Minerals Development Act, 1940

Grant of State mining permissions.

28.—(1) Where—

(a) any substances to which this section applies are comprised in a deposit of State minerals, and

(b) any person desires to obtain permission to work any one or more of such substances in small quantities, and

(c) such person satisfies the Minister that, on account of the small value or quantity of such substances which he desires to work, or the limited period for which he desires to work them, or for any other reason, the permission required is of trifling importance and will not materially affect the said deposit of State minerals,

the Minister may, if he so thinks fit, on the application of such person in accordance with this section, grant to such person a right (in this Act referred to as a State mining permission) to work such substances in small quantities.

(2) Every State mining permission granted under this section shall be in writing and shall operate and be expressed to confer on the person to whom it is granted a right to work such of the substances to which this section applies as are therein specified and to do anything incidental to the working of such substances, but subject to such restrictions as to quantity of minerals to be worked and as to duration of working and to such other terms and conditions as may be similarly specified.

(3) A State mining permission may either (as the Minister, after consultation with the Minister for Finance, shall think fit) be made free of charge or be made subject to the payment by the person to whom it is granted of such moneys, whether by way of fine, or other preliminary payment or by way of rent (whether dead rent or royalty rent) or all or any of those ways as the Minister, after such consultation as aforesaid, shall think proper.

(4) A State mining permission shall not operate to confer on the grantee thereof an exclusive mining right in respect of the minerals to which such permission relates.

(5) This section applies to all scheduled minerals and to all mineral compounds and mineral substances, and, in this section, the expression “substance to which this section applies” shall be construed accordingly.