HC Deb 26 October 1949 vol 468 cc146-8W
31. Mr. H. D. Hughes

asked the Secretary of State for the Colonies to make a statement on the recent agreement between the Government of Northern Rhodesia and the British South Africa Company on mineral royalties; and what is the estimated life of the mineral deposits concerned.

Mr. Creech Jones

A full statement of the results of my discussions with representatives of the British South Africa Company and of the Government of Northern Rhodesia was published in the Press on 10th August. I am reproducing a copy at the end of this reply. The Northern Rhodesia Legislative Council unanimously approved the agreement in principle on 14th September.

No accurate estimate of the life of the mineral deposits concerned is available, but I have no reason to believe that there is any truth in newspaper reports that they will be by any means exhausted by 1986. It will be appreciated that the proposed agreement will relate to all minerals, developed and undeveloped.

Following is the statement published in the Press, 10th August, 1949:

Northern Rhodesia Mineral Rights

Mr. Creech Jones, the Secretary of State for the Colonies, has now completed his discussions with representatives of the British South Africa Company, the Governor of Northern Rhodesia and Mr. Welensky and Mr. Beckett, elected members of the Northern Rhodesia Legislative Council, on the subject of the Company's mineral rights in the Territory.

2. Agreement was reached at these discussions, subject to the approval of the Company's shareholders, and of the Legislative Council of Northern Rhodesia on the basis of the following arrangements:—

  1. (a) the British South Africa Company should continue to enjoy its mineral rights in Northern Rhodesia for a period of 37 years from the 1st October, 1949;
  2. (b) as from the 1st October, 1949, the Company should assign and pay to the Government of Northern Rhodesia 20 per cent. of the net revenue from its mineral rights in Northern Rhodesia. The sum so paid should be regarded as an expense for the purpose of Northern Rhodesian income tax. "Net revenue" means the profits of the Company derived from its mineral rights in Northern Rhodesia calculated in the same manner as for the purpose of Northern Rhodesian Income Tax;
  3. (c) on the 1st October, 1986, the Company should transfer its mineral rights in Northern Rhodesia to the Government of Northern Rhodesia free of charge;
  4. (d) during the 37 year period no special tax should be imposed on mineral royalties as such in Northern Rhodesia;
  5. (e) His Majesty's Government should undertake to secure so far as possible that any Government which may become responsible during the 37 year period for the administration of Northern Rhodesia should be bound by these arrangements.

3. His Majesty's Government welcome the proposed arrangements and, subject to the approval of the Company's shareholders and of the Northern Rhodesia Legislative Council they will be prepared to enter into an agreement with the Company in the above sense to which agreement the Government of Northern Rhodesia would be a party.