industries - introduction
The valuer can be called upon to value various
extractive industries particularly:
The market value of a mine or quarry raises new
asset will have nil value (as a quarry or mine) at the end of its
requirement of expert evidence as to the extent of the mineral in
situ, quality of that mineral, the expected rate of production and
the expected value of the mined or quarried product.
Strong legal controls on the operation of the mine or quarry and
rehabilitation of the exhausted mine or quarry.
Erratic operation which is often dependent on world markets and
payment of a "dead rent" even while the mine or quarry is inoperative.
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.
"DE FACTO" STRATA
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.