A mining tenement system is a permit or lease giving a mining company the right to conduct prospecting, exploration, development/mining, excavation, and land restoration practices. These are the stages of any mining activity, and if you are a mining investor, you should look for a good mining tenement system. Something that will help you negotiate with local native landowners for compensation or to allow you to expand your ore reserve search and for better decision making. Each state/ country/ province has its own rules and regulations governing the whole mining process. We researched some mining zones. Here are some tenement systems you should know or try to understand before you make any move towards signing a contract with your host state.
Prospecting Lease
Prospecting includes the feasibility study. This is where you send a geologist team to study the pattern of the ore reserve. It contains regular visitation of the sight and decision-making on the better machinery to buy for the project. Each state has its lease and regulation governing this stage; it is then wise for you or any mining company to understand all the prospecting requirements before signing; these requirements include; renewal of the rights, an extension of the prospecting period, and land ownership. Additionally, land ownership should be a significant concern here since you’re looking for some space to conduct drilling, sample testing, and appropriate processing methods to use.
Exploration Lease
This is the permit to allow your company to conduct a simple search; here, you are expected to install drilling materials and sample collection equipment. The mining tenement system should always clearly outline this part for any investors to understand and for proper decision-making. As a mining company, it is also useful to find more information about rules and regulations regarding the whole exploration practices. While keeping in mind that exploration is a crucial part of the entire investment, it provides you with related economic findings on whether or not you should invest in your new zone.
Environmental and Land Restorations
This is the last stage in any mining activity, and it is the most expensive part of any mining process. Here you will be required to restore or reclaim the land after excavation or fill the pits you left behind when mining your ore. As an investor, take your time and find a favorable or a team of specialists to help you understand and have a proper land reclamation process. In conclusion, mining is full of ups and downs. The best way to avoid any mining or exploration inconveniences is to understand all the terms in any mining tenement system of the country you are investing in or mining in their land.
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