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Part B: Mineral Rights - Part B-5: Development Minerals - 31. Development Minerals Exploitation Licence | 31.4 Grant of Licence

The provisions for the grant of a licence under the mining law are generally applicable, subject to the authority determined to be the grantor as discussed above. Where a state or other local government authority is determined to be the grantor this may require clarifications in this part regarding how such grants may be effected. Additionally, an improvement worth considering, even for other grants of mineral rights generally, is the allocation of unique licence numbers that must be exhibited on the land.

31.4 Example 1:

Article [_]

(1) The grant of a development mineral exploitation licence shall be in the prescribed form and shall include the following:

(a) a unique licence number;

(b) a description of the area;

(c) the name of the grantee;

(d) the date of the grant;

(e) the term of the licence;

(f) confirmation of the grant by the [Regulating Authority];

(g) the terms and conditions of the licence.


This example requires that a document evidencing the grant of an exploitation right contains sufficient relevant information including a unique number that with the use of appropriate technology can indicate the holder’s geo-location. This ensures that licence holders who stray from their location can be identified and disciplined.

31.4 Example 2:

Article [_]

(1) The [Regulating Authority] may grant exploitation licences by auction where:

(a) sufficient geoscientific data is available for the area to warrant an auction;

(b) an area was subject to previous mining activities or produced significant quantities of minerals;

(c) two or more applications are received at the same time in respect of the same area;

(c) the [Regulating Authority] considers that an auction is the most appropriate method for granting rights over an area.

(2) Auctions shall be conducted in accordance with prescribed regulations.


This example provides for situations where auctions may be used to allocate exploitation rights.