Whereby The Mining Code Is Issued And Other Provisions (Official Gazette No. 44,545)

Original Language Title: Por la cual se expide el Código de Minas y se dictan otras disposiciones (Diario Oficial No. 44.545)

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Law 685 of 2001
(August 15)
Official Gazette No. 44,545, of 8 September 2001
Whereby the Mining Code is issued and other provisions. Summary

Term Notes

THE CONGRESS OF COLOMBIA DECREES:
FIRST TITLE.
GENERAL DISPOSITION.


CHAPTER I. STATE PROPERTY.

ARTICLE 1o. OBJECTIVES. This Code aims of public interest to promote technical exploration and exploitation of mineral resources of state and private property; stimulate these activities in order to meet the requirements of internal and external demand for them since their use is done in harmony with the principles and rules of rational exploitation of non-renewable natural resources and the environment, within a comprehensive concept sustainable development and economic and social empowerment of the country.
Article 2.
. MATERIAL SCOPE OF THE CODE. This Code governs the legal relations between the State and individuals and these together, because of the work and works of the mining industry in its phases of prospecting, exploration, construction and assembly, exploitation, beneficiation, processing, transport and promotion of the minerals found in the soil or subsoil, whether domestically owned or privately owned. exploration and exploitation of liquid and gaseous hydrocarbons are governed by specific rules on the matter are excluded. Effective Jurisprudence


ARTICLE 3. COMPLETE CONTROL. The rules and principles enshrined in this Code develop the mandates of Article 25, 80, the paragraph of Article 330 and Articles 332, 334, 360 and 361 of the Constitution, concerning mining resources, in full, systematic, harmonious and with a sense of specialty and preferred application. Consequently, civil and commercial provisions covering situations and phenomena regulated by this Code, shall apply only in mining issues, by direct reference to them is made in this Code or supplementary application the absence of express rules. Effective Jurisprudence


PARÁGRAFO. In any case, the administrative authorities referred to this code can not fail to resolve deficiencies in the law, matters that are proposed in the area of ​​competence. In this case, they will go to the right integration standards and, failing that, to the Constitution.

ARTICLE 4. GENERAL REGULATIONS. The requirements, formalities, documents and evidence expressly states this Code for filing, processing and resolution of the mining business in the administrative process until its completion, will be the only required of stakeholders. Same principle shall apply in relation to the terms and conditions set forth in this Code for the exercise of the right to explore and exploit minerals and related easements.
In accordance with Article 84 of the Constitution, no authority may establish or require permits, licenses or additional requirements for the admissibility of proposals or for issuing, development and exercise of mining title, subject to competition environmental authority. Effective Jurisprudence


The 5th ITEM. PROPERTY mineral resources. The minerals of any kind and location, recumbent on the ground or subsoil, in any natural physical state, are the exclusive property of the state, without regard to ownership or possession of the corresponding land, are other public entities , individuals or communities or groups.
Excepted individual, subjective and concrete legal situations titles from privately owned mines perfected under prior laws. Effective Jurisprudence


ARTICLE 6o. Inalienability and. State ownership of non-renewable natural resources is inalienable and imprescriptible. The right to explore and exploit only acquired through the granting of the titles listed in Article 14 of this Code. No activity prospecting, exploration or exploitation or possession of such material resources, whatever their age, duration or characteristics, confer any right or priority to acquire mining title or to oppose proposals from third parties. Effective Jurisprudence


ARTICLE 7. PRESUMPTION OF STATE PROPERTY. State property on the recumbent mineral resources in the soil or subsoil of public or private land, is legally presumed.


Article 8. Deposit discovered. For all purposes of this Code, it is understood that a deposit has been technically discovered when, with the application of the principles, rules and methods of geology and mining engineering, has established the existence of a formation or reservoir It contains proven reserves of one or more minerals of economic interest.

