(1)

Where the Central Government, after consultation with the State Government is of opinion that it is expedient in the interest of regulation of mines and mineral development, preservation of natural environment, control of floods, prevention of pollution, or to avoid danger to public health or communications or to ensure safety of buildings, monuments or other structures or for conservation of mineral resources or for maintaining safety in the mines or for such other purposes, as the Central Government may deem fit, it may request the State Government to make a premature termination of a prospecting license or mining lease in respect of any mineral other than a minor mineral in any area or part thereof, and, on receipt of such request, the State Government shall make an order making a premature termination of such prospecting licence or exploration licence or mining lease with respect to the area or any part thereof.

(2)

Where the State Government ] [* * *] [ The words " , after consultation with the Central Government " omitted by Act 25 of 1994, Section 2 (w.r.e.f. 25.1.1994).][is of opinion that it is expedient in the interest of regulation of mines and mineral development, preservation of natural environment, control of floods, prevention of pollution or to avoid danger to public health or communications or to ensure safety of buildings, monuments or other structures or for such other purposes, as the State Government may deem fit, it may, by an order, in respect of any minor mineral, make premature termination of a prospecting license or mining lease with respect to the area or any part thereof covered by such license or lease.] [Substituted by Act 37 of 1986, Section 3 (w.e.f. 10.2.1987). Earlier, it was inserted by Act 56 of 1972, Section 2 (w.e.f. 12.9.1972). ]

[* * *] [ Proviso omitted by Act 38 of 1999, Section 6 (w.e.f. 18.12.1999).]

(3)

No order making a premature termination of a or exploration licence or mining lease shall be made except after giving the holder of the license or lease a reasonable opportunity of being heard.

(4)

Where the holder of a mining lease fails to undertake production and dispatch for a period of ] [Substituted by Act 37 of 1986, Section 3 (w.e.f. 10.2.1987). Earlier, it was inserted by Act 56 of 1972, Section 2 (w.e.f. 12.9.1972). ] [two years] [ Substituted by Act 25 of 1994, Section 2, for " one year " (w.r.e.f. 25.1.1994).][after the date of execution of the lease or, having commenced production and dispatch, has discontinued the same for a period of ] [Substituted by Act 37 of 1986, Section 3 (w.e.f. 10.2.1987). Earlier, it was inserted by Act 56 of 1972, Section 2 (w.e.f. 12.9.1972). ][two year] [ Substituted by Act 25 of 1994, Section 2, for " one year " (w.r.e.f. 25.1.1994).][, the lease shall lapse on the expiry of the period of ] [Substituted by Act 37 of 1986, Section 3 (w.e.f. 10.2.1987). Earlier, it was inserted by Act 56 of 1972, Section 2 (w.e.f. 12.9.1972). ][two years] [ Substituted by Act 25 of 1994, Section 2, for " one year " (w.r.e.f. 25.1.1994).][from the date of execution of the lease or, as the case may be, discontinuance of the production and dispatch:

Provided that the State Government may, on an application made by the holder of such lease before it lapses and on being satisfied that it shall not be possible for the holder of the lease to undertake production and dispatch or to continue such production and dispatch for reasons beyond his control, make an order, within a period of three months from the date of receipt of such application, to extend the period of two years by a further period not exceeding one year and such extension shall not be granted for more than once during the entire period of lease:

Provided further that such lease shall lapse on failure to undertake production and dispatch or having commenced the production and dispatch fails to continue the same before the end of such extended period.