Key Benefits:
SUMMARY:
Pags.
LEGISLATIVE FUNCTION
LEYES:
NATIONAL ASSEMBLY:
THE PLENO:
-Expose the Reforming Organic Law to the Mining Act, to the Reform Law for the Equity Ecuador and the Organic Law of Internal Tax Regime ....... 1
DECENTRALIZED AUTONOMOUS GOVERNMENTS:
MUNICIPAL ORDINANCES:
-Canton Nangitza: For the protection of sources and water-charging zones, fragile ecosystems and other areas for the use of water conservation of biodiversity and natural heritage .................................... 12
013-2013 Canton Ruminahui: Exasking the First
Reforming Ordinance to the Ordinance for the granting of the operating permit for establishments and commercial premises operating within the jurisdiction of the canton ...... 22
REPUBLIC of Ecuador
NATIONAL ASSEMBLY Of. No. SAN-2013-0875 Quito, July 12, 2013 Engineer Hugo Del Pozo Barrezueta Director of the Official Register In your office Of my considerations:
The National Assembly, in accordance with the powers conferred upon it by the Constitution of the Republic of Ecuador and the Organic Law of the Legislative Function, discussed and approved the Project of
Ano I r Nº 37
Quito, martes 16 de
July de 2013
Value: US$ 1.25 + IVA
ING. HUGO ENRIQUE DEL POZO
DIRECTOR #3;
Quito: Avenida 12 de Octubre
N 16r90 y Pasaje Nicolas Jimenez
Address: Telf. 2901 r629
Officias centrales y sales:
Telf. 2234 r540
Distribution (Storeroom):
ManoscaNº 201 yAv. 10 deAgost
Telf. 2430 r110
Sucurs Guayaquil:
MaleconNº 1606 yAv. 10 deAgosto
Telf. 2527 r107
Suspection anual: #3; #3;400 + IVA
for lacitydeQuit
US$ 450 + IVA paraelrestodelcountry
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Al service del pais
from el 1st de julio de 1895
S E G U N D O S U P L E M E N T O
2 -- Second Supplement -- Official Registration No. 37 -- Tuesday, July 16, 2013
ORGANIC LAW REFORMING THE MINING LAW, THE REFORM LAW FOR TAX EQUITY IN ECUADOR AND THE ORGANIC LAW OF INTERNAL TAX REGIME. In session on July 9, 2013, the plenary session of the National Assembly met and spoke on the partial objection presented by the Constitutional President of the Republic. As stated in article 138 of the Constitution of the Republic of Ecuador and article 64 of the Organic Law of the Legislative Function, the text of the ORGANIC REFORM LAW TO THE LAW OF MINING, TO THE LAW REFORMATORY FOR TAX EQUITY IN ECUADOR AND THE ORGANIC LAW OF INTERNAL TAX REGIME, to be used to publish it in the Official Register.
Attentive, f.) Dr. LI BIA RIVAS ORDONEZ, General Secretary.
REPUBLIC OF ECUADOR
NATIONAL ASSEMBLY
CERTIFICATION I allow you to CERTIFY that the National Assembly discussed and approved the ORGANIZATION REFORM OF THE MINING LAW, THE REFORM LAW FOR TAX EQUITY IN ECUADOR AND THE ORGANIC LAW OF INTERNAL TAX REGIME, in the first debate on 31 May 2013, in the second debate on 10 and 13 June 2013 and was delivered on the partial objection of the Constitutional President of the Republic on 9 July 2013. Quito, July 12, 2013 f.) Dr. LIBYA RIVAS O., General Secretariat.
REPUBLIC of Ecuador
NATIONAL ASSEMBLY
THE PLENO
CONSIDERING: That, the numeral 11 of Article 261 of the Fundamental Charter prescribes that the Central State will have exclusive powers over energy, mineral and oil resources;
That, the Constitution of the Republic of Ecuador establishes in Article 408, that " They are of inalienable property, imprinted and Non-renewable natural resources and, in general, non-renewable natural resources subsoil, mineral and hydrocarbon products, substances of a different nature from that of the soil, including those in the areas covered by the waters of the territorial sea and the sea areas; biodiversity and its genetic heritage and radio spectrum "; Que, non-renewable natural resources are considered a strategic sector, as provided for in Article 313 of the Constitution of the Republic of Ecuador, on which the The state reserves the right to administer, regulate, control and manage this sector, principles of environmental sustainability, precaution, prevention and efficiency, as well as to delegate exceptionally to the private initiative and the popular and solidarity economy, in accordance with the provisions of Article 316 of the Constitution of the Republic of Ecuador; What, the new regulatory framework for mining activity initiated with the Law of Mining, promulgated in the Supplement of the Official Register No. 517 of 29 January 2009; That, under the rules and principles of the due process, collected as a right of constitutional protection in Article 76 of the Constitution of the Republic of Ecuador, it is necessary to guarantee this right in the processes of expiration of the mining concessions established in the Law of Mining; That, the State must promote the development of the economic activities by a legal order and political institutions that promote, encourage, and defend through compliance with the Constitution and the law; that the current mining legal framework and administrative practice point out that it is insufficient and does not adequately respond to the national interests, so it is necessary to reform various legal provisions; the natural resources are owned by the State, the State must receive adequate benefits, which must be regulated by national mining legislation; and, by means of Official Register No. 242 of 29 December 2007, the Reform Law for Tax Equity in Ecuador. In the exercise of the faculty referred to in article 120 of the Constitution of the Republic, the following is issued:
ORGANIC LAW REFORMING THE MINING LAW, THE REFORM LAW FOR TAX EQUITY IN THE ECUADOR AND
INTERNAL TAX REGIME ORGANIC LAW
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Art. 1.- Replace Article 1 of the Mining Law with the following: " Article 11.-Directory of the Agency for the Regulation and the Mining Control.-The Agency for Regulation and Mining Control will have a directory of three members that will not have dependency relationship with this entity. It shall be composed of: (a) the Sectoral Minister or his permanent delegate, who shall preside over him and shall have the right to vote; (b) the National Secretary of Planning or his delegate; and (c) a delegate of the President of the Republic. The Board shall appoint an Executive Director and shall establish, by resolution, the administrative and financial structure of the Mining Regulatory and Control Agency. The Executive Director shall be responsible for complying with the resolutions of the Board; he shall exercise the legal representation of the Agency and shall have the powers and powers assigned to him by the Executive Director. " Art. 2.