Mining Code. Approval.

Original Language Title: Codigo Mineria. Aprobacion.-

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Legislative Power/ Eastern Republic of Uruguay
Published D.O. 16 feb/982-NAº 21175
* Named Decree-Law by Law No. 15,738

Law No. 15,242 *

MINING CODE

APPROVED

The State Council has sanctioned the following

LAW


MINING CODE

BOOK FIRST

FUNDAMENTAL PRINCIPLES OF MINING LAW

TITLE I

OF MINING AND MINERAL DEPOSITS

CHAPTER I

Object of this CAUSE

ArtAculoA 1Aº. -A This CACODE regulates the institution of mining rights and titles and organizes the regAmens that enable mining activity.

Purpose of mining activity

ArtAculoA 2Aº. -A mining activity aims at the rational exploitation of the mineral resources of the paAs, with economic purposes and is described as public utility.

CHAPTER II

Fields and mines

ArtAculoA 3Aº. -A whole mass of mineral or fobile substance is considered to exist in the marine or terrestrial subsoil or to the surface of the earth.

The mine is a separate building and separated from the surface area, and it is the part of the field that is configured, materially, by a limited space on the surface by a polAgono and laterally by vertical planes of extension. In depth, it acquires legal existence under a mining right of exploitation.

CHAPTER III

From the ownership of the fields

ArtAculoA 4Aº. -A All the existing mineral substance deposits in the marine or terrestrial subsoil or that surface on the surface of the national territory are integrally integrated and imprinted, the domain of the State.

ArtAculoA 5Aº. -A Subject to the provisions of the arculoA 4Aº, the mineral, non-metallic, and mineral substances, included in Class IV of the 7Aº, are reserved for their Exploitation of the owner of the particular surface area of the site, under the conditions set out in this Code.

ArtAculoA 6Aº. -A Jurassic legal system in the waters of the national territory is not the subject of this Code.

CHAPTER IV

Sortation of the fields

ArtAculoA 7Aº. -A mineral and fossil-based deposits are ordered, in relation to the legal regime that regulates mining activity, in the following classes:

-CLASS-I

- Comprises the following fields:

a) Fossil fuel fields that include petroleo, natural gas, hard coal, lignite, peat, rocks pirobituminous and oil sands;

b) Other mineral substances or elements suitable for industrially generating energAa.

CLASS-II

- Comprises the mineral deposits that come from the Mining Reserve or the Vacancy Registry, as provided by the artAculaA 23, inceA second and 54, incisA first and those that are included according to the 8Aº.

CLASS-III

- Comprises all mineral, metA, and non-lic mineral fields, not included in other classes.

A Comprising also those fields originating in Class IV, if the mineral substance of the same is used preponderant as raw material of an industry or must undergo a certain mode of exploitation for the better economic use of the mine.

CLASS-IV

- Comprises non-metA mineral deposits, which are used directly as building materials, without prior to an industrial process determining a physical or chemical transformation of the mineral substance.

ArtAculoA 8Aº. -A The inclusions and exclusions of mineral deposits in Class II will be arranged by law according to the needs of the industry, the market or other causes of general interest, without prejudice to the artsA 23, intoa second, and 54, first.

ArtAculoA 9Aº. -A field inclusions established by this CAAS in Class II do not reach the fields covered by mining rights as long as they remain in effect.

TITLE II

MINING RIGHTS AND TITLES

CHAPTER I

Mining rights

ArtAculo 10. -A Mining Rights:

a) The right of prospect:

A It is the right to perform in a given area all the work of one or more mineral substances, with the exclusive of all other persons;

b) The right of exploration:

A It is the right to perform in a given area all the necessary tasks, with exclusive of all other person, tending to the verification of the existence of the deposit to the recognition of its characteristics, to the determination of the volume, quality and law of the mineral and its economic assessment;

c) The right of exploitation:

A It is the right to exploit, with the exclusive right of every other person, in a given area, one or more mineral substances and dispose of the products extracted or separated from the field.

