receiving an application under section
41
of this Act, cause the Sian applicant for the grant of a mining lease to be notified of the onmining Commissioner's decision on his or her application, and if the |" appli application is granted, of the details of the proposed lease.
(2)
If within thirty days after an applicant is notifie= pursuant to subsection (1) of this section that the Commissions= is prepared to grant a mining lease, such applicant fails to gis notice of his or her willingness to accept the proposed lease, ha or her application shall be taken to have lapsed.
(3)
The grant ofa mining lease shall be published in the Gazette.
Contents of 45. (1) A mining lease shall- nmuning
lease (a) specify the date of the grant of the lease and the period for which it is granted;
(b)
specify the mineral(s) for which it is granted;
(c)
include a description and plan of the area of land over which it is granted;
(d)
specify the conditions on which it is granted.
(e)
specify particulars of the applicant's proposals for the employment and training of citizens of Uganda; and
(f)
specify particulars of the applicant's proposals with respect to the procurement of goods and services obtainable within Uganda, which shall form part of the lease.
(2)
There may be included in a mining lease conditions with respect to the processing, disposal or sale of the mineral to be mined.
Duration of 46. The period for which a mining lease is granted shall be mining
lease specified in the lease and shall not exceed twenty one years or the estimated life of the ore body proposed to be mined, whichever is shorter.
Renewal of 47.(1) The holder of a mining lease may apply to the mining Commissioner for the renewal of his or her lease in respect of all, lease or of part of the mining area not later than one year before the expiry of such lease.
(2)
An application under subsection (1) of this section shall-
(a)
state the period, not exceeding fifteen years, for which renewal is sought;
(b)
be accompanied by a statement giving particulars of mining operations proposed to be carried out in the renewed period;
(c)
be accompanied by a statement giving details of-
(i)
the latest proved probable and possible ore reserves;
(ii)
the capital investments to be made and the production costs and revenue forecasts in respect of the renewed period;
(iii)
any expected changes in the method of mining, treatment, marketing and disposal of mineral products;
(iv)
any likely effects on the environment and measures to be taken to mitigate such effects;
(v)
such further information as the Commissioner may require, and
(d)
if renewal of the lease is sought in respect of part only of the mining lease area, be accompanied by a plan and description identifying that part of the mining lease area.
(3)
Subject to subsection (4) of this section, where an =pplication is duly made under this section for the renewal of a mining lease, the Commissioner shall renew such mining lease 1 >r a period not exceeding fifteen years or the life of the ore -ody, whichever is shorter, subject to such conditions as the -ommissioner may determine.
(4)
The Commissioner shall refuse to renew a mini lease, if-
(a)
the applicant is in default;
(b)
the development of the mining lease area has ne proceeded with reasonable speed;
(c)
minerals do not remain in reasonable quantities to E produced profitably;
(d)
the programme of mining operations proposed to E carried out is not adequate or satisfactory and th renewal will be contrary to national interest;
(e)
the Commissioner has given to the applicant notic of his or her intention to refuse to renew th mining lease-
(1)
giving i the notice particulars of the groun for the intended refusal;
(i)
stating a date before which the applicant ma take appropriate action or mak representations with respect to the groun for the intended refusal; and
(iii)
the applicant has not, before that date mad appropriate amendments to his or he application or made representations, whict in the opinion of the Commissione remove the ground for the intended refusa
Amendment 48. (1) Subject to subsection (2) of this section and th Be ithe conditions of the lease, if any, the holder of a mining lease may Death from time to time, notify the Commissioner of amendments he ¢ trminine _ She Wishes to make to his or her programme of development an tease. mining operations; and such amendments shall, unless th Commissioner rejects them within three months after being s notified, have effect after such period.
| (2) An amendment, which substantially alters a "programme of development and mining operations, shall not have effect unless the Commissioner has agreed to such an amendment.
(3)
Where in the course of exercising his or her rights under 'a mining lease the holder of the mining lease discovers any mineral for which the lease does not relate, he or she shall, within thirty days -after the discovery, notify the Commissioner of the discovery, giving particulars of the mineral discovered and the site and circumstances of the discovery; and the holder of the lease may apply to the 'Commissioner to have the mining of such mineral included in his or 'her mining lease, giving in his or her application a proposed programme of mining operations in respect of the discovery.
| (4) Where the Commissioner is satisfied with a proposed programme of mining operations submitted under subsection (3) of this section, the Commissioner may approve such programme on such terms and conditions as he or she thinks fit and may amend the mining lease accordingly.
(5)
Where the Commissioner has approved a proposed programme of mining operations under subsection (3) of this section, the holder of the relevant mining lease may apply to the Commissioner to have his or her mining area enlarged and the Commissioner may, subject to the provision of subsection (6) ofthis section, approve such application.
(6)
A mining lease area shall not be enlarged so as to include any area over which the applicant could not by reason of this Act, be granted a mining lease.
(7)
Where the holder of a mining lease does not wish to develop a newly discovered mineral or minerals, and it is in the national interest to do so, the Commissioner may grant a mineral right under this Act to a third party subject to the reasonable rights of the holder.
