Author's Name:	Dr. Odumodu Alpha Ifenacho & Dr. Odimegwu Chinwe Ngozi
Subject Area:	Social Science and Humanities
Subject	Management
Section	Research Paper

Mineral Rights, Income Capitalization, Valuation, Mineral Income Flow.

The greatest problem encountered by the estate surveyor in the valuation of leasehold mineral rights by the income capitalization method is how to accommodate the unstable income from minerals in order to produce reliable value opinions. Experience has not indicated the best approach to deal with the instability/insecurity of income from mineral rights. This study determines how to deal with the income from leasehold mineral rights in order to conveniently apply it in achieving reliable value opinion by the income capitalization method. It examines how significant the difference is in the value opinions achieved by capitalizing income obtained by adopting the quantity of minerals indicated as annual workings in mining lease and by capitalizing the mean of aggregated actual workings for a number of years. It also sought to formulate a strategy that leads to a reliable value opinion by the income capitalization method of valuation. The survey research method was adopted in this study using a granite industry and a dolomite industry as case studies. A study sample of 355 drawn from a study population of 3,200 comprising 2,400 practicing Estate Surveyors and Valuers, 600 Mineral Workers and 200 staff of the Ministry of Mining and Steel development was used. The Chi-square test at 0.05 level of significance was used to test the hypotheses. The research concluded that the valuation of mineral rights by the income capitalization method using the normal mineral income (unadjusted income from mineral rights) will not produce reliable value opinions. The research therefore recommended the adoption of the adjusted income from mineral rights for valuation of mineral rights by the income capitalization method.