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The Company shall have a Feasibility Study prepared by (i) an independent third-party or (ii) by the Company and verified by an Independent Sole Expert, on the basis of sound engineering and economic principles in accordance with Good Industry Practice. The Feasibility Study shall include [elements as the Parties may agree, such as the following]:

(f) An estimate of minable reserves in accordance with internationally accepted standards;
(g) A market study for all of the Minerals to be produced in the Mining Area;
(h) An evaluation of the known deposits within the boundaries of the Mining Area, as well as the Minerals which can be exploited in the Project facilities;
(i) A description of the technology process to be used in each case, with the results of any laboratory or other tests designed to identify technologically appropriate methods for processing the ore or ores involved;
(j) An initial mine plan indicating expected recovery rates;
(k) A general description of requirements associated with obtaining required permits, including the estimated cost of compliance and implementation of the Environmental Management Plan;
(l) A description and plans of the area of the Project facilities, including a list of the main structures, machinery and equipment to be used, specification of raw materials and services (including electrical requirements and water);
(m) An organization chart and requirements for personnel;
(n) Schedules to initiate construction and construction timetables;
(o) A description and generalized plans for all infrastructure and associated facilities (such as power, communication, transportation, roads, and fresh and reclaimed water), including a list of main items, structures and raw materials, and an assessment of the potential for sharing such infrastructure with other users in ways that promote sustainable development of the communities in the Project Area;
(p) Plans for electricity supply for Mining Operations, including reliability and cost of services that includes an assessment of the potential for sharing electrical supplies and infrastructure with other users in ways that promote sustainable development of the communities in the Project Area;
(q) Plans for disposal of tailings from the ore processing plants and of waste rock and materials from Mining Operations;
(r) A description of plans for any potential reprocessing of materials or tailings;
(s) Estimates, accurate to within fifteen percent (15%), of capital costs and operation costs;
(t) An economic evaluation and financial analysis (estimated rate of return of the investment and cash flow for the various phases of the exploitation), including probable future capital investments and comments on the financial viability of the exploitation;
(u) To the fullest extent reasonably practicable, detailed proposals with respect to any beneficiation or further processing of Minerals proposed to be carried out by the Company within the State; and
(v) The estimated Date of Commencement of Commercial Production.

Example 1
If the Licensee reports to the Licensing Authority that there is a discovery, a Feasibility Study Work Program and budget shall be prepared and submitted to the Licensing Authority for review and comment. The Feasibility Study shall be prepared on the basis of sound engineering and economic principles in accordance with generally accepted international mining industry practice.

Example 2
“Feasibility Study” shall mean a comprehensive description of the construction, development, mining, processing, and marketing plan for a [Mineral] mine to exploit [Mineral] within the Project Area in such form and substance as would reasonably be required by the board of directors of [IRCO] and [GOVERNMENTAL ENTITY], respectively, in making an investment decision to place such a mine into production. The Feasibility Study shall include the confirmation of [Mineral] reserves by the conduct of detailed drilling works, hydrological and geotechnical works, environmental studies, and, if deemed necessary by [IRCO], the mining of one or more bulk samples of mineralization for metallurgical studies which may require the construction of one or more shafts, the construction of an incline, or works associated with a trial mine. The Feasibility Study shall contain estimates of both capital and operating costs and shall analyze how to proceed with mining operations to economically and commercially extract [Mineral], identify the optimum structure for the mining venture/entity, and include reference to relevant marketing and financial aspects.

