocation of the licence in pursuance of the foregoing provision of this clause shall be subject and without prejudice to any obligation or liability imposed by or incurred under the terms and conditions hereof.
50. Reports to be treated as confidential. — All logs, records, plans, maps, accounts and information which the Licensee is or may be, from time to time, required to furnish under the provisions of this licence, shall be supplied at the expense of the Licensee, and shall (except with the consent in writing of the Licensee which shall not be unreasonably withheld) 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 Licensee for the purpose of preparing and publishing aggregated returns and general reports on the extent of prospecting or mining operations in Pakistan and for the purposes of any arbitration or litigation between the President and the Licensee.
51. Employment of nationals of Pakistan. — The President may at his discretion require the Licensee to employ nationals of Pakistan in his organization in all grades and in all branches including technical and administrative units and to arrange for the training in Pakistan and abroad for the nationals of Pakistan to fill up their aforesaid appointments and the Licensee shall comply with the instructions issued by the President in this regard. The number of Pakistan personnel to be employed or trained will be determined in consultation with the Central Government.
52. Arbitration. — If at any time during the continuance of this licence or after the determination thereof any question or dispute not otherwise provided for shall arise regarding this licence or any matter or thing connected herewith or the powers, duties or liabilities of the Licensee hereunder or the amount or payment of any rent, royalty or fair compensation, then and in all such cases the matter in difference shall be referred to the Central Government in the appropriate Ministry, whose decision will be final provided that any dispute concerning, (1) the right of the Licensee to a mining lease, or (2) the cancellation of this licence for any violation of the undertaking given in accordance with sub-rule (6) of rule 9 of the Pakistan Mining Concession Rules, 1960, or any breach of the provisions thereof, or (3) the price of minerals pre-empted by the President under clause 36 hereof; or (4) the price of plant, works, etc. acquired by the President under clause 37, hereof, shall be determined by two arbitrators, one to be nominated by the President and the other by the Licensee or in the case of disagreement between the arbitrators, by a Judge of the Supreme Court of Pakistan to be appointed as an umpire, as the case may be, shall be final. And it is further mutually agreed that such arbitration shall be a condition precedent to the commencement of any action at Law and that the provisions of the Arbitration Act, 1940, and of the rules thereunder and any statutory modifications thereof shall be deemed to apply and be incorporated in this licence. The venue of arbitration shall be Karachi.
53. Headings. — The headings in bold type (which are to be treated as marginal notes) are for convenience only and to not from part of this licence.
[In witness whereof ……………………………………. (mention designation of officer signing) for and on behalf of the President and the Licensee have hereunto set their hands and seals the day and year first hereinabove written.]
Signed by for and on behalf of the President of Pakistan in the presence of
(1)
Witnesses
(2)
(1) Signed by the above named.
his
(by ________ attorney) in the presence of
their
(1)
Witnesses
(2)
(2) Signed in the name of and on behalf of the above named by Director of the said Company in the presence of
(1)
Witnesses
(2)
(3) Signed in the name and on behalf of the above named by their authorized agent.
In the presence of
(1)
Witnesses
(2)
(4) Signed by the above named by their attorney/agent
In the presence of
(1)
Witnesses
(2)
_____________________________________________________________________________
(1) This clause is to be used where the licence is granted to one or more individuals (the name of the constituted attorney being filled in if the Licensee or Licensees do not sign personally).
(2) This clause is to be used where the licence 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 the word “Director”.
` (3) This clause is to be used where the licence is granted to an unincorporated syndicate.
(4) This clause is to be used where the licence is granted to a private firm (the name of the attorney or agent being filled in) if the signature is not by a partner in the firm.

