Mining Law

Original Language Title: Ley Minera

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Mining Law

MINERA ACT

Official Journal of the Federation on June 26, 1992

Last reform published in the DOF on August 11, 2014

On the sidelines a seal with the National Shield that says: United Mexican States.-Presidency of the Republic.

CARLOS SALINAS DE GORTARI, Constitutional President of the United Mexican States, to its inhabitants, known:

That the H. Congress of the Union has been used to address the following

D E C R E T O

" THE CONGRESS OF THE MEXICAN UNITED STATES, DECREE:

MINERA ACT

FIRST CHAPTER

General Provisions

Article 1. This Law is a regulation of Article 27 of the Constitution in the field of mining and its provisions are of public order and observance throughout the national territory. Its implementation corresponds to the Federal Executive through the Secretariat of Economy, which the Secretariat will henceforth be referred to as the Secretariat.

Article 2. They shall be subject to the provisions of this Law, the exploration, exploitation, and benefit of minerals or substances which in veins, mantles, masses or deposits constitute deposits whose nature is distinct from the components of the land, thus as in the salt of salt formed directly by marine waters from current seas, surface or at least in the natural or artificial manner, and the salts and by-products of these.

Article 3.- For the purposes of this Law, it is understood by:

I.- Exploration: Works and works performed on the ground with the object of identifying deposits of minerals or substances, as well as quantifying and assessing the economically usable reserves they contain;

II.- Exploitation: Works and works for the preparation and development of the area comprising the mineral deposit, as well as those intended to detach and extract the mineral products or substances existing therein, and

III.- Benefit: The works for preparation, treatment, first hand smelting and refining of mineral products, in any of its phases, with the purpose of recovering or obtaining minerals or substances, as well as the concentration and purity of its contents.

Article 4. They are minerals or substances that in veins, mantles, masses or deposits constitute deposits other than the components of the land:

I. Minerals or substances from which antimony, arsenic, barium, beryllium, bismuth, boron, bromine, cadmium, cesium, cobalt, copper, chromium, scandium, tin, strontium, fluorine, phosphorus, gallium, germanium, hafnium, iron, indium, iridium, yttrium, lanthanides, lithium, magnesium, manganese, mercury, molybdenum, niobium, nickel, gold, osmium, palladium, silver, platinum, lead, potassium, rhenium, rhodium, rubidium, ruthenium, selenium, sodium, thallium, tantalum, tellurium, , tungsten, vanadium, zinc, zirconium and iodine;

II. Minerals or groups of following industrial use minerals: actinolite, alunita, alunita, amosita, andalandite, anhydrite, antophilite, sulphur, barite, bauxite, biotite, bloitedite, boemite, borates, brucite, carnalità, celestita, cyanite, cordierite, corindon, chrysotile, crocidolite, chromite, quartz, dolomite, epsomite, estaurolite, flogopite, phosphates, fluorite, glaserite, glauberite, graphite, granates, halite, hydromynesite, kainita, kieserite, langbeinite, magnesite, mica, mirabilita, mulita, muscovite, nitratin, olivines, palygorskite, pirofilite, polyhalite, sepiolite, silimanite, silvita, talc, taquidrita, tenardite, tremolite, trona, vermiculite, witherite, wollastonite, gypsum, zeolites and zircon;

II. BIS. Diatomite;

III. (Repeals);

IV. Precious stones: sea water, away from, amethyst, amazonite, adventurer, beryl, cryosoberyl, crocidolite, diamond, dioptase, epidota, escapist, emerald, spinel, espodumena, jadeita, kuncita, lapislazi, malachite, morganita, olivino, opal, riebeckite, ruby, sodalite, tanzanite, topaz, turmaline, turquoise, vesubianite and sapphire;

V. Salt gem;

VI. The products derived from the decomposition of rocks when their exploitation requires underground works, such as clays in all their varieties, such as kaolin and montmorillonites, as well as quartz sands, feldspates and plagioclaases;

VII. The following mineral or organic materials, which may be used as fertilizers: apatite, colophane, phosphosiderite, francolite, variccite, wavelite and guano;

VIII. Mineral coal in all its varieties;

IX.- The others to be determined by the Federal Executive, by decree that will be published in the Official Journal of the Federation, taking into account its industrial use due to the development of new technologies, to its contribution in international markets or to the the need to promote rational exploitation and the preservation of non-renewable resources for the benefit of society.

Those who are conducting the exploration or exploitation of the minerals or substances referred to in the previous fraction IX, based on the provisions of the common law, shall have Preferential right to obtain the corresponding mining concession, provided that they are requested in the terms of this Law and its Regulations.

Article 5. Except for the application of this Law:

I. Oil and other solid, liquid or gaseous hydrocarbons found in the subsoil;

II.- Radioactive minerals;

III.- The substances contained in suspension or dissolution by groundwater, provided they do not come from a mineral deposit other than the components of the land;

IV.- The rocks or products of their decomposition that can only be used for the manufacture of building materials or are intended for this purpose;

V. The products derived from the decomposition of the rocks, when their exploitation is carried out by means of open-pit work, and

VI.- The salt that comes from saline-formed salt basins.

Article 6.- The exploration, exploitation and benefit of the minerals or substances referred to in this Law are of public utility, shall be preferred over any other use or use of the land, subject to the conditions laid down by it, and only by law of a federal nature may contributions be made to these activities.

The preferential character of the activities referred to in the preceding paragraph shall not have any effect on the exploration and extraction of oil and other hydrocarbons, as well as the public service for the transmission and distribution of electrical energy.

The Secretariat, prior to issuing concession titles, shall request necessary information from the competent authorities in order to verify whether, within the area in which the concession is requested, some of the activities of exploration and extraction of oil and other hydrocarbons or of the public service of transmission and distribution of electrical energy are carried out.

If the requested information confirms the performance of any of the activities referred to in the second paragraph of this article within the area for which the concession is requested, the Secretariat, based on a technical study carried out with the Secretariat of Energy and in which the feasibility of the coexistence of mining activities with the activities of exploration and extraction of petroleum and other hydrocarbons, or of public service transmission and distribution of electrical energy on the same surface, may deny the mining concession or grant it excluding the area which includes the preferential activities, in so far as they are incompatible with the mining operation.

Based on the study referred to in the previous paragraph, the Secretariat and the Secretariat of Energy may establish rules of coexistence between the activities mining and strategic activities for the exploration and extraction of oil and other hydrocarbons and the public service for the transmission and distribution of electrical energy.

