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Part B: Mineral Rights - Part B-5: Development Minerals - 31. Development Minerals Exploitation Licence | 31.5 Area

Development minerals as distinguished from other minerals may require different boundary size limitations (typically smaller because development minerals tend to be more concentrated and homogenous in their formation), and this ought to be clearly stipulated in the law to avoid ambiguity and for optimal exploitation of the mineral resource. Apart from commercial and local economic considerations, the size of the area granted for mining may also be dependent on the rate of mining allowed or approved by the Regulating entity. Accordingly, this provision requires that consideration is given to all these factors in determining the appropriate size grantable for exploitation of the various development minerals. Rules in respect of contiguity and shapes that are applicable to other mineral rights should be applicable.

31.5 Example 1:

Article [_]

The area granted for a large scale development mineral licence shall be determined by [Regulating Authority] in accordance with the nature or characteristics of the deposit and the method of mining but in any case shall not cover an area greater than [_].

Annotation

This example allows the Regulating entity to determine a maximum area based on economic and other considerations as well as on the nature or characteristics of the mineral resources and the proposed mining operations. The minimum area may be determined by the maximum area of other mining rights, such as a small scale mining right and an artisanal mining right.

31.5 Example 2:

Article [_]

An area subject to a large scale mineral development exploitation licence shall be at least [_] [units/blocks] and not more that [_] [units/blocks]. [units/blocks] shall be contiguous and have a side in common with at least one another.

Annotation

This example simply provides the lower and upper limit of the size of a large scale development mineral exploitation licence. Rules of contiguity and may be included if it is not provided in another part of the law.