z

DEPARTMENT OF MINES PROCEDURES

For

OBTAINING MINING RIGHTS/LICENSE

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REQUIREMENTS FOR DIAMOND DEALERSHIP

 Definition:
 A Diamond Dealer is a person who holds a license to purchase diamonds for export from valid
licensed holders.

 Qualifications:
 Diamond dealerships are opened to Liberians and foreign nationals;
 A Prospective Dealer must furnish copies of a letter of introduction from a recognized Diamond
Bourse;

 Licensing, application/requirements:
 All Prospective Dealers must write a letter of intent, addressed to the Minister of Lands, Mines and
Energy with the following documents attached:
1. Two passport photographs;
2. Business Registration from the Ministry of Commerce and Industry;
3. Partnership Agreement/Articles of Incorporation.

 Applicant must fill application form required for diamond dealership (new applicant only).

 Foreign Nationals: Must obtain a Residence Permit from Bureau of Immigration and Work
Permit from Ministry of Labour; Liberians: Must provide copy of passport, birth certificate
or any documentation to proof citizenship.

 All dealerships must have Liberian participation with at least 15% share as per article of
incorporation, if you have your work and resident permits.
Applicants must provide proof of deposit from a recognized bank in Liberia showing a balance of not less
than $50,000.00 USD as working capital (performance bond). The Bank Statement must be RECENT.

 Payment of Dealership License fee of $25,000 USD;

 Obtain GDO Diamond Dealer/Exporter ID card ($100.00 USD).
 Offices:
 A Dealer must maintain a business office in Monrovia with proper business address;
 Ministry will inspect the buying office (at the expense of the applicant);
 Provide an inspection form filled out by Inspectors upon completion of Office Inspection.
 Dealers may employ licensed Diamond Brokers;
 Notify the Ministry of Lands, Mines and Energy of employees operating within the buying office.

 Responsibilities and Reporting:

 Dealers will buy only from licensed miners or brokers;
 Dealers will buy diamonds that identified through the issuance of a mineral voucher from GDO
regional Office.
 A receipt must be issued for all purchases made. The receipt will include details of mining/broker
license numbers and appropriate Mineral Voucher numbers;

 Copies of receipts to be furnished to the Government Diamond Office (GDO) at the time of shipment.

 A 3% royalty on the appraised value of all shipments in accordance with the laws of the Republic of
Liberia.

 Diamond Dealers may have three agents with ID.

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DIAMOND BROKER PROCEDURES

 Definition:
 A Diamond Broker is a person who holds a license to purchase diamonds from miner(s) and
sell to dealers
 Qualification:
 Diamond brokerage is open to Liberians only.
 Licensing, application/requirements:
 All prospective brokers must write a letter of intent, addressed to the Minister of Lands,
Mines and Energy with the following documents attached:
 Two passport photographs;
 Applicant must fill application form required for diamond broker (new applicant only).
 Provide copy of passport, birth certificate or any documentation to proof citizenship.
 Business Registration from the Ministry of Commerce and Industry;
 Payment of Broker License Fee ($1,500.00 USD);
 Obtain GDO Diamond Broker ID Card ($50.00 USD)
 Offices:
 All Brokers will establish a buying office either in Monrovia or within the towns covered by
the Government Regional Diamond Offices and notify the Ministry of the address. Ministry
staff will inspect buying office at the expense of the applicant;
 Provide an inspection form filled out by Inspectors upon completion of Office
Inspection.
 If a Broker employs agents who are not licensed, such agents will not be allowed to purchase
or transport diamonds;
 The Ministry of Lands, Mines and Energy must be notified of employees operating in the
buying office (failure to do so may lead to punitive measures).
 Responsibilities and Reporting:

 Broker will only buy diamonds from identified and licensed miners;
 Broker will only buy diamonds that have been identified through the issuance of a mineral
license voucher from GDO Regional Office;

 Broker will work with Regional Officers to ensure that miners understand the process of
recording production at the Regional Office;

 A receipt must be issue for all purchases. The receipt will include details of mining license
and appropriate Mineral Voucher number;

 All brokers are responsible to trade diamonds with legal and registered dealers,
individuals/entities that are license to ply such trade in accordance with the laws of the
Republic of Liberia.
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CLASS “C” DIAMOND MINING LICENSE PROCEDURES

