If you are into mining, you’ve probably heard about a mining tenement system, a lease, or a claim under the host government’s mining act dictating how prospecting, exploration, development, and land restorations stages will be carried out. This claim also provides you or your mining company a right to prospect or search for valuable minerals within your license’s stated area. As a mining company, it is wise to understand some basics about the whole mining tenement system of different countries before moving towards investing. As usual, we are here to help you understand the complete guide about mining and its regulations.

All you Need to Know About Mining Tenement Systems

The mining lease of any country or state grants you the right to explore for valuable minerals as a mining company. The lease also provides guidelines on environmental and native factors that you should consider when excavating or processing your minerals. It is then wise to read and understand all the sections of this document before putting that in a paper as a contract. The host country will expect you to adhere to all rules and regulations governing their mining industry as a mining company. Since this is a commercial investment, your profit and other parameters should also be in place, so you should not only pick a country, but its mining terms should guide you whether to invest in the country. Here is some lease that you should know before making any move towards investing or signing a contract.

Prospecting and Exploration Lease

This is where you get that right to conduct a mineral search in any country; this lease is the same in all the states. It covers a specific area under exploration and particular time for your activity. Here you are allowed to conduct drilling, blasting, or any other exploration activity with an aim assessing the economic value of the ore reserve.

Development and Mining Lease

This allows you to import or buy equipment that you will use in your mining process. Development lease varies from one country to the other some countries will instruct you to purchase equipment from a local supplier while others allow you to explore the world market for better and good gear. On the other hand, the mining lease is the right to permit you to excavate and mine valuable material in your interest area. All these leases are part of the mining tenement system, and the best way to make a wise choice on where to invest is by reading and understanding the whole document better before signing a mining contract.