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ARIZONA MINING PERMITTING GUIDE - AZGS Document Repository

ARIZONA MINING PERMITTING GUIDE - AZGS Document Repository

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State Lands - Locatable Minerals<br />

Arizona State Land Department<br />

1616 West Adams Street<br />

Phoenix, AZ 85007<br />

602-542-4628<br />

www.land.state.az.us<br />

Arizona Mining Permitting Guide<br />

PERMITS, AUTHORIZATIONS OR FILINGS:<br />

Mineral Leases - Locatable Minerals (base and precious metals and certain industrial<br />

minerals)<br />

LEGAL AUTHORITY:<br />

A.R.S. §§ 27-231 through 27-256<br />

CONDITIONS REQUIRING PERMITS, AUTHORIZATIONS OR FILINGS:<br />

Mineral Lease:<br />

Description: Mineral leases are issued for a period of 20 years with a preferred right to renew<br />

the lease for an additional term of twenty years. Mineral leases grant the exclusive right to<br />

conduct mining operations on the land covered by the lease.<br />

A Mineral Development Report, which is a comprehensive document, comprised of a<br />

geologic evaluation, economic feasibility, environmental assessment, mine operation and<br />

reclamation and closure plans, must be submitted with the mineral lease application. An<br />

archaeological survey and biological evaluation is required.<br />

Authorization: Prior to conducting any mining operations on the land covered by the lease, the<br />

lessee must receive authorization from the Department in the form of approved Mine<br />

Operation and Reclamation and Closure Plans.<br />

FEES:<br />

An application fee of $500 is required for each mineral lease application. The lessee is also<br />

required to pay for an appraisal of the property (A.R.S. § 27-234). Appraisal costs can vary<br />

but typically cost between $5,000 and $8,000. Rents and royalties are based on the<br />

aforementioned appraisal and in the case of rents will vary directly with surface values. Rents<br />

are typically assessed at 5 percent of land value while production royalties range from two<br />

percent to eight percent of gross mineral values. A minimum annual royalty, based on the<br />

proposed production, is required.<br />

AVERAGE PROCESSING TIME:<br />

The issuance of a mining lease generally requires six to nine months from the time of<br />

application. Approval of a Mine Operation and Reclamation and Closure Plans may require<br />

60 days from the date of receipt.<br />

FORMS:<br />

www.land.state.az.us/programs/natural/mineral_leasing.htm<br />

www.land.state.az.us/programs/operations/applications.htm#appMineral<br />

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