CHAPTER II

Mining labels

ArtAculo 11. -A Mining Titles are instituted by an act of the competent mining authority, for the purposes of attributing a particular mining right.

The titles relating to the mining rights of prospecting, exploration and exploitation are respectively:

a) The prospect permission n;

b) The scan permission n;

c) The concession to exploit.

ArtAculo 12. -A enjoyment of the mining rights attributed by the respective title is regulated by specific provisions of this Code and by contracts, according to the class to which the deposit belongs.

Headline changes

ArtAculoA 13. -A Rights granted by the prospecting, exploration, and concession titles to exploit are transmittable, per act between live under the following conditions:

1) The cessation requires for validity the prior authorization of the mining authority.

To this effect, the assignee should demonstrate the extreme taxes for the granting of the title.

2) Granted the authorization, the ceding and transferee parties shall record the termination in the carved minutes to the National Directorate of MinerAa and Geologaa.

As of the registration of the registration record in the General Registry of MinerAa, the rights and obligations of the title shall correspond exclusively to the transferee.

ArtAculoA 14. -A death by cause of death of the rights of prospect, exploration and exploitation, granted by the respective titles, is valid, but is conditional on the successor accrediting the The legal transfer of the original holder, within a period of twelve months of verified legal transmission, is required. If there are several successors for this cause, it will be enough for one of them to comply with the conditions, making it responsible for the mining tasks.

Leasing of mining rights

ArtAculo 15. -A lease of the exploitation right is subject to the following conditions for validity:

1Aº) That the contract is granted for a minimum term of three years;

2Aº) That the tenant accredits the technical and economic capacity required by the compliance of the the exploitation program to which the rightholder was committed;

3Aº) That the National Direction of MinerAa and Geologaa;
be previously obtained
4Aº) To enroll in the General Registry of MinerAa.

The holder of the right shall remain responsible for all mining obligations and charges to the Administration and to third parties. The tenant, for his part, will be subject to all the requirements governing the mining activity.

CHAPTER III

Characters of the right of exploitation

ArtAculo 16. -A granting of a concession to exploit creates a right that can be the object of all acts v. I say. Such acts and taxes should be registered in the General Registry of MinerAa without prejudice to the entries imposed by the legislation.

ArtAculoA 17. -A exploitation right is susceptible to embargo. In case of execution, the auction procedure should be followed according to the Civil Procedure Code, with the buyer remaining subject to the conditions imposed on the dealer.

TITLE III

LEGAL REGIME OF THE MINERAA

CHAPTER I

Enabling activity

ArtAculo 18. -A prospecting and exploration of mineral fields and mine exploitation can be done:

A) By the state or state entities, the provisions of this code are read.

B) By virtue of a mining label.

CHAPTER II

Legitimization for mining activity

ArtAculoA 19. -A All private or public, national or foreign law or legal persons may be holders of the mining rights under the conditions set forth in this Code and the demA s applicable laws and regulations.

The mining activity, whatever its modality, and all the controversies, claims and petitions, referred to it, are submitted, without exception, to the legislation and jurisdiction of the Eastern Republic of Uruguay. Any covenant or convention to the contrary is null. This dispositionis of a public order and must be compulsorily included in all contracts that grant mining rights.

ArtAculoA 20. -A public officials belonging to bodies or services that have a participation in the mining activity may not be rightholders or engage in such activity. material. This prohibition is maintained for a term of two years from the date of the termination of the official, resulting in extensive and equal terms, to the cónnyuge, children and minors under parental authority or guardianship, of such officials.

This prohibition does not include the fields of Class IV or the interests in mining concessions acquired prior to their appointment as such for officials, nor those who during their financial year acquire such officials or their their children, as a succession to death.

Nor does it extend to those acquired by the cönnyuges of such officials prior to their marriage.

