Lease Owner
Firm
owning the legal rights of the Land is named as Lease owner. Mining contractors
require going through a Lease owner. Contractor
is an individual or a firm intending to start a mining project. After careful
analysis of survey, contractor has to meet the Lease owner to step into next
phase.
Lease
owner gives the right to start mining at certain cost which is divided into
three parts.
o
Fixed
§ Pre
Drilling Cost
§ After
Drilling Cost
o
Variable
§ Fixed
Percentage of Commission per ton of coal extracted
Pre Drilling Cost
This is
the amount which contractor pays to bind the lease owner. This assures that
after drilling, the contractor reserves the right to start mining. On the other
hand, if contractor decides, not to mine in the area, the amount stays with the
Lease owner. This can be considered as token money. This is mostly 5 % of the
amount to be paid in full after drilling. This cost is highly variable. It
depends on the area and its potential. This can only be 10,00,000 or it could
be at 10 million Rs.
This
part of the investment stays open to discussion until the area gets finalized
for the project.
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