- Replace Art. 16 of the Mining Law with the following: " Art. 16.-State power over mines and deposits.-Non-renewable natural resources and, in general, subsoil products, minerals and substances, which are inalienable, imprinted, inembargable and unrenountable of the State. The nature of the land is different from that of the soil, even those found in the areas covered by the territorial sea. The rule of the State on the subsoil shall be exercised independently of the right of ownership over the surface areas covered by the mines and deposits. The exploitation of natural resources and the exercise of mining rights will be based on the National Development Plan, the principles of sustainable and sustainable development, the protection and conservation of the environment and participation. and social responsibility, while respecting the natural and cultural heritage of the exploited areas. Its rational exploration and exploitation will be carried out according to the national interests, by natural or legal persons, public, mixed or private companies, national or foreign, granting them mining rights, in accordance with this law. The exploration and exploitation of mining resources will be based on a public environmental sustainability strategy that will prioritize oversight, control, regulation and prevention of environmental pollution and remediation, as well as the promotion of social participation and citizens ' oversight. " Art. 3.- Replace Article 26 of the Mining Law with the following: " Art. 26.-Prior administrative acts.-To execute the mining activities are required, in a mandatory manner, motivated and favorable administrative acts granted
previously by the following institutions within the scope of their (a) of the Ministry of the Environment, the respective environmental licence duly granted; and (b) of the Single Water Authority, with respect to the possible affectation to bodies of surface and/or groundwater and compliance with the order of precedence over the right to access to water. In addition, the mining dealer will present to the Sectoral Ministry a sworn statement made before a notary in which he expressed his knowledge that mining activities do not affect: roads, public infrastructure, ports, and beaches Sea and marine funds; telecommunications networks; military installations; oil infrastructure; aeronautical facilities; electrical networks or infrastructure; or archaeological or cultural heritage. The falsehood established in the declaration of the previous reference shall be sanctioned in accordance with the penalties applicable to the offence of perjury. If the maximum authority of the mining sector of its own office or at the request of a party notices that the activities of the applicant may affect the goods or assets, it shall request the authorization of the competent entity, which must to issue its pronouncement within thirty days. Failure to do so will mean that there is no opposition or impediment to the start of mining activities, and the responsible official will be removed. With regard to the issue of the reports of such administrative acts, the rules of the administrative legal procedure of the Executive Function shall be applied. Municipal and Metropolitan Governments, in the exercise of their powers, by ordinance, shall regulate, authorize and control the exploitation of arid and stone materials. " Art. 4.- Next to 1ro. Article 29 of the Law on Mining incorporates the following: " Except for the public auction or auction processes mentioned in the previous paragraph, the granting of mining concessions, as provided for in Article 31 of this Law, shall be carried out by the State through the Sectoral Ministry, in respect of areas in which it is available, by delegation to foreign State-owned enterprises or its subsidiaries, mixed-economy companies or to consortia in which they have a majority stake, for which the State must observe the principle of transparency in the award, applying the constitutional norms and criteria previously established in the law, its regulations and the agreements preceding its granting. " Art. 5.- Replace the fourth paragraph of Article 34 of the Mining Act with the following:
" An annual conservation patent is established for simultaneous exploration-exploitation activities that are
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perform under the special small mining regime equivalent to 2% of the unified monthly remuneration, per hectare of mining. " Art. 6.- In the last paragraph of Article 36 of the Mining Law after the phrase "economic assessment" add the word "integral". And in the end incorporate the phrase " That will incorporate the main, secondary and other minerals that have value economic. " Art. 7.- At the end of Article 40 of the Mining Law, the following point is added: " The conclusion of contracts for the provision of services between the State through the Sectoral Ministry and foreign state enterprises, or consortia in the (a) where the majority of the parties have a majority holding, it may be made directly, on the basis of the arrangements prior to the parties ' arrival. " Art. 8.- Add the following paragraph to Article 41 of the Mining Law: " The State may agree with the mining dealers to pay royalties and royalties generated by the use of metallic minerals, with the refined product of their exploitation in accordance with the provisions of this law. " Art. 9.- It incorporates at the end of Article 45 of the Mining Law the following: " The holders of profit plants, which process minerals from other mining concessions, and which generate tailings containing mineral products, must pay a regalia corresponding to 3% on the disposal of mineral products obtained from tailings when they are recovered. ' Art. 10.- Replace Article 49 of the Mining Act with the following: " Art. 49.-Free trade law.-The holders of mining concessions may freely market their production in or out of the country. However, in the case of gold from legally authorized artisanal mining, the Central Bank of Ecuador shall make its marketing directly or through the financial institutions duly authorized by the Bank. Central. ' Art. 11.- Replace Article 57 of the Mining Act with the following: " Art. 57.-Penalties to illegal mining activity.-Illegal mining activity carried out by natural or legal persons, or groups of persons, national or foreign, without the titles, authorizations, permits or licenses, will be sanctioned in accordance with the provisions of this Article, without prejudice to those applicable in the environmental, tax or criminal fields, to which it occurs.
