If you are a mining investor, it is wise if you try to understand some basic rules governing exploration, development, prospecting, and land reclamation. You’ve probably heard about mining tenement online or somewhere else, and maybe you’ve no idea about its effect on your investment as a mining company. We will try to explain some basics and reasons why you need this part the most in your mining life and investment. The context also will try to explain some terms you will probably meet or find in the document that will affect your investment in one way or the other. The point is you should try to have a copy since these lease and permits vary from one country/state to the other, you should find more about them before making any step towards investment.
Type of Lease and Permits
Prospecting Lease
This is the right given to your company to search for valuable minerals in a given area or point of interest. These lease cover for the land and other exploration rights that allow you and your drilling and exploration team to assess and calculate the ore reserve’s block economic value. Some countries subject this lease to auto-renewal, while others will require you to apply for a new permit. It is then wise as a mining company to understand all the terms in this document before investing.
Mining and Development Lease
The lease allows your company to buy or procure machines and equipment for your mining process. The permit covers more and advanced mineral excavation and exploration techniques such as seismic surveys and drilling. Here you should be able to process and sell your final products, but each company should try to adhere to all markets and other regulations stated by the host government. So, before anything else, understanding the country mining acts and law is the key to a good and profitable investment.
Why Do you Need a Mining Permit?
They are permits or licenses that grant you the right to access extra land for exploration, development, and processing. The right to own a land for your practice is also stated here, and for an investment like mining that requires time, it is wise to understand some compensation procedures to landowners and other stakeholders. The mining tenement online system should allow you to have a copy of some mining rules and regulations governing excavation and other environmental factors that your company is supposed to adhere to in your mining activities.