SCHEDULE ‘A’
Description of the said lands—
All those lands coloured ________________________ on the attached plant situate in(Note.- Here insert description of lands with area boundaries, names of District, Sub-District, Thana, etc. and cadastral survey numbers, if any) ____________________________________________________ ______________________________________________________________________________ and having a total area of _______________________________________________________ _____________________________________________________________________________ or there about.
SECOND SCHEDULE
PART II
STANDARD FORM OF MINIGN LEASE
This Deed made the ……….. day of …………. 19 …….. between the President of Pakistan (hereinafter referred to as the “President” which expression shall where the context so admits be deemed to include his successors-in-office and assigns) of the one part and ………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. (hereinafter referred to as the “Lessee” which expression shall where the context so admits 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 in force for the granting of mining leases has applied to the President for a mining lease in respect of the lands specified in Part I of the Schedule marked “A” hereunder written (hereinafter referred to as “the said lands”) and has 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 Pakistan Mining Concession Rules, 1960.
AND WHEREAS the President has found that there is no objection to granting the said lease.
NOW THIS DEED WITNESSETH AS FOLLOWS:
In consideration of the rents, royalties, covenants and agreements hereinafter reserved and contained on the part of the Lessee to be paid and observed the President hereby demises unto the Lessee all or any ………………….. (hereinafter referred to as the said minerals lying or being within, under or throughout the said lands and hereby grants the liberties, powers and privileges to be exercised in connection with the said minerals subject to the restrictions, which are specified in part III of the said Schedule marked ‘A’ and to the provisions contained in Part IV of the said Schedule marked “A” and in the Pakistan Mining Concession Rules, 1960
To hold, exercise and enjoy all and singular the premises, liberties, powers and privileges hereby granted and demised unto the Lessee fro the ………day of ………..19………for the term of…………….years thence next ensuing, yielding and paying free and clear from all rates, taxes, charges and deductions, the several rents, royalties and sums of money mentioned and specified in Part V of the said Schedule marked ‘A’ subject to the provisions relating to rents and royalties contained I Part VI of the said Schedule marked ‘A’. And the Lessee hereby covenants with the President as in Part VII of the said Schedule marked ‘A’ is expressed and it is hereby mutually agreed and declared by and between the parties hereto as 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 f these presents and be read and construed accordingly.
(In witness whereof these present have been executed in manner hereunder appearing the day and hear first above written.)
THE SCHEDULE MARKED ‘A’ HEREBEFORE PREFERRED TO PART I. THE LANDS REFERRED TO IN THIS LEASE
Description of the aid lands—
All that tract of land situate in
bearing Cadastral Survey Nos…………….containing an areas of ………..or thereabouts delineate on the plan hereto annexed and thereon coloured ………….and bounded as follows:–
On the North by
On the South by
On the East by
and
On the West by
PART II
LIBRTIES, POWERS AND PRIVILEGES TO BE EXERCISED OR ENJOYED BY THE LESSEE, BUT SUBJECT TO THE RESTRICTIONS AND CONDITIONS IN PART III
1. Liberty to work mines.— Liberty and power to enter upon the lands referred to in Part I (hereinafter referred to as the said lands) and mineral, save as hereinafter provided.
2. To appropriate water, etc.— Subject to the approval of the President to appropriate and user 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 or 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 heretofore accustomed.
3. To appropriate surface of land or work, etc.— Liberty and power to enter upon, use and occupy a sufficient part of the said lands adjoining any borings, 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 otherwise carrying on the works of the said borings, 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 workmen’s houses, sheds, engines, machinery, furnaces, buildings, erections, pipe-lines, telephone lines, rail-roads, tram-roads and other roads and works necessary or convenient for the effectual working of the said borings, pits, 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, clay and stone within the said lands for the purposes mentioned in this Part of this Schedule but not for sale provided that at the expiration of this lease and excavations shall be fenced or filled in or leveled and left otherwise fit for cultivation and occupation, as far as may be reasonably practicable if so required by the President.
6. To cut timber, etc. — Liberty and power to cut down the brushwood and undergrowth and with the consent of the President or of an officer authorized by him in this behalf to fell now standing or growing or which at any time hereafter may grow on the said land, and also for the purpose of facilitating ingress to and from the said lands, and also for the purpose of clearing lands for the erection of machinery and plant in connection with the purposes mentioned in this Part of this Schedule and also for the purpose of clearing lands for protection against damage by fire and for erecting and making habitable the said Workmen’s houses, and also for clearing land for the purposes of making pastures for the animals used by the Lessee for the operation herein specified:
Provided that:–
(a) the clearing of 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 taken or used by him, such price to be assessed, in default of agreement, by the Secretary to the Government of Pakistan in the appropriate Ministry. This clause shall not apply to any land that may have been proclaimed to be Forest Reserve, without the consent of the President in writing first had and obtained.
7. To enclose with a fence. — Liberty and power to enclose with a fence the surface of any of the said lands in respect of which the rents reserved in clause 18 (Surface rents) of this Schedule are being paid provided that the liberties and powers reserved to the President in Part IV of this Schedule and all rights of way shall not thereby be affected.
PART III
RESTRICTIONS AND CONDITIONS AS TO THE EXERCISE OF THE ABOVE LIBERTIES, PWOERS AND PRIVILEGES
8. Notice to be given before entering on lands for surface purposes. — (1) Before occupying and land for surface operations or clearing any land for the purpose of making pastures under clause 6 (to cut timber, etc.) of this Schedule the Lessee shall give to the Licensing Authority fourteen days’ 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.
(2) The Licensing Authority shall at any time within one month from the receipt of such notice stat his objects if any, on grounds of public interest to the proposed site and the Lessee not proceed with any of the operations mentioned in sub-clause (1) of this clause till the objections are r3emoved.
9. No building, etc. upon certain places. — No building or thing shall be erected, set up or placed and no surface operations shall be carried on in or upon any public pleasure ground, any 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 persons and no land shall be used for surface operations which is already occupied by persons other than the President for works or purposes not included in this Lease if any other land not so occupied is suitable and available for such surface operations.
10. Compensation to occupiers. — The Lessee shall before occupying and land for surface operations pay or tender reasonable compensation to the occupiers thereof any shall thereupon be entitled to occupy the land, but shall nevertheless be bound to pay the amount of compensation which, in case of dispute, shall be assessed in terms of clause 6 of this Schedule.
11. Sale or lease of surface to third parties. — (1) The Licensing Authority may at any time or time give notice in writing to the Lessee that application has been made to the President for purchase or lease of the surface or such portion of the lands referred to in this Lease as is mentioned in such notice.
(2) If the Lease not within ninety days after service of such notice on him give to the President notice in writing the objects to the President acceding to such application on the ground that the proposed sale or lease will prejudicially affect his rights under this Lease it shall be lawful for the President at any time or times after the expiration of that period to well or lease all or any part of the surface specified in such first mentioned notice 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 area specified in such firs mentioned notice excepting such liabilities and obligations as may have accrued 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 President shall notwithstanding 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 clause 79 of this Schedule.
(4) Where a sale or lease of the surface of a portion of the lands has been made by the President under this clause the Lessee shall have a prior right to have the land again included in the lands subject to this Lease if it shall subsequently become available for this purpose.
12. Distance of boreholes or wells from boundaries of the said lands. — No mining operations or workings shall, except with the consent in writing of the Licensing Authority, 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 provided that the restriction shall not apply to the common boundary of the said lands and of any contiguous areas leased to the Lessee.
13. No mining operation to be carried on near railway. — No mining operations or workings shall be allowed or carried on by the Lessee in the said lands at or up to any point within 100 yards of any railway, reservoir, canal or other public works or any building or inhabited site on or near the said lands except with the previous permission in writing of the President or any officer authorized by him in this behalf and subject to any instructions, restrictions and conditions which may be attached to such permission by the officer granting the same.
14. Working in reserved forest. — (1) The Lessee shall not enter upon any reserved forest included in the said lands without 30 days’ previous notice in writing to the District Forest Officer, nor without obtaining sanction in writing of that Officer nor otherwise than in accordance with such conditions as the officer may in his absolute discretion prescribe.
(2) Cutting of timber. — Save as provided in clause 6 (to cut timber, etc.) of this Schedule the Lessee shall not without the express sanction of the President cut down or injure any trees or timber in the said lands.
PART IV
LIBERTIES AND POWERS OF THE PRESIDENT AND OTHERS
15. These presents or anything therein 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) President may work other minerals, etc.¬¬ Liberty and power for the President 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, get, raise (convert) any carry away any minerals or substance 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, drains, water-courses, tunnels, buildings, engines or machinery railways, wagon ways and other ways, works and conveniences upon, through or under the said lands as he shall deem necessary or expedient; provided always that the said reserved liberties and powers to work for mineral or substances other than……………..shall be exercised and enjoyed in such a manner 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 President 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) President may enter lands to make railways, roads, etc. — Liberty and power for the President or any other person authorized by him in that behalf to any 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, tramways, railways, telegraph and telephone lines and pipe-lines or other works as he may deem necessary or expedient or any purpose and to obtain from and out 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 repass 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 President for all loss, damage or injury (not however including the value of any water, stone, earth or other materials taken) which the Lessee may sustain or be put to by reason or in consequence of the exercise of the said reserved liberties and powers.
(3) President may grant or demise said lands to third parties subject to Lessee’s rights. —Liberty and power for the President to grant or demise to nay person all or any part of the said land for any purpose so that such grant of demise be made subject to the rights of the Lessee hereunder.
PART V
RENTS AND ROYALTIES RESERVED BY THIS LEASE
16. Certain half-yearly rent. — (1) The lessee shall pay half-yearly in advance to the President during the term hereby granted certain half yearly rent at the rate of …..pr acre or part of an acre per annum.
(2) Payment of the certain half-yearly rent reserved by this Lease shall be made half-yearly in advance and the first payment of he sum of ………in respect of the first half year of the term hereby granted shall be made on the execution of this Lease.