Article 7. They are the privileges of the Secretariat:

I.- Regular and promote exploration and exploitation, as well as the rational use and preservation of the Nation's mineral resources;

II.- Develop and follow up the sectoral programme in mining and coordinate the elaboration and evaluation, as well as follow up the institutional, regional and special programmes to promote small and medium-scale mining and the social sector;

III.- To consider in front of the Federal Executive's offices in the competition matters related to the minerometalurgic industry;

IV. To participate with the competent agencies in the elaboration of the Mexican official norms and the Mexican norms regarding the mineral-metallurgical industry in the field of hygiene and safety in the mines, occupational health and balance ecological and environmental protection;

IV BIS. Issue the technical opinions that your own internal regulation points out;

V.- Submit to the consideration of the Federal Executive the draft decree to determine the granting of minerals or substances, as well as those relating to the incorporation or de-incorporation of zones of mining reserves;

VI.- Exorder grant and mining allocation titles, as well as resolve their nullity or cancellation or the suspension and subsistence of the rights deriving from them;

VII.- Integrate the file and resolve in the terms of this Law and that of the matter on the requests for expropriation, temporary occupation or constitution of servitude of lands indispensable to carry out the exploration, exploitation and benefit of minerals or substances subject to the application of this Law;

VIII.- Solve on the controversies that arise with respect to the refusal of the persons who benefit the mineral to receive the one from third parties;

IX. Request and receive, on a confidential basis, information on the production, profit and destination of the minerals, geology of the deposits and reserves of the mineral, as well as on the economic and accounting states of mining companies and Metallurgical;

X.- Take the Public Registry of Mining and Mining Mapping and perform all kinds of topographical and geodetic uprisings in order to keep the latter updated;

XI.- administratively correct any errors found in a concession or assignment title, after hearing the holder and without prejudice to the third party;

XII.- Verify the fulfilment of the duties and obligations imposed by this Law on those who carry out the exploration, exploitation or benefit of minerals or concessional substances and impose administrative sanctions derived from their non-compliance;

XIII. (Repeals.)

XIV. (Repeals.)

XV. (Repeals.)

XVI.- Resolve the resources that are brought in as provided by this Act, and

XVII.- Others expressly conferring other laws on you.

The Secretariat may request the collaboration of other federal, state and municipal authorities in the exercise of the powers of verification conferred upon it by this Law.

Article 8.- The Secretariat will formulate the programs to promote small and medium-sized mining and the social sector, identified in section II of the previous article, and coordinate actions required for execution.

The Regulation of this Law will establish mechanisms for the implementation of the programs and actions provided for in this article and will specify the characteristics of the small and medium-sized enterprises. mining by mineral or substance, based on their sales revenue, the total tonnage they extract or their share in domestic production.

Article 9. To promote the best use of mineral resources and generate the basic geological information of the Nation, the Secretariat will be supported by the Mexican Geological Survey, a decentralized public body with legal personality and own heritage, coordinated by such a dependency.

The Mexican Geological Survey will have its legal address in Pachuca, Hidalgo. Its assets will be integrated with the contributions of the Federal Government, the discovery premiums and the economic consideration that comes from the competitions referred to in this Law, the income from the services it provides and the goods that you acquire for any other title.

The management of the Mexican Geological Survey will be in charge of a Governing Body and its Director General.

The Governing Body shall be composed of:

The head of the Economy Secretariat, who will chair it;

Two representatives of the Economy Secretariat;

A representative of the Secretariat of Finance and Public Credit;

A representative of the Secretariat for Social Development;

A representative of the Secretariat of Environment and Natural Resources;

A representative of the Energy Secretariat;

A representative of the Mining Development Trust;

They will also attend as guests, with voice but no vote and at the invitation of the President of the Governing Body, up to three representatives of organizations of the Mexican mining private sector, a representative of the trade unions of the mining sector and a representative of social mining organizations.

For the validity of your meetings you will require the assistance of at least half one of its members and whenever the majority of attendees are representatives of the federal public administration. Its resolutions shall be taken by a majority of the members present and, in the event of a tie, the President shall have a vote of quality.

The Director General shall be appointed by the President of the Republic, through the holder of the Secretariat, and must be in person who meets the stated requirements in the Federal Law of ParaState Entities.

The powers and obligations of the Governing Body and those of the Director General of the Office will be those established by the Federal Law of ParaState Entities and its Rules of Procedure, as well as those indicated in the Regulations of this Law and the Organization's Organic Statute.

The surveillance of the Mexican Geological Survey will be carried out by a Public Commissioner, owner and alternate, appointed by the Secretariat of the Civil Service, who They will attend the meetings of the Governing Body in a voice but without a vote; the Commissioner's powers will be those indicated in the Federal Law of ParaState Entities and their Rules of Procedure. The bases of the organization of the organization as well as the faculties and functions that correspond to the different areas of the organization will be governed by its Organic Statute.

The labor relations of the public servants of the Mexican Geological Survey will be governed by Article 123 (A) of the Constitution and its laws regulations.

For the purpose of the purpose of this article, the Mexican Geological Survey will have the following functions:

I. Promote and conduct geological, mining and metallurgical research for the best use of the country's mineral resources;

II. Identify and estimate the country's potential mineral resources;

III. Inventory the country's mineral deposits;

IV. Provide the country's public geological, geophysical, geochemical and mining information service;

V. Prepare and keep the Mexican Geological Charter updated, at the required scales;

VI. Provide the geochemical information of the national territory obtained according to international standards and establish the geophysical characteristics of the subsoil and provide its interpretation;

VII. Give small and medium-sized mining, and the social sector, technical advice on the evaluation of mineral deposits, metallurgical processes and physico-chemical analysis of mineral samples, for their use;

VIII. Provide the laboratory service and the study and interpretation of chemical, physical, chemical, metallurgical and geological analysis of samples in solid, liquid or gaseous state;

IX. Participate in shared risk investment funds for exploration;

X. To provide evidence to the Secretariat regarding the determination of the minerals and the concessional substances and the incorporation or de-incorporation of zones into mining reserves;

XI. Coordinate with other public or private entities and institutions, national or foreign, conducting geoscientific research;

XII. Provide external clients with the services described in this article, within the national territory or abroad, through contracts with natural or moral persons, public or private institutions, national or foreign;

XIII. Provide technical assistance in land-use planning, providing studies of: geological, ecological, territorial, geohydrological and geotechnical risk, which are required for this purpose;

XIV. Obtain and conserve earth science information, to increase the public service acquis of geological, geophysical, geochemical and mining information in the country;

XV. Participate in national and international geoscientific meetings;

XVI. To form part of the National Council of Protected Natural Areas, in accordance with Article 56a of the General Law of Ecological Balance and Protection of the Environment and its Rules of Procedure;

XVII. Provide geological, geochemical and geophysical information and technical advice on the current and potential use and use of mineral resources, which must be required in the terms of Article 58 of the General Law of the Ecological Balance and Environmental Protection;

XVIII. Identify and promote to the Secretariat the execution of infrastructure works that encourage the development of mining districts;

XIX. Develop, introduce and adapt new technologies to improve the exploration, exploitation and exploitation of the Nation's mineral resources;

XX. Auxiliary the Secretariat in the contests referred to in this Law;

XXI. Act as a consultation and verification body of the Secretariat, at the request of the Secretariat, in the surveys and inspection visits in which it is involved;

XXII. Certify mineral reserves at the request of the data subject;

XXIII. To conclude contracts by public tender to carry out works and works within the lots to be covered by the mining allocations issued in their favour, in accordance with the terms set out in this Law;

XXIV. Set and adjust the prices of the services it provides, with the exception of those determined by the Federal Executive;

XXV. Coordinate with state authorities to promote and disseminate knowledge of geological, mining and metallurgical activity by promoting the establishment of mining museums, providing for this, in accordance with the applicable provisions, the budgetary allocations to be provided for in the conventions to be concluded for the purpose with the governments of the States, and

XXVI. Perform activities that expressly confer other laws on you.

CHAPTER SECOND

From Concessions, Assignments, and Mining Reserves.

