Diversification is becoming an increasingly important consideration for farms and estates and therefore investigating the wealth that may lie underground can be extremely rewarding. Mineral extraction can provide an important additional income stream and in some circumstances can create a platform for future development and diversification. Needless to say, there's more to it than just excavating a large hole, so before you call in the diggers here’s what you need to know.

Ownership

First, a word of caution. Owning the land doesn’t always mean you own what’s under the surface. The two can be separate – this is known as severed title.

Geology

Minerals are where they are, not necessarily where you’d like them to be, so the starting point is a geological survey to assess the likelihood of success. We hold geological survey information to help with this process.

Approaching an operator

If the survey results are encouraging we would normally recommend partnering up with a mineral operator to test commercial viability and to help with the development and planning costs which can be expensive. We would approach mineral operators on your behalf and assess their credentials before a suitable partner is chosen.

Prospecting

With an operator on board, the next step is to get a prospecting licence to allow geological borehole samples to be taken from the land and analysed.

Agreement

If extracting the deposit proves commercially viable, the landowner and operator will enter into an option agreement for a minerals lease and agree the terms of the lease.

Promoting and planning

The land is promoted for adoption within the Minerals Local Plan as an area zoned for mineral extraction. Then the operator can start formulating a planning application to develop the site.

Extracting the mineral

Mineral extraction can last a year – or decades.The operator will extract the mineral and progressively restore the land to a form agreed with the landowner and as per the conditions of the planning permission.

Though the whole process can take a number of years, from first identifying potential to bringing in the diggers, owning a quarry can offer attractive long-term income from rents and royalties. And, with strong covenants, mineral operators can make good tenants.

Finally, when the quarry is worked out, as the landowner you can have a strong influence on how the site is restored. Whether this is a return to agricultural use or something more imaginative, a restored site can create a development platform for a wide array of future uses from residential development to recreational use such as water parks and nature reserves.

Further information

Contact Savills Minerals and Waste Management