Mining and minerals

Identify the mineral and operating role

Distinguish a leaseholder, contract mine operator, processor, stockist, transporter and exporter. Establish the mineral classification, state and relevant concession framework before preparing a compliance list. A trading registration does not confer extraction rights, and access to land does not by itself establish a mineral concession.

Keep the project permissions separate

Create a register of concession documents, approved mining plans where applicable, environmental and forest permissions, pollution consents and operating conditions. Record boundaries, capacity, validity and the responsible authority for each instrument. Review a proposed expansion or process change against those conditions before implementation.

IBM publishes mining-plan procedures and the Mineral Conservation and Development Rules with amendments. Check applicability to the mineral and operation rather than assuming IBM procedures cover every quarry or mineral category. State rules and the actual concession also matter.

Assign technical and safety responsibilities

Identify statutory appointments, contractor interfaces, training and inspection records under the applicable mine-safety framework. Keep corrective actions traceable to the responsible manager. Technical mine planning, surveys, safety assessments and certifications need appropriately qualified personnel; administrative coordination cannot substitute for them.

Reconcile extraction, movement and revenue

• Production and grade records linked to surveys, weighbridge records and stock locations.
• Dispatch quantities, transit documentation, customer invoices and collections.
• Royalty and other applicable levy calculations supported by mineral and transaction records.
• Contractor measurements, equipment costs, rehabilitation provisions and closure obligations.
• Applicable mineral returns, with reported quantities reconciled to operational and accounting records.

Example: a processor buying third-party ore

A processor should preserve supplier identity, mineral origin and transport evidence alongside purchase invoices and inward weights. Differences between receipt weights, processing yields and sale quantities need documented explanations. Its own processing permissions and reporting duties must be assessed even though another business extracted the ore.

Plan changes and closure early

Include renewal, transfer, suspension and closure events in the compliance calendar. Keep environmental commitments and financial guarantees visible in management reporting. For exports, separately review trade restrictions, classification and shipping evidence. Kosha can support accounts, controls and document coordination alongside mining and environmental specialists.

Prepare the movement and stock handover

For inventory accounting support, identify the reporting period, mineral grades, stock locations and measurement basis. Bring opening balances, receipts, processing transfers, dispatch records and closing quantities together with the corresponding purchase and sales entries.

For example, a dispatch weighed before month-end may reach the buyer after month-end, with a different receipt weight. Keep both measurements and their dates, the agreed commercial basis and the settlement adjustment identifiable. Do not change an operational quantity solely to make it agree with the invoice; obtain the responsible operations team’s explanation for the difference.

For an acquisition or expansion, environmental due diligence support can help organise the permission and condition records for the agreed assessment. Supply the project boundaries, operating history, proposed changes and outstanding notices. Mineral title, reserves, engineering feasibility and safety conclusions need their own qualified specialist scope.