Define: Marketability Test

The Marketability Test is a requirement in mining law that necessitates individuals to demonstrate their ability to extract and sell minerals from federal land at a profitable rate. This entails proving the existence of a sufficiently large market for the mineral at the time of discovery, attracting individuals who possess reasonable intelligence and caution.

The marketability test in mining law requires individuals to prove their ability to extract and sell minerals from federal land at a profit. This test also necessitates the presence of a sufficiently large market for the mineral at the time of discovery, attracting the attention of a reasonably prudent person. For instance, if someone uncovers a gold deposit on federal land, they must demonstrate their capability to extract and sell the gold at a profit. Additionally, they must establish the existence of a substantial market for gold that would attract the efforts of a reasonably prudent person. Failure to meet these requirements will result in the inability to obtain a patent for the mining claim. Another example could involve the discovery of a rare mineral used in electronics production. In this case, the individual must prove their ability to extract and sell the mineral at a profit, as well as demonstrate the presence of a viable market that would attract a reasonably prudent person. These examples highlight how the marketability test ensures that mining claims are only granted to those who can extract and sell minerals at a profit, and that a viable market exists at the time of discovery.

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This glossary post was last updated: 17th April 2024.