A special Mining Lease is generally issued to the EL holder for large scale mining operations. The EL holder must also be a party to a Mining Development Contract with the state.

Before the grant of an SML, the Minister is required to convene a development forum to consider the views of the persons and authorities whom the Minister believes will be affected by the grant of the SML.

Those represented at this forum will include the applicant for the special mining lease; the landholders of the land that is the subject of the application for the special mining lease and other tenements to which the applicant's proposals relate, the National Government, and the Provincial Government, if any, in whose province the land the subject of application for the special mining lease is situated.

Term of a SML. A special mining lease may be granted for a term not exceeding 40 years, which may be extended for periods not exceeding 20 years.