Article 10. The exploration and exploitation of the minerals or substances referred to in Article 4, as well as of the salt flats directly formed by marine waters from current, surface or underground seas, naturally or Artificial, and the salts and byproducts thereof, may only be made by natural persons of Mexican nationality, ejidos and agricultural communities, peoples and indigenous communities referred to in Article 2. Constitutional recognized as such by the Constitutions and Laws of the Federative Entities, and companies formed under Mexican law, through mining concessions granted by the Secretariat.

The exploration of the national territory in order to identify and quantify the potential mineral resources of the Nation will be carried out by the Service Mexican Geological Survey, by means of mining assignments that will be issued only in favor of this agency by the Secretariat and whose title should be published in the Official Journal of the Federation.

For reasons of public utility or for the satisfaction of future needs of the country, zones of mining reserves may be established, by decree of the Federal Executive published in the Official Journal of the Federation. No concessions or mining allocations will be granted to areas incorporated in these reserves.

Mining concession and allocation titles and the decrees for the incorporation of zones to mining reserves will be issued, provided that the conditions and requirements are met. established by this Law and its Rules of Procedure, without prejudice to the third.

Article 11.- They are considered legally qualified to be holders of mining concessions companies formed under Mexican law:

I.- The social object relates to the exploration or exploitation of the minerals or substances subject to the application of this Law;

II.- Having their legal address in the Mexican Republic, and

III.- In which the participation of foreign investors, if any, complies with the provisions of the law of the matter.

Article 12.- Any concession, allocation or zone that is incorporated into mining reserves shall refer to a solid, indefinite-depth, solid mining lot, limited by plans vertical and the upper face of which is the surface of the field, on which the perimeter is determined.

The sides that make up the perimeter of the lot must be astronomically oriented North-South and East-West and the length of each side will be one hundred or multiples of a hundred meters, except when these conditions cannot be met by colliding with other mining lots.

The location of the mining lot shall be determined on the basis of a fixed point on the ground, called a starting point, linked to or located on the perimeter of that lot.

The league of the starting point shall be perpendicular preferably to any of the North-South or East-West sides of the perimeter of the lot.

Article 12 BIS. The free field which is surrounded by land covered by concessions or mining allocations and which has a maximum area of 10 hectares shall constitute a mining lot called a hole, the concession of which may be requested under the following:

The holder of the concession or mining assignment with the largest perimeter adjacent to the hole, will have the right to be granted the corresponding concession about the same.

If the above holder does not exercise his/her right, the preference shall be given to the next holder of the mining concession or assignment with greater perimeter abutting the gap and so on.

Where there are concession holders or mining assignments whose lots have the same perimeter adjacent to the hole, the preference shall be defined by a draw between them.

If a person other than the holder mentioned in the second paragraph of this article requests the mining concession over the hole, the Secretariat shall notify, within 30 days of the submission of the expert work, to the holders of the mining concessions or allocations which abut the gap to exercise their preferential right under the preceding provisions. The persons concerned shall have a period of 30 days from the date on which such notifications have taken effect in order to submit the relevant application for a concession.

If no application is made to exercise the right of preference over the void within the period specified in the preceding paragraph, the Secretariat shall issue the title in the original applicant, subject to compliance with the conditions and requirements laid down in the Law and its Regulation.

Article 13. The concessions and the mining allocations shall be granted on free land to the first applicant in time of a mining lot, provided that the conditions and requirements laid down in this Law and its Regulation are met.

Where the publication of a declaration of freedom of land in a mining lot has taken effect, one or more applications for concessions are submitted simultaneously. mining and one or more mining allocation applications, will have preference for their admission and processing grant applications over allocation requests.

When the land is located in an area inhabited and occupied by an indigenous people or community, and the indigenous people or community request the land at the same time with another person or persons, the application of the indigenous people or community shall be preferred for the granting of the mining concession on that land, provided that it complies with the conditions and requirements laid down in this Law and its Regulation.

In the case of allocations that are cancelled or of the mining reserve areas whose de-incorporation is decreed, the mining concessions may be granted through contest, before the freedom of the field is declared.

Only areas whose exploration has previously been carried out by the Mexican Geological Survey can be incorporated into mining reserves. justify its incorporation based on the mining potential of the area, determined by works and exploration works to semidetalle, and the cause of public utility or minerals or substances considered within the areas is accredited. strategic in charge of the State.

Article 13 BIS. The contests by which the concessions referred to in the previous article are granted shall ensure the best economic conditions for the State, and shall be carried out in accordance with the following:

I.- The Secretariat will publish the call at least in the Official Journal of the Federation;

II.- The contest bases will include at least:

a) The description of the areas or areas concerned, the studies carried out on them, as well as the drawings of their location, geological and sampling;

b) The requirements with which participants will credit their legal, technical and economic capacity, and

c) The mode for presentation of the economic consideration proposals and the discovery premium, which may be closed or some other to be determined, and

d) the contract clause which, if any, must be granted to ensure compliance with the economic consideration and the discovery premium to be offered.

III.- Concessions will be granted to those who credit compliance with the requirements that are provided on the basis and present the best economic proposal, for which consideration will be given exclusively to the economic consideration and discovery premium offered.

When the land is located in an inhabited area and occupied by a village or indigenous community and said indigenous people or community participate in the contest, it will have the right to equal the best economic proposal presented by another contestant, and if so, the proposal of the indigenous people or community will have a preferential right.

Article 14.- It is considered as free terrain within the national territory, with the exception of that located in or covered by:

I. (Repeals)

II.- Zones built into mining reserves;

III.- Existing mining allowances and allowances;

IV.- Requests for concessions and mining assignments in the pipeline;

V. Mining concessions granted through competition and those derived from them that have been cancelled;

VI. (Repeals)

VII. The lots in respect of which no mining concessions would have been granted because the respective contest was declared to be deserted.

In the case of fractions V and VII, the Secretariat shall have a period of 90 calendar days from the day following that in which it takes effect. the notification of the cancellation of the concession or the resolution declaring the contest to be deserted, to publish in the Official Journal of the Federation, the resolution determining the conclusion of a new contest in the whole or part of the the grounds, or the declaration of liberty thereof.

