RULE-9

BALOCHISTAN MINERAL RULES, 2002 BALOCHISTAN MINERAL RULES, 2002 [Gazette of Balochistan, Extraordinary, 9th March, 2002] No. S.O.(MR)4-6/2002, dated 8-1-2002.--In exercise of the powers conferred by section 2, of the Regulation of Mines and Oil-Fields and Mineral Development (Government Control) Act, 1948, (XXIV of 1948) the Government of Balochistan is pleased to make the flowing Rules:-- PART III MINERAL TITLES AND MINERAL CONCESSIONS Division 1 General 9. Mineral agreements. (1) The Government may, at the request of a person proposing to carry on mineral operations, enter into an agreement, with that person relating to a mineral title, not inconsistent with these Rules or any other law, if the Government is satisfied that substantial foreign investment is likely to be made in mineral operations and that the carrying on of the undertaking in question is desirable in the interest of the development of the mineral resources of Balochistan. (2) The Federal Government may, at the request of the Government be a party to, and to the negotiation of, a mineral agreement. (3) A mineral agreement may, in particular, make provision with respect to all or any of the following matters - (a) the grant, renewal, cancellation or transfer of a mineral title; (b) minimum exploration operations to be carried on and related expenditure to be incurred for the purposes of those operations; (c) the formation of joint ventures; (d) the basis on which the fair market value of any mineral or group of minerals may, from time to time be determined on an arms-length basis: (e) the payment of enhanced royalty in specified circumstances: (f) the payment of additional profits tax in specified circumstances; (g) the establishment in Balochistan of secondary and tertiary processing facilities; (h) guarantees to ensure the due and proper performance of the obligations of the holder of the mineral title; (i) financial and insurance arrangements; (j) the settlement of any dispute which may arise in the interpretation or application of any provision of a mineral agreement by a sole expert or through international arbitration; (k) co-ordination of exploration or mining operations to be carried on by the person concerned under an exploration licence or a mining lease with any such operations carried on by the holder of an exploration licence or a mining lease in any neighbouring exploration area or mining area; or (l) other matters relating to mineral operations as the Government may determine or as the parties to the agreement may consider necessary. (4) Where the Federal Government is a party to a mineral agreement, the agreement may contain provisions with respect to any matter for which the Federal Government has executive authority under the Constitution. (5) Any provision contained in a mineral agreement which is inconsistent with any provision of these Rules or any other law shall, to the extent of the inconsistency, be of no force or effect. (6) Nothing contained in a mineral agreement shall be construed as absolving any party thereto from complying with any requirement laid down by law or from applying for, and obtaining, any licence, approval, permission or other document required by law (7) For the purpose of determining under sub-Rule (1) whether substantial foreign investment is likely to be made in any particular case, the Government shall have regard to - (a) the likely scale of the capital investment to be made; . (b) the expenditure and work programme proposed by the applicant: (c) in the event of a commercial discovery - ??????????? (i) the likely scale of operations; and ??????????? (ii) the likely infrastructure to be required: (d) the mineral or group of minerals to which the mining title, if granted, would relate and the potential for export of that mineral or group: (e) the techniques to be used for the recovery of that mineral or group; (f) the technical and financial capabilities of the applicant for a mineral title; and (g) other factors relevant to making that determination.