Introduction
The Coal and Mineral Development Unit of the Department of Energy and Minerals issues and administers agreements relating to exploration and production of Alberta-owned (Crown) metallic and industrial minerals and ammonite shell. The Unit also administers agreements relating to storage caverns and other non-production uses of minerals. Information about these agreement types and associated administrative activities is summarized below. For additional information, refer to other information on this site including:
- Tool Kits – for requirements, guidelines and instructions for different mineral activities.
- Going for Gold – a brochure about recreational placer mining in Alberta.
Types of Agreements
Metallic and industrial mineral agreements
Metallic and industrial minerals include minerals such as diamonds and other precious stones, gold, iron and other precious and base metals, limestone and other stone, and salt (i.e., minerals other than oil, gas, coal, oil sands, ammonite shell and surface materials.)
The Metallic and Industrial Minerals Tenure Regulation provides for three types of metallic and industrial mineral agreements, see information bulletin 2022-01 for changes that came into effect on January 1, 2023.
Rock-hosted minerals permit
A permit grants the exclusive right to explore for Alberta-owned rock-hosted metallic and industrial minerals in a specified location. Other jurisdictions in Canada use the term "mineral claim" for this type of agreement. A permit can be held for an indefinite amount of. While there is no annual rent, permit holders are required to conduct exploration work and must report on the work every two years, for additional information, refer to the Exploration Tool Kit or the Prospecting Tool Kit.
Rock-hosted minerals lease
A lease grants the exclusive right to develop and mine Alberta-owned rock-hosted metallic and industrial minerals in a specified location. The term of a lease is 15 years, and it may be continued. Annual rent must be paid. Royalties must be paid if any mineral production takes place on the lease, for additional information, refer to the Mining Tool Kit.
Subsurface reservoir lease
A lease that grants the right to conduct operations to remove a Crown mineral in the subsurface reservoir zone to create a subsurface cavern and/or to use a subsurface cavern for the purpose of storing approved substances. The term of a Subsurface Reservoir Lease is 15 years, and it may be renewed. Annual rent is payable in the amount determined under the lease. For additional information, refer to A Guideline to Subsurface Reservoir Leases.
The AER regulates the drilling of wells and injection into subsurface formations. Apply through the AER or email: [email protected].
Agreements for depleted gas reservoirs used as storage caverns are administered by the Tenure Business Unit.
Placer minerals licence
A 5-year licence can be obtained by individuals interested in recreational placer mining, typically using a sluice box along Alberta waterways. This licence does not grant exclusive rights to a specific location. Panning does not require a licence. For additional information, refer to the Placer Mining Toolkit. Royalties must be paid if significant quantities of minerals are recovered, for additional information, refer to the Mining Tool Kit.
Ammonite shell agreements
Ammonite shell is the fossilized shell of a marine mollusc. Specimens with iridescent red and green colours are mined as a semi-precious stone for making jewellery. An ammonite shell agreement grants the exclusive right to recover ammonite shell from a specified location. The term of an ammonite shell agreement set out in the Ammonite Shell Regulation is 15 years, renewable for 5 years. Annual rent must be paid, for additional information, refer to the Ammonite Shell Tool Kit.
Brine-hosted minerals lease
A lease grants the exclusive right to develop and mine Alberta-owed brine-hosted metallic and industrial minerals in a specific location. The term of a lease is 10 years and it may be continued if producing. Annual rent must be paid. Royalties must be pad if any mineral production takes place on the lease.
Acquiring an agreement
Direct purchase
To select lands to include in an application, check the mineral activity maps to determine where mineral rights are disposed or unavailable. An individual or company's application for an agreement identifies the location of interest and must be accompanied by all applicable fees (see below). The preferred method of application is through the Electronic Transfer System (ETS). The Department checks, records and coordinates review of each application, as appropriate. If the application is successful, the Department prepares and issues the mineral agreement document.
Application costs
Applications must be accompanied by payment of an application fee, the first year of rent, plus the Goods and Services Tax (GST), as applicable:
Table 1.
| Agreement Type | Application Fee | First Year of Rent | Term |
|---|---|---|---|
| Rock-hosted minerals permit | $625.00 | not applicable | indefinite |
| Rock-hosted minerals lease | $625.00 | $3.50/ha ($50.00 minimum) | 15-year initial term 15-year intermediate term, subject to escalating rental Indefinite continued term if producing |
| Subsurface reservoir lease | $625.00 | $12.50/ha (subject to change) | 15 years (Renewable) |
| Placer minerals licence | $50.00 | not applicable | 5 years |
| Secondary Lease | $625.00 | not applicable | 5 years |
| Ammonite Shell Agreement | $625.00 | $3.50/ha ($50.00 minimum) | 15 years (Renewable for 5 years) |
Brine-hosted mineral public offerings
Posting and bidding is accepted in our Electronic Transfer System (ETS). New brine-hosted minerals leases will be issued through a public offering process. The specific rights posted for public offering are from posting requests submitted by interested companies or individuals. To select lands to include in a posting, check the mineral activity maps to determine where mineral rights are disposed or unavailable. The application fee, first years rent and bonus are debited from the successful bidders bank account once the rights are issued.
