Questions: Royalties on Mining Claim

JohnWFox

Mongoose
Hello Everyone:
My group ended up with a large asteroid claim.
They do not want to work the claim (they are adventurers).

Does anyone know what the going rate is for Royalties on mineral claims in the US?
Last I heard it was some where around one (1) to two (2) percent.
I looked at Beltstrike. Not sure I want to use those rules.
Could someone give me some input please.

John W. Fox
 
First Mining co. pays an upfront bonus. 1d6 x 100K or Million depending on value. If mine not started it's lower.

Then you sign a lease.

Then you receive rent till they start mining. Cr2 per acre per month.

Once mining start you receive a royalty of 1-5% (roll 1d6 or 1d10 as varies) this is determined by a number of factors until the mining co. recoups its investment.
Then you get flat 30% net or 5% gross royalty.


The 1-2% you recalled was for Patent Rights!
 
(Shameless Plug mode ON)
System Book 1: Katringa, by Spica Publishing has some info on Claims and how to sell them to the Company... That might help.
(Shameless Plug mode OFF)

A general rule could be, the Claimant will likely be paid 1d6x10% of the estimated value of the Claim. Of course the Company does the Estimating, so it is more likely to be of less value than if the Claim was actually mined by the PCs.

Still, the value of these Claims on a personal scale can be quite high; millions of Credits for a simple signature.
 
The US isn't a good example (or maybe it is... depending!) for mining royalties. Right now most miners pay royalties based upon a law written in the 1870s!! They've tried to change it for decades and have been defeated time and time again.

Oil and gas producers pay a 12.5% royalty, more or less, to the federal government. I would suspect that mining companies would pay maybe a 3-5% royalty to the discoverer of the asteroid, based upon an estimate of the total value.

Of course that would be paid out over the lifetime of the mining effort. If the players wanted all of their cash up front I could see the amount being in the 2% range, since the company has to front the costs before they recoup any of their investment. Think of it like winning the lottery - if you want all the cash right up front you take a 50% haircut in the value of the pot. But if you are willing to take it over 30 years, you get 2x the total amount. It all comes down to what your players are wanting (and I'm assuming they want the money up front since you never know if that nasty referee is going to kill/cripple you during the next gaming session).
 
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