Section 3, The Tonkolili Agreement Ordinance

(a) The First Licence shall confer on the Company (inter alia) allthe rights set out in Section 13 of the Minerals Ordinance 1927. The * period of such Licence shall be five years from the first day of October One thousand nine hundred and thirty-three. (b) Subject as hereinafter mentioned ·the Company shall be under no obligation during the period of the First Licence to survey demarcate beacon or clear the boundaries of the Tonkolili areas. (c) If the Company and/or the adjacent owner shall require that any common boundary be cleared surveyed beaconed and demarcated the Company shall procure that this be done and the Company and the adjacent owner shall share the cost thereof in accordance with the Minerals Rules. (d) The Company on the first day of October One thousand nine hundred and thirty-seven shall in respect of the last year of the period of the First Licence pay to the Government a. rent of Six Pounds for each square mile of the Tonkolili areas. (e) The Company shall during the period of the First Licence spend a total sum of not less than Four Thousand Pounds multiplied by the number of complete years of such period on exploration and/or railway survey. (j) The Government from the first day of October One thousand nine hundred and thirty-seven shall during the period of the First Licence indemnify the Company against all claims of any owners or occupiers (including the Tribal Authorities) in respect of the Tonkolili areas other than claims for compensation made in accordance with the provisions of the Minerals Ordinance but subject to Clause 14 of this Agreement. (g) At any time and from time to time during the period of the First Licence the Company shall have the right to call for and the Government shall grant mining leases for all or any minerals or metals except iron ore (including any water andfor other rights or easements required in connection therewith) in respect of any lands within the Tonkolili areas for periods of not more than ninety-nine years or less than one year but otherwise subject to the provisions of Section 28 of the Minerals Ordinance or to determination i as mentioned in Clause 9 hereof and on terms not less favourable having *Now section 15. t Now section 31. S.L.-VoL. IV-12 2108 Cap. 202] Tonkolili Agreement (1937) regard (except in the case of gold platinum and precious stones) to the relative locations of the respective deposits than those on which similar mining leases are held by others in Sierra Leone or if there be no similar mining exploitation in Sierra Leone at a royalty (except in the case of gold platinum and precious stones) not exceeding five per centum of the value of the metal or mineral as mined at the mine mouth. Any dispute as to the terms upon which any such lease shall be granted shall be referred to arbitration in accordance with Clause 27 of this Agreement. (h) At any time and from time to time during the period of the First Licence the Company shall have the right to call for and the Government shall grant mining rights for any minerals or metals except iron ore in respect of any streams with the Tonkolili areas and the provisions of Clause 3 (g) above in regard to royalties payable in respect of mining leases shall apply mutatis mutandis to any mining rights so granted. (i) The areas covered by any such mining leases and/or mining rights granted under the last preceding paragraphs (g) and (h) shall during the period of the First Licence be deemed to remain part of the Tonkolili areas and the Company shall retain the exclusive rights to prospect thereon for all minerals other than those for which such mining leases and/or rights have been granted and if and when such mining leases andfor rights or any of them are determined the First Licence if still in force shall again be deemed to include the right to prospect for all minerals over all those parts of the Tonkolili areas in respect of which no other mining right or mining lease is for the time being in existence. (j) If at any time or from time to time during the term of the First Licence there shall be in existence any separate mining rights or mining leases covering or partly covering the Tonkolili areas then the rent payable under Clause 3 (cl) hereof in respect of the Tonkolili areas shall not be payable in respect of so much of the Tonkolili areas as shall be included in the areas of such separate mining rights or mining leases but the Company in respect of such separate mining rights or mining leases shall pay the mining rents and surface rents prescribed by the Minerals Ordinance and the Minerals Rules. (k) No diamonds discovered in the Tonkolili areas shall be won or exported from Sierra Leone by the Company except upon such fair and equitable conditions regulating the winning and marketing thereof as may be from time to time approved by the Government provided that the Company shall not if and while it is prevented from winning such diamonds on a commercial basis be under any liability whatsoever in respect of the illicit working by any person of such diamonds and provided also that the Company shall be kept fully indemnified by the Government in respect of any damage suffered by the Company in consequence of any steps taken by the Government to prevent such illicit working. (l) If and when diamonds are discovered in or under the Tonkolili areas the Company shall notify the Government of such discovery and thereupon may apply for authority to win and market such diamonds and the Government will give such authority provided that the Company agrees to the said fair and equitable conditions.