Mining Costs Clause Samples

Mining Costs. Costs incurred by Lessee in exploring for, mining, extracting, removing and transporting to a mill ores and minerals produced from the leased premises. Such costs shall include, without limitation, those incurred for labor, machinery operation, fuel, explosives and other materials, exploration drilling, develop-mental or ore delineation drilling, allowance for depreciation and depletion of mining equipment and machinery acquired after the effective date of this Lease. Mining costs shall not include amortization or income taxes.

Mining Costs. The Lessee shall be responsible for all costs to mine ore from the premises, including all roads, buildings, furniture, fixtures, equipment, machinery, personnel, insurance, utilities, working capital, etc. Lessee shall also be responsible for payment of all real property taxes assessed against the premises, and all lease payments accruing on leased land covered by this Lease. All improvements made by Lessee to the premises that cannot be removed at the expiration of this Lease without material harm to the premises shall become Lessor’s property. All improvements that do not become Lessor’s property and all of Lessee’s personal property shall be removed by Lessee before the termination of this Lease. Lessee, at the same time, shall repair any injury done to the premises in connection with the installation and removal of the improvements and the personal property.

Mining Costs a) The parties shall share any mining and production costs of precious metals or other resources or commodities in the same percentage as their respective equity interests. The parties have agreed that the cost for the first year of mining will not exceed the following: