Everything You Wanted To Know About Mining Tenement

If you are a firm interested in conducting seismic surveys or exploring the minerals in a piece of land, you must obtain a valid mining tenement or a license. www.mining-journal.com lists details about the future of mining and the latest analysis of the mining market. Subscribe to their newsletter or sign up for free alerts.

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Meanwhile, here are few things that you should get acquainted with before filing a mining proposal.

What Is Mining Tenement?

This is a type of claim, lease, or license prescribed under the Mining Act 1971. It states that interested firms must apply for this proposal so they have permission to conduct legal activities on the land.

A mining proposal is granted to make sure that the results of your exploration or survey will not have any undesirous effect on the environment.

Types Of Mining Tenements

According to the Mining Act 1978, there are a number of mining tenements. It includes:

Prospecting Licenses

  • In order to qualify for a prospecting license, the total area of the land must equal 200 hectares.
  • Unless specified, these licenses have to be marked compulsorily.
  • There is no limit on the number of prospecting licenses that you can obtain. It is required that the concerned firm or individual pay $5000 as a security fee.
  • The maximum time period of a prospecting license is four years, and there is provision for extension up to another four-year term.
  • The holder of the license can extract or make use of 500 tons of material from the ground.

Special Prospecting License (SPL) for Gold

  • The total area of the land must not exceed 10 hectares, and you cannot avail more than 10 SPL at a given time.
  • It can be granted as a prospecting license if it is observed that the activities carried out have no negative effects.

Exploration License

  • In order to avail an Exploration License, the minimum size of the land should be one block and the maximum size can be up to 70 blocks.
  • These licenses are not marked and there is no limit whatsoever on the number of licenses that a person or firm obtains. However, a security fee of $5000 must be submitted for each license.

Retention License

  • This is a “holding” title that is given to a mineral identified as endangered, or which cannot be mined further.
  • There is no maximum area for the piece of land and the term cannot exceed five years.

Applying For A Mining Proposal

Before you file a mining tenement you should be aware of the constraints and objections, if any. You should come up with a report of the land on which you plan to do a survey or any activity. Fill in details like the nature of the activity and any other details that may be required. A tenet management firm will assist you in completing further formalities.

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