In the other cases where concessions are cancelled, as well as when requests for concessions or allocations, the Secretariat, are disapproved or withdrawn, within the 15 calendar days following the one in which the respective notification takes effect, it shall publish in the Official Journal of the Federation the declaration of freedom of the relevant field.

The grounds shall be free in the thirty calendar days of the publication of the declaration of freedom of the land.

When concessions and allocations are cancelled, only the portion of the land that is abandoned will be released, if any.

Article 15.- Mining concessions shall confer rights on all minerals or substances subject to the application of this Law.

The mining concessions will last fifty years, counted from the date of their registration in the Public Registry of Mining and will be extended by the same term, if the holders did not incur the cancellation fees provided for in this Law and request it within the five years prior to the end of their validity.

As long as the extension requests are resolved, the concessions with respect to which they are formulated will remain in force.

Article 16.- Mining allocations shall confer rights on all minerals or substances subject to the application of this Law and shall have an unextendable duration of six years. years, counted from the date of publication of the respective title in the Official Journal of the Federation.

The Mexican Geological Survey, before the end of the term of each assignment, shall provide the Secretariat with a written report on the results obtained with reason for the work carried out for the purpose of declaring:

I.- The cancellation of the assignment and the resulting freedom of the land;

II. The cancellation of the allocation and the holding of one or more competitions for the granting of mining concessions on all or part of the land, as well as the freedom of the land that is otherwise abandoned, or

III.- The cancellation of the allocation and the incorporation into mining reserves of all or part of the ground covered, as well as the freedom from which it is abandoned.

Previous resolutions should be published in the Official Journal of the Federation. If any of them is not published before the term of the assignment in question, the Secretariat shall publish in the Official Journal of the Federation its cancellation and the consequent freedom of the ground that it covers, within 30 days. natural days following the expiration of their validity.

Article 17.- When the assumptions that motivated the incorporation of an area into mining reserves change, the Federal Executive will have its disincorporation by decree that will be published in the Official Journal of the Federation, in order for the Secretariat to proceed to:

I.- Declare the freedom of the ground covered, or

II. Convene a contest for the granting of one or more mining concessions and declare the freedom of the land to be abandoned.

Not to be published in the Official Journal of the Federation any of the resolutions foreseen by the previous fractions within 90 calendar days after the date of publication of the decree of de-incorporation, the land covered by the said zone shall be considered free on the day after the expiry of the period indicated.

Article 18.- When the Secretariat finds that the data entered in a concession or mining allocation title is erroneous or does not correspond to the land legally required by the Secretariat Please inform your holder that within 30 calendar days, you will express what is right for you and provide the data and documents required to you.

The Secretariat will make a decision based on the response of the person concerned and the constances of the file and, if necessary, order the correction of the title, as well as its registration in the Public Registry of Mining.

THIRD CHAPTER

Of Rights That Trust Mineras Concessions and Assignments

Article 19. Mining concessions confer the right to:

I. Carry out exploration and exploitation works and works within the mining lots that they amuse;

II.- Dispose of the mineral products to be obtained in such lots for the purposes of the works and works that are developed during their lifetime;

III.- Dispose of the terrors within the surface that they amparate, unless they come from another mining concession in force;

IV. Obtain the expropriation, temporary occupation or constitution of servitude of the lands indispensable for carrying out the works and works of exploration, exploitation and profit, as well as for the deposit of terreros, jales, scurias and greasers, as well as constituting underground easements of passage through mining lots;

V. Take advantage of the waters arising from the work of the mines for the exploration or exploitation and the benefit of the minerals or substances obtained and the domestic use of the personnel employed therein;

VI.- Obtain preferably concession on the waters of the mines for any use other than those mentioned in the previous fraction, in the terms of the law of the matter;

VII. Transmit its ownership or the rights established by fractions I to VI prior to legally qualified persons to obtain them;

VIII.- Reduce, divide, and identify the surface of the lots to match, or unify with that of other adjacent concessions;

IX.- Dismissed from the same and the rights derived from them;

X. Group two or more of them for the purpose of checking works and works provided for by this Law and to provide statistical and technical reports;

XI.- Request administrative or duplicate corrections of their titles;

XII.- Obtain the extension in the mining concessions for the same term of validity, as provided for by Article 15 of this Law, and

XIII. (Repeals.)

Article 20.- Works and works of exploration and exploitation of coal in all its varieties, on land covered by oil allocations or by contracts For the exploration and extraction of hydrocarbons, in terms of the Law on Hydrocarbons, they can only be executed with the authorization of the Secretariat, which will request a favorable opinion from the Energy Secretariat.

The works and works of exploration and exploitation carried out within populations, dams, canals, general communication routes and other public works, in the Subs of islands, cays and reefs, the seabed and subsoil of the exclusive economic zone, in the protected natural areas, as well as those carried out within the federal land sea area, may only be carried out with authorization, permission, or concession as appropriate, from the authorities which they are responsible for the goods, sockets, seabed, subsoil, areas or areas referred to in the terms of the applicable provisions.

Article 21.- The Secretariat shall decide on the origin of the applications for expropriation, temporary occupation or constitution of servitude, after hearing from the affected party and technical opinion founded. The amount of the compensation shall be determined by means of the guarantee practiced by the Commission of Avaluos of National Goods, on the basis of the criteria laid down in the Regulation of this Law.

Dealing with expropriations, where appropriate, the Secretariat shall submit to the Federal Executive Board the respective resolution.

The expropriations of communal and communal goods will be subject to the provisions of the agrarian legislation.

Article 22. Applications for reduction, division, identification or unification of areas shall proceed when the new batch or lots are within the area covered by the concession or concessions resulting from and not affecting the rights of the third parties registered in the Public Registry of Mining.

Declared from the application, the Secretariat shall issue the new or new titles that correspond to the replacement of the or those that derive, with equal rights and obligations. In the case of unification, the titles shall be issued for the remaining period of the oldest.

Article 23.- The transmission of the ownership of mining concessions or of the rights deriving from them will have their legal effects before third parties and the Secretariat from their registration in the Public Registry of Mining.

When the ownership of a concession is transmitted, the acquirer shall be subrogated to the rights and obligations of the acquirer. It shall be the responsibility of the acquirer to ensure that the concession is in force and that the holder is aware of the performance of his obligations. The Secretariat may, at the request and at the cost of the interested party, issue a record of the foregoing.

Contracts and agreements whereby the acquirer of rights deriving from a concession assumes obligations whose non-compliance is sanctioned by the cancellation of the contract does not relieve his or her holder of the responsibility to comply with them, if the former does not.

The acts, contracts and agreements relating to the transmission of the ownership of concessions or of the rights deriving from them, as well as the controversies that arise with (a) the provisions of this Law shall be subject to the provisions of the commercial law.

Article 24.- The duly formulated withdrawal on the ownership of mining concessions or the rights deriving from them will take effect from the date of presentation at the Registry of the corresponding document, where no rights of third party are affected in the Public Registry of Mining.