Article 9. PROPERTY OF THE QUARRY. The owners of land that in accordance with article 4 of Decree 2655 of 1988, there Were enrolled in the National Mining Register quarries located in these properties, as discovered and exploited before the effective date of this decree, retain their right, under the conditions and terms set forth in this Code.

ARTICLE 10. DEFINITION OF MINE AND MINERAL. For the purposes of this Code shall mean mine, the field, training or breeding of minerals or fossils, economically useful and usable materials, whether it is in the soil or subsoil. Also for the same purposes, it shall mean crystalline mineral substance, usually inorganic, with physical characteristics and chemical due to a specific atomic grouping.

ARTICLE 11. BUILDING MATERIALS. For all legal effects are considered building materials, the stone products exploited in mines and quarries used generally in the construction industry as aggregates in the manufacture of concrete, mortars, pavements, earthworks and similar products . Also, for the same purposes, are building materials, drag materials such as sand, gravel and stones recumbent in the bed and banks of streams, vegas flood and other alluvial soils.
The aforementioned materials are called building materials but once exploited, not intended for this industry.
The award, validity and exercise of the right to explore and exploit building materials referred to in this article, is fully regulated by this Code and are of the exclusive competence of the mining authority. Effective Jurisprudence

ARTICLE 12.
SALINAS. In accordance with article 5 of this Code, deposits and deposits of rock salt, for all legal purposes, are owned by the state and shall be governed by the provisions of this Code.
Also belong to the state, as concessible tax goods, sea salt and salt water springs whose concentration exceeds six (6) degrees B hydrometer of Beaume.
The exploration and exploitation of deposits and deposits of rock salt, sea salt and salt water springs, will be subject to common rules of the concession regulated by this Code.

ARTICLE 13. PUBLIC UTILITY. In implementation of Article 58 of the Constitution, declared of public utility and social interest the mining industry in all its branches and phases. Therefore may be ordered in their favor, at the request of an interested party and by the procedures set forth in this Code, expropriations of property immovable property and other rights constituted thereon, which are necessary for the exercise and efficient development.
The consecrated in this article, in no event shall expropriation of property acquired, constructed or designed by the beneficiaries of a mining title, for exploration or exploitation or for the exercise of their respective easements. Effective Jurisprudence


CHAPTER II.
RIGHT to explore and exploit.
ARTICLE 14. TITLE
MINER. From the effective date of this Code may constitute only declare and test the right to explore and exploit state-owned mines by the mining concession contract, duly issued and registered in the National Mining Register.
The provisions of this Article is without prejudice to the rights from exploration licenses, permits or licenses, operating contracts and contracts on areas of contribution in force when entering into force this Code. They are equally safe individual, subjective and concrete legal situations titles from privately owned mines perfected before the effective date of this statute.


ARTICLE 15. NATURE OF THE RIGHT OF THE BENEFICIARY. The concession contract and the other issued securities State in the preceding article, do not transfer to the recipient a right of ownership "in situ" minerals but to establish, exclusive and temporary form within the given area, the existence mineral exploitable quantity and quality, to appropriate them by extraction and collection and tax the estates of third parties easements necessary for the efficient performance of such activities.

ARTICLE 16. VALIDITY OF THE PROPOSAL. The first application or grant proposal, while it is in process does not confer, by itself, against the State, right to the conclusion of the concession contract. Compared to other applications or third parties, interested only confers a right of priority or preference for such a grant if you qualify for that purpose, legal requirements. Effective Notes

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ARTICLE 17. LEGAL CAPACITY. The legal capacity to formulate proposed mining concession and to celebrate the corresponding contract is governed by the general provisions on government procurement. This capacity, if it refers to legal, public or private, requires that its object are found included, expressly and specifically mining exploration and exploitation.
When UTEs receive concessions should become corporate figure with the same share arising from the proposal.
May also submit proposals and enter into concession contracts consortia, in which case its members jointly liable for the resulting obligations. Effective Jurisprudence

