Mining Specifics

full all chapter5 chapter6 chapter7 chapter8 chapter9

chapter4 chapter5 chapter6 chapter7 chapter8 chapter9

Transparency and Accountability

Policy, Legal and Contractual Framework

Sector Organization and Institutions

Fiscal Design and Administration

Revenue Management and Distribution

Sustainable Development

  • Access to land is the starting point for the mineral exploration and mining process.

 

  • Ownership of sub-soil resources should be legally specified.

 

  • The state specifies mineral rights, generally either exploration or mining licenses, in exchange for license holders to undertake exploration or development work.

 

  • For mining, unlike for oil or gas, established practice includes the offering of exploration on a first come, first served basis due to a lack of both geological information and investor interest.  

 

  • However, there is now generally more data available and greater interest in obtaining exploration licenses.  

 

  • So, whilst first come, first served will continue to be appropriate for areas that are largely unexplored, good practice is for a government to offer licenses on a competitive bidding basis in situations where geological data is available and where there are strong indications of multiple and competing interest.  

 

  • Mining agreements should not:

     

      • include preferential-to-law investor fiscal terms, nor ‘most-favored nation’ provisions, nor provisions for their own extension to cover new areas.

     

      • provide license holders with long-lived exploration rights (such as exploration rights that last longer than a decade).

     

      • allow investor ‘land-banking’; rather there should be an obligation to take forward substantive work.

     

      • tie up very large amounts of land relative to the size of the area to be mined during the expected life of the mine.

     

 

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