Goods, machinery, equipment, inputs and vehicles used in illegal activities or not authorised for use, profit or processing, smelting, refining and Clandestine marketing of mineral substances shall be the subject of: special confiscation, seizure, detention, destruction, demolition, misuse or neutralisation, as the case may be, by the Agency for the Regulation and the Mining Control with the collaboration of the National Police and subsidiary of the Armed Forces. Those who are the authors of those activities or owners of such goods were sanctioned by the Agency, with a fine of two hundred and five hundred unified basic remuneration depending on the seriousness of the infringement, without prejudice to the the payment of a value equivalent to the total of the minerals extracted illegally, as well as the obligation to restore the ecosystems and compensation to the affected persons and communities. The fines referred to in this Law shall be paid to the Agency for the Regulation and the Mining Control, within five days from the date of the Resolution. If the infringer is administratively sanctioned not to comply with the obligation of payment, the said Agency shall carry out the recovery in the exercise of the co-active jurisdiction attributed in this Law. The fines collected by the Mining Regulatory and Control Agency shall be intended to comply with the purposes inherent in their competition. The effects on the environment and the damage to the ecosi theme and biodiversity produced as a result of the illegal exploitation or invasions, will be considered as aggravating at the time of the adoption of the resolutions with respect to the administrative amparo. The procedures that will make these measures effective will consist of the General Regulation of this Law. " Art. 12.- Following Article 57 of the Law on Mining, please note the following article: " Art. ... Penalties to holders who permit illegal mining activities in their areas.-Without prejudice to the revocation of the delegation made by the State, by means of the declaration of expiration of the concession, authorization, permission or license, apply the same fines provided for in the previous article to the holders of mining rights granted by the Ecuadorian State, which permit the committing of illegal mining activities, by third parties not legally authorized to do so to do so or to lack the respective environmental license for their mining operations in their respective areas or areas of operation. '
Art. 13.-In 62, 71, 72, 94 and 95 of the Mining Law, replace the expression "Sectoral Ministry" with the expression "the Agency for the Regulation and the Mining Control."
Art. 14.- Replace the art. 78 of the Mining Law by the following:
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" Mining rights holders, prior to the initiation of activities, shall develop and submit studies or documents environmental, to prevent, mitigate, control and repair the environmental and social impacts derived from their activities; studies or documents that must be approved by the competent Environmental Authority, with the grant of the respective License Environmental. The Environmental Regulation for Mining Activities, which will dictate the ministry of the branch, will establish the requirements and procedures for the application of this article.
For the procedure of presentation and qualification of the studies environmental management plans and environmental licensing, the permissible limits and technical parameters required will be those established in the applicable mining environmental regulations.
obtaining the respective environmental administrative authorization, require the presentation of economic guarantees determined in the applicable environmental mining regulations.
The holders of mining rights are obliged to present, in the year of the issue of the Environmental License, an environmental audit of compliance to enable the control entity to monitor, monitor and verify compliance with the applicable environmental management and environmental regulations. After this, the Environmental Audit of Compliance will be presented every two years, without prejudice to it, the environmental guarantees must be maintained in force every year.
In the regime of artisanal mining, approval will be required of environmental records, while under the regime of small mining, the environmental license must be granted for simultaneous exploration/exploitation operations and must be counted for the effect with specific and simplified environmental studies.
On medium and large mining regimes, for the scan period In the case of an environmental declaration, the approval of environmental records will be required for the advanced exploration, whereas, for the stage of exploitation and the subsequent phases, they will require environmental studies, which must be modified or updated depending on the results. On the basis of these instruments, the corresponding environmental licenses will be awarded.
