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Mining Option Agreement Template for India

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Key Requirements PROMPT example:

Mining Option Agreement

"I need a Mining Option Agreement under Indian law for a gold mining project in Karnataka, where my company will have a 2-year option period with the right to conduct exploration activities and an option fee of 50 million rupees payable in quarterly installments starting March 2025."

Document background
The Mining Option Agreement is a crucial document in Indian mining operations, used when a mining company wishes to secure the right to explore and potentially develop a mineral property without immediately committing to a full mining lease or purchase. This agreement type is particularly relevant in the Indian context where mining rights are subject to strict regulatory oversight under the Mines and Minerals (Development and Regulation) Act, 1957, and various state-specific regulations. The document typically includes provisions for due diligence periods, exploration rights, environmental compliance, community engagement (especially regarding tribal lands), and the specific conditions under which the option can be exercised. It serves as a preliminary step before full mining rights acquisition, allowing the option holder to assess the property's viability while protecting both parties' interests under Indian law.
Suggested Sections

1. Parties: Identification of the parties to the agreement, including the option holder and the mineral rights owner

2. Background: Context of the agreement, including details of the mineral rights and property

3. Definitions and Interpretation: Definitions of key terms and interpretation clauses

4. Grant of Option: Terms of the option grant, including exclusivity and duration

5. Option Period: Duration of the option period and any extension provisions

6. Option Fee: Details of the option fee, payment terms, and conditions

7. Exercise of Option: Process and conditions for exercising the option

8. Rights and Obligations During Option Period: Parties' rights and obligations during the option period, including access rights and maintenance of permits

9. Due Diligence Rights: Rights and procedures for conducting technical and legal due diligence

10. Representations and Warranties: Standard and mining-specific representations and warranties from both parties

11. Compliance Requirements: Obligations regarding mining laws, environmental regulations, and other applicable laws

12. Assignment and Transfer: Rights and restrictions regarding assignment of the option agreement

13. Termination: Termination events and consequences

14. Dispute Resolution: Mechanism for resolving disputes, including jurisdiction and governing law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Surface Rights: Required when surface rights are separate from mineral rights and need specific provisions

2. Indigenous Peoples and Local Communities: Required when the mining area affects tribal lands or local communities

3. Environmental Bond: Required when specific environmental security or bond needs to be provided

4. Foreign Investment Provisions: Required when the option holder is a foreign entity

5. Royalty Provisions: Required when there are specific royalty arrangements during the option period

6. Force Majeure: Optional but recommended for long-term options in areas with political or natural risk factors

7. Anti-corruption and FCPA Compliance: Required for international transactions or when parties are subject to foreign anti-corruption laws

Suggested Schedules

1. Property Description: Detailed description of the mining property, including coordinates and maps

2. Existing Permits and Licenses: List and copies of all existing mining permits and licenses

3. Option Fee Payment Schedule: Detailed payment terms and schedule for the option fee

4. Minimum Work Program: Required exploration work and expenditure commitments during the option period

5. Form of Mining Lease: Draft form of the mining lease to be entered into upon exercise of the option

6. Technical Reports: Existing geological reports, surveys, and technical data

7. Environmental Reports: Existing environmental studies and impact assessments

8. Encumbrances: List of any existing encumbrances, royalties, or other obligations affecting the property

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions













































Clauses









































Relevant Industries

Mining

Natural Resources

Metals & Mining

Environmental Services

Land Development

Energy & Resources

Construction & Engineering

Industrial & Manufacturing

Relevant Teams

Legal

Operations

Environmental Compliance

Mining

Geology

Land Acquisition

Project Management

Community Relations

Finance

Corporate Development

Regulatory Affairs

Relevant Roles

Mining Executive

Legal Counsel

Environmental Compliance Manager

Mining Engineer

Geologist

Land Acquisition Manager

Project Director

Operations Manager

Community Relations Manager

Chief Financial Officer

Exploration Manager

Mining Rights Specialist

Regulatory Compliance Officer

Due Diligence Manager

Corporate Development Director

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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