 Definition:
 A Class “C “Miner is one who has acquired a Class “C “mining license to operate a 25-acre
claim.
 Qualification:
 Class “C” Mining License is open to Liberians only.
 Licensing and Application Requirements:
 All prospective Class “C” miners must fill in an application form containing the
following details:
 Name;
 Two passport photographs;
 Details of mining claim {map attached if the claim (s) has already been surveyed};
 The type of mining privilege which he wishes to be granted;
 Age;
 The address in Liberia where notices to him may be served;
 Particulars of any mining privilege which he holds at the time of making the application;
 Particulars of the last previous mining privileges, if any which he has held;
 Minerals, which he wishes to cover by the mining privilege, applied.
 Must attach a recommendation letter/clearance from the appropriate Mining Agent;
 Provide copy of passport, birth certificate or any documentation to proof citizenship;
 Payment of a License fee of $150.00 USD;
 Payment of survey/demarcation fees of $150 USD plus Transportation;
 Demarcation and redemarcation must be completed prior to issuance of license;
 Obtain GDO Diamond Miner ID card ($20.00 USD).

 Responsibilities and Reporting:

 Miners will declare diamond production at the identified Regional Office (please see chain of
custody diagram);
 Miners will obtain miner voucher from Regional Office prior to sale of production;
 Miners will only sell diamonds to recognized and licensed broker or dealers or
individuals/entities who are licensed to ply such trade;
 Miners will give one copy of the mineral voucher to the broker or dealer on sale of
production;
 Miners will ensure they receive a receipt for the diamonds sold and keep this receipt safe for
future inspection. The receipt will include detail of mining license and appropriate Mineral
Voucher numbers.
 [5]

CLASS “C” DIAMOND MINE MANAGER PROCEDURES

 Definition:
 A Liberian appointed by a licensed miner to supervise operations of the mining
claim and make report to the miner.
 Qualification:
 Class “C” Mine Manager Open to Liberians only.
 Application/Requirements:
 All prospective miners wishing to appoint mine managers to act during their
absence must write a letter of intent addressed to the Director of Mines with the
following document attached:
 One passport photograph of the Manager;
 Details of mining claim(s) to be managed;
 Obtain GDO Mine manager ID Card (USD10.00).

 Responsibilities and Reporting:

 Mine Manager will supervise all mining activities in keeping with licensed
owner instructions and will ensure that all production is declare at the identified
Regional Office.

CHAIN OF CUSTODY DIAGRAM

Procedure on Internal Control of Diamond Production in the Alluvial Sector
Serialized Vendor Forms.

Miner Inspector
1 Copy Retained 1 Copy taken to KPC Office

Broker
1 Copy Retained

Exporter/ Dealer
1 Copy taken to KPC Office

Database KPC Office

Receives both Exporter/Dealer
And Inspector Copies
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I, the undersigned swear to abide by these basic laws, and agreed to become a
member of the Ministry’s Mining Cooperative Scheme.

SIGNED: ____________________________________________.

REQUIREMENTS FOR GOLD DEALERSHIP

 Definition:
 A Gold Dealer is a person who holds a valid dealers license to purchase gold
from other valid licensed holders and granted the right to export gold out of
Liberia.
 Qualifications:
 Gold Dealership is open to Liberians and Foreign Nationals;
 Dealers must furnish copies of letters of introduction from a recognized Gold
Bourse;
 All Dealership must have Liberian participation.

 Licensing and Costs:

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 All prospective dealers must write a letter of intent addressed to the Minister of
Lands, Mines and Energy with the following documents attached.
 Two passport photographs;
 Applicant must fill application form required for diamond broker (new
applicant only).
 Foreign Nationals: Must obtain a Residence Permit from Bureau of
Immigration and Work Permit from Ministry of Labour; Liberians: Must
provide copy of passport, birth certificate or any documentation to proof
citizenship.
 All dealerships must have Liberian participation with at least 15% share as per
article of incorporation, if you have work and resident permits.

