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Part B: Mineral Rights - Part B-3: Large Scale Exploitation - 26. Large Scale Exploitation Licensing | 26.4 Area

Area refers to a provision that enumerates the physical boundary, marking the size of the space grantable for mining. Most laws only provide for the maximum size permitted under the licence, but a law may also provide the minimum threshold allowed. The area of a mining licence must be entirely within the area of the applicant’s licence and conform to the cadastral rules as to shape and orientation. In some cases, it is limited to the area where the deposit is located and only such other area as is necessary for the extraction, processing, stockpiling and transportation of the minerals, and related infrastructure for workers and management. There is often a limitation of the maximum surface area that can be held by a single company and its affiliates.

26.4. Example 1:

Article [_]

The surface area covered by the operating licence shall be demarcated according to the deposit. It must be located entirely within the area for the prospecting licence or licences which belong to the same holder, from which it derives.

Annotation

Draw from Chad’s mining law (1995), this provision provides that the area of a large scale exploitation permit is a function of the commercial deposit and must be entirely situated within the area covered by one or more exploration permits held by the same person.

26.4. Example 2:

Article [_]

The area of land in respect of which any Mining Lease is granted shall be determined in relation to the ore body as defined in the feasibility study submitted in respect of the Mining Lease together with an area reasonably required for the workings of the mineral resources; provided such area shall not exceed fifty square kilometres.

Annotation

Drawn from Nigeria’s mining law (2007), this provision establishes the typical requirements of area size in relation to the orebody and necessary related workings, location within the exploration licence or small-scale mining lease of the holder, and also impose a size limit of 50 square kilometres.