DNR - Metallic

Metallic Minerals

• Metallic Minerals Lease ProgramPart 5, Section 502, Act 451, Public Acts of 1994, as amended, authorizes the Department of Natural Resources to enter into contracts for the Metallic Minerals Leasing Program. The following forms and documents provide information regarding metallic mineral leasing requirements:

• Terms of the Metallic Minerals LeaseTerms of the Metallic Minerals Lease include a 10 year lease term with a 10 year lease extension possible, a $3.00 per acre bonus bid, and a rental rate commencing at $3.00 per acre per year for the first five years and $6.00 per acre per year for years six through ten. In the absence of mining operations, a minimum royalty is due for years 11 through 20. The rate begins at $10.00 per acre in the 11th year and escalates $5.00 per acre per year until the 20th year when the rate is $55.00 per acre. If production occurs, a production royalty shall vary with the adjusted sales value per ton. Only direct leases with a term of 10 years have been issued for metallic minerals the past few years. Direct leases may be negotiated for terms that are more favorable to the State, however, no lease will be authorized which provides for less than the standard royalty or rental rates, or for a lease term longer than 20 years. The maximum lease size is 640 acres. There are 29,852 acres under 130 State Metallic Minerals Leases. (March 2011)

Mining for metals in Michigan in Fiscal Year 2011 resulted in the production of iron ore along with a very small amount of copper and silver, all on private lands. Exploration efforts continue on State-owned lands under lease.

• Information, Procedures and Requirements

• Metallic Mineral Forms

If you have problems downloading one of these forms, please contact Jennifer Huhn at huhnj1@michigan.gov or 517-335-3337.