 Applicants must provide proof of deposit from a recognized bank in Liberia

showing a balance of not less than $15,000.00 USD as working capital
(performance bond). The Bank Statement must be RECENT.
 Business Registration from the Ministry of Commerce and Industry;
 Partnership Agreement/Articles of Incorporation;
 Payment of Dealership License Fees of $5,000.00 USD;
 Obtain ID card at the cost of $100.00 USD.
 Offices:
 All dealers will establish buying offices in Monrovia and notify the Ministry of
the address;
 Ministry staff will inspect buying office (at the expense of the applicant);
 Provide an inspection form filled out by Inspectors upon completion of
Office Inspection.
 Dealers may employ licensed Gold Brokers;
 The Ministry of Lands, Mines and Energy must be notified of employees
operating within the buying office (failure to do may lead to punitive measures).

 Responsibilities and Reporting:

 Dealers will only buy gold from identified and licensed miners or brokers;
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 All Dealers are responsible to pay an export duty of 3% of the appraised value
of their shipment in accordance with the laws of the Republic of Liberia;

 Gold Dealers may have three (3) agents with ID Cards ($50.00 USD each).

GOLD BROKER PROCEDURES

 Definition:
 A Liberian the who holds a valid Gold Brokerage license and is hence granted
the right to purchase gold from licensed mine(s) and sell internally;
 Qualification:

 Gold Brokerage open to Liberians only;

 License and cost:
 All prospective brokers must write a letter of intent to the Minister of Lands,
Mines and Energy with the following documents attached:
 Two passport photographs;
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 Applicant must fill application form required for gold broker (new
applicant only);
 Provide copy of passport, birth certificate or any documentation to proof
citizenship;
 Business Registration/Certificate from the Ministry of Commerce and Industry;
 Payment of Broker License of $1,500.00 USD;
 Obtain GGO/ID Card at the cost of $50.00 USD.
 Offices:
 All Brokers will establish buying offices either in Monrovia or within the
mining towns and notify the Ministry of the address, Ministry staff will inspect
buying office (at the expense of the applicant);
 Provide an inspection form filled out by Inspectors upon completion of
Office Inspection.
 May employ four (4) agents that the Ministry must issue ID card under the
broker’s license; such agents will be allow to only purchase or transport gold.
 The Ministry of Lands, Mines and Energy must be notified of employees
operating within the buying office (failure to do may lead to punitive
measures);
 Responsibilities and Reporting:
 Brokers will only buy gold from identified and licensed miners;
 All brokers are responsible to trade gold with legal, registered and licensed
individuals and/or entity that are to trade dealers in accordance with the laws of
the Republic of Liberia; Brokers are to only trade internally.

 Definition:
1. A Liberian who holds a legitimate and valid license(s) of up to four (4) gold
mining claims, and is hence granted the right to sell gold internally.

 Qualification:
2. Class C Mining License is open to Liberians only.

 Licensing and Costs:

 All prospective miners must fill in an application form containing the
following details:
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 Name;
 Two passport photographs;
 Details of mining claim {map attached if the claim (s) have already been
surveyed};
 The type of mining privilege which he wishes to be granted;
 Age;
 The address in Liberia where notices to him may be served;
 Particulars of any mining privilege which he holds at the time of
Making the application;
 Particulars of the last previous mining privileges, if any which he has
Held;
 Minerals which he wishes to be covered by the mining privilege applied
for.
 Must attach a recommendation letter/clearance from the appropriate
Mining Agent;
 Payment of License fee of $150.00 USD;
 Payment of survey/demarcation fee 150.00 USD plus transportation;
 Obtain a GGO/ID card at the cost of $20.00 USD.

 Responsibilities:
 Miners will only sell gold to recognize and licensed broker, dealer, individuals,
or entity that are to ply such trade in accordance with the laws of the Republic
of Liberia

CLASS “C” GOLD MINING LICENSE PROCEDURES

 Definition:
3. A Liberian who holds a legitimate and valid license(s) of up to four (4) gold
mining claims, and is hence granted the right to sell gold internally.

 Qualification:
4. Class C Mining License is open to Liberians only.

