DRAFT MINERAL LEASE AT PARAPARA (COPY OF), CONSENTED TO BY THE HON. THE MINISTER OF MINES IN TERMS OF SECTION TWO OF "THE MINING ACT AMENDMENT ACT, 1902."

Appendix to the Journals of the House of Representatives, 1904 Session I, C-06

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1904. NEW ZEALAND.

DRAFT MINERAL LEASE AT PARAPARA (COPY OF), CONSENTED TO BY THE HON. THE MINISTER OF MINES IN TERMS OF SECTION TWO OF "THE MINING ACT AMENDMENT ACT, 1902."

Laid on the Table of the House of Representatives by Leave.

Lease. Puksuant to " The Mining Act Amendment Act, 1902," and " The Mining Act, 1898," and all other powers me thereunto enabling, I, the undersigned Wilson Heaps, Esq., Warden of the Karamea Mining District, do hereby grant to Sir Alfred Cadman, K.G.M.G., of Auckland, settler, his executors, administrators, and assigns (hereinafter, with his executors, administrators, and assigns, called " the lessee ") this mineral lease, authorising the lessee to occupy the parcel of Crown land situated in the said mining district, containing by admeasurement 920 acres, more or less, as the same is delineated in the schedule hereto (hereinafter called " the demised land ") for the purpose of mining for iron-ore (otherwise known as " haematite ") upon the terms and conditions following, that is to say : — 1. The sum of one thousand pounds (£1,000), already deposited by the lessee with the Public Trustee in connection with the application for this lease, shall be held by him as security for the lessee's due compliance with the terms of this lease, and such sum of one thousand pounds (£1,000) shall be absolutely forfeited to His Majesty the King, if the lessee does not expend the sum of one thousand pounds (£1,000) during the first year of the term hereby granted, as provided by clause ten hereof ; but the lessee, if he duly comply with the terms hereof, shall be entitled on application to the Public Trustee to a return of the same (without interest) by instalments of not less than two hundred and fifty pounds (£250), each instalment being payable only on the certificate of an Inspector of Mines that since payment of the previous instalment (if any) the lessee has expended during the second year of the said term, in work or material on the demised land, not less than twice the amount of the instalment applied for. 2. This lease is granted for a term of forty-two (42) years (hereinafter called " the said term ") commencing on the date hereof: Provided always that the lessee shall have such right of renewal as is provided for in section 138 of " The Mining Act, 1898." 3. Without in any way limiting or affecting any other rights or powers of the Crown or the Warden, there is hereby reserved to His Majesty and his successors the full and free right from time to time, and at any time during the said term, to lay off, construct, and maintain roads, railways, and tramways on, through, or over any part of the demised land, and to appropriate and fence off, or otherwise demark such portion of the demised land as is required for the purposes of such roads, railways, and tramways : Provided that the rights hereby reserved shall be so exercised as not to interfere with the lessee's mining operations or works on the demised land : And, as often as any question arises as to whether any specified exercise or proposed exercise of such rights does, or may, so interfere, the question shall be referred to the Warden, whose decision shall be final, subject, however, to the same right of appeal as is provided by " The Mining Act, 1898," and its amendments in the case of proceedings before the Warden or the Warden's Court. 4. The rent payable by the lessee during the said term shall be the yearly rent of one hundred and fifteen pounds (£115), being at the rate of two shillings and sixpence (2s. 6d.) for every acre or fraction of an acre of the demised land; all payments in respect thereof, having been duly made up to the thirtieth day of June, one thousand nine hundred and four, and the subsequent payments be made by equal half-yearly instalments of fifty-seven pounds ten shillings (£57 10s.) in advance, computed from the said thirtieth day of June, one thousand nine hundred and four. 5. The lessee shall pay a royalty of one twenty-fifth of the value at the pit's mouth of all iron-ore raised pursuant to this lease. 6. For the purpose of estimating the amount of royalty payable hereunder, the value of the iron-ore so raised shall be deemed to be six shillings and threepence (6s. 3d.) per ton at the pit's mouth.