ARTICLE 18.
foreigners. The foreign individuals and corporations, as proponents or contractors of mining concessions, have the same rights and obligations as Colombian nationals. The mining and environmental authorities may in the scope of their competences, to demand requirements, conditions and additional or different formalities, except those specifically set forth in this Code. Effective Jurisprudence


ARTICLE 19. FOREIGN COMPANIES. Foreign legal persons may, through a representative domiciled in Colombia, filing and processing proposals. For the celebration of the concession contract shall establish a branch, affiliate or subsidiary, domiciled in the country. This requirement will also be required of such persons to engage in exploration and mining of private property, as holders of the relevant law or as operators or owners or contractors awardees. They must properly secure to the awarding authority, the obligations undertaken in the country, either with the guarantee of the beneficiary of the work or service or with the guarantee of a bank or an insurance company operating in Colombia.
ARTICLE 20.
WORKS AND SERVICES COMPANIES. Foreign companies domiciled abroad performing work or services in any branch or phase of the mining industry, with duration not exceeding one year, will not require establishing affiliate, subsidiary or branch yours in the country. Instead, they must properly secure to the awarding authority, the obligations undertaken in the country, either with the guarantee of the beneficiary of the work or service or with the guarantee of a bank or an insurance company operating In colombia. If the duration of the works and services more WHATSOEVER should establish such subsidiary, subsidiary or branch. Effective Jurisprudence

ARTICLE 21.
disabilities or incompatibilities. They will be grounds for disqualification or incompatibility to formulate proposals or mining concession contracts, those established in the general law on government procurement that may be relevant and special referred to in Article 163 of this Code. Effective Jurisprudence


ARTICLE 22. ASSIGNMENT OF RIGHTS. The transfer of rights arising from a concession, require written notice to the grantor. If you received this notice that entity is not pronounced by reasoned decision within forty-five (45) days, it is understood that no objection to the transfer and negotiating document be entered in the National Mining Register.
To be registered the transfer at the National Mining Register, the transferor must demonstrate having fulfilled all obligations under the concession contract. Effective Jurisprudence



ARTICLE 23. EFFECTS OF ASSIGNMENT. The assignment of rights arising out of the contract can not be subject to the parties any term or condition as does relationship with the state. If it is full assignment, the assignee shall be subrogated to all obligations under the contract, even those contracted before the transfer and is pending to be fulfilled.

ARTICLE 24. ASSIGNMENT PARTIAL. The partial transfer of law emanating from the concession contract may be made by fees or percentages of that right. In this case, the transferor and transferee are jointly and severally liable for the obligations undertaken. Effective Jurisprudence


ARTICLE 25. ASSIGNMENT OF AREAS. There may be transfer of rights arising out of the concession contract by the division of the requested materials or covered by this area. Such assignment may include the right to use the works, installations, equipment and machinery and the exercise of easements inherent in the contract, unless otherwise agreed by stakeholders.
The assignment of areas will give birth to a new contract with the assignee, which will be refined with the corresponding registration document assignment at the National Mining Register.
ARTICLE 26. CHARGES
. The right to explore and exploit state-owned mines may be taxed or given in guarantee obligations in the terms and conditions set forth in this Code.
ARTICLE 27.
subcontracts. The beneficiary of a mining title may freely perform all studies, works and it is bound by any kind of construction contracts or execution as not to involve subcontractors subrogated to the rights and obligations of the title, and thereby assume right to participate in untapped minerals. For these contracts will not permit or any notice to the mining authority will be required.
ARTICLE 28.
private property titles. The transfer to any title and transmission cause and cause of death, of private ownership of mines and the encumbrance of the same, shall be governed by civil and commercial arrangements. Additionally they will be entered in the Mining Register.