Example 3
The application for a Mining Lease must be accompanied by a Feasibility Study which must include the following:

a) A description and plan of the area over which Mining Lease is sought;
b) A description of the mineral deposit with a comprehensive report including details of the grade and quantity of the proven, probable ore reserves and the anticipated mining conditions, with comments on possible ore reserves;
c) A technological report on mining and ore treatment possibilities;
d) A proposed mining plan, including:

i) The proposed Date of Commencement of Commercial Production;
ii) The anticipated facilities, scale of operations and production capacity;
iii) The anticipated processing plan and estimated overall recovery of ore and mineral products; and
iv) The anticipated marketing arrangements for the sale of the mineral products;

e) An environmental impact statement based on a scope of work previously agreed on with the Minister;
f) A detailed program for reclaiming and rehabilitating lands disturbed by the Project and for the minimising, controlling and jointly monitoring the effects of mining on air, land, and water, based on previously agreed environmental standards. The program and standards must:

i) Be according to good international mining industry practice;
ii) Reasonably anticipate damage to air, land water, persons, vegetation and marine and animal life;
iii) Appropriately recognise the costs and benefits of environmental protection in relation to the benefits of the Project; and
iv) Reasonably recognise the effect the Project must necessarily have on the environment.

g) A reasonably detailed forecast of capital investment, operating costs and sales revenues and the anticipated financing plan; h) The period for which Mining Lease is required;
i) A report on the anticipated employment requirements for the Project and a program for employing and training [Country] citizens, specifying for each year:

i) The anticipated number of citizens involved;
ii) The scope of the training courses; and
iii) The anticipated costs;

j) a report of the Project’s anticipated requirements for goods produced for services that may be obtained within [Country] and Mining Company’s intention as to services that may be obtained with the [Country];
k) Details of the anticipated infrastructure plan and the land areas necessary for such infrastructure; and
l) The key Ancillary Authorisations required by Parent Company and Mining Company to fully implement the Project.
The Government, the Provincial Government and the Central Bank must keep the Feasibility Study confidential as required by this agreement.

Example 4
Feasibility Study

a. The Concessionaire shall, at its own expense, file with the Minister a feasibility study setting forth a plan for efficient and economic Operations (other than Exploration) in a Proposed Production Area (“Feasibility Study”), prepared by an internationally recognized mine engineering consulting firm not affiliated with the Concessionaire or any of its principal direct or indirect shareholders substantially complying with Sections 5.2 (b) through 5.7 and in accordance with applicable Law and International Standards.
b. The Feasibility Study shall include an Environmental Impact Assessment Study Report (“EIA”) and an Environmental Management Plan (“EMP”) complying with Section 5.3 and applicable Law, as filed by the Concessionaire with the EPA.
c. The Feasibility Study shall include a Social Impact Assessment (“SIA”) and Social Action Plan (“SAP”) complying with Section 5.4 and applicable Law.
d. The Feasibility Study shall include a skills and technology development plan (an “STDP”) complying with Section 5.5 and any applicable Law.