Rights of 49. Subject to the provisions of this Act, any other written laTM ieaschelder, the regulations, and any condition of a mining lease, the holder of- mining lease shall have the exclusive right to carry on explorati and mining operations in his or her mining area; and may in tH exercise of such right, enter upon the land to which his or her mini lease relates with his or her employees, agents and contractors are may-
(a)
take all reasonable measures on and under the surfac of his or her mining area to mine and process ths minerals to which his or her mining lease relates;
(b)
erect the necessary equipment, plant, machinery ane buildings for the purpose of mining, transporting dressing, treating, smelting and refining the minerals or mineral products recovered by him oO her during mining operations;
(c)
dispose of any mineral products recovered; and
(d)
stack or dump any mineral or waste product ir accordance with the prescribed mining industry practice.
Obligations 50. (1) Subject to the provisions of this Act, the holder of < of mining = aace che leacholder Mining lease shall-
(a)
develop and mine the mineral deposits covered by his or her lease in accordance with the approvec programme of development and mining operations and the terms and conditions of his or her lease;
(b)
commence production on or before the date specifiec in the programme of development and mining Operations as the proposed date of such production:
(c)
demarcate and keep demarcated his or her mining arez insuch a manner as may be prescribed;
(d)
keep and maintain in Uganda an address which shall be registered with the Commissioner, and to which all communications and notices shall be addressed.
(2)
The holder of a mining lease shall-
(a)
maintain at the address referred to in subsection (1) (d) of this section and submit monthly to the Commissioner complete and accurate records of operations relating to his or her lease including-
(i)
copies of all maps, geological reports, including interpretations, sample analyses, aerial photographs, cores, logs and tests and all other data obtained and compiled by the holder of such mining lease;
(ii)
systematic financial statements and such other books of account as the Commissioner may require, and where the holder is engaged in any activity not connected with his or her operations under the mining lease, he or she shall maintain separate books of account of his or her operations under the mining lease; and
(iii)
such other reports and information as the Commissioner may request;
(b)
permit an authorised officer at any time to inspect the books and records maintained in pursuance of paragraph (a) of this subsection; and shall deliver to the Commissioner, without charge, copies of any part of such books and records as may be required;
(c)
within ninety days after the end of each financial year, furnish the Commissioner with a copy of his or her audited annual financial report, showing the profit or loss for the financial year and the state of financial affairs of the holder of the mining lease for the year in question.
Wasteful 51. (1) Where the Commissioner considers that the holder of a mining and treatment mining lease is using wasteful mining or treatment practices, the practices. Commissioner may notify the holder accordingly and require him or her to show cause within such period as the Commissioner may specify, why he or she should not cease to use such practices.
(2)
Where, within the period specified in any notice issued under subsection (1) of this section the holder of the mining lease fails to satisfy the Commissioner that he or she is not using wasteful mining or treatment practices, or that the use of such practices is justified, the Commissioner may order the holder of the mining lease concerned to cease using such practices within such period as the Commissioner may specify.
(3)
Where the holder of the mining lease fails, after being so ordered, to cease using wasteful mining or treatment practices, the Commissioner may cancel that mining lease or may suspend the mining lease for such period as the Commissioner thinks fit.
Coordination 52. (1) Where the Commissioner considers that the public of mining Operations interest or the interests of the holders of mining leases and location licences covering neighbouring or contiguous mining or location licence areas would best be served with regard to the efficient and economic exploitation of minerals by the co- ordination of all or part of the mining operations of the holders, the Commissioner may direct the holders to effect such co- ordination by entering into an agreement, to be approved by the Commissioner, to effect the co-ordination within such time as the Commissioner may specify.
(2)
Before giving any directions under subsection (1) of this section, the Commissioner shall afford the holders of the mining leases and location licences concerned reasonable Opportunity to make representations to him or her in writing.
Cessation, 53. (1) Subject to subsection (3) of this section, the holder Suspension and of a mining lease shall notify the Commissionercurtailment of (a) one year in advance, if he or she proposes to cease production. production from his or her mine;
(b)
six months in advance, if he or she proposes to suspend production from his or her mine;
(c)
three months in advance, if he or she proposes to curtail production from his or her mine; and shall, in all cases, give good technical and economic reasons for such cessatio ., suspension or curtailment.
(2)
Where for reasons beyond his or her reasonable control, the holder of a mining lease ceases, suspends or curtails production from his or her mine without complying with subsection (1) of this section, he or she shall within fourteen days of the cessation, suspension or curtailment notify the Commissioner.
(3)
Where the Commissioner receives a notification referred to in subsection (1) or subsection (2) of this section, or where the Commissioner otherwise becomes aware of any cessation, suspension or curtailment of production, he or she shall cause the matter to be investigated; and shall, subject to any relevant requirement contained in the mining lease, give his or her approval to the cessation, suspension or curtailment.
(4)
Approval of cessation, suspension or curtailment may be given subject to such conditions as the Commissioner may impose.