Article 25.- The grouping of mining concessions shall proceed when the lots are adjacent to or constitute a mining or minerometalurgic unit from the technical point of view and administrative, as determined by the Regulation of this Law, and its owners have not incurred the cause of cancellation established by it.

The incorporation or separation of concessions to one or more groupings may be performed for one time only within one year.

Article 26.- Mining allocations confer the right to:

I.- Carry out works and exploration works within the mining lot to be covered, subject to the provisions of Article 20 of this Law;

II.- Obtain the temporary occupation or constitution of servitude of the grounds indispensable for carrying out the works and works of exploration, in accordance with the provisions of Article 21 thereof;

III.- Reduce and identify the surface to be covered, and

IV.- Dismissed from the same or the rights derived from them.

The allocations will be non-communicable and will not be subject to any charge.

CHAPTER FOURTH

From the Obligations that Impose the Mineras and Mineral Allowances and Allowances

Article 27. The holders of mining concessions, regardless of the date of their granting, are obliged to:

I. Run and check the works and works provided for by this Law in the terms and conditions established by it and its Regulations;

II.- Pay the rights to mining that establishes the law of the matter;

III. (Repeals)

IV. To be subject to the general provisions and Mexican official standards applicable to the mining and metallurgical industry in the field of safety in the mines and ecological balance and protection of the environment;

V.- Not to remove permanent fortification works, ademes and other facilities necessary for the stability and safety of mines;

VI.- Keep in the same place and keep the mojonera or signal in good condition that requires the location of the starting point;

VII.- To provide the Secretariat with statistical, technical and accounting reports on the terms and conditions Point out the Regulation of this Law;

VIII.- Allow the staff commissioned by the Secretariat to practice inspection visits;

IX.- To give the Secretariat a geological-mining report when the corresponding mining concession is cancelled termination of its validity, withdrawal, replacement by reduction, infringement or judicial decision. The report shall describe the exploration and exploitation work carried out on the mining lot, or on the surface to be abandoned, in accordance with the provisions of the Regulation of this Law.

The Secretariat will provide the Mexican Geological Survey with this report to be incorporated into the public system of information of the Service itself;

X.- Pay the Mexican Geological Survey, in the case of concessions granted through a contest, a report half-yearly in the months of January and July of each year, of the work carried out and of the production obtained in the lot covered by the mining concession, for the purpose of controlling the payment of the premium for discovery or any other consideration The economic activity referred to in favour of that body;

XI. Report to the Energy Secretariat on the finding of any hydrocarbon in the area under mining concession.

XII. (Repeals.)

XIII. (Repeals.)

XIV. (Repeals.)

The holders of mining concessions granted through competition or those that replace them will be obliged to cover, in addition, the premium for discovery and the economic consideration offered.

When the rights deriving from a concession are transmitted, the obligations referred to in this Article shall be borne by the acquirer, without prejudice to the the third paragraph of Article 23 of this Law.

Article 28. The execution of works and works will be verified by means of the realization of investments in the lot that will cover the mining concession or by obtaining economically profitable minerals. The Regulation of this Law shall fix the minimum amounts of the investment to be made and the value of the mineral products to be obtained.

The obligation to execute these works and works will start 90 calendar days after the date of registration of the concession in the Public Registry of Mining.

The verification reports shall be submitted to the Secretariat during the month of May of each year and shall relate to works and works developed in the period from January to December. of the previous year, even in cases of substitution of concessions for any of the causes foreseen by this Law.

Article 29.- The verification of works and works by making investments will be accepted interchangeably in the items listed below:

I.- Direct mining works, such as ditches, wells, tajos, sinkholes and all those contributing to the geological knowledge of the mining lot or to the storage of reserves;

II.- Perforations;

III.- topographical, photogrammetric and geodetic lifts;

IV.- Geological, geophysical and geochemical lifts;

V.- Physical-chemical analysis;

VI.- Metallurgical Experimentation Tests;

VII.- Development and rehabilitation of mining works;

VIII.- Acquisition, leasing and maintenance of equipment for drilling and development of mining works;

IX.- Acquisition, leasing and maintenance of physical and chemical laboratory equipment and metallurgical research;

X.- Acquisition, leasing and maintenance of work vehicles and for the transportation of personnel;

XI.- Works and equipment intended for safety at work and for the prevention of pollution or environmental recovery;

XII.- Facilities of warehouses, offices, workshops, camps, houses and services to workers;

XIII.- Acquisition, leasing, construction and maintenance of works and equipment related to access, generation and conduction of electrical energy, extraction, conduction and storage of water and infrastructure in general;

XIV.- Acquisition, leasing and maintenance of equipment for mining, transport and general services at the mine, and

XV.- Acquisition, leasing, installation and maintenance of equipment for benefit operations and jales dams.

Investments shall be applied in accordance with the criteria laid down in the Regulation of this Law.

Article 30. The verification of the works and works provided for by this Law by means of obtaining economically usable minerals will be done on the basis of the value of billing or liquidation of the same.

Article 31. The obligation to carry out the works and works provided for by this Law shall be temporarily suspended when the Secretariat is accredited, at the time of the annual verification, that it was impossible to carry out these works for technical reasons, economic, labor, judicial or force majeure.

The temporary suspension for technical and economic reasons may be credited for only one time up to a maximum of three consecutive years, within a period of ten years.

Article 32.- When the listing or demand of a mineral suffers decreases resulting in the temporary incosteability of the holdings in general, the Secretariat may reduce the minimum amounts of investment to be made or the value of the mineral products to be obtained, or to grant extensions for compliance. To this end, it shall publish in the Official Journal of the Federation the agreement setting out the requirements for its application, the substances and types of fields concerned, the contributions on the basis of which it shall take effect and its validity.

Article 33.- The surface that is intended to be released or abandoned on account of the withdrawal or reduction of a concession shall not cause the mining rights from the date (a) the submission of the relevant document, provided that such requests are favourably disposed of by the Secretariat. In case of disapproved, the rights omitted, with the update and surcharges that determine the tax provisions, must be covered.

The Secretariat shall have twenty calendar days to disapprove the withdrawal or request for reduction, when the conditions and conditions laid down are not met. in this Law and its Rules of Procedure.

Article 34. The holders of mining concessions or those who carry out works and works by contract, must designate as responsible for the performance of the safety standards in the mines an engineer legally authorized to exercise, provided and where the works and works involve more than nine workers in the case of coal mines and more than forty-nine workers in other cases.

The person responsible must focus primarily on verifying compliance with these standards, ensuring that the necessary measures are taken to prevent accidents and notify immediately those that have not been adopted, to the holder of the concession or to the person who carries out these works.