Example 5
FEASIBILITY STUDIES PERIOD

1. The Feasibility Studies Period with respect to any Exploration Area shall commence on the date the Company submits the written request to the Department under [RELEVANT SECTION OF THIS AGREEMENT] with respect to such Exploration Area and shall end upon the commencement of the Construction Period with respect to such Exploration Area as hereinafter provided.
2. As soon as the Feasibility Studies Period has begun with respect to any Exploration Area, the Company shall commence studies to determine the feasibility of commercially developing the deposit or deposits of Minerals within such Exploration Area. The Company will be allowed a period of twelve months to complete such studies and to select and delineate and determine the size of one or more New Mining Areas. Each such New Mining Area shall include at least one deposit with respect to which the Company plans to commence construction and Mining operations. The Department may, for one of the reasons specified in [RELEVANT SECTION OF THIS AGREEMENT], object to the area proposed as a New Mining Area within three months of the Company’s designation of such New Mining Area. The Government and the Company agree to consult in good faith in an attempt to overcome any such objections. If after a period of three months from the date of notification of such objection by the Government there has been no resolution, [dispute resolution procedures apply]. In the event that the objection by the Department to any area designated by the Company as a New Mining Area is upheld, and thereafter during the term of this Agreement it is determined that Mining is permissible within such area, the Company shall have the right to carry on such Mining in preference to any other Person.
3. After the completion of the Feasibility Studies with respect to a New Mining Area within an Exploration Area, the Company shall submit a Feasibility Study Report in the form set out in [RELEVANT SECTION OF THIS AGREEMENT], which shall contain calculations and reasons for the technical and economical feasibility of conducting Mining operations within such New Mining Area, supported by data, as specified in [RELEVANT SECTION OF THIS AGREEMENT], calculations, drawings, maps and other information relevant to the decision whether or not to proceed with such Mining operations. The Feasibility Study with respect to any New Mining Area shall include the then intended capacity of each Mining and Processing operation within such New Mining Area and any further evaluation work or further Exploration then deemed to be required. If the Company considers that the data required and other necessary matters are not sufficiently available to come to a final decision within the initial Feasibility Studies Period with respect to any Exploration Area or if the Department has raised objections with respect to any proposed New Mining Area within such Exploration Area as set out above, the Company may seek the approval of the Government to the extension for twelve months of such Feasibility Studies Period, provided that such request for extension of the Feasibility Studies Period is submitted to the Government no later than the eighth anniversary of the date of the signing of this Agreement.
4. At any time during the Feasibility Studies Period with respect to any New Mining Area, the Company may submit a written application to the Department that it desires to proceed with the construction of a Mine within such New Mining Area and facilities to be used by the Company in its operation thereof. The Department shall be deemed to have approved any such application if it does not, in writing, object to the same within three months of receipt of such application. After approval of such application, the Company shall promptly commence and with reasonable diligence execute to completion the design of the Mine and related facilities. Upon completion of such design, the Company shall submit the design and Mining Plan to the Department for approval, together with an estimate of the cost of such Mine and related facilities and a time schedule for the construction thereof. Such time schedule shall, to the extent economically and practically feasible, provide for completing the construction of such Mine and related facilities within thirty-six months after the approval of the design, Mining plan and time schedule. Within three months after submission of the design, Mining plan and time schedule, the Department shall notify the Company of its approval thereof or its disapproval thereof, for one of the reasons specified in [RELEVANT SECTION OF THIS AGREEMENT]. In the event of disapproval, the Department shall notify the Company of the cause for disapproval and the Government and the Company shall consult in a good faith attempt to remove the cause for such disapproval. If after a period of three months from the notification of such disapproval there has been no resolution of the matter, then either party may proceed to resolve the matter in accordance with [RELEVANT SECTION OF THIS AGREEMENT]. If within three months of any such submission, the Company has not received any objection in writing, the Company may consider that such submission has been approved.
5. The Feasibility Study Report as described in [RELEVANT SECTION OF THIS AGREEMENT] with respect to a New Mining Area shall include environmental impact studies into the effects on the Environment of the operations of the Enterprise within such New Mining Area and shall be prepared in accordance with the terms of reference set out in [RELEVANT SECTION OF THIS AGREEMENT]. Such studies may be carried out in consultation with appropriately qualified independent consultants retained by the Company and approved by the Government in accordance with the rules and procedures then in force in [HOST COUNTRY].
6. The quarterly reports provided pursuant to [RELEVANT SECTION OF THIS AGREEMENT] will include data as to the progress and results of and costs incurred in respect to the investigation and studies carried on during the Feasibility Studies Periods with respect to the various Exploration Areas.
7. With respect to any Exploration Area as to which no Feasibility Study Report has therefore to been submitted pursuant to [RELEVANT SECTION OF THIS AGREEMENT], the Company shall submit to the Government a final report stating the results of and the costs incurred in respect of the investigations and studies thereof and the Company’s analysis of and its conclusions in respect of those results.
8. All reports and information supplied to the Government under this Article shall be subject to [the Agreement’s confidentiality provisions].

REFER TO MMDA DISCLAIMERS AND MMDA USER’S GUIDE
PRIOR TO ANY USE OF THIS DOCUMENT.

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