Once the holders of the mining rechos, satisfy in a satisfactory manner with the requirements laid down in the applicable regulations, the approval of the documents, studies or environmental licences, shall be granted within the maximum period of six months from the date of their submission. Failure to do so within that period shall mean that there is no opposition or impediment to the commencement of mining activities. The official whose omission allowed the positive administrative silence will be dismissed. " Art. 15.- Replace the last paragraph of Art. 79 of the Mining Law with the following:
" Depending on the degree of non-compliance with this provision, the temporary or definitive suspension of mining activities may be available, to which effect the procedure laid down in this law and its general regulation shall be followed. " Art. 16.- Replace Article 85 of the Mining Act with the following: " Art. 85.-Closing of Mining Operations.-The holders of mining concessions and profit, smelting and refining plants must include in their Environmental Impact Studies for mining activities of exploitation, profit, smelting or refining, the planning of the closure of its activities, incorporated in the Environmental Management Plan and with its respective guarantee; planning that must begin in the pre-feasibility stage of the project and continue throughout the useful life, until the closure and final abandonment. The mining operations closure plan will be reviewed and updated periodically in the annual Environmental Programs and Budgets and in the Environmental Compliance Audits, with information on investments or estimates of the costs of mining operations. closure, activities for the partial or total closure or abandonment of operations and for the rehabilitation of the area affected by the mining activities of exploitation, profit, smelting or refining. Also, within two years prior to the planned completion of the project, for mining activities of exploitation, profit, smelting or refining, the mining concessionaire must present to the National Environmental Authority, for its approval, the Definitive Operations Closure Plan that includes the recovery of the sector or area, a verification plan of its compliance, the social impacts and its compensation plan and the updated guarantees indicated in the regulations The environmental impact of the environmental impact of the environmental impact of the sustainable. " Art. 17.- Following Art. 86 of the Law on Mining, add the following article: " Art. ... Prohibition of the use of mercury in mining operations.-Without prejudice to the application of environmental mining regulations, the use of mercury in the country in mining activities is prohibited, according to the mechanisms that the national environmental authority establish for the effect, in conjunction with the institutions with legal authority on the matter. Failure to comply with this prohibition shall be subject to the revocation of the mining right, without prejudice to the criminal penalties to which it may be imposed. " Art. 18.- Replace Article 93 of the Mining Act with the following: " Art. 93.-Royalties to the exploitation of minerals.-Economic benefits for the State shall be subject to the provisions of Article 408 of the Constitution of the
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Republic; that is, the State will participate in the benefits of leveraging these resources in an amount not less than that of the concessionaire which exploits them. For this purpose the mining dealer must pay a royalty equivalent to a percentage on the sale of the main mineral and the secondary minerals, not less than 5% on the sales and, for the case of gold, copper and silver, not greater than 8%, additional to the corresponding payment of the income tax; the percentage of profits attributed to the State under this law; of the tax on the extraordinary income; and, of the tax to the added value determined in the tax regulations in force. The evasion of royalty payments shall be a cause of revocation, without prejudice to the civil and criminal effects to which it shall be applicable. 60% of the regalia will be earmarked for projects of social investment as a priority to meet basic unmet needs and territorial or productive development, through the National Government or the Autonomous Decentralized Governments. The investments made by the Autonomous Decentralized Governments must be channeled through the State Bank for the disbursements. When the case warrants, 50% of this percentage would correspond to the government instances of the indigenous communities and/or territorial constituencies. These resources will be distributed prioritizing the needs of the communities in areas of influence directly affected by the mining activity. The holders of mining rights of small mining, will pay for royalties, 3% of the sales of the main mineral and the secondary minerals, taking as a reference the standards of the international market. The percentage of royalty for the exploitation of non-metallic minerals and building materials will be calculated based on the production costs. The total of the royalties from arid and stone materials will be destined for the autonomous decentralized municipal and metropolitan governments where they are generated. The regulation of this law and the mining contract will establish the parameters for the application of the royalty payment, as well as the requirements for its distribution. In the General Regulation of this Law, they will establish the necessary provisions for the application of Article 408 of the Constitution of the Republic of Ecuador. " Art. 19.- Replace Article 108 of the Mining Act with the following: " Art. 108.-Expiration of mining rights.-The Sectoral Ministry in the exercise of its jurisdiction and jurisdiction may declare the expiration of the mining rights, in the
