For sale by the Superintendent of Documents, U.S. Government Printing Office Foreword The Federal Bureau of Mines takes pride in presenting this summary of the Mining and Petroleum Laws of the world. The report is the work of Northcutt Ely, a Washington, D.C., attorney and former executive assistant to the Secretary of the Interior. Mr. Ely's long experience with the legal aspects of natural-resource development was recognized by the American Institute of Mining, Metallurgical, and Petroleum Engineers when it called upon him to contribute to its 1959 publication, Economics of the Mineral Industries; Mr. Ely is senior author of the chapter, Mineral Titles and Tenure. The AIME study prompted him to prepare this summary of mineral laws in various countries of the world. Publication rights were obtained by the Bureau of Mines. The Bureau of Mines believes that this is the first time a summary of mining laws on a global basis has been published, and the author and his sponsors recognize the limitations of the document. Because legal literature concerning minerals is voluminous and in many languages, some errors of translation and interpretation may be found. Of necessity only the major features of the various laws are presented. It was not possible to include all areas of the world; among the omissions are a few small free-world nations, where meager mineral resources are administered under agricultural and general industrial regulations. All the Communist nations, except the U.S.S.R., have been excluded. However, the reader should note that Communist doctrine does not embrace legislative concepts designed to encourage mineral resource development under private auspices. The information contained in this volume represents conditions existing in 1959. Changes in legislation and administrative policies that have resulted from establishment of revolutionary governments or the creation of new nations during 1959 and 1960 are not shown in this work. The Bureau of Mines and the author welcome constructive criticism. Private investors contemplating mineral ventures in any land will recognize that organized society is dynamic and that, therefore, mining laws and codes are always subject to change. Moreover, there are other factors that may exert major influences on investment decisions. Interpretation and enforcement of basic laws can vary with the personalities in command of governments at any given time. Legal factors beyond the scope of mineral codes also have an effect on the investment climate. Among these are laws that control corporate structures, labor relations, and taxation, and monetary and other types of fiscal regulations. Local habits and customs as well as religious influences also have a significant effect on business enterprise. The prudent investor inevitably will explore thoroughly all of these influences as well as the resource itself before he decides to risk his capital in a mining venture. This study of the provisions and philosophies expressed in the mining laws of the world is most timely. We are living in an era of kaleidoscopic change. In many parts of the world the proper role of private capital in social and economic development is being examined. In some places its very existence is threatened. History reveals that the more abundant life is the reward of those who use their natural resources to the maximum; also that aggressive development of mineral resources is fundamental to industrial growth. Yet some nations which allegedly are striving hard to narrow the time interval in converting an elementary society into an industrial society are neglecting mineral development. The latter results in part from a lack of understanding but chiefly from the lack of capital and technologic resources. By maintaining archaic philosophies, laws, and regulations such nations deny themselves the benefit of capital and know-how from friendly free nations. The alarming extent of this paradox is revealed in the inability of the United Nations to induce underdeveloped countries to adopt realistic measures that would encourage the flow of foreign capital into their economies. Leaders abroad who are interested in speeding up the process of converting the riches of latent mineral resources into economic progress will find helpful information in this volume. The basic provisions of the mining laws of Canada, Peru, and the Union of South Africa-nations which have experienced great advances in mineral production are particularly pertinent. Those engaged in the business of producing the world's minerals also will find this reference helpful. Of significance in this context is the long-range problem of mineral supply. Measured in terms of current needs, known commercial reserves of many vital industrial minerals, though adequate for the short term, dwindle to alarmingly small proportions when measured against rapidly expanding world consumption. Temporary oversupply resulting from the vagaries of the economic cycle or temporary overdevelopment of production facilities should not obscure the fact that persistent and potent efforts will be required to meet future requirements of such commodities. In this effort the investment climate and operating environment provided by the mining laws of the world will be no less important in achieving success than the search for new mineral deposits and the expansion of the resource base through technologic progress. ELMER W. PEHRSON Chief, Division of Foreign Activities |