History

A prerogative right to mines has been exercised by the Crown for centuries. Along with gold and silver this did at one time include copper, iron, lead and tin, but was curtailed by a seventeenth century Act of Parliament. An Act of 1688 declared that no mine of copper, tin, iron or lead should be royal mine, although gold and silver could be extracted.

The revenues were administered by the Exchequer, but passed to the Auditors of Land Revenues and, in the early nineteenth century, the Commissioners of Woods, Forests and Land Revenues. Today, the prerogative rights to gold and silver are part of The Crown Estate. This is true for all of the UK although in the past, in some limited areas in Scotland, this right has been transferred from the Crown by ancient charter.

So it is that mines of gold and silver continue to be referred to as the ‘Mines Royal’.

The Present

The Crown Estate is not involved in the physical process of mining, but does authorise such activity. To explore for, or extract, gold or silver, a licence or lease will be required. All such dealings are administered by Wardell Armstrong, The Crown Estate mineral agent.

Contact details for The Crown Estate mineral agent are available below.

Exploration and Extraction

There are three main forms of activity:

• Exploration / Prospecting
• Exploitation
• Leisure Panning

Exploration

An exploration licence grants exclusive rights for a company to explore for Mines Royal.

Applicants must satisfy The Crown Estate mineral agent of their financial and technical standing and their ability to manage exploration through to completion.

In addition all applicants are required to comply with all statutory requirements, including environment and nature conservation designations. Licences are usually granted for a period of one year (two in Northern Ireland) and any renewal request is considered against the company’s work programme for that period. There is a charge for each licence, including costs of the mineral agents and legal fees.

The exploration licence usually contains an option to lease.

For further information please contact The Crown Estate mineral agent.

Exploitation

An exploitation lease grants exclusive rights for a company to exploit Mines Royal. Applicants have usually explored an area under an exploration licence before applying for a lease. Any grant of a lease is dependent upon the company’s performance.

The grant of a lease is conditional upon the company having obtained planning permission to work the Mines Royal. The Crown Estate charges an annual rental, plus a further output-related payment, termed a royalty.

As each site and project is different no guidance figures for rental can be given, but the royalty is based on 4% of the selling price.

For further information please contact The Crown Estate mineral agent.

Leisure Panning

This licence covers non-commercial activity, for instance, panning as a hobby, where there is no intention to sell. The leisure panning licence does not cover any access rights, which are required from the landowner before entering private property.

To apply for a leisure panning licence, applicants must write to The Crown Estate mineral agent giving details of the location and duration of such activity. Activity under the leisure panning licence is restricted to the use of a pan. Sluicing and suction dredging are specifically prohibited. The maximum duration of a leisure panning licence is one month and all applicants must submit a cheque for £10 to assist in administration costs. Cheques should be made payable to 'The Crown Estate' and forwarded to The Crown Estate mineral agent at the address detailed below.

The above gives a brief outline only of the basic administrative procedures utilised by The Crown Estate. If you have any further enquiries regarding Mines Royal, please contact:

The Crown Estate Mineral Agent
Wardell Armstrong LLP
Sir Henry Doulton House
Forge Lane
Etruria
Stoke on Trent
ST1 5BD

telephone 0845 111 7777
fax 0845 111 8888