Minerals Flashcards
The Quarries Regulations 1999 (SI 1999 No.2024)(as amended)
H&S regulation specific to quarries, enforced by HSE.
Repeals and modifies parts of:
- Mines and Quarries Act 1954
- Mines and Quarries (Tips) Act 1969
- Mines and Quarries (Tips) Regulations 1971
- Fatories Act 1961.
Town and Country Planning Act 1990
Core legislation for planning applications are required for construction and change of use at sites.
Mines and Quarries Act 1954
Sets out the general duties of mine and quarry owners, emphasizing safety, health, and welfare.
To ensure safe and compliant operations in mines and quarries.
Water Resources Act 1991
Management and protection of water bodies are not adversely affected
Regulates:
- water quality,
- abstraction,
- discharge
Planning and Compensation Act 1991
- Amends town and country planning law.
- Addresses land acquisition for public works and related compensation.
- Introduced procedures to enforce planning permission breaches, like injunctions
Planning and Compulsory Purchase Act 2004
Substantially reforms the town planning and compulsory purchase framework
Speeds up the planning process and identifies simplified planning zones in regional strategic plans.
Abolishes Local Plans and Structure Plans, introducing Local Development Frameworks
Town and Country Planning (Minerals) Act 1981
Introduced time limits for mineral planning consents.
Repealed and incorportated in TCPA 1990.
NPPF
- Ensure a steady supply of minerals and use them efficiently.
- Set policies for safe mineral extraction and consider environmental impacts.
- Prioritize benefits of mineral extraction; restrict coal unless benefits are clear.
UK’s Mining Waste Directive
Regulation of waste from extractive industries.
Star Stone Quarries, Inc. v. Garland [1990]
Dispute over mineral rights, environmental concerns, and regulatory compliance in quarrying.
- Clear land ownership and mineral rights are vital for mineral extraction permissions.
- Adherence to local and national regulations, with a focus on environmental assessments and mitigation in sensitive areas.
- Emphasis on conducting operations ethically, responsibly, and in line with sustainable minerals management principles.
West Lake Quarry & Material Co. v. Schaffner [1992]
Missouri quarry challenged tax assessment on equipment; court upheld assessment.
Understanding tax incentives for equipment and clear differentiation between “mining” and “manufacturing” influence financial planning and regulatory oversight.
Cactus Canyon Quarries v. MSHR [1986]
Health and safety case law in the USA.
Emphasis on adhering to safety standards and regulatory compliance.
The case offers insights on legal principles, the significance of good relations with regulatory bodies, and the importance of comprehensive risk assessments.
Bocardo SA v Star Energy UK Onshore Ltd [2010]
- Issue of trespass.
- Star Energy extracted oil beneath Bocardo’s land.
- Supreme Court ruled in favor of Bocardo; minimal compensation awarded.
Star Energy Weald Basin Limited v Bocardo SA [2010]
- Related to the above case.
- Determined appropriate damages for trespass.
- Damages based on trespasser’s use value, not landowner’s loss.
Why is it important to regulate quarries?
- ensures sustainable extraction of minerals.
- Ensures the safety of workers
- prevents environmental degradation,
- mitigating potential conflicts over land and mineral rights.
How are extraction methods regulated?
Quarry Regulations: Establish safety and health standards for quarry operations, ensuring safe working conditions and practices.
Town and Country Planning Act (TCPA) 1990: Requires planning permission for mineral extraction, ensuring that environmental and social impacts are considered.
Environmental Impact Assessment (EIA) Regulations: Mandates assessments for significant quarrying projects to evaluate and mitigate environmental impacts.
Abstraction License, Discharge Consent
How are environmental impact assessments used in a minerals management context?
Assessment Scope: EIAs evaluate the effects of mineral developments on various factors during both construction and operation.
Environmental Factors: EIAs analyze the current and potential future state of the environment, emphasizing biodiversity conservation.
Mitigation Measures: EIAs outline steps to counteract negative environmental impacts and detail forecasting methods and challenges.
Schedule 1:
* Quarries and open-cast mining where the surface of the site exceeds 25 hectares
Schedule 2:
* All development except the construction of buildings or other ancillary structures where the new floorspace does not exceed 1,000 square meters.
* Extraction of minerals by fluvial or marine dredging: All development.
Schedule 3:
* criteria for determining whether Schedule 2 developments require an EIA.
What are the key principles of the RICS Professional Standard Valuation of mineral-bearing land and waste management sites (2023)
Valuation Methods: Wasting assets, like minerals, are valued using methods such as capitalizing royalties over the resource’s lifespan. - DCF.
Associated Assets:Valuations often include specialized buildings, site improvements, and equipment, typically valued via depreciated replacement cost.
Considerations: Factors like resource type, extraction rates, geology, and financials play a crucial role in valuation.
What is the option, lease/purchase process?
- Exclusivity Agreement: Ensures the seller won’t negotiate with other buyers for a specified period.
- Option Agreement: Legal document for the right to purchase the quarry at a later date. Draft lease terms.
- Regulatory Approvals: Obtain necessary permits and licenses.
- Due Diligence: Research on quarry’s reserves, permits, and liabilities.
- Lease Agreement: Temporary rights to operate and extract minerals.
Key terms of mineral (and waste) leases?
- Demise
- Parties involved
- Lease Duration: Specified time period for the lease.
- Minerals Specified: Types of minerals allowed for extraction.
- Payments & Royalties: Financial terms and fees.
- Rights & Obligations: Duties of both lessor and lessee.
- Regulatory Compliance: Adherence to local regulations.
- Termination & Renewal: Conditions for ending or extending the lease.
- Restoration Requirements: Post-extraction site rehabilitation.
- Liabilities & Indemnities: Responsibility for damages or issues.
Doulting Quarry
On Doulting Quarry, how did you deal with the limited information when constructing a DCF?
Ensured the client understood the difficulty.
RICS Guidelines: Followed RICS standards for valuation.
Economic Factors: Considered market demand, price, and currency issues.
Expert Consultation: Sought opinions from industry experts.
Informed Assumptions: Made assumptions based on available data.
Conservative Projections: Used cautious estimates to account for uncertainties.
Sensitivity Analysis: Tested how changes in variables impact valuation.
Regular Updates: Reviewed and updated the DCF model as needed.
Doulting Quarry
Explain the asset’s financial aspects.
Limited financial data with uncertainty over secured mineral reserves.
Considered mineral selling price and volumes, operational costs, environmental liabilities, and margins at current production levels.
