Valuing quarry sites through capitalisation of private parties royalties

In recent decades, the effectiveness of royalties as a mechanism capable of capturing true economic rents is one of the most debatable issues for the mining industry worldwide. So far, the main interest in the literature lies in royalties as a form of mining taxation. This paper, however, focuses on the use of private royalties for the valuation of an aggregate quarry site, in Greece, which is made up of the value of the royalty income stream to the landowner. Defining a fair royalty for the seller as well as the purchaser was a mostly challenging issue, and although referred to as a specific case study, the analysis provides a useful insight for mining practitioners involved in quarry valuation.