Mining Rights — Frequently Asked Questions
What does NCRB mean by tokenized mining rights?
NCRB tokenizes mining rights and mineral interests — the legal right to extract mineral resources from a defined area. This includes exploration rights, extraction licences, mineral royalty interests, and revenue streams from producing mines. Each token represents a verified interest backed by an independent qualified person (QP) report.
The global mining rights market is valued at $1.5 trillion with a 6% annual growth rate, driven by surging demand for critical minerals including lithium, cobalt, copper, and rare earth elements.
What types of mining rights are supported?
| Sub-type | Description |
|---|---|
| Exploration Rights | Rights to survey and sample a mineral tenement — highest risk, highest upside |
| Extraction Rights | Permitted rights to mine a defined resource — requires proven or probable reserves |
| Mineral Rights | Ownership of the subsurface mineral estate, separated from surface ownership |
| Royalty Interests | Revenue stream (% of production or revenue) from an operating mine |
How is reserve classification used for pricing?
NCRB follows internationally recognised reserve classification standards (NI 43-101, JORC Code, SEC S-K 1300):
| Reserve Class | Valuation Applied | Typical Pricing |
|---|---|---|
| Proven Reserves | 100% of estimated value | Full market rate |
| Probable Reserves | 60–80% of estimated value | Market rate × 0.6–0.8 |
| Measured Resources | 40–60% | Market rate × 0.4–0.6 |
| Indicated Resources | 20–40% | Market rate × 0.2–0.4 |
| Inferred Resources | 5–20% | Not eligible for tokenization |
How does ore grade affect token value?
Ore grade (the concentration of target mineral in the host rock) is the primary driver of economic viability:
| Grade Category | Threshold (gold equivalent) | Impact |
|---|---|---|
| High Grade | > 10 g/t | 200–400% premium over base value |
| Medium Grade | 3–10 g/t | Standard valuation |
| Low Grade | < 3 g/t | 30–50% discount applied |
What are the minimum requirements to tokenize a mining right?
- Compliance with NI 43-101 (Canada), JORC Code (Australia/international), or SEC S-K 1300 (US)
- Minimum classification of Probable Reserves or Measured Resources — Inferred Resources are not eligible
- Independent Qualified Person (QP) certification of the resource estimate
- Ore grade within economic extraction range given current commodity prices
- Infrastructure access assessment (haulage, power, water)
- Token issued as
NC-MINING-{ID}(ERC-7943 uRWA)
How is quality rated?
Mining rights tokens receive a programmatic quality score (0–100) across six weighted dimensions — the same framework used across all NCRB asset classes (Technical Quality 25%, Additionality 20%, Permanence 20%, Certification Level 15%, Social Impact 12%, Vintage/Condition 8%).
For mining rights, Technical Quality captures reserve classification and ore grade. Social Impact captures Indigenous community engagement and environmental management plans — increasingly important for institutional investors subject to ESG mandates.
| Band | Score |
|---|---|
| AAA | 85–100 |
| AA | 75–84 |
| A | 65–74 |
| BBB | 50–64 |
| Not Eligible | < 50 |
Why tokenize mining rights?
- Liquidity — mining rights are historically illiquid; tokenization enables secondary market trading
- Fractional ownership — exposure to large mineral estates without full acquisition cost
- Transparent pricing — real-time oracle valuation based on commodity prices and reserve estimates
- Critical minerals demand — lithium, cobalt, nickel, and rare earths are strategically vital; investor demand is growing rapidly
- 10% addressable tokenization rate gives an addressable market of $150 billion
How is token revenue distributed?
| Recipient | Share |
|---|---|
| Asset Owner | 70% |
| Registry Partner | 10% |
| NCRB Platform | 10% |
| Third Party (aggregator / referrer) | 10% |
What fees apply?
- Trading fee: 2.5% per transaction
- AUM fee: 1.5% annually
- BaaS licensing: $50,000–$200,000 for registry partners