On June 7th, 2016, the Executive Branch of the Republic of Nicaragua, submitted a law proposal for the establishment of the Nicaraguan Mining Enterprise (ENIMINAS by its acronym in Spanish), which was discussed in plenary meeting and then referred to the Infrastructure Commission, in order to be approved before midyear.
In accordance with this new law proposal, ENIMINAS will represent the State of Nicaragua in all the mining concessions granted as of the entering into effect of the law, as well as in all those companies that request the renewal of its concessions. Such participation will be a minimum of 10% of the capital stock of the company. ENIMINAS will also be able to install mineral processing equipment into no concession areas, mining reserve areas, or in areas that are declared suitable for the development of small mining or artisanal mining by the Ministry of Energy and Mines (MEM).
The law proposal includes the creation of a Fund of Surveillance and Supervision of Mining Activities in order to finance and execute inspection and monitoring of the mining sector, including environmental protection. Such fund will be administrated by a Regulatory Committee headed by the MEM and will count with the participation of ENIMINAS.