Metallic Minerals

State ownership of metallic mineral rights signifies that the state owns metallic minerals that may occur on or beneath the property, along with the right to explore, mine, and produce them.  It does not mean that metallic minerals are necessarily present.  A qualified party can "nominate" state-owned mineral rights for lease.  A nomination does not mean the mineral rights will be offered for lease.

In Michigan, metallic mineral exploration and development on state and private land is regulated by the Department of Environment, Great Lakes, and Energy (EGLE).  In the Department of Natural Resource's leasing process, there are several means of identifying and addressing potential environmental concerns with metallic mineral exploration and development.  For example:

• Parcels nominated for leasing go through a classification review by resource specialists to determine the appropriate level of surface use that could be allowed.
• The Lessee is subject to all applicable existing and subsequent federal and state laws and rules.
• The lease within itself is not an authorization to mine.  Separate application(s) and approval(s) by EGLE are required prior to mining activity.

Leasing of state-owned metallic mineral rights for exploration and development generates revenue in three ways:

• Lessees pay a "bonus" to acquire the lease rights.
• Lessees pay rent on acreage leased.
• Lessees pay royalties based on the gross sales value of all metallic minerals or mineral products sold from the leased premises.