17. Royalties. — The Lessee shall, during the subsistence of this Lease, pay to the President on the first day of January and the first day of July in each year royalty at the rate of ……..per cent of the sale value at he pit’s mouth of all……..produced from the said lands which shall be sold upon the said land; or carried away therefrom by the Lessee during the half year preceding the said dates in excess of he aggregate quantity which the Lessee is authorized to sell, convert and carry away in that half year in respect of the said certain half-yearly rent, subject to such increase in the rate of royalty and subject to the such minimum as may, from time to time, be prescribed by Central Government in that behalf.
From the amount of royalties payable under the foregoing provisions of this clause in respect of any such half year there shall be deducted the amount of the certain half-yearly rent actually paid in respect of that half year under the provisions of clause 16 (healf0yearly rent) of this Schedule.
18. Surface rents. — (1) The Lessee shall pay to the President in respect of Government owned land the further yearly rent at the rate of ……………per acre or prat of an acre all land, the surface whereof be actually used or occupied superficially used or occupied superficially for any of the purposes of this demise and water rates, at the rate of ………..per acre or part of an acre, if the land has not been occupied for he 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.
(If no such rent is accessible under the law of the district, a rate will be fixed by the President subject to the maximum of Rs.2,000 per square mile)The first 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 lf land the surface whereof be actually used or occupied superficially but 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
PROVISIONS RELATING TO RENTS AND ROYALTIES
19. 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 Director General, Bureau of Mineral Resources, Karachi, under the head of account specified by him at any Government Treasury or to such other officer and at such other place as the President, shall, from time to time, appoint.
20. 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 of part of the said lands the President will refund to the Lessee an apportioned part of yearly rent paid by the Lessee in advance in respect of the said lands or any such part of 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 the release by the Lessee of any lands or areas under the provision of clause 32 (release of lands included by inadvertence in the said lands) of this Schedule, the President 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; provided that in respect of any half year the amount remaining of the certain half-yearly rent after he said refund shall not be less than the amount of royalties payable in respect of any such year under the provision in clause 17 (Royalties) of the Schedule.
(3) The Lessee shall pay the rents and royalty reserved by this Lease at the time and in the manner provided in Part V and this Part shall also pay the discharge all taxes, rates, assessments and I positions 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 Central Government or otherwise except demands for land revenue and shall also pay simple interest at the rate of…….per cent per annum, on all arrears of such rents or royalties 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.
PART VII
THE LESSEE’S COVENANTS
21. 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.
22. To provide weighing machine. — The Lessee shall provide at all times keep at or near the pit head or each of the pit heads at which the said minerals shall be brought to bank a property constructed and efficient weighing machine and shall weight or cause to be weighed thereon all the said minerals from time to time brought to bank, sold, exported (and converted) and shall, at the close of each day, cause the total weights ascertained by such means of the said minerals raised, sold, exported (and converted) during the previous twenty-four hours to be entered in the aforesaid books of accounts and will permit the Licensing Authority at all times during the said term of employ and person to persons to be present at the weighing of the said minerals as aforesaid and to keep accounts thereof and to check the accounts kept by the Lessee.
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 the provided and kept as aforesaid and the 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 in correct or out of repair or order the Licensing Authority may required that the same be adjusted, repaired and put in order by and at the expense of the Lessee and if such requisition be not complies with within fourteen days after the same shall have been made the Licensing Authority may cause such weighing machine or weights to be adjusted, repaired and put in order and the expense of so doing shall be paid by the Lessee to the Licensing Authority on demand and if upon any such examination or testing as aforesaid any error shall be discovered in any weighing machine or weights to the prejudice of the President such error shall be regarded as having existed for three calendar months 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 of methods of measurement or weighing used by him or any appliances used for that purpose without first informing the Licensing Authority and the Licensing Authority may in any case, require that no 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 situate upon or near the said lands correct and intelligible books of accounts upon such land or principle and in such form as may be approved of by the Licensing Authority which books shall contain accurate entries showing from time to time, (1) the quantity of the said minerals released from the said lands, (2) the quantity of the said minerals sold and exported respectively, (3) the quantity of the said minerals otherwise disposed of and the manner and purpose of such disposition, (4) the prices and other particulars of all sales of the said minerals, (5) the number of persons employed in the mines or works on or upon the said lands, and (6) and such other facts, particulars and circumstances as the Licensing Authority may consider necessary for conveniently ascertaining he amount of the royalty from time to time payable under these presents and 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 such books of accounts and such information and returns as to all or any of the matters aforesaid as the Licensing Authority may prescribe and shall, at all reasonable times, allow such officers 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 thereof and make extracts therefrom.
The Lessee shall, within two months after the end of each year of the term hereby granted or any renewal thereof, deliver to the Licensing Authority an abstract in a form, from time to time approved by the Licensing Authority, of the said accounts for each year together with a statement in the like form of all royalties payable in respect of each such year.
26. Establishment of boundary marks. — The Lessee shall, unless the Licensing Authority otherwise determines, at his own expense, forthwith erect and at all times maintain and keep in repair substantial boundary marks of bricks, stones or concrete not less than one foot high at every angle or corner of the boundary line of the said lands. Such boundary marks shall be referenced by survey to at least two readily identifiable points in such a manner that the boundaries of he 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 the 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 round 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 found air as far as possible.
28. The Lessee shall, on notice from the Licensing Authority, strengthen and support to his satisfaction any part or parts of the mine when, in his opinion, such strengthening and support is needed for the safety of any railway, reservoir, canal or other public work or any building whether the said railway, reservoir, canal or other public work or other building shall be already existing or constructed after the said part or parts of the mine have been worked out. Such strengthening and support shall be made and done at the expense of the Lessee if they are needed for the safety of any railway, reservoir, canal or other public work or other buildings 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 13 of this Schedule and in other cases at the expense of the President.
29. Resident Manager and service of notices on Lessee. — The Lessee shall, before commencing any operations in the said lands, furnish to the Licensing Authority the name and address of the Manager resident in the locality of the said lands under whose supervision such operations are 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 such person be found then, the same may be left at the said office o 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 rights of other parties which may be done by him his agents and/or servants in the exercise of the liberties and powers conferred by this lease.
31. Indemnity against third part claims. — The Lessee shall, at all times, indemnify and keep harmless the President and every officer of the Central Government against all actions, costs, charge, 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 I of this Schedule of lands or areas over which it ay subsequently be proved that the Central Government are not entitled to the mineral rights or of lands or areas in respect of which the mineral rights have already been granted to other individuals or companies the lessee shall immediately release to the President any such lands or areas when required to do so by the Licensing Authority.
33. Lessee not to cultivate, etc. — The Lessee shall not, except with the consent of the President, cultivate or use the said lands in any manner save for the purpose of this demise and the right hereby granted.
34. Exclusion of lands for public purposes, etc. — (1) Notwithstanding the rights conferred on the Lessee under this Lease, the President shall have power at any time to require the exclusion from the lands included in Part I of this Schedule of any areas which may, from time to time, be required for villages, new villages, village extension, water reserves or any other public purposes whatsoever, provided that during he subsistence of this Lease at the area or areas so excluded shall not exceed in all………% of the total area of the said lands and provided further that the exclusion of any area or areas on which any active operations such as working any new road construction, waterworks or other works relating to the working of……….have previously been commenced or be in purposes shall not be required but in lieu thereof an equal area or areas upon which 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 President suitable for the public purposes aforementioned, and the Lessee shall thereupon be relieved of all liabilities and obligations hereunder in respect of any such area or areas excluded under the provisions 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 a prior right to have such lands or areas included in the lands subject to this Lease if they shall subsequently become available for this purpose.
35. Advertisements, prospectuses, etc. — No statement shall be made either in any notice, advertisement, prospectus or other document issued by or to the knowledge of the Lessee or in any other manner claiming or suggesting whether expressly or by implication that the President or any Government Department or any person or body acting on behalf of the President 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 President 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 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 rights hereby granted to any person or persons whomsoever without the previous consent in writing of the President or of an officer authorized by him in this behalf who may (without prejudice to his right to make such consent subject to any conditions he may think fit) require as a condition of giving such consent to the assignee or assignees at his or their expense to execute a deed of covenants to observe and perform the covenants and conditions on the part of the Lessee in these presents contained; nor shall the lessee allow this Lease or any interest hereunder to be attached or sold in compliance with any decree or order of a Court or Revenue Officer.
38. Assignment of lease. — The Lessee shall not assign or attempt to assign the right granted by this lease to any person other than a citizen of Pakistan or a company incorporated in Pakistan.
39. Lessee ceasing to be a Pakistan subject. — If the Lessee shall cease to be a Pakistan national or a company incorporated in Pakistan the Lessee shall forthwith inform the President and apply to him for his consent to an assignment of the rights granted by this lease in accordance with clause 37 (consent to assignment) of this Schedule and in the event of the Lessee failing to obtain such consent within such consent within such time as the President may in his discretion appoint, the President may revoke this lease. The revocation of this lease in pursuance of the foregoing provisions of this clause shall be subject and without prejudice to any obligations or liability imposed by or incurred under the terms and conditions hereof.