 Licensing and Costs:

 All prospective miners must fill in an application form containing the
following details:
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 Name;
 Two passport photographs;
 Details of mining claim {map attached if the claim (s) have already been
surveyed};
 The type of mining privilege which he wishes to be granted;
 Age;
 The address in Liberia where notices to him may be served;
 Particulars of any mining privilege which he holds at the time of
Making the application;
 Particulars of the last previous mining privileges, if any which he has
Held;
 Minerals which he wishes to be covered by the mining privilege applied
for.
 Must attach a recommendation letter/clearance from the appropriate
Mining Agent;
 Payment of License fee of $150.00 USD;
 Payment of survey/demarcation fee 150.00 USD plus transportation;
 Obtain a GGO/ID card at the cost of $20.00 USD.

 Responsibilities:
 Miners will only sell gold to recognize and licensed broker, dealer, individuals,
or entity that are to ply such trade in accordance with the laws of the Republic
of Liberia.
CLASS “B” (DIAMOND/GOLD) MINING LICENSE
Class B Mining License holder granted the right to carry out semi-mechanized Mining
and sell his production internally or externally.
Qualification:
Class “B” Diamond/Gold Mining License is open to Liberians and Foreign
Nationals;
License and Cost: believe
Application addressed to the minister accompanied by proof of company registration
or in the case of individuals’ two passport photographs of each person listed. The
following should also be included in the application.
 The type of mining privilege, which he wishes to be granted.
 The address in Liberia where notices to him may be served.
 Particulars of the last previous mining privileges, if any which he has held;
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 Minerals which he wishes to be covered by the mining privilege applied for;

 One letter of recommendation/clearance from the Mining agent assigned;
 Survey must be conducted before license is issued;
 Must obtain payment slip from the Bureau of Mines before payment is done at
central bank;
 Must have a minimum bank balance of $50,000.00 USD in a Liberian bank as
working capital;
 Must present a work plan and EIA approved by EPA before commencing
operations;
Must submit an Article of Incorporation and must have a Liberian Partner;
 Foreign Nationals: Must obtain a Residence Permit from Bureau of Immigration and Work
Permit from Ministry of Labour; Liberians: Must provide copy of passport, birth certificate
or any documentation to proof citizenship.
 Must formulate an MOU with the community (ies) affected directly or
indirectly when actual mining commences.
 Must have business registration/certificate; Must obtain export/Dealer License;
 Annual report detailing work completed and submitted within 30 days of the
anniversary of the date license is granted (needed for renewal) ;
 MLME has 60 days from payment to approve or reject Annual report;
 If Annual report is rejected holder is notified and instructed to rectify omission
within 60 days;
 Pay a license fee of $10,000 USD each year for renewal at anniversary. If not,
automatically reverts to Government.
CLASS A MINING LICENSE
1. Must have completed Exploration
2. Must have a Mineral Development Agreement (MDA)
3. Must have relinquished areas not targeted by operational work plan
4. letter of application addressed to the Minister along with the following:

(a) That Government and the Operator shall have concluded, and the Eligible
Applicant complies with, a Mineral Development Agreement, which has become
effective, permitting Mining in the proposed Production Area pursuant to its terms and
conditions.

(b) That the Operator shall have successfully completed a proposed exploration
program and submitted to the Minister a detailed map and Descriptive statement based
on actual surveys which shall set forth the boundaries of the proposed Production
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Area, identified by metes and bounds, and the boundaries and size of the Deposits
from which minerals are to be Mined.

(c) That the Operator shall complete a feasibility, report describing a plan for the
efficient and economic conduct of Mining in the Proposed Production Area in keeping
with the standards set forth in and the other requirements of this Law. A description of
the minerals proposed to be mine, and the mining and processing methods to be use,
the design, costs and construction schedules for the proposed plant, facilities and
equipment to be use, and the marking arrangements contemplated

(d) That the minister shall have approved the feasibility report which approval not be
withheld if such feasibility report is in accordance with standards and other
requirements of this law.

(e) That the initial term of Class A mining license shall be not more than twenty-five
(25) years, and may be extended, in each case, it shall be shown that proven reserves
exist, and upon submission of a revised and up-dated feasibility report, for
consecutive additional terms not to exceed twenty-five (25) years each.

(f) That the minister shall have been satisfied that the Operator possesses the
necessary technical skill and experience, and the financial resources necessary, to
permit it to carry out mining Operations in keeping with the requirements of a Class A
mining license and of this law.