case of its holders hayn incurred in the causals of expiration established in Articles 69, 79, 81, 93 and 125, and in this Chapter, and more provisions of this Law. In any procedure of declaration of expiration, the right to due process shall be guaranteed, including the basic guarantees enshrined in Article 76 of the Constitution of the Republic of Ecuador. The process of declaration of expiration may be initiated by the Sectoral Ministry, on the basis of a complaint from a third party duly substantiated and investigated by the Ministry of Sectoral or at the request of other ministries that have a relationship with the Ministry. mining activity. The administrative procedure shall be subject to the provisions of this Law and those of its General Regulation. The technical report on the grounds of fact which may serve as a basis for the declaration of revocation, shall be carried out by the Agency for the Regulation and the Mining Control. The Sectoral Ministry shall transfer to the holder with the technical report of the Agency for Regulation and Mining Control, in order to ensure that within 45 days, it accredits the performance of its obligations or presents its disclaimers and tests that sustain their defense. If the Ministry of Sectoral is not founded to continue with the process of revocation or if the causal has been distorted by the concessionaire in that term, it shall be declared concluded and the file of the file shall be available. Otherwise, if there are outstanding obligations of compliances, by means of a duly motivated administrative decision, the concessionaire will order the concessionaire to remedy the non-compliance within 60 days. The Sectoral Ministry may request the reasoned pronouncement of other state entities within the process of declaring expiration. If the concessionaire fails to comply with the non-compliance within the prescribed period, the Sectoral Ministry shall declare by means of a reasoned decision the expiry of the mining rights. Only for the declaration of revocation due to the causation provided for in Article 17 of this Law, it will be necessary to have a previously executed judicial sentence. The concessionaire may institute the administrative and judicial actions and resources provided for in the Ecuadorian legislation. Under an administrative procedure of declaratory of expiration, the mining dealer will not be able to give up the mining concession. "
Art. 20.- Replace the art. 109 of the Law of Mining for the following: " Art. 109.-Effects of the expiration.-The c-ducity extinguishes the mining rights conferred by the State, by means of concessions, authorizations, permits or licenses referred to in this Law. The declaration of expiration of the mining concession in firm will produce the following effects:
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a) The revocation of the exceptional delegation conferred by the State for the exercise of mining activities and the restitution of the area the matter of the concession to the same, without the right to payment or compensation of any nature to the former mining owner, together with all the accessories and affections thereto, including those destined by the concessionaire to the mining activities in all its phases. The Agency for the Regulation and the Mining Control shall have the power to provide the concessionaire with a reasoned view of the removal, at the cost thereof, of the goods which are not suitable for the mining activity. Without prejudice to the above, the State shall exercise its power to intervene in such mining concessions, permits, licenses and other mining rights, in accordance with this law and its general rules of procedure, for the duration of the expiration process. (b) the termination of the mining contract on the expired concession, where a contract is concluded. Notwithstanding the effects stated in the preceding literals, in the event of a declaration of revocation, the responsibility of the former holder shall remain for environmental damage, which also implies the obligation to restore the ecosystems and compensation. to persons and communities, if there is a place to do so. " Art. 21.- Replace Article 122 of the Mining Act with the following: " Art. 122.-Right of Owner on Mining Goods.-Except as provided for in Article 109 of this Law regarding the expiration of concessions, due to the extinction of the mining rights, the former owner does not lose his property right on buildings, machinery, installations and other work items, which may be withdrawn at their own cost, with the authorization of the Sectoral Ministry. " Art. 22.- Following Article 127, add the following numbered article. ' Art. ... Transfer of shares or shares.-The direct or indirect transfer of shares or shares or any other right of a similar nature in the social capital of the mining dealers, and which together represent more 10% of the same with voting rights, must be registered in the Mining Registry. For this purpose, the legal representatives of the concessionary companies, within 30 days after the registration of the transfers in the corresponding social books, will communicate to the Sectoral Ministry the transfers the shareholders or members, representing more than 10% of the shares or shares with the right to vote, shall have the effect of recording the constant data in the form to be drawn up by the said Ministry and paying the right of a record corresponding to one percent (1%) of the transaction value. Also subject to the aforementioned registration and payment of the respective right are the transactions for which the percentage of rights is transferred indirectly
mentioned in previous paragraph on a mining concession in stock exchanges in Ecuador or abroad. In case of doubt about the value of the transaction, the dealer will present to the Sectoral Ministry the documents related to the respective legal business in order to determine the amount of the right of registration. If the transaction involves mining projects in several jurisdictions, the Sectoral Ministry will only take into consideration those mining projects and activities in Ecuador. " Art. 23.