40. Reciprocity. — This lease shall be determined if the Lessee shall be or become controlled directly or indirectly by a national of or by a company incorporated in any country the laws and customs of which do not permit nationals of Pakistan or companies incorporated in Pakistan or companies incorporated in that country and controlled directly or indirectly by nationals of Pakistan or companies incorporated in Pakistan to acquire, hold and operate mining concession on conditions which in the opinion of the President are reasonably corresponding to those imposed by this clause and those included in the Pakistan Mining Concession Rules, 1960, as from time to time in force.
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 officer no unnecessary or reasonably avoidable obstruction or interruption to the development and working within the said land or lands adjacent thereto any minerals or included in this lease and shall at all times afford to the President or his representative and to the holders of prospecting licenses or mining leases in respect of ay such minerals or any minerals within any lands adjacent to the said lands reasonable means of access and safe and convenient passage upon and across the said lands to such minerals for the purposes of getting, working, developing and carrying away the same.
42. Notice of the site and commencement of boreholes and wells. — As soon as the site of any time has been decided the Lessee shall notify the Licensing Authority in writing of the situation thereof and the same shall be described by a certain number in the plans and record 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 any such boreholes or well which may be made. boreholes or well shall be commenced and no borehole or well shall be recommenced after work has been discontinued thereat for more than six months unless seven clear days notice in writing shall first have been given to the Director of Petroleum.