SCRAP BROKER PROCEDURES

 Definition:
 A Liberian who holds a valid scrap Brokerage License and is hence granted the
right to purchase scrap and sell internally;
 Qualification:
 Scrap Brokerage open to Liberians only;
 License and Cost:
 All prospective brokers must write a letter of intent to the Minister of Lands,
Mines and Energy with the following documents attached;
 Two Passport photographs;
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 Applicant must fill application form required for Scrap Broker (new
applicant only).
 Provide passport copy, birth certificate or any documentation to proof
citizenship;
 Business Registration Certificate from the Ministry of Commerce and
Industry;
 Payment License of $ 600.00 USD;
 Obtain ID card at the cost of $100.00 USD.

 Offices:
 All Scrap Brokers will establish a buying office and notify the Ministry of the
address and ministry staff will inspect buying office(at the expense of the
applicant);
 Provide an inspection form filled out by Inspectors upon completion of
Office Inspection.
 May employ up to three (3) agents who will be given ID Cards, any such agents
allowed to purchase or transport scrap.
 The Ministry of lands, Mines and energy must be notified of employees
operating within the buying office (failure to do may lead to punitive
measures);
 ID and copies of license must be available at operating site.
 Responsibilities and Reporting:
 All Scrap Brokers are responsible to trade scrap with legal, registered and
licensed individuals and/or entity in accordance with the laws of the republic of
Liberia;
 Scrap Brokers are to only trade internally.

BROKER AGENT PROCEDURES

 Definition:

 A Liberian appointed by a Licensed Broker to transact in keeping with his

license and make report to him the broker.
 Qualifications
 Broker Agents open to Liberians only;
 Application/requirements
 All Brokers wishing to appoint an agent will write a letter of intent addressed to
the Minister of Lands, Mines and Energy with the following document
attached;
 One passport photographs of the Agent(s);
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 Details of prospective agent(s) particular i.e.

 Name,
 Age,
 Nationality (proof of nationality-if required);
 Applicant must fill application form required for Scrap Broker Agent (new
applicant only);
 Provide passport copy, birth certificate or any documentation to proof
citizenship;
 Obtain agent ID at appropriate price;
 Responsibilities and Reporting
 Agent will conduct activities in keeping with licensed owner instructions and
will ensure that the law is adhered to all times.

PROCESSOR/JEWELRY LICENSE PROCEDURES

 Definition:
 One who holds a legitimate and valid license(s) to buy gold from legitimate
broker license holder and is also granted the right to process gold and sell his
production internally (except Class A which also has the right to export
jewelry).
 Qualifications:
 Class C and D License is opened to Liberians only;
 Class B and A open to Liberians and or Foreign Nationals;

 Licensing and application requirements:

 All prospective processors must write a letter of intent addressed to the Minister
of lands, Mines and energy containing the following details;
 Name
 Two passport photographs;
 the type of privilege which he wishes to be granted;
 Nationality;
 Age
 the address in Liberia where notices will be served;
 Particulars of any mineral privilege which he holds at the time of making
the application;
 Minerals, which he wishes to be cover by the privilege, applied.
 Applicant must fill application form required for Processor/Jewelry (new
applicant only).
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 Foreign Nationals: Must obtain a Residence Permit from Bureau of

Immigration and Work Permit from Ministry of Labour; Liberians: Must
provide copy of passport, birth certificate or any documentation to proof
citizenship.
 Payment of appropriate license and other related fees.
 Offices:
 All Processing/Jewelry license holders will establish a processing/jewelry
office and notify the Ministry of the address and ministry staff will inspect
buying office (at the expense of the applicant);
 Provide an inspection form filled out by Inspectors upon completion of
Office Inspection.

 Responsibilities and Reporting:

 Jewelry license holders will buy only from valid brokers. license holder and not
miners;
 Jewelry license holder(s) will ensure they receive a receipt from the broker and
keep this receipt for future inspection. The receipt will include detail of broker
license.

REQUIREMENTS TO OBTAIN QUARRY LICENSE

 Definition:
 Quarry License holder granted the right to carry out semi-mechanized Mining and sell his
production internally or externally (where applicable).
 Qualification:
 Quarry License is open to Liberians and Foreign Nationals.

