Vol. 402 No. 9
26 Mr. Crowley asked the Minister for Energy whether he has received any representations suggesting that a clear formula for determining State participation in mining leases would increase certainty in relation to mineral exploration in Ireland and attract more commitments to explore; and if he will make a statement on the matter.
I and my predecessors have received representations over the years from various organisations suggesting that a standard formula for the financial terms of mining leases should be adopted by Government. Such a formula could possibly include a basis for State equity participation. At present it is the Government's policy to settle mining lease terms having regard to the nature, characteristics and projected economic outturn of each individual deposit. The financial terms of a lease are determined following delineation of the deposit, evaluation of the reserves, ore grades and other specific characteristics. A detailed assessment of the likely profitability of a mining operation is also carried out. No change is envisaged in this policy, which is designed to ensure equity between the State and the developer. Under the Mineral Acts I have extensive discretionary powers in the settlement of lease terms and I can ensure that terms would not be set which would jeopardise the viability of any proposed development.