- Following Title VIII, incorporate an unnumbered one with the following tenor. ' TITLE ... FROM THE MEDIUM AND LARGE MINING-CHAPTER I-From the medium mining Art. ... of the medium mining-It is considered medium-mining that, because of the size of the deposits depending on the type of metallic and non-metallic mineral substances, has been reached to quantify resrvas that allow to effect the exploitation of the same by the amount of processing established for the special small-mining scheme and up to the volume set out in the following Articles. They will be able to opt for the medium-mining modality, who having started their operations under the small-mining regime, in the evolution of their simultaneous exploration and exploitation tasks have reached the quantification of resources and mining reserves that allow production to increase. Notwithstanding the above, the Sectoral Ministry, with the technical and economic report of the Mining Regulatory and Control Agency, shall take the necessary administrative action in respect of the modification of the system. " Small mining by Mediana Mining, which is a precautionary measure for the state's interests and propitiating the development of this sector. The characteristics and conditions, mentioned in the first paragraph of this article, are inherent to those corresponding to the amount of investments, volume of exploitation, installed capacity of benefit processing, and technological conditions, in accordance with the rules of the Rules of Procedure. The holders of concessions in this scheme shall be exempt from the holding of the operating contracts referred to in Article 41 of the Mining Act, but if they are obliged to submit to the Ministry of Industry, the production, in equal terms as those set out in this Law. National or foreign investment in medium-mining activities shall be subject to the provisions of the Organic Code of Production, Trade and Investments. The payment of the annual conservation patent for the medium-mining modality shall be made subject to
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as set forth in Article 34 of this Law, except for its final indent, applicable to the special small mining regime. Article ... State participation.-The mining dealer in the medium-mining modality must pay a royalty equivalent to a percentage of the four (4) percent over the sale of the main mineral and secondary minerals, additional the payment corresponding to the income tax and value added tax. In the case of workers linked to mining activity, they will receive 5% of the percentage of profits and the remaining 10% will be paid to the State, which will allocate it, solely and exclusively, to local development projects. Article ... Production Volumes.-Production volumes in medium-mining mode, will be subject to the following ranges: (a) For metal ores: From 301 to 1000 tonnes per day in underground mining; from 1001 to 2000 tonnes per day in open pit mining; and from 1501 to 3000 cubic metres per day in alluvial mining; b) For non-metallic minerals: From 1001 to 3000 tons per day; and, c) For building materials: From 801 to 2000 cubic meters for mining on alluvial terraces; and, from 501 to 1000 metric tons in open pit mining in hard rock (quarry). Article ... Mining on a large scale.-Large scale mining is considered, the one that exceeds the maximum volumes established for the medium mining modality. " Art. 24.- Replace Art. 134 of the Mining Law with the following: " Art. 134.-artisanal mining.-For the purposes of applying this Law and in accordance with the rules of the Organic Law of the People's Economy and Solidarity and the Popular and Solidarity Financial Sector, the name "artisanal mining" comprises and applies to the popular economic units, the single-personal, family and domestic enterprises that perform tasks in free areas. The activities in artisanal mining are characterized by the use of machinery and equipment with limited capacity of load and production according to the instructional approved by the directory of the Agency of Regulation and Mining Control. intended for the production of minerals, the general marketing of which enables the needs of the community, persons or family members to be met, solely within the territorial area in respect of which the granted the corresponding permit. By its nature, the activities of artisanal mining, are not subject to the payment of royalties or patents, but if subject to the tax regime, to guarantee the income that corresponds to the State.
The Sectoral Ministry will be able to grant permits for a period of up to 10 years to carry out artisanal, renewable, equal-term mining work, if there is a written request before it is due and which has a favourable report from the Agency for Mining and Ministry of the Environment. The permits of the artisanal mining will not be able to affect the rights of a mining dealer with an existing title; however the above, the mining dealers will be able to authorize the realization of works of artisanal mining in the area of their concession, through the conclusion of contracts of operation regulated by the Sectoral Ministry.
In the event that in exercise of the power of the State to regulate, control and manage the strategic mining sector, the Ministry Sectorial, it considers appropriate and necessary the granting of the permits mentioned in the prior to the special small-mining regime, it will be conferred on them by a favorable report from the Mining Control and Regulatory Agency. In these cases, compliance with environmental, mining safety, labor, social, tax and other obligations under the Regulation of the Special Regime for Small Mining and Artisanal Mining will be exclusive. the responsibility of their beneficiaries, without the effects of their failure, or the effects of their non-compliance, on the holders of mining concessions.
The permits granted for underground work of artisanal mining, may not exceed 4 hectares of mining and 6 hectares for open-pit work. It expressly prohibits the granting of more than one permit to the same person, for cidades in artisanal mining, as well as the carrying out of tasks directly or by persons other than the localities in which they are located.
administrative procedures to be carried out in the Sectoral Ministry and its assigned entities, for the granting, administration, extinction and registration; in any case they should be simplified and without cost to the petitioner. Similarly, for notarial purposes, the permits to be entrusted for artisanal mining will be granted as an undetermined amount.
For the purposes of control and adequate environmental management, the artisanal mining permits granted for the Exploitation of metallic minerals, with exc from the exploitation of alluvial deposits, will be limited to extraction work. Their processing must be carried out in plants with due authorization for their installation and operation, in addition to the environmental license required by the case. " Art. 25.- Following Art. 134 of the Mining Law. incorporate the following numbered articles.