Article 35.- (Repeals)

Article 35 BIS. The report referred to in Article 27 (IX) of this Law shall describe the exploration and exploitation work carried out on the mining lot or on the surface to be abandoned, in accordance with the provisions of the Regulation of this Law, and must be submitted together with the request for withdrawal or reduction, or within sixty calendar days following the termination of the validity of the mining concession or the notification of its cancellation for infringement or resolution judicial. The Secretariat will provide the Mexican Geological Survey with such a report in a period of sixty calendar days from the time it receives it so that it can incorporate it into its public information system within the sixty calendar days of the receive.

Article 36. The Mexican Geological Survey, as the holder of the mining allocations, and regardless of the date of their issue, shall be obliged to provide the Secretariat with an annual written report of a public nature on the results obtained by the purpose of the works and works carried out, as well as to comply with the obligations referred to in Articles 27, fractions II, in the conduct, IV, V, VI and VIII of this Law.

Article 37.- Persons who benefit from minerals or substances subject to the application of this Law are obliged to:

I.- Give notice to the Secretariat for the start of profit operations;

II. To be subject to the general provisions and Mexican official standards applicable to the mining-metallurgical industry in the field of safety and ecological balance and protection of the environment;

III.- Render to the Secretariat the statistical, technical and accounting reports in the terms and conditions specified in the Regulations of this Law;

IV. (Repeated)

V.- Process the mineral of small and medium-sized miners and the social sector under competitive conditions for up to a minimum of 15% of the installed profit capacity, where it is more than 100 tonnes in 24 hours, and

VI.- Allow the staff commissioned by the Secretariat to practice inspection visits in exercise of the verification powers conferred upon it by this Law.

Article 38.- People referred to in the previous article will not be required to receive third-party minerals when:

I.- The minerals intended to be introduced do not adapt to the benefit system or affect their normal operation;

II.- Comprove to be receiving minerals from small and medium miners and the social sector for a minimum of 15% of the installed benefit capacity, or

III.- The lots of ore that are submitted for treatment are less than ten tonnes.

At the written request of the person concerned, the person responsible for the benefit operation shall also be obliged to state in writing the substantiated explanation of his refusal to receive a mineral. If there is controversy, the Secretariat will resolve the issue.

Article 39.- In the activities of exploration, exploitation, and the benefit of minerals or substances, the mining dealers shall be responsible for the care of the environment and the ecological protection, in accordance with the law and the law of the field.

CHAPTER QUINTO

Of Nullity, Cancellation, Suspension, and Insubsistence of Rights

Article 40.- Mining concessions and allocations will be null when:

I.- It is intended to cover with the same ones since they are granted the obtaining of minerals or substances not subject to the application of this Law;

II.- They are issued in favor of a person not trained by this Law to obtain them, or

III.- The mining lot subject to the grant or allocation covers all or part of the land not free when the respective application is submitted, even if the declaration of freedom of the said application is published after the date of the declaration. land, except in the case of concessions granted through competition.

If the mining lot covered by the concession or allocation comprises partly non-free land, it shall be void only for that portion, in which case the Secretariat shall issue a new title in replacement of the one that derives from the area legally protected, with equal rights and obligations.

Article 41. They shall be null and void the transfer of the ownership of mining concessions or of the rights derived from them when they are agreed in favor of a person not legally trained to obtain them.

No nullity shall be given in respect of the award of credits or inheritance and the corresponding rights are transmitted to a legally qualified person within 365 calendar days following the date of its award.

Article 42.- Concessions and mining assignments will be canceled by:

I.- Completion of its validity;

II.- Deistigation duly formulated by its holder;

III. Replacement on the occasion of the issue of new securities resulting from the reduction, division, identification or unification of land covered by mining concessions;

IV.- Commission of any of the infringements referred to in Article 55 of this Law, or

V.- Judicial resolution.

Article 43. The right to perform the works and works provided for by this Law will be suspended when they:

I.- endanger the life or physical integrity of workers or community members, or

II.- Cause or may cause damage to goods of public interest, affected by a public service or private property.

If the inspection visit that is in its case reveals danger or imminent harm, the Secretariat shall immediately have the provisional suspension of the works and works, as well as security measures to be taken within the time limit set for the purpose. If the deadline is not met, it will order the final suspension of such works and works.

Article 44.- The reversion of the expropriated assets and the declaration of subsistence of the resolutions of temporary occupation or constitution of servitude shall proceed, when:

I.- Works or works to be developed shall not be initiated within 365 calendar days following the date of registration of the respective resolution in the Public Registry of Mining, without the cause of force majeure;

II.- Works or works to be executed shall be suspended for the term of one year, except in the cases referred to in Article 31 of this Law;

III.- The ground object of the same is intended for use other than that which justified the affectation;

IV.- The payment of compensation is violated;

V.- The grant is declared void or cancelled on the basis of which the right to obtain it was exercised, except for the causes provided for in Articles 40, final paragraph, and 42, fraction III of this Law, or

VI.- Judicially so ordered.

In cases of expropriation, the reversal of the goods in favor of the affected will proceed when its cause occurs within five years after the date of notification of the decree respective.

Article 45.- The nullity referred to in Article 40, fractions I and III, as well as the suspension or subsistence referred to in Articles 43 and 44, fractions I to V, resolve at the request of an affected party by the procedure laid down in the Rules of Procedure of this Law.

The nullity, the cancellations referred to in Article 42, fraction IV, the suspensions and the subsistence, shall be declared by the Secretariat, after respect of the guarantee of the hearing to the the party concerned within a period of 60 calendar days, after which the decision shall be taken.

CHAPTER SIXTH

From the Public Registry of Mining and Mining Mapping

Article 46.- The Secretariat shall carry the Public Registry of Mining in which the acts and contracts referred to below shall be registered:

I. The titles of the mining concession, its extensions and the declarations of its nullity or cancellation;

II.- Mining allocation titles and declarations of nullity or cancellation thereof;

III.- Decrees to establish mining reserves or to disintegrate mining reserves;

IV.- The resolutions of temporary occupation and constitution of servitude, as well as those issued on their subsistence;

V.- Resolutions issued by judicial or administrative authority affecting mining concessions or the rights derived therefrom;

VI. The acts or contracts relating to the transfer of the ownership of concessions or the rights deriving from them, those of a promise to hold them, the contractual obligations or obligations which are established in relation to them, as the conventions that affect them;

VII. The companies referred to in Article 11 of this Law, as well as their dissolution, liquidation and amendments to the statutes of such companies as determined by the Rules of Procedure;

VIII.- (Repeals)

IX.- The preventive notarial notices for the purpose of concluding contracts;

X.- Preventive judicial annotations arising from claims for refusal, rectification, modification, nullity or cancellation of registrations, and

XI.- The preventive annotations to interrupt the cancellation of contract enrollments and conventions subject to temporality.

In relation to the provisions of this Law, the acts and contracts provided for in fractions V to XI above shall have effects against third parties from the date and time of filing in the Secretariat of the respective promotion; those corresponding to fractions I and IV from their date of registration, and those relating to fractions II and III on the day of their publication in the Official Journal of the Federation.

