On October 12, 2012, the Department of the Economy (the “Department”) published on the Federal Official Gazette, the New Regulations to the Mining Law (the “Regulations”), the purpose of which is to implement an administrative simplification of the actions that concessionaries must take with the Department of the Economy.
One of the amendments introduced to the Mining Law in 2005, which was not reflected in the 1999 Regulations, is the disappearance of exploration and exploitation concessions, which have now been consolidated into a single mining concession.
The highlights of the new Regulations are the following:
- Invitations to Bid
Invitations to bid for mining concessions will have to include, among other things, a lot position calculation report.
The requirements for reconsideration of appraisals issued by the National Institute of Government Property Management and Appraisal have been eliminated.
Execution and Proof of Works
- The reports to be filed by concessionaries to prove the execution of mining works will include, among others, a location map and a description of the works conducted during specific periods.
- The authority of the Department on field verification of mining concession investments and works is ratified.
Statistical, Technical and Accounting Reports
- An obligation is established for concessionaries whose concessions have been in effect for more than six years, to file with the Department an annual report on the production and sale of minerals and substances within the first 30 days following the close of the fiscal year.
- An obligation is established for concessionaries to file with the Department a technical report on the works carried out at the end of the sixth year of the concession term.
- New requirements are provided for geological and mining reports that are to be filed with the Department, when a mining concession is canceled due to expiration of its term, judicial resolution, concession withdrawal or reduction or violation of the conditions applicable to the concession.
Public Registry of Mining and Cartography
- All agreements and arrangements that create, transfer or otherwise involve the payment of royalties will only be recorded in the Mining Registry if the payor is a concessionaire or whoever undertakes the works of the covered concession.
- Also recordable are agreements covering the transfer of title to the concession, promissory agreements, liens created thereon, and any other arrangements that may affect the concession.
- Those agreements or arrangements granted or ratified in the presence of a notary public, must now be filed with the Mining Registry within 15 calendar days after the date of execution.
- The Department is allowed to use electronic information to generate and manage the books of the Mining Registry.
Finally, the Department is given a term of 120 business days to adjust to the provisions of the new Regulations the Manual on Mining Services to the Public.