Information letter 2025-03 has more information about posting and bidding. Brine-hosted minerals public offering and results provides access to public offering notices and subsequent sales results, as well as any changes made to the notice.
| Agreement Type | Application Fee | First Year of Rent | Bonus | Term |
| Brine-hosted minerals lease | $625.00 | $3.50/ha ($50.00 minimum) | Minimum $10/ha | 10-year initial term Indefinite continued term if producing |
Maintaining an agreement
Certain routine requirements must be met to continue to hold an agreement. Annual rent must be paid on rock-hosted minerals leases, brine-hosted mineral leases, subsurface reservoir leases and ammonite shell agreements. Regular royalty reporting and payment is required on rock-hosted minerals leases and brine-hosted mineral leases that are in a mine. A mineral assessment report of exploration expenditures and results must be filed every two years to continue to hold a rock-hosted minerals permit. Changes to an agreement which may be required are described below.
Assessment requirements
A rock-hosted minerals permit holder needs to do assessment work on the land so that the permit remains valid and in good standing with the Crown. During each 2-year period, the following needs to be spent assessing the property for the minerals listed in the application:
- $7/ha during the first 2 years (assessment period 1)
- $13/ha during assessment periods 2 and 3
- $20/ha for all remaining assessment periods
A permit holder may spend more than the required amount per year in assessment work. They can then apply to have the additional amount transferred to any remaining period of the permit.
At the end of each 2-year period, a report on the assessment work done during that time must be submitted to the Department by the work period due date of the permit or group. If more time is needed an Intent to File can be submitted to the Department in the 30 days prior to the work period due date. If an Intent to File is accepted the assessment report must be submitted no later than 60 days after the work period due date. The report must:
- describe the work results
- contain an itemized statement of expenditures
- be certified by either a professional:
- geologist
- geophysicist
- engineer
- or verified and signed by the prospector
The information that should be included in the assessment report is specified in the regulation. The assessment report is kept confidential for 1 year. After that, it is posted to our Metallic and industrial mineral assessment report searches web page.
If the assessment work and report are satisfactory, the next 2-year term of the permit is continued. If the permittee does not fully carry out the assessment work, or the report is unsatisfactory:
- the permit may be cancelled
- the size of the permit area may be reduced
- the mineral assessment appointee may pay an amount equal to 2 times the remaining expenditure amount
For the purpose of filing assessment work, the regulation allows contiguous permits to be grouped and a single report submitted for the block of permits up to a total area of 18,432 ha’s. Expenditures may then be assigned to any permits within the group. Once assigned to a permit, however, the assessment expenditures may not be transferred.
There may be circumstances where a permit holder is unable to work on a permit or permits to meet the assessment requirements. The regulation allows a permit holder to pay to the Minister an amount equivalent to 2 times the assessment expenditure that would be required to continue holding the permit. The payment in-lieu cannot be applied to the first work period or two consecutive work periods.
Allowable assessment work
The kinds of work that may be submitted to the Department as assessment work include:
- prospecting
- stripping and trenching
- drilling
- Surveys
- geological
- geochemical
- geophysical
- transporting drill core to core storage facility
- reclamation of disturbed sites
- assay and analytical work
Mineral assessment reports, prepared by companies and individuals to keep their rock-hosted mineral permits in good standing, are also accessible.
Changing the ownership of an agreement
To change the ownership of the agreement, use the Electronic Transfer System (ETS) and instructions can be found in the ETS online training.
Amending an Agreement
During the life of the agreement it may be necessary to change the area covered by the agreement. An amendment may be initiated by the designated representative.
Terminating an agreement
An agreement may be terminated for a number of reasons. The designated representative may request to surrender the agreement before the end of its term, or may request or confirm that they do not wish to renew the agreement when it expires. Terminating a rock-hosted minerals permit is often requested as part of filing a mineral assessment report. The Department may cancel an agreement for failure to comply with terms and conditions, or because the agreement has expired and request to renew has not been received. There is no fee for surrendering an agreement.
Contact
Connect with the Coal and Mineral Development Unit:
Hours: 8:15 am to noon and 1 pm to 4 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-427-7707
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]
Edmonton
Address:
Alberta Energy and Minerals
Coal and Mineral Development Unit
North Petroleum Plaza
9945 108 Street *
Edmonton, Alberta T5K 2G6
* Couriers, please report to the 2nd floor.
Calgary (drop-off location only)
Address:
Alberta Energy and Minerals
300, 801 6 Avenue SW
Calgary, Alberta T2P 3W2