43. Abandonment and plugging of boreholes. — (1) No mines or pits shall be abandoned and no cemented string or other permanent form of easing shall be withdraw from any mine or pit, which it is proposed to abandon, without the prior consent in writing of the Licensing Authority such consent not to be unreasonably withheld, 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 determines, be so securely 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 mine or pit shall be plugged or any works be executed for that purpose save in the presence of an officer authorized by him.
44. Delivering of productive mines etc., in good order. — The Lessee will at the expiration or sooner determination of said term deliver up to the President all mines, pits, shafts, inclines, drifts, levels, waterways, airways and other works (now existing), hereinafter to be sunk or made under the said lands (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 engines, machinery, plant, building, structures and other works and conveniences which at the commencement of the said term were upon or under the said lands and all engines, machinery, plant and 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 discussed) and all buildings and structure of brick or stone erected by the Lessee above ground level in good repair, order and condition and fit in all respects for further working of the said minerals.
45. Plugging of boreholes on determination of lease, etc. — Within two months after the expiration or sooner determination of this lease the Lessee shall if required so to do by the Licensing Authority plug all boreholes and wells as provided in clause 43 (abandonment and plugging of boreholes) of this Schedule.
46. Health and safety of workers and employees. — The Lessee shall comply with any instructions from time to time given by the Chief Inspector of Mines in writing for securing housing accommodation, health, safety and welfare of persons employed in or about the mines within the lease.