ARTICLE 29. TERMINATION OF RIGHTS. Property rights of individuals on the ground and underground mine or mines which have been recognized and preserved in the terms, conditions and procedures established by Law 20 of 1969, Decree 2655 of 1988 and Law 97 of 1993, shall be considered extinct if interested suspended exploration or exploitation for more than twelve (12) consecutive months without constitutive cause of accident or force majeure. The demonstration of such cause must be lodged by the applicant at the request of the mining authority, at any time and within it you indicate.
In any case the ruling declaring the extinction will be motivated against it and the remedy of reinstatement.
ARTICLE 30.
lawful origin. Any person who in any capacity to supply minerals exploited in the country for use in construction, industry and services, must prove the lawful origin of such minerals with the identification of the mine where they come from, by a certificate of origin issued by the recipient of the title mining or certificate issued by the respective Mayor barequeo the work dealt with in Article 155 of this Code. This requirement must be explicitly identified in the contract or work order or supply issued to the supplier. Effective Jurisprudence


CHAPTER III.
AREAS RESERVED, EXCLUDED AND RESTRICTED.

ARTICLE 31. SPECIAL RESERVATIONS. Mining Authority or the person acting for reasons of social or economic order, determined in each case on its own initiative or at the express request of Ia mining community in those areas where there is traditional farms informal mining, demarcated areas in which temporarily no new proposals on all or some minerals are accepted. Their purpose is to advance geological-mining studies and developing strategic mining projects for the country and its implementation. In any case, these geological-mining and Ia initiation of the respective projects studies may take no more than two (2) years. The only concession to the same communities who have exercised traditional mining is granted and any third party application. All this, without prejudice to existing mining rights. Effective Notes

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ARTICLE 32.
free areas. The purpose of the special reserves which have not been linked to the Community programs and mining projects, areas remain free to be granted under the regular concession regulated by this Code to third proponents.

ARTICLE 33. AREAS OF NATIONAL SECURITY. The Government may set only for reasons of national security, areas in which proposals may not be produced or concession contracts held on all or certain minerals. This reserve will be valid while the Government's view, subsisting circumstances which have motivated its establishment. It should be abolished or modified such reserve, in the same act the way individuals be determined, on an equal basis, may submit proposals to hire exploration and exploitation areas under the ordinary regime concession.

EXCLUDABLE ARTICLE 34. AREAS OF MINING. No works and works of mining exploration and exploitation will run on declared and defined areas according to regulations as protection and development of renewable natural resources or the environment and, in accordance with the laws on the subject, expressly exclude such works and works.
Exclusion zones mentioned are those constituted under the existing provisions, as areas that make up the system of national parks, nature parks and regional nature reserve forest areas. These zones to produce these effects, must be defined geographically by the environmental authority based on technical, social and environmental collaboration with the mining authority, in areas of mining interest studies.
To be excluded or restricted work and works of mining exploration and exploitation in the areas of protection and development of renewable natural resources or the environment, the act that the declaration must be explicitly motivated in studies to determine the incompatibility or restriction in relation to mining activities.
However, the mining authority prior administrative act based environmental authority decreeing the removal of the required area, you may be authorized in the areas referred to in this Article, except for the parks, they can pre-empt mining activities in restricted or only by certain methods and extraction systems that do not affect the objectives of the exclusion zone. To this end, the interest in the Concession Agreement shall submit the studies demonstrating the compatibility of mining activities with these objectives. Editor's Notes

Effective Notes

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ARTICLE 35. RESTRICTED AREAS OF MINING. works and works of exploration and mining in the following areas and places with the restrictions given below may be carried out:
a) Within the city limits of towns or villages, appointed by municipal agreements adopted accordance with the legal rules on municipal, except regime in the areas in which mining activities are prohibited in accordance with those standards; Effective Jurisprudence


B) In the areas occupied by rural buildings, including its orchards, gardens and solar attachments, as long as it has the consent of its owner or holder and no danger to the health and integrity of its inhabitants;
C) In areas defined as special archaeological, historical or cultural interest and always when you have the authorization of the competent authority; Effective Jurisprudence


