Mining License differences
There are different type of mining licenses. We can find mining exploration license and mining exploitation license:
Mining exploration licenses: one is only permitted to make geological works such as geophysical works and physical drilling (one is not permitted to make any extraction of minerals under the law of mining exploration license).
Mining exploitation licenses: permits one to start with the development of the mine, to build plants and to commence the extraction of minerals.
Licensing renewal times
It is normal that each and every mining exploration license including all the Blue Hill Mining licenses need to be extended each and every year following the national mining guidelines. For example Pursuant to the Mongolian Mineral Law, Article 22.1, an exploration license holder should apply to extend a license one (1) month before the expiration date of the license. Pursuant to the mineral law, Article 26.5, the MRPA will issue the exploration licenses for a term of thirty (30) years and the license can be extended for twenty (20) years unlimited times depending on the mineral resources.
Maintenance costs of licenses
Mongolia’s dependence via royalties on the mining industry and the political stability index. Once the exploitation license is issued, the license holder must pay royalties to Mongolian Government during the time of the period of the possession of the license.
Pursuant to the Minerals Law, Article 47.1, an exploitation license holder is obliged to pay royalties to the treasuries of the central and local administrative bodies on the sales value of all products extracted from the mining claim that sold, shipped for sale or used.
Mongolia’s GDP was over 13.6 Billion in 2019. The Mongolian mining sector has accounted for about 20 percent of GDP, more than 90 per cent of exports and more than 20 per cent of government revenue, meaning that Mongolia is highly dependent on the mining industry and refusal of mining license are uncommon.
According to the world bank of “Political Stability Index” Mongolia is ranked in the top 50, over passing countries link Spain, Germany and United State of America which are in the top 100, making Mongolia a politically secure market for the mining industry.
Mining exploration licenses allows only “exploration” jobs, meaning only geological works such as drillings. In other words no heavy machinery or plants are permitted. The mining plant can only be built once applied for exploitation license. Therefore, all our works in the past 8 years were only geological works, without the building of the mine and plant, as we have not starting the mining process yet with the proper partners involved.
As outlined in the roadmap, a tender will take place to mining companies which have the equipment and plants in order to develop the mining licenses (such as owning the building of a hotel and making a tender for the hotel operator such as Sheraton or Hilton for example). The Blue Hill Mining Tender is the process of inviting bids from mining companies to explore the mine in joint venture with Blue Hill Mining. The tender is similar like government inviting construction companies and their bids for building a public road for example. The tender document explains the volumes, grades and depth of the of mineral resources within the mine. The tender document will show surround infrastructure, roads, electricity, water and if the mine will be an open pit or an underground mine, so that the mining companies can evaluate the costs involved to extract the minerals from the mine. The mining companies will then made a bid for the ratio of minerals the mining companies will keep in exchange of building and extracting the minerals.
The Blue Hill Mining Market
Blue Hill Mining is in the real-estate business, co-owning the land (mining exploration licenses) rather than mining itself. Due to the lower investment involved in the Blue Hill Mining business model, focussing on distressed mines and lowering the risk and financial needs doe to the scanning technology making it idea model to be tokenized whereby token holders can for the first time participate in a market usually reserved for corporations and high end accredited investors.
Experience is everything:
The Blue Hill Mining Project team has over 152 years of combined experience in mining and 46 years in banking. The mining tenders and drillings will be subcontracted to credible and capable mining companies, which is much more cost effective as we only need to finance the mining exploration licenses and geological works.
Real or Unreal ROI?
As you already know, Blue Hill Mining Project buys and sells (and will continue doing it) mining exploration licenses via the Liquidity System of Swiss Asian Resources.
Taking advantage of the innovative scanning technology, Swiss Asian Resources and Blue Hill Mining can determine the value of the mining exploration licenses before purchasing them, meaning that the token holders can benefit from the pre-scanned technology of the mining exploration licenses potentially worth hundreds of millions for pennies to the dollar.
This is not a unique situation as this has been done before How a gold miner “Rob McEwen” turned a $1 million investment into $3 billion. https://www.marketwatch.com/story/meet-the-mining-chief-who-wants-to-get-his-company-into-the-sp-500-2016-09-28.