Article 47.- Acts referred to in fractions I to IV of the previous Article shall be entered on their own initiative and those relating to the remaining fractions at the request of an interested party, by order of filing and when the requirements laid down in the Regulation of this Law are satisfied.

Article 48.- Everyone will be able to consult the Public Registry of Mining and request to their coast certifications of the inscriptions and documents that gave rise to them, thus as to the non-existence of a subsequent registration or registration in relation to a particular one.

Article 49.- The rights conferred by the mining concessions and the acts, contracts and agreements that affect them shall be credited by means of the constancy of their registration in the Public Registry of Mining.

Article 50.- To proceed to the auction of a mining concession and the rights resulting from it, the issue by the Public Registry of Mining of a certification of the records and affections registered in connection with the same. Such certification shall be added to the minutes of the award proceedings or the respective scriptures.

Article 51.- The Secretariat, through the Public Registry of Mining, will be able to rectify or modify an inscription when requested by the affected person, the the existence of the omission or error and no rights of third party are prejudiced or the consent of legitimate party in authentic form. It shall also cancel the registration of a contract or agreement when the will of the parties is clearly established.

The registration of contracts and agreements subject to temporality 90 calendar days after the term of their validity shall be cancelled if they do not work on the contrary.

Claims for refusal, rectification, modification or cancellation of registrations that impair the rights of third parties, as well as those relating to the nullity thereof, shall Judicially be dealt with.

Article 52.- The Secretariat will carry the Mining Mapping to verify the free character of the lots that are the subject of requests for concession and mining. This mapping will graphically represent the location and perimeter of the lots covered by concessions, allocations and mining reserves in force, as well as for grant applications and mining allocation in the pipeline.

Everyone will be able to examine the Mining Mapping and apply to its flat coast.

CHAPTER SEVENTH

Of Inspections, Sanctions, and Resources

Article 53.- The Secretariat, in exercise of the powers of verification entrusted to them by this Law, may practice inspection visits in accordance with the provisions following:

I.- Designate one or more inspectors, to whom you will communicate your appointment and the order of business.

II.- It shall notify the person to whom the inspection is to be carried out: the name of the inspector; the object of the inspection; the elements, data or documents to be provided; as well as the place, date and time of its verification so that whether or not properly represented.

III.- The inspector, once identified, will practice the visit at the place and date indicated, before the notified person or his duly accredited representative. If the place or address does not correspond to the visited or the visitor refuses to provide the items, data or documents required, the inspector shall record the record of the above, signed by two witnesses. In the latter case, it shall be presumed that the visited was incurred in the breach of the obligation to verify, unless otherwise tested.

IV.- The inspection, the inspector shall draw up detailed minutes which shall contain relation of the facts and the manifestations of the visited, and shall be signed by the assistants to the act; if any one refuses to sign it shall be (a) to be included in the document, without such a circumstance affecting the probative value of the document. Copies of the minutes shall be given to those who subscribe to it.

V.- The inspector shall provide the Secretariat with a report on the outcome of the inspection, within a maximum of 15 calendar days following its release. If the elements of judgment that the report provides are insufficient, the Secretariat will order a new inspection.

VI.- The Secretariat, based on the report and the documentary evidence to be offered, will substantiate, motivate and dictate resolution.

Article 54.- Violations of the provisions of this Law shall be punishable by the cancellation of the mining concession or allocation or fine.

The violations will be administratively sanctioned by the Secretariat.

Article 55.- The cancellation of the mining concession shall be punishable by any of the following:

I.- Make use of the exploitation of minerals or substances not subject to the application of this Law;

II. Do not execute and check the works and works provided for by this Law in the terms and conditions indicated by it and its Regulations;

III.- Stop covering mining rights;

IV. (Repeals)

V. Failure to comply with the payments for the discovery premium or the economic consideration that it is appropriate to cover, as well as not to render to the Mexican Geological Survey the semi-annual reports referred to in Article 27, X fraction of this Act;

VI. Do not hold the works and works of exploration or exploitation of coal in all its varieties on land covered by oil allocations to the technical conditions laid down by the Secretariat;

VII. Carry out the works and works provided for by this Law without the authorizations referred to in Article 20 of this Law;

VIII.- Group concessions that match non-adjoining mining lots for verification purposes that do not constitute a technical and administrative mining or minerometalurgic unit;

IX. (Repeals.)

X. (Repeals.)

XI. (Repeals.)

XII. Omit information about the finding of any hydrocarbon in the mining concession area.

XIII.- Losing the capacity to be a concession holder.

The cancellation will not proceed in the case of the previous , when the concession holder loses its capacity for not complying with the provisions that regulate the participation of foreign investors and that no such circumstance is remedied within 365 calendar days following the date on which the same occurs. If this is not the case, the Secretariat will promote judicially the auction of the portion of the social capital that is not adjusted and the product will be delivered to the Mexican Geological Survey.

The cancellation of the mining allocation that corresponds to any of the infractions foreseen by the previous fractions II, III, VI or VII shall be sanctioned.

Article 56.- No infringement shall be cancelled when, within a period of 60 calendar days, counted from the date on which the person concerned is notified of the start of the corresponding procedure, it is established in relation to the causes identified in fractions II, III, V and VII of the previous Article, respectively:

I. The submission of the or the omitted verification reports referred to in Article 28 of this Law, as well as the payment of the fine determined by Article 57, fraction XI thereof;

II.- Payment of the mining rights omitted and other accessories arising from the non-compliance, in accordance with applicable tax provisions;

III.- The updated payment of the discovery premium, as determined by the Regulation of this Law, and

IV.- That the refusal of authorization by the authority holding the goods, zone or areas referred to in the second paragraph of Article 20 of this Law is subject to administrative or judicial decision.

Article 57.- An equivalent fine of ten to two thousand days of general minimum wage in force in the Federal District shall be sanctioned, the following:

I.- Extract minerals or substances subject to the application of this Law without being the holder of the mining concession or the corresponding rights;

II.- Not to ask without the right to carry out the works and works provided for by this Law and its Regulations to a person legally authorized to carry them out;

III.- Withdraw or destroy the permanent works of fortification, the ademes and other facilities necessary for the stability and safety of the mines;

IV.- Prevent or hinder inspection visits by the staff commissioned by the Secretariat;

V.- Do not participate in itself or duly represented to the inspection visits to the Secretariat, without any justified cause;

VI.- Do not designate the engineer responsible for compliance with the safety standards in the mines or to entrust them with activities that prevent you from developing your own functions;

VII.- Skip the notification provided for in the second paragraph of Article 34 of this Law necessary to prevent accidents which are not adopted, where they endanger the life or physical integrity of the workers or members of the community, or not to take the measures provided, if such notification has been received;

VIII.- Do not give notice to the Secretariat for the start of profit operations;

IX.- Refuse to benefit the mineral of small and medium miners and the social sector in competitive conditions, without crediting cause that justifies it, in accordance with the provisions of Article 37, fraction V, of this Law;

X.- Modify the location or damage the mojonera or signal to identify the starting point of a mining lot;

XI. Check out the timely execution of the works and works provided for by this Law, in order to leave out the procedure for the cancellation of a mining concession, and

XII.- Do not give timely and veraciously to the statistical, technical and accounting reports in the terms and conditions set out in the Regulations of this Law.