CHAPTER III

From the expiration of mining rights

ArtAculoA 21. -A Mining rights expiration causes are as follows:

I. With general character for all mining titles:

a) Due to the validity of the tAtulo;

b) By the contract that regulates the enjoyment of the mining right for the fields of the Class-A II;

II. Relative to each title:

a) For the prospect permission:

1) Performing acts or operations not included in the Authorization

2) By termination of the mining right without adjusting to the this CACOdig;

b) For the scan permission:

1) Inactivity during the first six months of granted and assumed right, without sufficient cause to justify it;

2) By termination of the mining right without adjusting to the this CACOdig;

3) Performing acts of exploiting or dispositioning the Non-Profitable Substances with a Lucrative Purpose, unless prior authorization from the General Mine Inspectorate;

4) The non-payment of two continuous surface Canon perAodes.

c) For mining concession:

1) The lack of payment of continuous dos.aA ± os from the Surface or the Canon Production canon;

2) By default or lease of the mining right without adjusting to the provisions of this CAIG;

3) By waiver or abandonment of the right;

4) For lack of production for six continuous months or below Minimum production program for two continuous years, if there are no prior authorizations provided by this CAOdig;

5) For repeated non-compliance with the obligations and charges it imposes This code and regulations, prior to warning.

Configured the causals set in this article the expiration will occur in full right. The Executive Branch shall give the declarative act of the revocation for the purposes of its registration.

CHAPTER IV

From Mine Vacancy

ArtAculoA 22. -A mining, fields, or mining areas that present prospects for the existence of minerals will be filled with the conditions of vacancies in the following cases:

a) Due to the deadline granted by the mining label;

b) For expiration declared by the Executive Branch;

c) By waiving the mining right holder;

d) For authority communication in mining reserve cases;

e) By expiration of the discoverer's right (arculoA 25).

ArtAculoA 23. -A mines, mining areas, or discoveries in the Register of Vacancies may be the subject of direct application by any interested party, permits and concessions for the fields. of Class III.

They may also be subject to an injunction by the Executive Branch, as a mining authority, in order to submit them to the class II of the article 7Aº.

The National Directorate of MinerAa and GeologAa will periodically publish a report of the mines, mining areas and discoveries, registered in the Register of Vacancies.

CHAPTER V

Field discoverer rights

ArtAculoA 24. -A The discoverer of a Class III mineral deposit, covered by a prospecting or exploration mining title, if you do not want to exercise the rights conferred by the title, has the faculty to cede the right of discoverer under the following conditions:

a) That the discovery is registered in the General Registry of MinerAa, prior to the reports and demonstrative technical studies of the discovered field, in time not exceeding sixty calendar days of the expiry of the validity of the title that covered its mining activity;

b) That such an inscription is in effect in the General Registry of MinerAa;

c) That the cessation is documented by acta subscribed by the transferor and the transferee to the General Register from MinerAa.

ArtAculoA 25. -A Inscription of the discoverer's right in the Registry expires at the expiration of the term of an aA ± or counted from the day following the extincation of the validity of the mining title. The deposit is entered in the Register of Vacancies.

ArtAculoA 26. -A The transferee of the discoverer's rights happens to the transferor in the mining rights attributed or to be attributed, and must prove the conditions required by the mining title.

ArtAculoA 27. -A discoverer right, inscribed and in effect, is transmitted by cause of death, with the same requirements for the or the successors established by the 14.

You will not have the discoverer to whom you will discover ore by executing mining works in order or order of another, but that in whose name they were practiced.

CHAPTER VI

superficiary rights

ArtAculoA 28. -A surface owner affected by the mining activity is entitled:

a) To be indemnified by the miner for damages that originate in the mining activity, When all precautions were taken to prevent it;

b) To be compensated by the easements that are taxed by the holder for the benefit of the mining holder, in the form regulated by this CACOdig;

c) To require the mining operator to acquire its pre-or part of it if, as a result of the mining activity, was private of the use of the predio or important part of it.