 License and Cost:

 Application addressed to the minister accompanied by proof of company
Registration or in the case of individuals’ two passport photographs of each person listed.
The following should also be included in the application:
 The type of mining privilege, which he wishes to grant.
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 The address in Liberia where notices to him may be served.

Particulars of the last previous mining privileges, if any which he has held;
 Minerals which he wishes to be covered by the mining privilege applied for;
 One letter of recommendation/clearance from the Mining agent assigned (where necessary)
or Must obtain surface Right to the property (Deed or Lease Agreement, etc.).
 The Ministry must conduct a site visit to verify the Technical perimeter (at the expanse of
the applicant);
 Survey of area not more than 50 Acres/License must be conducted (at the expanse of the
applicant) before license is issued;
 Must obtain payment slip from the bureau of Mines before payment is done at central bank’
 Must have a minimum bank balance of $50, 000.00 USD in a Liberian bank as working
capital;
 Must present a work plan and EIA approved by EPA before commencing
Operations or submit a project brief to the Environmental Protection Agency
(EPA) for approval and obtain preliminary clearance;
 Foreign Nationals: Must obtain a Residence Permit from Bureau of Immigration and
Work Permit from Ministry of Labour; Liberians: Must provide copy of passport,
birth certificate or any documentation to proof citizenship.
 Must submit an Article of Incorporation and must have a Liberian Partner;
 Must have a Liberian Partner with a minimal of 15% defined in the article of incorporation
(in the instance the foreign partner has a work or resident permit) Must have a Liberian
Partner with a minimal of 61% defined in the article of incorporation (in the instance the
foreign partner has no work or resident permit);
 Must formulate an MOU with the community (ies) affected directly or indirectly when
actual mining commences.
 Must have Business Registration/Certificate for the current year;

 Must obtain Export License (in case of export);

 Submit a technical work program to the Ministry for approval; prior to commencement of
physical operation on site;

 Annual report detailing work completed and submitted within 30 days of the anniversary of
the date license is granted

 MLM&E has 60 days from payment to approve or reject Annual report;

 If Annual report is rejected holder is notified and instructed to rectify omission within 60
days;
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 A license fee of $10,000.00USD paid each year for renewal at anniversary. If not,
automatically reverts to Government in keeping with law.

PROVISIONAL REQUIREMENTS TO IMPORT EXPLOSIVES

1. Entity must have a quarry or construction license;

2. Explosive magazines must be inspected and certified by SIACERC;
3. An onsite licensed blaster certificate must be forwarded to SIACERC for
background checks;
4. Upon certification of magazine, a letter to import explosives is sent to the
Minister/MLME; and
5. The MLME vets the application and if certified, a letter of clearance written to
the Ministry of Justice requesting a letter to the Ministry of Commence and
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Industries for applicant to obtain or start processing an Import Permit Document

(IPD).

Table 1: Fees kinds and royalties for various licenses.

No. FEES KIND USD

DIAMOND
1. Diamond Class C Mining License 150.00
2. Diamond Class B. Mining License 10,000.00
3. Diamond Class A Mining License 35,000.00
4. Diamond Broker License 1,500.00
5 Diamond Cut and Polish License 35,000.00
6. Diamond Dealer/Export License 25,000.00
7. Diamond Royalty 3%
GOLD
1. Gold prospecting License 125.00
2. Gold Simi Precious License 150.00
3. Gold Class C Mining License 150.00
4. Gold Class B Mining License 10,000.00
5. Gold Class A Mining License 35,000.00
6. Gold Broker License 1,500.00
7. Gold Dealer/Export License 5,000.00
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8. Gold Class A Jewelry License 3,000.00

9. Gold Class B Jewelry License 1,000.00
10. Gold Class C Jewelry License 500.00
11. Gold Class D Jewelry License 250.00
12. Gold Royalty 3%
SCRAP
1. Scrap Broker License 600.00
2. Scrap Export License 5,000.00
3. Scrap Royalty 3%
OTHER LICENSES
1. Laterite Mining License 3,000
2. Blasting License 3,000.00
3. Exploration License 5,000.00
4. Sand Dredging License 10,000.00
5. Quarry License 10,000.00
6. Industrial Mineral Royalty 2%
7. Class A Iron Ore Mining License 50,000.00