47. Working obligations.— (1) The Lessee shall within six months of the grant of the lease submit to the Licensing Authority a scheme of development for the approval of the Licensing Authority and shall not commence operations unless the scheme should, inter alia, include, (i) location and description of major deposits, (ii) methods of prospecting including machinery and equipment to be used, (iii) technical personnel to be employed, (iv) details of roads, residential accommodation for staff and labourers to be constructed, and (v) necessary expenditure on the scheme; and it should be accompanied by necessary maps, plans, etc. The Licensing Authority will make sure that the approval of the scheme is communicated to the Lessee within three months of its receipts.

(2) If, in the opinion of the Licensing Authority, the Lessee fails to fulfill the working obligation as required, by the scheme within one year of its approval, 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 or processing plant for improving the quality of the mineral or ore, carry out economic exploration of the mineral resources and shall observe and carry out all instructions issued by the Central Government from time to time in that behalf.
49. Lessee to supply mineral to plants, smelters or factories. — If and when the Central Government or any organization sponsored by the Central Government 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 Central Government 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 Central Government in the appropriate Ministry whose decision shall be final.
50. In the event of production of any radio-active minerals and/or minerals required for the production of nuclear energy the Lessee shall give the Central Government the first option to purchase such minerals or part thereof and shall comply with such instructions in regard to their disposal, sale or export, as may be given to the Lessee by the Central Government.
51. To keep plans of working. — The Lessee shall at all times during the said terms cause to be made and kept at the said office correct and intelligible plans and sections of the mines in the said lands which plans and sections shall show as well the operations and working carried on as also all view faults and other disturbances observed and encountered in such operations and workings, and all such plans and sections shall be amended and filled up by and from actual survey to be made for that purpose at the end of every period of twelve months and the Lessee shall furnish free of charge to the Licensing Authority true and correct copies of such plans and sections whenever thereunto required.
52. Lessee to keep samples of strata, mineral and water. — 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 or water encountered in any mine or pit and samples of any mineral discovered in the said lands. And the Licensing Authority or his representative shall have access to such samples at all reasonable times and shall be entitled to required that representative specimens not exceeding one half of any such sample be delivered to him and to retain any specimen so delivered.
53. To report discovery of other minerals. — Whenever the Lessee shall find in the said lands any mineral or product other than the said minerals the Lessee shall immediately report such discovery in writing to the Licensing Authority with full particulars of the nature and position of each find.
54. Periodical reports etc. — (1) The Lessee shall furnish to the Licensing Authority (quarterly at such times as the Licensing Authority may appoint) during the term hereby granted or any renewal thereof, a record in a form prescribed form time to time by the Licensing Authority of the progress of his operation in the said lands. Such records shall contain:-
(a) a statement of the depth reached in each mine or pit;
(b) a statement of any water, workable mineral or mine workings encountered in the course of the said operations;
(c) a statement of all……………. produced; and
(d) a statement of the areas in which any geological or geophysical work has been carried out.
(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 from time to time approved by the Licensing Authority of the operations conducted in the said lands during each year, together with a plan upon a scale approved by the Licensing Authority showing the situation of all mines, pits or works and indicating all development and other works executed by him in connection with searching, boring for and getting………………
(3) The Lessee shall also keep accurate geological lands, maps and records relating to the said lands.
(4) The Lessee shall furnish to the Licensing Authority such plans and information as to the progress of operations in the said lands as the Licensing Authority may from time to time reasonably require.
55. 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.
56. 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) 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 aggregated returns and general reports on the extent of prospecting or mining operation in Pakistan and of the purpose of any arbitration or litigation between the President and lessee.
PART VIII
THE PRESIDENT’S COVENANTS
57. 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 President any person rightfully claiming authority from or under him.
58. 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, in giving to the President not less twelve months previous notice in writing in that behalf, not more than two years nor less than one year before the determination of the terms hereby granted at the discretion of the President a renewal of this lease in respect of the whole of the said lands or any part thereof which complies with the Rules for the time being in force for a further term not exceeding thirty years from the expiration of the said term upon the terms and conditions contained in the rules today in force subject to such modifications or exclusion and enhancement of rates for royalties and rents as the President may in his discretion determine.
59. Right of lessee to determine lease. — Without prejudice to any obligation or liability imposed 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 President not less than twelve months previous notice in writing to that effect.
60. 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 President to surrender the rights granted by this 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 rights 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
61. Power to inspect plants, records, account. — 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 , minerals or water which the lessee is required to keep in accordance with the provisions of this lease; and
(e) to execute any works which the Licensing Authority may be entitled to execute in accordance with the provisions of this lease.
62. Unit Development. — If a any time during the term hereby granted or any renewal thereof the President 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 President shall consider that it is in the interest of 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 lease 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 President 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 a scheme (hereinafter referred to as “a Development Scheme”) for the working and development of the mine as a unit by the lessee and the other lessees in cooperation, and shall jointly with the other lessees, submit such scheme for the approval of the President.
(b) The said notice shall also contain a description by reference to a map of the area or areas in respect of which the President requires a Development Scheme to be submitted and shall state the period within which such scheme is required to be submitted for approval by the President.
(2) If a Development Scheme shall not be submitted to the President 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 President, the President shall himself prepare a Development Scheme which shall be fair and equitable to the lessee and other lessees and the Lessee and other Lessees shall perform and observe all the terms and conditions thereof.
63. 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 or war (of the existence of which the President shall be the sole judge and a notification to this effect in the official Gazette shall be conclusive proof) the President be at liberty to take control of the works, plants, and premises of the lease and in such event the lessee shall conform to and obey all directions issued by the President on or 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 President of the powers conferred by this clause. Any such compensation shall be settled by agreement between the President and Lessee, or, in default of agreement, by arbitration in the manner provided by clause 79 hereof.
64. Right of Pre-emption. — (a) The President 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 (and all products thereof) lying upon the said lands hereby demised or elsewhere under the control of the Lessee and the Lessee shall, with all possible expedition and so as to avoid demurrage on these vessel or vessels engaged to convey the same, deliver all minerals or products of minerals purchased by the President 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 President hereunder be detained on demurrage at the port of loading, the Lessee shall pay the amount due for demurrage according to the terms of the charter party of such vessel unless the President shall be satisfied that the delay is due to cause beyond the control of the lessee.
(c) The price to be paid for all minerals or products of minerals taken in pre-emption by the President in exercise of the rights hereby conferred shall be the fair market price for the time being to be determined in default of agreement under the provision hereinafter in clause 79 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 Central Government particulars of the quantities, descriptions and prices for the said minerals or products thereof 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 for 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 (of which existence the President in his discretion shall be the sole Judge and a notification to this effect with the official Gazette shall be conclusive proof) the lessee shall, on receiving a notice in writing under the hand of any Secretary to the Government requiring him so to do, use his utmost endeavours to increase the supply to or for the President, of the mineral or products thereof purchased by him as aforesaid to the extent specified in such notice.
65. Internal requirements of Pakistan. — The President may, at his discretion, require the lessee to meet the internal requirements of Pakistan to the satisfaction of the Central Government of Pakistan, before exporting the said mineral or any of its products to other countries and the lessee shall comply with the instruction issued by the President in this behalf.
66. Associating of Pakistan capital. — The President may, at his discretion, require the lessee to associate 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 President in this behalf.
67. Employment of nationals of Pakistan and their training. — The Lessee shall be required to employee Pakistan nationals in his organization in all grades as follows:–
For the first 4 years of the lease … 1/6the of the total number of employees
For the next 4 years of the lease … 1/3rd of the total number of employees
For the next 4 years of the lease … 3/4th of the total number of employees
For the next 4 years of the lease … 100% of the total number of employees
The number of Pakistan nationals to be trained by the Lessee will be determined in consultation with the Central Government of Pakistan.
65. 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 clauses of this Schedule:-
(a) Clauses 22-24 (Measurement of minerals obtained from the said land);
(b) Clause 43 (Abandonment and plugging of boreholes);
(c) Clause 44 (Delivering up of productive mines, wells, etc, in good order);
(d) Clause 45 (Plugging of boreholes, mines, etc); and
(e) Clause 46 (Health and safety of workers and employees).
then and in any such case 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 whenever any of the rents and royalties reserved by this lease or any part thereof respectively shall be arrear or unpaid for the space of two calendar months next after any of the days where on the same ought to be paid (whether the same shall have been legally demanded or not) then and so often as the same may happen the Licensing Authority may (as an additional remedy and without prejudice to the power of distress and other rights and remedies to which he would be entitled) enter into and upon any land which shall for the time being be possessed or occupied by the Lessee for the purpose of this lease or the exercise of any of the rights thereby granted and may seize and distrain and sell, as landlords may do for rent in arrear, all or any of the stocks of the said mineral and products thereof, live and dead stock, engines, machinery, tools, implement, chattels, and effects belonging to the Lessee which shall be found in or upon the land so entered upon and out of the moneys arising from the sale of such distress may retain and pay all the arrears of the said rents and royalties and also costs and expenses incident to any such distress and sale rendering the surplus (if any) to the Lessee.
71. Notwithstanding anything to the contrary contained herein, the President reserves the liberty to determine the lease granted hereunder, without any compensation being paid to the Lessee, if, at any time during the currency of the lease, the President is of the opinion (which opinion shall be binding upon the Lessee), that mining operations under the lease lend directly or indirectly or are likely to prejudicially affect the salt mines or salt deposits in or around the area demised hereunder.
72. Power of revocation. — If and whenever the rents and royalties reserved by this lease or any part thereof shall be in arrears for the space of six calendar months next after of any of the days whereon the same ought to have been paid or if there shall be any violation of the undertaking given in accordance with sub-rule (6) of rule 9 of the Pakistan Mining Concession Rules, 1960, 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 62 (Unit development) of this Schedule then and in any such case the President may forfeit, in whole or in a part, the security deposit made by the lessee under rule 25 of the Pakistan Mining Concession Rules, 1960, 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 and in any case requiring the lessee to make compensation in money for the breach and 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 President for the breach.
73. 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 pursuant to the power hereinabove 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. 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 observed and performed at any time or times 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, at 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 President shall have not elected to purchase under the provisions of clause 75 (power of President 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.
75. Power of President to purchase property etc. — If the expiration or sooner determination of this lease, the President 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 (or if this lease shall be determined under the power of revocation hereinbefore contained at any time within three calendar months after the determination of this lease), the lessee shall sell to the President the articles and things specified in such notice at a price which, failing agreement shall be fixed by arbitration as provided in clause 79 (Arbitration) of this Schedule.
76. Forfeiture of property left for more than six months after determination of lease. — If at the expiration of six calendar months after the expiration of sooner determination of the said term 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 the 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 President, be deemed to become the property of President and may be sold or disposed of for the benefit of the Central Government in such manner as the President may deem fit without liability to pay compensation or to account to the lessee in respect thereof.
77. Lessee’s rights 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 Pakistan Mining Concession Rules, 1960 have any right to those minerals.
78. 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 President 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.
79. Arbitration. — If at any time during the continuance of this lease or after the determination thereof any question or dispute shall arise regarding this lease or any matter or thing connected therewith or the powers, duties or liabilities of the Lessee hereunder or the amount or payment of any rent or royalty then and in all such cases the matter in difference shall be referred to the Central Government in the appropriate Ministry whose decision will be final provided that any dispute concerning the right Lessee to a mining lease or cancellation of this deed for any violation of the undertaking given in accordance with sub-rule (6) of rule 9 of the Pakistan Mining Concession Rules, 1960, or any breach of its provisions or any dispute connected with the price of the said mineral pre-empted by the Central Government or price of plant purchased by the President at the expiration or sooner determination of this lease or compensation payable to the Lease in terms of clause 63 or compensation payable to the Lessee on 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 President and the other by the Lessee, and in case of disagreement between the arbitrators by a Judge of the Supreme Court of Pakistan to be appointed as an umpire by the arbitrators in writing and the decision of such arbitrators or the Judge of the Supreme Court of Pakistan as umpire, as the case may be, shall be final. And it is further mutually agreed that such arbitration shall be a condition precedent to the commencement of any action at law and that the provisions of the Arbitration Act, 1940, and of the Rules thereunder and any statutory modification thereof, shall be deemed to apply and be incorporated in this lease. The venue of arbitration shall be Karachi.
80. Headings . — The headings in bold letters (which are to be treated as marginal notes) are for convenience only and do not form part of this lease.

