Investments | Minerals

Minerals are most often found in subsurface conditions and have their own designated rights in land terminology. Minerals are generally considered as being part of the sub surface rights of land ownership, and the rights to extract these assets can be sold or leased by the rightful owner to other parties. A sale of sub surface rights can take place without the sale of the surface rights which would include the land above the mineral areas and not include agricultural assets such as crops and timber.

In the South and Southeastern United States, the selected minerals with commercial value are referred to as Aggregates. Products such as sand, gravel, crushed stone, and kaolin clay are minerals that would fit the investment criteria. The acquisition of the mineral assets could come in the form of land specifically purchased for its mineral reserves, and develop the land for mineral production by contracting with an independent operator, or alternatively to create a royalty lease with an independent operator.

The amount of minerals in production and the pricing of the minerals are largely based upon the supply and demand of the minerals as they are similar to a commodity asset. Pricing is also subject to transportation costs and access to markets, as well the efficiency of the extraction from the site.