Suspension or cancellation of mineral right

(1) Subject to this section, where the holder of a reconnaissance licence, an exclusive prospecting licence or a (a) fails to use in good faith the land subject to the licence for the purpose for which the licence was granted; (b) uses that land for any purpose other than the purpose for which the licence was granted; 58 (c) fails to comply with any requirement of this Act (not being exempted under this Act from doing so) with which he is bound to comply; (d) fails to comply with a condition of the licence (not being exempted under this Act from doing so); (e) fails to comply with a direction lawfully given under this Act or with a condition on which any certificate of surrender is issued or on which any exemption or consent is given under this Act; (f) fails to comply with the conditions relating to the exercise of his rights under his licence, which are contained in a relevant agreement of a kind referred to in section 9; or (g) fails to pay any amount payable by him under this Act within one month after the amount becomes due, the Minister may, on that ground, by notice in writing served on the holder of the licence, suspend or cancel the licence. (2) The Minister shall not, under sub-section (1), suspend or cancel the licence on the ground referred to in that sub-section unless– (a) he has, by notice in writing served on the holder of the licence, given not less than thirty days’ notice of his intention to suspend or cancel the licence on that ground; (b) he has, in the notice, specified a date before which the holder of the licence may, in writing, submit any matter which he wishes the Minister to consider; and 59 (c) he has taken into account– (i) any action taken by the holder of the licence to remove that ground or to prevent the recurrence of similar grounds; and (ii) any matters submitted to him by the holder of the licence pursuant to paragraph (b) of this sub-section. (3) The Minister shall not, under sub-section (1), suspend or cancel a licence on a ground referred to in sub-section (1) (g), if, before the date specified in a notice referred to in sub-section (2), the holder of the licence pays the amount of money together with an amount of interest (if any) which the Minister considers reasonable in the circumstances of the case. (4) The Minister may, by notice in writing served on the holder of a reconnaissance licence, an exclusive prospecting licence or a mining licence, cancel the licence– (a) if the holder, being an individual, is– (i) adjudged bankrupt; or (ii) enters into any agreement or scheme of composition with his creditors or takes advantage of any law for the benefit of debtors; or (b) if, in the case of a holder that is a body corporate, an order is made or a resolution is passed winding-up the affairs of that body corporate, unless the winding-up is for the purpose of amalgamation or reconstruction and the Minister has been given notice thereof. 60 (5) Where two or more persons are jointly holders of a reconnaissance licence, an exclusive prospecting licence or a mining licence, the Minister shall not, under sub-section (4), cancel the licence on the occurrence, in relation to one or some only of such persons, of an event entitling the Minister so to cancel the licence, unless he is satisfied that any other person or persons is or are unwilling, or would be unable, to carry out the duties and obligations of the holder of the licence. (6) On the cancellation of a reconnaissance licence, an exclusive prospecting licence or a mining licence, the rights of the holder of the licence thereunder cease, but the cancellation does not affect any liability incurred before the cancellation and any legal proceedings that might have been commenced or continued against the former holder of the licence may be commenced or continued against him.