" Art. ... Production capacity and processing.-In consideration of the different nature and concentration of the minerals and depending on the distribution of the mineralization, as well as the methods of exploitation and/or processing technically selected for your
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rational utilization, the following production capacities are established under the artisanal material mining regime mineralised: a) For metal ores: Up to 10 tonnes per day in underground mining and 120 cubic metres per day in alluvial mining; b) For non-metallic minerals: Up to 50 tonnes per day; c) For building materials: Up to 100 cubic metres per day for mining of alluvial or unconsolidated materials; and, 50 metric tons per day in open pit mining on hard rocks. Article ... Exercise of State Power.-In exercise of the State power to administer, regulate, control and manage the strategic mining sector, the Sectoral Ministry, with the technical and economic report of the Agency of Regulation and Mining Control, will take the necessary administrative actions in respect of the granting, conservation and extinction of the rights granted under the regime of the artisanal mining, including in these the ones to modify the regime of permits and opt for the modality of concession provided for small mining, taking precautions State interests and propitiating the development of this sector. In this case, the accumulation of mining areas granted under the modality and permits for artisanal mining can be carried out, without prejudice to the Sectoral Ministry, in application of the rules of Articles 313 and 316 of the Constitution of the The Republic of Ecuador, on its own initiative, can redefine the areas of granting concessions, conferring concessions on concessions to replace the permits for artisanal mining. In the exercise of this same power, the accumulation of mining areas for the case of small, medium and large scale mining, within the limit of the size of the concessions established in this law, also proceeds. " Art. 26.- Replace Art. 138 of the Mining Law with the following: " Art. 138.-Small Mining.-It is considered small mining that, due to the characteristics and geological mining conditions of the deposits of metallic, non-metallic mineral substances and building materials, as well as their parameters (a) technical and economic operations, the rational exploitation of the resources is made viable directly, without prejudice to the preceding exploration work, or to the simultaneous operation of exploration and exploitation. The geological-mining characteristics and conditions of the deposits, mentioned in the previous paragraph, suitable for the development of small mining operations, and different from mining activities on a larger scale, are inherent to them. correspond to the area of concessions, to the amount of investments, volume of exploitation, installed capacity of benefit or processing, and technological conditions, in accordance with the rules of the Regulation of the Special Regime of Small Mining and Artisanal Mining. "
Art. 27.- Following Article 138 of the Mining Law, the following numbered articles are incorporated: " Art. ... Production capacity under the small mining regime.-In dependence on the degree of concentration of minerals in the fields and depending on how the mineralization is distributed, as well as the methods of Technically selected exploitation and/or processing for its rational use, the following production ranges are established for each operator: (a) For metal ores: up to 300 tonnes per day in underground mining; hast 1000 tonnes per day in open pit mining; and up to 1500 cubic metres per day in alluvial mining; b) For non-metallic minerals: up to 1000 tonnes per day day; and, c) For building materials: up to 800 cubic meters for mining on alluvial terraces; and, 500 metric tons per day in open pit mining in hard rock (quarry). Within this regime, one or more mining operations may be carried out in each mining area, by the holder or by its operators legally empowered to do so, as long as the technical characteristics or conditions of exploitation of the This is justified. Article ... Manifiestas and production reports.-The holders of concessions in small mining, will be exempt from the conclusion of the contracts of exploitation referred to in article 41 of the Law of Mining, but if obliged to submit to the Ministry of Sectoral, manifestos and production reports, by means of a sworn statement made to Notary, indicating the number of mining hectares in exploration and exploitation, respectively. The duly audited annual production reports shall be submitted until 31 March of each year to the Sectoral Ministry, in accordance with the technical guidelines developed for the purpose by the Agency for the Regulation and the Mining Control. The falsehood established in the declaration of the previous reference shall be sanctioned in accordance with the penalties applicable to the offence of perjury. The lack of presentation of the production manifests or of their updates shall be sanctioned with the temporary suspension of the activities until the presentation of such manifests is fulfilled. The delay in the submission of the indicated documents shall not exceed the 90-day period, which shall be the end of the final suspension of activities. The production manifests and further declarations of the holders of mining rights, made by a sworn statement made before a notary, shall be entered in the text of the applications, requests and more documents for processing or procedure.
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For all purposes, including tax and tax purposes, the Mining Regulation and Control Agency will establish the extraction, processing and export of minerals as well as their contents or law. The Regulation to this Law will define the general, technical and statistical parameters for the exercise of this attribution. " Art. 28.- Replace Article 149 of the Mining Law with the following: " Art. 149.-Gold purchases.-The gold purchases made by the Central Bank of Ecuador directly or through the financial institutions authorized by the Bank itself, will be taxed at the value added value zero rate. " Art. 29.- At the end of Article 150 of the Mining Law, the following point is added: " Any procedure for granting, administering and extinguishing mining rights shall have the prior technical report of the Agency for Mining Control, which shall be issued in a term not greater than thirty (30) days, counted from the date on which the request is received or required. In case of non-issuance in the term referred to above, the Sectoral Ministry shall adopt the reasoned decision which the case requires. " Art. 30.- Replace Article 165 of the Reform Law for Tax Equity in Ecuador by the following: " Art. 165.-Concept of Extraordinary Income.-For the purposes of this tax, extraordinary income is considered to be income received by the contracting companies and generated in sales at prices higher than the base price agreed or provided for in the respective contracts. Only those received after the month in which the pre-operational investments of preparation and development in the area of the contract or concession my era, carried out exclusively before the beginning of the contract, will be considered extraordinary income. the production, declared by the competent body, has been completely recovered from a financial perspective. By means of a general decision in the field of its powers, the Internal Revenue Service shall establish the procedures, conditions and requirements for the calculation of the extraordinary revenue received. ' Art. 31.- At the end of Article 168 of the Reform Law for Tax Equity in Ecuador, add the following point: " The tax corresponding to the months of the fiscal year in which the investment was fully recovered, declare and pay within the month of May of the following immediate year, according to the ninth digit of the RUC, in accordance with the general resolution that the Internal Revenue Service may issue for the purpose. "
" Art. 32.- Following the item 15 of the article. 55 of the Organic Law of Internal Tax Regime, add the following: "16.-Gold when acquired by the Central Bank of Ecuador directly or through the financial institutions authorized by the Bank itself." Art. 33.- Replace the Third General Disposition of the Mining Law with the following: " The State is the holder of the royalties, patents, labor profits attributable to the State in the percentage that corresponds to it according to this Leyy of the adjustment it is necessary to comply with article 408 of the Constitution, which will be collected through the Internal Revenue Service, which for these purposes is invested with all the powers and powers granted to it by the tax rules and this Law. "
GENERAL PROVISIONS FIRST. - The holders of mining concessions, in the event of the use of the provisions of Article 46 of the Law of Mining and opting for the installation of the mentioned plants, must include in their environmental studies and environmental management plans.
