Section 4: Prospecting licence and mining lease

4. Prospecting licence and mining lease (1) Subject to this section, the Minister may— (a) (i) on application made in the prescribed manner; or (ii) by auction or tender; and (b) on being satisfied that the applicant, the bidder or the tenderer, as the case may be, has sufficient technical knowledge, experience and financial resources to ensure the proper prospecting and mining for petroleum, P7 – 1 [Issue 1] Petroleum Act grant to the applicant, bidder or tenderer a prospecting licence or a mining lease. (2) A prospecting licence shall confer on the licensee exclusive rights to conduct prospecting operations over the area comprised in the licence. (3) A mining lease shall be granted only in respect of an area which has been comprised in a prospecting licence and in which petroleum has been found and shall confer on the lessee exclusive rights to prospect and mine for petroleum and associated substances over the area comprised in the lease. (4) A prospecting licence or a mining lease may be granted for such consideration, over such area, for such period and such other terms and conditions as the Minister may determine. (5) A prospecting licence or a mining lease may, on application being made in the prescribed manner, be renewed for such consideration, over such area, for such period and on such other terms and conditions as the Minister may determine. (6) Notwithstanding subsections (4) and (5), the terms and conditions of any prospecting licence or mining lease may provide for— (a) the royalty or other payment to be made in respect of petroleum obtained in the exercise of the rights conferred by the licence or the lease, the method of calculating the royalty or other payment, and its manner of payment; (b) the rent to be paid in respect of an area comprised in the licence or lease; (c) the working obligations attached to the licence or lease; (d) the method of measuring petroleum obtained from an area comprised in the licence or lease; (e) directions relating to the drilling, location and plugging of wells, the avoidance of harmful methods of working, the avoidance of interference with other activities in or about the area comprised in the licence or lease; (f) directions relating to— (i) the nationality of persons employed by the licensee or lessee for the purposes of his operations under the licence or lease; and (ii) the safety, health and welfare of such persons; (g) the supply of information by way of returns, reports, notices, plans and records of operations carried out under the licence or lease; (h) the terms and conditions under which the licence or lease may be terminated. [Issue 1] P7 – 2 Revised Laws of Mauritius (7) The Minister shall, as soon as practicable, after the grant or renewal of a prospecting licence or a mining lease, cause a notice of the fact to be published in the Gazette, stating the name of the licensee or lessee and the area in respect of which the prospecting licence or the mining lease has been granted.