Minerals Development Act, 1940


State Minerals.

State mining leases.

26.—(1) If, in the opinion of the Minister, it is in the public interest that any State minerals should be granted by way of lease to any person, the Minister may demise such minerals to such person by way of lease (in this Act referred to as a State mining lease) for such term as the Minister shall think proper.

(2) The following provisions shall apply and have effect in relation to every State mining lease, that is to say:—

(a) unless the Minister, with the concurrence of the Minister for Finance, is of opinion that such lease should in the public interest be made free of payment, such lease shall be made subject to the payment to the Minister of such moneys, whether by way of fine or preliminary payment or by way of rent (including a royalty rent) or by any or all of such ways, as the Minister, with the concurrence of the Minister for Finance, shall think proper and shall agree upon with the lessee;

(b) such lease shall contain such (if any) covenants, conditions and subsidiary agreements on the part of the Minister or of the lessee as the Minister shall consider proper or desirable in the public interest and shall agree upon with the lessee;

(c) such lease may contain a clause providing for the renewal or successive renewals thereof, either unconditionally or subject to such conditions as shall be stated in such lease;

(d) the Minister for Finance shall be a party to such lease.

(3) In exercising the respective powers conferred on them by this section, and in particular, in determining what (if any) payment should be made to the Minister by the lessee under a State mining lease and what (if any) covenants or conditions should be contained in such lease the Minister and the Minister for Finance may take into consideration the general advantages that are likely to accrue to the State from the development of the State minerals demised by such lease and also the extent to which it is desirable, in the public interest, that any of the minerals raised under such lease should be conserved for use within the State as raw materials for industries that are or may be established within the State.