The technological advancements, innovation of new mining tools and the high demand of gems on global levels has accelerated the mining business. The state governments and local jurisdictions have generated specific laws that regulate the environmental and social factors of the mining area. The mining company or owner has to apply for the permission to operate on the particular area for mining exploration. That license or permit to become eligible for mining exploration is called tenement. The rules and criteria for tenement vary as per the size of land to be used for exploration, the ecosystem of the mining area and the standards of the local government. The permit confirms no or very less destruction to the local environment and no conflicts with the land owners.
As per the Mining Act 1978, the Mining Tenement System is of following types:
-Prospecting Licence: The prospecting licence is applicable on a mining area of around 200 hectares and the total cost of licence is $5000. Their is no restriction on the total number of licences per person or company. The provision period in this permit is for four years availed with an access to apply for an extension of four more years. Only 500 tonnes of material is allowed to be extracted from the mining land that can be enlarged by the grant of Mines and Petroleum Minister.
-Special Prospecting Licence for Gold: It is applicable to a mining area of 10 hectares only and the grant limit is 10 licences per person or company. It is additionally issued with primary licence for exploration.
-Exploration Licence: The minimum to maximum mining area under this licence is from one block to 70 blocks. The security fee for this permit is $5000 and unlimited licences are allowed per person or company. Till 10 February, 2006 the provision period of this grant was for five years with an access to extension for two more years. After 10 February, 2006 the provision period is for five years plus five years of extension can be applied for.
-Retention Licence: This is issued for the mining area which holds resources but is not able to get explored.
-Mining Lease: The infrastructural set up for mineral extraction and mining area for mineral exploration both come under this lease. It is applicable on 1000 hectares of area and is valid for 21 years with access to renewal.
-General Purpose Lease: This licence is applicable on an area of 10 hectares and for a mining depth of 15 metres only. It is requisite for machinery operation and the process of recovery. It is valid for 21 years and can be renewed further.
The applicant mining companies need to raise a Mining Tenement System application to the local Mining Registrar Offices.