If the parties are unable to agree on the sale price, then it will be fixed by the mechanism provided for in the expropriatory procedure set out in the artAculosA 22, 23, 36, 37 and 38 of Law 3,958, dated March 28, 1912.

A If the holder of the mining right is not notified of the purchase, the shallower may ask the mining authority for the expiration of the mining rights granted;

d) To perceive the participation of the product Canon (arculoA 45).

ArtAculoA 29. -A If the shallower, state, municipal, or private, considers that the mining activity to be developed or implemented, adversely affects or affects an industrial activity or process, or Installations or structures or architectural complexes or engineering complexes, in tourist areas or in soil conservation, will present this situation to the mining authorities.

The Executive Branch, with a report from the National Directorate of MinerAa and Geologaa, will resolve what must prevail in the case, disposing of the consequent security or safeguard measures or denying the granting of the mining right or decreasing the expiration of the granted.

Shallower Obligations

ArtAculo 30. -A shallower is bound:

1) To allow the reasonable exercise of properly declared mining servitude;

2) Not to hinder or impede mining activity.

CHAPTER VII

Of the mining easements

ArtAculo 31. -A All properties are subject to the following mining easements:

a) Study:

A " Comprising: the free access to the premises to carry out the necessary tasks for the prospecting, the extraction of samples of mineral substances, as well as the installation of tents for the accommodation of technical, auxiliary staff and equipment, for the time required to perform the surveys and surveys of the prospective;

b) Temporary or permanent ocution:

To which it enables the recognition of the subsoil by means of probes and perforations, understanding the placement and circulation of the machines, facilities, vehicles, installation of temporary housing, the necessary water for the personnel work and consumption, the laying of electrical transmission lines, conveyor belts, installation of deposits and warehouses, and, in general, those necessary for the execution of mining activity;

c) Step:

A For access to the places of work and camp installed. The servitude will be established by the most favorable points for its purposes, trying to cause the least damage to the servant. The width of the path of passage will be the indispensable for the safe transit of persons and vehicles and for the transport or transport of the necessary materials for the work and for the removal of the substances extracted.

The open roads for a mine will take advantage of the others who are in the same seat and in such case the costs of conservation will be distributed in proportion to the holders of mining rights;

d) Pipeline-laying:

A Comprising the laying of caA ± erAas, the establishment of pumping plants and all the necessary installation for the operation of the ducts.

To the effects of compensation the servitude of ducts is considered equivalent to that of permanent occupation.

Temporary or permanent occupation easements and pass-through easements may tax buildings other than those in the area determined by the mining title.

Conditions for the imposition of mining easements

ArtAculoA 32. -A the imposition of the mining easements shall be declared, in each case, by the Executive Branch, in accordance with the conditions laid down in the following articles, except in the case of: the study easements required for the geological and mining research referred to in Chapter IX of Title III of the First Book.

ArtAculoA 33. -A declaration of the mining easement will be made before the case instructed by the Administration, in which it must be stated:

1) A mining right holder's request, providing the necessary data and information;

2) Notification to or owners of the properties that will tax the easement, giving you view of the case.

The notification will be personal or by edicts, if the address is ignored, published by three dAas in the "Official Journal" and at one of the place of the building.

The view shall be granted for an unextendable period of 30 days to the effect of which the file shall be exposed for that term.

The owner, when evacuating the view, should denounce the co-owners of the right of ownership, if any, and to any holder of a real or personal right concerning the property that may be affected by the easement. In this case, it will also be given to those mentioned by the owner for the same period.

In the case of a constituted usufruct on the building that will be taxed by the serfdom, the usufruct will also be notified.

By evacuating the hearing, the interested parties may make observations and estimate the amount of the compensation that, in their judgment, corresponds to the non-use and enjoyment of the property, or part of it or the improvements.

ArtAculoA 34. -A Sustained case and evacuated all the views conferred or after the corresponding terms, the Executive Branch will decide to resolve the easement that is imposes.

This resolution will be notified either personally or by edicts, as in the situation provided by the preceding article.

