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Part B: Mineral Rights - Part B-5: Development Minerals - 31. Development Minerals Exploitation Licence | 31.7 Obligations of licence holder

The obligations of a holder of an exploitation right are sufficiently discussed elsewhere in the GT. These include work obligations, commencement within a stipulated time, reporting, health, safety and environmental requirements and fee payments. To these may be added the principal requirement in relation to development minerals, i.e. the obligation to process or beneficiate minerals locally. Also, where a minimum investment threshold is required, this provision may stipulate the obligation to make the investment

31.7 Example 1:

Article [_]

(1) A holder of a large scale development mineral exploitation licence shall process or add value within the [Country] [Region] to the mineral exploited under the licence in accordance with the holder’s approved development/industrialization impact plan.

(2) A holder shall not dispose of or export any mineral that has not been processed or beneficiated otherwise than as approved under the development/industrialization impact plan or by the [Regulating Authority].


This example requires the holder to comply with the approved development impact plan. This plan, the format of which is to be designed by governments, will determine the level of processing or beneficiation required of the mineral to be exploited. The plan shall also provide for situations where the holder proposes to undertake exploitation only and supply the minerals to a holder of a processing licence. In such cases the holder must ensure that the mineral is supplied to an approved local processing facility.

31.7 Example 2:

Article [_]

A holder of a large scale development mineral exploitation licence who is not a citizen shall make the investments required under the minimum investment threshold within the period stipulated in this [Law][Act][Code] or by regulations


This is an example provision to require compliance with the minimum investment threshold to be made by non-citizen applicants for large scale development mineral exploitation licences.