||Examples of Excellence
||Examples of Flaws
||Measures the ease of acquiring exploration rights and the ‘openness’ of the system to foreign, junior and other participants.
||Freely open to first applicant.
||Applicant will be considered as to its appropriateness to undertake work.
||Measures the extent to which the exploration rights are exclusive to the holder, including undiscovered minerals.
||Exclusive rights giving holder right to all minerals.
||Same land may be subject to multiple exploration licences for different minerals.
||Measures the ability of a holder to retain exploration rights through a minimum exploration period.
||Absolute right to keep exploration rights by performing work.
||Short duration licence (e.g., 2 years) with discretionary renewal.
|Right to Mine
||Measures the ability of the explorationist to acquire mining rights (as well as environmental permits).
||Explorationist awarded mining rights when discovery of resources; EIA process subject to clear timelines, objective tests and court appeals.
||Applicant will be considered as to its appropriateness to undertake mining; EIA process lacking timelines, standards and right of appeal.
||Measures the ability to fully extract resources from a mine and the right of access.
||All surface rights included in 25 year mining lease that is renewable on application.
||Surface rights not included on mining lease of 10 years with discretionary renewal and ability to unilaterally revoke.
||Measures the discretion of government to interfere with economics operationally and on an exit strategy.
||Fixed royalty rates; general corporations tax; no consent on sale; stabilization guarantees.
||Government interest to be negotiated on grant of mining rights; consent needed for sale.
||Measures the stability of the regulatory framework.
||Regular changes to the mining legislation to constantly modernise its administration.
||No changes for decades to archaic legislation.
||Measures all other aspects of the regulatory framework both positive and negative.
||No obligation to operate any differently than a general corporate participant within the country; well-drafted legislation and regulations.
||Obligations to list on local stock exchange, provide preferential rights for offtake, build local processing facilities, etc.; poor legal drafting.
|Regulatory Risk Rating
||Measures the risk that an investor or operator will lose the economic benefits of a mineral discovery, based purely on the mining regulation, with 100 being zero risk.