D) On the beaches, areas of low tide and river routes served by public transport companies and whose continued use has been established by the competent authority if this authority, under certain technical and operational conditions, which itself point previously it allows such activities are carried on these routes;
E) In the areas occupied by a public work or attached to a public service provided that:
i. With the prior permission of the person having responsibility for the use and management of the work or service;
Ii. rules applicable to the work or service are not inconsistent with the mining activity
run and iii. that the exercise of mining in such areas does not affect the stability of buildings and facilities in use of the work or service.

F) In areas always constituted as indigenous mining areas and when the relevant EU authorities, within which they point, not have exercised their preferential right to obtain the mining rights to explore and exploit, in accordance with the provisions by Chapter XIV of this Code; Effective Jurisprudence


G) In areas constituted as mining areas of black communities and always when the relevant EU authorities, within which they point, had not exercised their preferential right to obtain the mining rights to explore and exploit, under the provisions of Chapter XIV of this Code;
H) In areas always constituted as mixed mining areas and when the relevant EU authorities, within which they point, not have exercised their preferential right to obtain the mining rights to explore and exploit, in accordance with the provisions by Chapter XIV of this Code.
Once consulted entities referred to in this article, the officials to whom the application is made must resolve in the non-extendable period of thirty (30) days, under penalty of disciplinary offense. After this term the competent authority shall decide what is relevant. Effective Jurisprudence


ARTICLE 36. EFFECTS OF THE EXCLUSION OR RESTRICTION. In concession contracts shall be deemed excluded or restricted as of right, zones, land and journeys which, in accordance with the above articles is prohibited mining activity or means conditional on obtaining special permits or authorizations. This exclusion or restriction will not require to be declared by any authority, either express mention in the acts and contracts, or resignation of the proposer or dealer to the said areas and grounds. If indeed these zones and land they be occupied by work or work of the dealer, the mining authority will order their immediate withdrawal and eviction, without payment, compensation or any compensation for this reason. This, notwithstanding the actions initiated by the competent authorities in each case when this any place. Effective Jurisprudence


ARTICLE 37. LEGAL PROHIBITION. Effective Jurisprudence

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ARTICLE 38. TERRITORIAL
. In the development, modification and implementation of land use plans, the competent authority shall be subject to the geological and mining information available on the respective areas as well as the provisions of this Code on areas of special reserves and excludable areas of mining . Effective Notes

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CHAPTER IV.
EXPLORATION.
ARTICLE 39.
MINE EXPLORATION. Mine prospecting is free, except in the territories defined as mining areas for ethnic minorities as envisaged in Chapter XIV of this Code. When it is to be made on private lands you will be required to give notice to the owner, possessor, holder or administrator, directly or through the mayor. When is to be made in public goods under the jurisdiction of the General Maritime Directorate in accordance with the provisions of Article 2 of Decree Law 2324 of 1984 and other regulations that modify, replace or repeal its technical concept will be required favorable. Effective Jurisprudence


ARTICLE 40. MEANS OF EXPLORATION. Prospecting is a process to investigate the existence of minerals defining promising areas and their methods are, inter alia, in identifying outcrops, geological mapping, geophysical and geochemical surveys and surface research, not subject to exclusive right areas. Prospecting underground methods are excluded.
PARÁGRAFO. When the survey is carried out in maritime areas and in the areas defined in t he rivers, over which it has jurisdiction Directorate General Maritime, it must be reported for the effect.
ARTICLE 41.
CAUCIÓN. The mining company and owners, owners or holders of farms where prospecting works are carried out, may request through the mayor who perform the aforementioned tasks prospecting constitutes bond to insure the damages that may cause. This bond will be set based on the rules and criteria of Chapter XVIII of this Code and taking into account the timing and nature of the work involved. Effective Jurisprudence

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