extractive industries - introduction


The valuer can be called upon to value various extractive industries particularly:
The market value of a mine or quarry raises new valuation problems:
All of the above makes the valuation of extractive industries a specialized branch of valuation. The valuer is more likely to come into contact with quarries and pits near large towns and cities and therefore, this part is written largely, from the perspective of such extractive industries.

LAND AND "DE FACTO" STRATA

Generally, when "land" is purchased, the owner has not only "air rights" but also rights to that part of the land beneath the surface. However, the crown reserves to itself by way of conditional grant or legislation "minerals" as defined in the mining act. The "owner" can charge for the extraction of the minerals and then, pay the crown "royalties" on production - see "royalties" below. A mine may occupy a large volume of land below the surface, known as de facto stratum. In such cases there are two owners of the total land parcel.