If there is a recidivism, up to two of the amount of the fine may be imposed and in the case of the infringement referred to in the fraction I up to 100% of the amount of such fine.

For the imposition of the fine, the Secretariat shall take into account the seriousness of the infringement, the damages it has caused, as well as the antecedents, circumstances personal and economic capacity of the offender.

The application of the fines provided for in this Article shall be without prejudice to the criminal liability that may result.

Article 57 BIS. It is for the holder of the mining concession, the holder of the concession or the holder of the mining assignment, to claim before the competent judicial authority the illegal extraction and recovery of the minerals or concessional substances included within the mining lot covered by the mining concession or allocation.

It is up to the Secretariat to complain to the competent judicial authorities about the illegal extraction and recovery of the minerals or substances that are available, only when it is carried out on free land, mining reserve areas, areas corresponding to concessions granted through competition and subsequently cancelled, and lots for which the declared deserts have been declared respective contests.

Article 58.- The faculty of the Secretariat to verify the fulfillment of the duties and obligations imposed by this Law, as well as to punish its non-observance, shall be extinguished. within a period of five years from the date of the non-compliance or, if this is of a continuous nature, from the day on which it ceases. The payment of the mining rights shall be prescribed in accordance with the provisions of the matter.

Article 59. The resolutions that the Secretariat gives to the application of this Law and its Rules of Procedure may be challenged in accordance with the provisions of the Federal Law of Administrative Procedure.

TRANSIENT

FIRST.- This Law shall enter into force 90 calendar days after its publication in the Official Journal of the Federation.

SECOND.- The Rule 27 Constitutional Law on Minera was repealed in the Official Journal of the Federation of 22 December 1975 and all the provisions of this Law are repealed.

THIRD.- During the five-year term, counted from the date of entry into force of this Law, it shall continue to apply to mining contracts concluded before that date which are extended, the provision of entered in the final paragraph of article 17 of the Law of the Law of the Article 27 Constitutional Law in Minera, as regards the minimum and maximum amount of compensation or agreed royalty.

FOURTH.- As long as the Federal Executive issues the Regulation of this Law, it will apply, in whatever way, the Regulation of the Law of Law of the Article 27 Constitutional Law in Minera, published in the Official Journal of the Federation of 27 September 1990.

QUINTO.- The activities that other laws for the Mining Development Commission will be understood to be entrusted to the Council of Mineral Resources.

The Law on the Heritage of the Commission of Minero Fomento published in the Official Journal of the Federation of 25 January 1939 is repealed.

The mining allocations issued in favour of the Minero Development Commission are cancelled and the land they provide is allocated to the Council of Mineral Resources in the terms of this Law and, where applicable, with the validity of the contracts concluded with respect to them.

The other rights, assets and resources that make up the assets of the Mining Development Commission will be transmitted before its liquidation to the Council of Mineral Resources and the The Mining Development Trust, as determined by the Secretariat, which shall be subrogated to the pecuniary and labor rights and obligations of that body.

The labour rights of workers attached to the said body shall be respected in accordance with applicable legal provisions.

The Secretariat will proceed to the liquidation of the Mining Development Commission within the term of one year from the beginning of this Law.

SIXTH.- The formalities of any nature pending resolution to the effective date of this Law shall be substantiated, in so far as it is favorable to the persons concerned, in accordance with the provisions of the law.

Applications for mining or mining in the process of exploration or exploitation, ordinary or special in national mining reserves, will be resolved through the granting of the corresponding mining concession title or the issue of the mining allocation title in the case of the Council of Mineral Resources, if the conditions and conditions laid down for these are exclusively met Law and its Rules of Procedure.

Applications for new concession or new concession of exploitation shall be discarded without further processing, pursuant to the provisions of Articles 7 and 8 Transient.

SEVENTH.- The exploration concessions whose cancellation has not been declared shall have a duration of six years from the date of their issue and the work programmes inserted in their titles shall be without effect.

The holders of new exploration concessions may submit, prior to the termination of their validity, one or more applications for the grant of exploitation whose lots cover all or part of the area before covered, in the terms and conditions laid down by this Law and its Rules of Procedure.

EIGHTH.- The operating concessions granted prior to this Law, the cancellation of which has not been declared, shall be fifty years from the date of their issue and shall confer rights on the holding of Any mineral or substances subject to the application of the same. The job programs inserted into their titles will be left without effect.

Co-existing concessions shall only confer rights on the exploitation of the minerals or substances entered in their securities and the pre-existing concessions on which they are granted. granted to the exploration or exploitation of the other minerals or substances, while the first minerals or substances are in force.

Non-determined mining allocations granted to the Board of Mineral Resources shall have an unextendable duration of six years from the date of entry into force. of this Law.

NINTH.- The special concessions in national mining reserves, as well as the ordinary and special allocations in those reserves granted in favour of the majority state holding companies, will be replaced by the concessions that correspond to the rights and obligations set out in this Law.

The obligations entered in the concession titles or in the special allocation declarations in national mining reserves, additional to those indicated by this Law, will be without effect, except in the case of concessions which have been granted on areas incorporated in those reserves or obtained under the preferential right referred to in the following Article, or of allocations per agreement granted with after the date of publication of this Law in the Official Journal of the European Union Federation.

DECIMAL.- People who, at the date of entry into force of this Law, are carrying out exploration and/or exploitation contracts within land covered by mining allocations or the concessions that replace them, may continue to do so until the termination of the contract and they will have the right to obtain the corresponding mining concession, if the field of the contract is free and the obligations stipulated therein have been fulfilled. The right to be conferred shall be exercised when the declaration of freedom of such land takes effect.

TENTH FIRST.- The benefit plant concessions issued under other laws shall be void and their holders shall be exempt from submitting the notice to which the Article 37, fraction I, of this Law.

TENTH SECOND.- The first check of exploration and exploitation works and works must be submitted during the month of May 1994.

Mexico, D. F., as at 17 June 1992.-Dip. Gustavo Carvajal Moreno, President.-Sen. Manuel Aguilera Gómez, President.-Dip. Jaime Rodríguez Calderón, Secretary.-Sen. Antonio Melgar Aranda, Secretary.-Rubicas. "

In compliance with the provisions of Article 89 of the Political Constitution of the United Mexican States and for their proper publication and observance, I hereby exempt the present Decree at the residence of the Federal Executive Branch, in Mexico City, Federal District, on the twenty-four days of June of a thousand nine hundred and ninety-two.- Carlos Salinas de Gortari.-Heading.-The Secretary of Government, Fernando Gutierrez Barrios.-Heading.