Mining Snapshot – Republic of Ireland

By Serus Legal

The Fraser Report 2021 ranks the Republic of Ireland amongst the top 10 nations in the world for its mining framework. Renowned for its zinc-lead operations, it also boasts significant gold and lithium deposits and plenty of potential.

What’s the Mining Law?  The Department of the Environment, Climate and Communications is responsible for overseeing the mining industry, which includes granting rights for mineral exploration and extraction.  

The sector is governed primarily by the Minerals Development Act 1940 (as amended by acts of 1979, 1995, and 1999) (Minerals Acts) and various ministerial regulations issued under them, the Land Acts, and common law.

A 2017 Act will replace all previous acts once it comes into force. It provides for the compulsory acquisition of land rights required for mining activities, and the payment of state rents and royalties from mineral extraction.

Ownership of most minerals is vested in the state. These ‘State Minerals’ are listed in a schedule to the Minerals Act. There are a few exceptions, which are not listed, that relate to minerals being produced before 1979. Before prospecting, searches of the land ownership registries (Land Registry and Registry of Deeds) should be carried out to clarify the ownership of any minerals on the applicable lands.

What Mining Rights Are Available?  Available mining rights include (i) a Prospecting License granting the exclusive right to explore for minerals, and (ii) a Mining Lease or Mining License to mine State Minerals or privately owned minerals respectively.

A prospecting license has a term of six years, renewable for 5-year terms for a maximum of 15 years.  If minerals are discovered, an application for a Mining Lease or License must be submitted to the Department to begin the process of extraction. A Mining Lease or License may be issued for a term of 10 to 30 years, with renewals negotiated with the Minister. Further, for mining, two additional permissions are required: (i) Planning permission under the Planning and Development Acts 2000–2015; and (ii) A Pollution Prevention and Control license granted by the Environmental Protection Agency.

What Land Rights Are Granted?  A Prospecting License gives the holder the right to enter the specified land, together with personnel, equipment, and vehicles to carry out the prospecting. Nevertheless, the holder of a Mining Lease must obtain the landowner’s permission for use, and occupation, which will usually entail the payment of a rent or the purchase of the land.

What Taxes Are Imposed?  Mining companies are liable to pay corporation tax (25%), annual rent (€375-500 per hectare), and royalty fees. The specific amounts and schedule of payments for rent and royalties are negotiated with the Minister upon the granting of a new mining lease or license.

Any Foreign Ownership Restrictions? There are no restrictions in Irish law on foreign entities investing in mining.

Need Help in Ireland? – The Serus Legal team works internationally, including in Ireland, on the establishment of companies, asset acquisition, and the preparation of agreements including services, royalty, JV, earn-in, and EPC.

Serus is an international law firm that uses technology and lower overheads to provide quality legal services at a significantly better value. For more information, please email felix@seruslegal.com or info@seruslegal.com

The contents of this insight do not constitute legal advice and is subject to input from a lawyer.