Explanation of Recent

Ordinance

From Our Own Correspondent.

Pt. Moresby, Feb. 20.

IN the January number of the P.I.M. a paragraph dealt with a recent proclama tion, by which 29,000 square miles of the Territory are specially reserved for a large British concern. Recent letters from Port Moresby, it was stated, indicated that there was a good deal of strong feeling against the Ordinance, and in considera tion of this feeling, the following informa tion may be of interest.

The Mining (Facilities for Develop ment) Ordinance, 1934, was passed in

order to facilitate prospecting on a large scale and in remote parts of the country.

It was based upon similar legislation passed by a Labour Government in West ern Australia; and there is also similar legislation in Queensland.

It has nothing to do with Oil.

The area reserved is still open to pros pecting as before, but the Company has the right of first refusal over mining tene ments acquired after the grant of the reserve; and no lease or tenement will be granted except upon conditions that the applicant gives the grantee of the reserve the first right of purchase “on terms not more onerous than those which he would be prepared to offer it to others.”

Mining tenements already existing are not affected at all.

Such an opportunity of testing this re mote part of the country by a company with ample capital was not to be refused, and it would have been madness not to have accepted it.

The Bill was explained and discussed in the Legislative Council. The following is from Legislative Council Debates Meeting No. 2, July, 1934.

“The Bill is introduced for the greater encourage men of prospecting and mining for the ultimate good of the Territory. The physical features of the country make the efforts of individuals for the most part unproductive. The Territory can the more readily, and the more successfully, be pros pected for its mineral wealth, by companies with ample capital than by individuals who mostly have no capital at all, and cannot command capital for development, even if successful in prospecting.

Companies are known to exist, ready and willing to spend money in the search for gold and other minerals in the Territory. It seems only proper that some benefits should be bestowed upon them in return for the money they spend in the risky business of prospecting; “By the provisions of this Bill, areas may be reserved in which the grantee Company has right of first refusal over mining tenements acquired after the grant of the reserve. The rights of original mining tenants, whether tenants before or after the creation of the reserve, are not dis turbed. The Bill is destined, too, to assist the individual prospector to find a ready market for his mining tenement should he wish to dispose of it.”

It is reported that Mr. Ward Williams, the well known mining engineer, will ac company members of the Oroville Com pany up the Fly River to Palmer Junc tion, where a base camp will be made from which prospecting parties will work eastwards.