SECOND.- The Ecuadorian State will be able to delegate the participation in the mining strategic sector to the private initiative and to the popular and solidarity economy, in a way that exceptional, in compliance with the provisions contained in the second indent of Article 316 of the Constitution of the Republic of Ecuador; through the granting of rights in the form provided for in this Law, any other modality not foreseen or recognized in the same and in its regulations shall be prohibited. The same prohibition is established for the registration of mining titles in the Minero Registry, which is carried out by the Agency for the Regulation and Mining Control, which, lacking the exceptional delegation, under the administrative concession procedure, does not
THIRD.-
order to protect the interests of the State, in all cases in which the existence of gold in the beds of rivers, lakes, lagoons, beaches of sea and water is evident. (a) the number of cases in which concessions have been granted in respect of non-metallic or material ores The Ministry of Natural Resources Non-Renewables, with the report of the Agency for Regulation and Mining Control and the National Institute of Geological Survey, Mining, Metallurgical, of trade, will proceed to order the reform of the title of the concession, or change of the object of concessional modality that allows the use of the resources.
FOURTH.- The losses incurred in a mining concession may not be compensated or consolidated with the profits obtained from other mining concessions granted
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to the same holder. Similarly, such losses or gains may also not be offset against those obtained in carrying out other economic activities other than mining carried out by that holder. QUINTA.- The suspension of mining activities established in this Law and its regulations, will be ordered exclusively by the Sectoral Ministry, by means of a reasoned resolution. Notwithstanding the above mentioned, the supusions based on environmental matters as a preventive and/or corrective measure, with respect to legal or illegal mining activities, must be implemented by the National Environmental Authority in accordance with the established in Art. 396 of the Constitution of the Republic of Ecuador. SIXTH.- The processes of qualification or registration under the special regime of small mining and artisanal mining are subject to the preexistence of mining ownership. SEPTIM A.- No mining rights shall be recognised for natural or legal persons, national or foreign, who have as partners, shareholders or members directly or indirectly to companies domiciled, incorporated or located in a paradise tax. EIGHTH.- The State through the Sectoral Ministry, the National Institute of Geological, Mining and Metallurgical Research and the Ministry of the Environment, will develop training and technical assistance programs for the miners. craft and small miners, the same as they will be newspapers. Similarly, the State through public banking will seek to create financial products for the acquisition of modern and environmentally friendly technology.
TRANSITORY provisions FIRST. - The rules applicable in mining matters with respect to the procedures and processes for granting, conserving and extinguishing mining rights, as well as those relating to internations, administrative measures, oppositions, invasions, easements, decisions, nullity, precautionary acts, temporary suspensions or closures of activities, fines, increases in production volumes, revoking of permits, processes of formalization, changes of concessional modality, jurisdiction and administrative jurisdiction, the Sectoral Ministry and the Agency Regulation and Mining Control, will be included in the General Regulation of this Law and in the regulations established by the Agency. SECOND.- Within six months of the validity of this Law, the Board of the Central Bank of Ecuador will issue the regulations of its jurisdiction, necessary for the marketing of gold, especially
required to provide the mining operators with the logistical and operational facilities required for such marketing. THIRD.- For the eradication of the use of mercury in mining activities, natural or legal persons, national or foreign, and holders of mining rights, as of the duration of this law and during the period of two years years, alternative methods should be applied in order to progressively eliminate the substance in the process of recovery of the mineral. FOURTH.- At the event that the persons determined in the Seventh General Disposition of this law are included in the conditions specified in that law, they shall be required to change their domicile within one year from the date of the validity of this Law, being exempt from the transfer fees in accordance with the current tax law. QUINTA.- The mining activities that are carried out in areas in respect of which their owners have carried out tasks in accordance with the provisions of Articles 37 and 38 of the Law on Mining and which, in the same way, have been evidenced by The Ministry of Sectoral's interest in negotiating and concluding mining contracts under Articles 39 and 41 of that Law will not be eligible for the special small-mining or medium-mining scheme. SIXTH.-For the case of persons carrying out artisanal mining, identified in the Mining Census of the year 2010, and until the date of enactment of this law have not been regularised, the Ministry of Sectoral within a maximum period of time of 180 days will culminate its legalization in accordance with the rules of the Law of Mining and the present reform. SEPTIM A: The Sectoral Ministry, through the fulfillment of the powers granted to it in this law, will prevent situations of monopoly or concentration from occurring in the system of concessions. To this effect, in the General Regulation this law will establish rules to prevent monopolies or mergers.
FINAL DISPOSITION This Law shall enter into force on the basis of its publication in the Official Register. Given and subscribed to the headquarters of the National Assembly, located in the Metropolitan District of Quito, Pichincha province, on the nine days of July of two thousand thirteen. f.) GABRIELA RIVADENEIRA BURBANO, President. f.) DRA. LIBYA RIVAS O. , General Secretariat.