ArtAculoA 35. -A mining easements exercise results in compensation for the following concepts:

a) For the impossibility of using and enjoying the building and its improvements, totally or partially;

b) For damage caused to the building and its improvements.

For improvements, buildings, fences and installations in general are understood, as well as plantations, improved or artificial prairies, and similar ones.

ArtAculoA 36. -A Compensation due for the various easements will be determined in the following regas:

1) For pass-through, temporary or permanent, easements, as soon as they are impossibility of use and enjoyment of the real estate or its improvements, in whole or in part: the price of the leases of properties of quality in the area will be taken as a criterion, taking into account the existing improvements and the decrease of profitability of the rest of the provision, without prejudice to the compensation of the damage incurred by the cause;

2) For study easement, the damage caused by the study will be taken into consideration. the effective exercise of the same.

ArtAculoA 37. -A Compensation will be paid as follows:

a) Those that result from the impossibility of using and enjoying the building and its improvements, by performance Advanced semesters in semesters, updated according to the official variance of the cost of living index;

b) Those that respond to the damage caused to the building or its improvements, when the property is completed.

ArtAculoA 38. -A administrative act declaring the existence of the easement of passage, or temporary or permanent occupation, shall establish the amount that the beneficiary of the easement shall pay, prior to their effective exercise, in the light of the final compensation to be agreed between the parties or, failing that, the judicial authority. The Administration will fix the amount mentioned, according to a reasonable estimate for compensation, which should be paid for semesters and in advance and updated according to the article 37.

ArtAculoA 39. -A Justified payment for the first semester before the Administration, it will authorize the immediate exercise of the declared easement.

If this exercise is hindered or cannot be verified, the beneficiary will resort to the Peace Judge of the place of location of the building, who, verified the right to the declared servitude, will intimidate the opposition the cessation of the opposition. To these ends, the Judge may provide the aid of the public force or impose on the opponent the quality of pecuniary conmination or "Astreinte", the payment of a daily sum of the order of 1% of the amount fixed for each semester, until it is given. compliance with the judicial mandate.

ArtAculoA 40. -A Initiate the effective exercise of the easement, the creditor of the indemnification for this concept, will have executive action against the beneficiary of the easement for the collection of the amounts to be paid on account, according to the provisions of Article 38.

The testimony of the administrative act establishing the half-yearly amounts payable to account shall constitute executive title.

The exercise of this executive action does not prevent the judicial actions that correspond to determine the fair amount of compensation.

ArtAculoA 41. -A judgment for the determination of fair compensation for the deprivation of the use and enjoyment of the property taxed by the easement shall be in accordance with the procedure laid down for the incidents (artAculosA 591 to 594 from Civil Procedure Code). The defendant may agree to respond to the request, and in this case, the defendant shall be transferred to the actor.

The failure will be actionable as the interlocutors.

The statement that sets the amount of compensation shall have effect from the date of the claim and shall determine the additional payments or refunds corresponding to the payment to the account.

ArtAculoA 42. -A both the easement beneficiary and the creditor of the indemnification can deduce the review, according to the same judicial procedure, founded on the change of the circumstances that were considered, in order to modify the amounts of compensation.

When you accept the review of the statement, the statement will have effects from the date of the lawsuit.

ArtAculoA 43. -A claims for compensation or compensation for damage caused to the property or its improvements, derived from the exercise of the mining easements, or the execution of mining work, they are subject to the procedure of the ordinary judgment.

ArtAculoA 44. -A When the state or the state entities are the beneficiaries of the mining easement, in the absence of agreement on the compensation, it will be fixed by the procedure prescribed for the Expropriation.

CHAPTER VIII

Mining rights and CA

ArtAculo 45. -A Awarded Mining Rights are taxed, in relation to each title, as follows:

I. Right of prospecting:

The holder of a prospective permit will pay new pesA 100.00 (new pesos 100) for every 100 hectares of areas or fractionas in the area of prospecting, for once and for the main term.