Signed …….Name and designation
For and on behalf of the President
of Pakistan in the presence of:–

Witnesses

(1)

(2)

(1) Signed by the above-named by his/their
Attorney in the presence of

Witnesses

(1)

(2)

(2) Signed in the and on behalf of the above named by Director of the said Company in the presence of

Witnesses

(1)

(2)

(3) Signed in the and on behalf of the above-named by their authorized agent in the presence of

Witnesses

(1)

(2)

(4) Signed in the and on behalf of the above-named by their attorney/agent in the presence of

Witnesses

(1)

(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 if the Lease of Leases do not sign personally)

(2) This clause is to be used where the lese 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 the word “Director”.

(3) This clause is to be used where the lease is granted to a private firm (the name of the attorney or agent being filled in if the signature is not by a partner in the firm).

____________________________

THIRD SCHEDULE

ROYALTY

(See rules 38 and 53)

Coal, including coal dust and coal used on the works 7 ½ on the value at the pit’s mouth subject to a minimum of Rs.1-8-0 per ton.

Mica … … … 5% on the value at pits mouth

Gold and silver … … 5% of the market value

Precious stones … … 18 ¼ % on the value at pit’s mouth (for mining leases only).

Limestone … … … 5% on the value at pit’s mouth subject to minimum of Rupees one per ton (2,240 lbs.)

Gypsum and Silica Sand … … 5% on the value at pit’s mouth subject to minimum of Rupees one per ton (2,240 lbd.)

Fire-clay … … … 5% on the value at pit’s mouth subject to minimum of Rupees one per ton (2,240 lbs.)