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7. The said royalty shall be due and payable on the same days, and for the same periods as the said instalments of rent accruing after the date hereof: Provided that the first such payment of royalty shall be due and payable on the thirtieth day of June, one thousand nine hundred and four, and be in respect of the royalty for the period elapsing between the date of this lease and the said thirtieth day of June. And provided further that all sums paid in respect of royalty for any period shall, to the extent of the rent payable for the same period, be deemed to be in or towards satisfaction of such rent. 8. On the thirtieth day of June, one thousand nine hundred and five, and at half-yearly intervals thereafter during the said term, the lessee shall make to the Eeceiver of Gold Eevenue at Collingwood true and accurate returns of all iron-ore raised during the preceding half-year pursuant to this lease. 9. The lessee shall, within six months after the date of this lease, commence and thereafter during the term of the lease continually prosecute mining operations on the demised land for ironore as aforesaid, and for that purpose shall (except as aforesaid) at all times during the first two years of the term keep employed upon or in connection with the demised land and his said mining operations thereon at least one workman for every full area of fifty acres or less therein contained, and thereafter during the term at least two workmen for every such area, provided as follows : — (a.) For the purpose of compliance with the aforesaid labour conditions there shall be included all work done in the construction or erection of machinery or in preparations indispensable to the actual commencement of mining operations, whether such work is done on or in connection with the demised land or on or in connection with any other land situate in the same mining district or on the sea-coast thereof, and used for the purposes of facilitating mining operations on the demised land. (b.) To the extent of one-half of the number of workmen which should otherwise be employed the expenditure of capital pursuant to clause 10 hereof or otherwise shall be equivalent to the employment of workmen in the proportion of one man for every thousand pounds of capital which, to the satisfaction of the Warden, has been expended by the lessee in plant or permanent works for the purpose of the said mining operations. 10. The lessee shall expend in work to be done in the construction or erection of machinery, or in preparations indispensable to the actual commencement of mining operations on the demised land such work to be done either on the demised land or (so long as such work is done in connection with such mining operations on the demised land) on land adjacent to the demised land, the sum of not less than one thousand pounds (£1,000) in all during the first year of the said term, four thousand pounds (£4,000), during the second year of the said term-, and five thousand pounds (£5,000) during each succeeding year of the said term until the sum of fifty thousand pounds (£50,000) in all shall have been so expended. 11. For the purpose of producing and treating iron, but for no other purpose, the lessee shall be at liberty to take and use such portion of the limestone on the demised land as may be necessary for the production and treatment of iron by the lessee. 12. The lessee shall, at all times during the said term, duly carry out and observe all the terms and conditions of this lease, and all such provisions of " The Mining Act, 1898," and the amendments thereof, and the regulations respectively thereunder, as are applicable to this lease and the lessee, or to mineral licenses and the licensees thereof. 13. All the provisions of " The Mining Act, 1898," its amendments and the regulations made thereunder applicable to mineral licenses, including all provisions and regulations for securing payment of the said rent and royalty, for insuring the regular, proper, and efficient carrying-on of mining operations on the demised land, for the inspection of all mines and workings therein and thereon, for the forfeiture or abandonment of this lease and for the protection of mining privileges, and for the assignment of the interest of the lessee herein shall, so far as the same are not inconsistent with the express provisions of this lease, or of section 2 of " The Mining Act Amendment Act, 1902," be deemed to form part of this lease, and to be incorporated herein. 14. Notwithstanding anything herein contained, or any right, Act, or law to the contrary, the Governor at any time during the said term, or any renewal thereof, on giving to the lessee at least six months' previous notice in writing of his intention so to do, may purchase from the lessee all his right, title, estate, and interest in the demised land and in this lease, and in all other lands situated in the said mining district or on the sea-coast thereof, and used in connection with the lessee's mining operations on the demised land, and all the lessee's plant, machinery, appliances, and other property used in or in connection with such mining operations at a fair value, to be ascertained in case of dispute in the manner following:— (a.) The amount of the purchase-money to be paid to the lessee shall be determined by arbitration, under, and in accordance with the provisions of " The Arbitration Act, 1890," and these presents shall be deemed to be a submission within the meaning of that Act: Provided that the reference shall be to two arbitrators, one to be appointed by each party, and an umpire appointed by the arbitrators before entering upon the reference. (b.) In ascertaining such fair value the arbitration shall proceed on the same principle as to items and amount as if the property purchased were land taken for a public work under " The Public Works Act, 1894." (C.) If in the course of the arbitration proceedings any question shall arise as to the right of the lessee to claim in respect of any head of damage, such question shall be determined by the Supren.e Court of New Zealand, upon a special case stated for the opinion of the Court.

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15. If the lessee shall desire an extension of the period of six months, within which mining operations are to be commenced, as provided by clause 9 hereof, he may at any time during the said period deposit with the Public Trustee the sum of one thousand pounds (£1,000) in addition to the sum of one thousand pounds (£1,000) referred to in clause 1 hereof, and thereupon the said period shall be deemed to be extended so that such operations may be commenced at any time within twelve months from the date of this lease, and all the provisions of clause 1 hereof shall extend and apply to such additional sum of one thousand pounds (£1,000). 16. Nothing in this lease shall operate or be construed to entitle the lessee to mine for gold or (except as provided by clause 11 hereof) for any metal or mineral other than iron-ore. 17. This lease shall be deemed to be granted under and subject to the provisions of section 2 of "The Mining Act Amendment Act, 1902.' THE SCHEDULE ABOVE REFERRED TO. In witness whereof I, , as such Warden as aforesaid, have hereunto subscribed my name, and affixed the seal of the Warden's Court at , this day of , one thousand nine hundred and four. In witness of my being bound as lessee by the terms and conditions of the foregoing lease, I, Sir Alfred Cadman, have hereunto subscribed my name this day of , one thousand nine hundred and four. Signed by the said Sir Alfred Cadman, in the presence of— I, James McGowan, Minister of Mines, under and by virtue of subsection 2 of section 2 of " The Mining Act, Amendment Act, 1902," do hereby consent to the foregoing lease. In witness whereof I have hereunto set my hand this twenty-first day of April, one thousand nine hundred and four. James MoGowan. Approximate Cost ef Paper, —Preparation, not given; printing (1,425 copies), £1 6s.

By Authority: John Mackay, Government Printer, Wellington.—l9o4. Price 3d.]