Mining Law Novelties

Mining Law Novelties

As there are rumors that the New Mining Law shall be adopted, please see a short overview of proposed novelties mapped by MPartners Legal:

  • PERC standards introduction for public reporting of exploration results, mineral resources, and mineral reserves – great step forward for companies aiming to get financing on stock exchanges and foreign markets. Still, we will need to see respective rulebooks adopted as to get this finally transposed from the theory to the practice – this was the main setback of 2015 Law.
  • Introduction of IFC and ICMM performances standards (within economic feasibility studies and exploitation feasibility studies) – step forward for companies aiming to get financing from IFIs and will help in improving projects` bankability’s outlook.
  • Introduction of “Investment Agreement” – legal terra incognita – seems to be a window for big (for two of them) investors to bend mandatory requirements under variety of laws and to negotiate special status for the projects – will see how this will survive constitutionality test.
  • Exploration terms kept as they were in 2015 law (3+3+2).
  • Introduction of E-Mining and E-Exploring – hopefully will improve and foster application process and will bring greater transparency and kill “shelf application process” played by speculators and which was driving away foreign investors in the industry.   
  • Supervision of geological works is now, under the new law, externalized as to be done by licensed company/ person independent from the company conducting geological explorations..
  • Introduction of a Bank Guarantee as the Geological Exploration security – will raise costs and complicate application process, but not tangibly affect the process – assume that the banks shall establish practice in a short term.
  • Land Acquisition novelties – defining (all) mining projects as projects of public interest as to ease and help expropriation process.
  • Health and Safety standards improved to meet the international best industry practice.
  • Environmental protections standards improved to meet the international best industry practice – the zero environmental study adopted within the new law.
  • Introduction of PPP and concession procedures for project developed by the state (and those rejected by private investors).
  • Introduction and set up of the new Chamber of Mining Engineers.

MPartners Legal will keep you updated as the adoption process progress.

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