All other minerals not specified above … 5% on the value at pit’s mouth, or on the surface, of the dressed ore metal, convertible at the option of the Licensing Authority to the equivalent charge per ton to be fixed annually or for a term.

Note.— The value at pit’s mouth of a mineral will be determined by deducting from the market value the actual expenditure incurred n carrying the mineral from the pit’s mouth to the market unless this is otherwise fixed in accordance with any Act or Government order for the time being in force in respect of any mineral.

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FOURTH SCHEDULE

MAXIMUM QUANTITIES REMOVABLE FROM OR ROYALTY

(See Rule 38)

Class A separated gold, platinum and other precious metals occurring in
the native State Nil

– B Auriferous rock and gravel … … … … … 2 tons

– C Metalliferous ores such as those worked for aluminum, iron
and manganese … … … … … 10 tons

– D Metalliferous ores such as those worked for antimony, arsenic,
Bismuth, chromium, copper, lead, nickel, tin, titanium, tungsten
and zina … … … … … … … 5 tons

– E Metalliferous ores such as those worked for cadmium, cobalt,
Mercury, molybdenum, silver, thallium and vanadium … … 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 clauses D to F … … 2 cwts.

– H Coal lignite … … … … … … … 50 tons

– I Minerals of the so-called “rate earths”, such as minerals worked
specifically for beryllium, boron, ores, caesium, cerium,
columbium, didymium, erinium, gallium, germantium, indium,
niobium, rubidium, tantlum, thorium, uranium, yttrium and
zirconium, … … … … … … … 5 tons

– J Minerals used in various arts. such as barites bitumen borax,
corumdum, emery felspuar, flourspare … … … … ½ ton

– K Minerals used in agriculture and chemical manufacturers, such
as bauxite, gypsum, iron pyrites and pyritous shales … … 5 tons.

– L Asbestos, graphite, mica and native sulphur … … … 5 ton

– M Precious stones and gems such as agate ambera mhlygonite
methyst, aquamarine, beryle, chrysoberyl, chrysolite, diamond,
emerald, garnet, jade and dadedite, jasper, lapis, lazuli,
moonstone, opal, ruby, sapphire, spinel, topas, tourmaline and
lurpouise … … … … … … … Nil

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FIFTH SCHEDULE

MINIMUM DEAD RENT

______________________________________________________________________________
Minerals Dead rent per acre (minimum)
______________________________________________________________________________

(1) Coals, lignite, minerals used in agriculture and chemical 4 annas per acre
manufactures, such as bauxite, gypsum, iron pyrites and
pyritous shales.

(2) Gold and silver, precious stones and all minerals [not 2 rupees per acre
Included in (1) above except iron-ores]

(3) Iron-ore 1 anna per acre
______________________________________________________________________________
Note.— These mineral are purposely fixed law, but they are liable to be largely exceeded, according to the value of the deposit and degree of development of the country.

(The space is to be filled in by inserting the word lease, prospecting licence etc. as the case may be)
SIXTH SCHEDULE

FORM OF AGREEMENT FOR USE IN CONNECTION WITH THE
TRANSFER OF A LEASE OR LICENCE

An Agreement dated ………………………… and made between the President of Pakistan (hereinafter referred to as the “President” which expressed shall, where the context so admits, be deemed to include his successors-in-office and assigns) of the one part and ………………………… ………………………………………………………………………………………………………………… (hereinafter referred to as the transferee(s) which expression shall where the context as admits be deemed to include his/their (respective) heirs, executors, administrators, representatives and assigns] of the other part,

Whereas as by virtue of an Indenture of

(hereinafter referred to as the lease/licence) dated and made between the President (A) The name of the Attorney who granted the lease (other than the President. …………………….. …………………………………………………………………………………………………………………………………………………………………….and (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.………………………………………………………………………………………………………… …………………………………………………………………………………………………………………. (and now vested by transfer in ………………………………………………………………………… ………………………………………………………………………………………………………………….

[hereinafter referred to as the Lessee(s)/Licensee(s} the Lessees(s)/Licensee (s) is/are entitled to search for and work the mines and minerals therein mentioned for the term and subject to the payment of rents and royalties and observance and performance of the Lessee’s/Licensee’s covenants and conditions in the Lease/Licence reserved and contained including a covenant not to assign the lease/licence or any interest thereunder without the previous sanction of the President and whereas the Lessee(s)/Licensee(s) is/are desirous of transferring and assigning the lease/licence to the Transferee(s) and the President has at the request of the Lessee(s)/Licensee(s) granted sanction to such transfer and assignment upon condition of the Transferee(s) entering into an agreement in and containing the terms and conditions hereinafter set forth.

Not it is hereby agreed and declared by the Transferee(s) with and to the President that from and after the transfer and assignment of the lessee/Licensee by the Lessee(s)/Licensee(s) to the Transferee(s) the Transferee(s) shall be bound by and liable to perform and conditions of all the covenants and stipulation on the part of the Lessee(s)/Licensee(s) and conditions in the Lease Licence contained in the same manner in all respects as if the Lessee(s)/Licensee(s) had been granted to the Transferee(s) as the Lessee(s)/Licensee(s) thereunder and he/they had originally executed it as such and the Transferee(s) hereby undertake(s) and agree(s) with the President to perform and observe the same covenants, stipulations and conditions in all respects accordingly.

As WITNESS the Hands of the parties

Signed by
for and on behalf of the President of Pakistan in the presence of

Witnesses

(1)

(2)

(2) Signed by
on behalf of the above-named
Transferee(s)

Witnesses

(1)

(2)

[See Gaz. Of P., 1960, Ext. pp. 1107-1166]

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