Property owners and mining companies must understand the current fair market value of their assets when negotiating potential transactions.

This valuation may be performed by an independent fee appraiser who typically makes a determination of what the market will bear. Appraisers often overlook other factors such as costs for site development and transportation because they are not addressed in standard appraisal procedures. Mineral royalties are different, however. Determining accurate mineral royalties requires in-depth knowledge of the mining industry, not just knowledge of property appraisals.

EnviroMINE analyzes necessary factors in determining a range of fair market values of mineral royalties for negotiation purposes. The firm’s grasp of local aggregate market conditions and resource availability allows for the effective negotiation of royalty agreements with aggregate production companies. EnviroMINE’s efforts include the assessment of current market conditions, survey of royalty rates on a local, regional and statewide basis, and development of pricing trends to determine current and future value of aggregate resources.

Depending on the financial expectations of the client, EnviroMINE can recommend maximum rates of royalties to be paid, purchase price of royalty points and report comparable examples. EnviroMINE can also provide educational materials on behalf of the mining company to the property owner explaining the reasoning and fairness of royalty rates being negotiated. Following the establishment of agreements, EnviroMINE will then monitor the operations to insure full payment of royalties to the holder of mineral rights.