For the purpose, you will pay N$A 200.00 (new weights two hundred) for every 100 hectares, including in the area of the remaining prospect.

The amount must be paid when the person is notified of the granting of the title or its application.

II. Surface Canyon:

During the validity of the right of exploration granted, the holder of the permit, will pay per hectare or fraction object of the exploration the following Canon of surface:

- For the first year: N$A 200.00 (new weights two hundred), per hectare or fraction.

- For the second year: N$A 400.00 (new four hundred pesos), per hectare or fraction.

- By the third and every subsequent year: N$A 600.00 (new weights six hundred) per hectare or Failure.

III. Production canon:

The holder of a mining right of exploitation will pay from the moment he takes possession of the concession a Canon of production, according to the following rules:

1) The production Canon will constitute a percentage of the value of the gross product extracted from the mine, before suffering any process of benefit or transformation of its components.

This value will be calculated by the weighted average of the prices that the gross product has, in the last year or after, in the main marketing places, deduced the cost of the transport.

A If the gross product extracted is not marketed under these conditions, but after suffering a process of processing or processing, it will be opted for the weighted average of the prices of this resulting product, in the last year In this case, in addition to the cost of transportation, the cost of the processing or transformation suffered, to reach the value of the gross product;

2) The percentage of the production Canon will be:

a) For the Class III fields:

a) For the first five (a) 5%. This percentage consists of: 2% state Canon and 3% participation for the owner of the surface predium;

b) For the following years 8%, consisting of: 3% of state Canon and 5% participation of the owner of the surface area;

c)
For the Class IV fields:

A

A The Product Canon will be from the beginning of the 10% exploitation. This percentage is made up: 5% of state Canon and 5% participation for the owner of the surface area.

3) The production Canon will be credited to the state collection agencies, paying Administration the participation that corresponds to the superficiary within the thirty days of perceived. If there are several owners of the surface pregod corresponding to the field, the participation will be distributed in proportion to the extent that covers the area of the mining concession in the various buildings;

4) The production Canon will be paid for the following rules:

a) Per half expired and within ten days after expiration. The corresponding percentage will be calculated on the mAnima production of the approved product program;

b) Every two semesters that are due, and without prejudice to the payment on the mAnima production, will be made the corresponding relief on the produced product. To this end, the production plans must be submitted within twenty days after the expiry of the second half of the year. Payment of the Canon balance, resulting from relief, should be paid within ten days after the notification by the Administration.

A If the actual production is less than the scheduled mAnimo, the Canon will be consolidated for the respective semester on the program's mAnimo.

At the beginning of the half-yearly periods, set by the Reglamentation.

ArtAculoA 46. -A If the operator of an exploitation permit is authorized to dispose of the extracted substances, it will pay the product Canon relative to those substances, in accordance with the rules of the Previous article.

ArtAculoA 47. -A Executive Branch may fully or partially exonerate the state part of the Canon of production, per perAodes that will not exceed the first ten years of the operation, if it considers that there are general reasons for encouraging such exploitation.

ArtAculoA 48. -A the rights and cations set forth above constitute pecuniary benefits, with the quality of consideration of the enjoyment, of economic nature, of the mining rights granted by the State not constituting in consequence taxes (Article 10 of the Tax Code).

However, and on the sole basis of surcharges and interest on arrears in the payment of rights and mining, the provisions of Article 96 of the Tax Code.

CHAPTER IX

From geological and mining research

ArtAculoA 49. -A Executive Branch, Ministry, and competent bodies in the field, mining, may do for sA or contract, prospecting and exploration operations minerals for scientific purposes or for the relief of the mineral resources of the paAs, except those corresponding to Class 1, literalA) of the 7Aº.

The activity or contract will be arranged by the state person's hierarchy, and the resolution must be communicated to the National Directorate of MinerAa and GeologAa, for registration.

The National Directorate of MinerAa and Geologaa will issue a certificate of registration, which will constitute sufficient evidence of the study mining easement that requires the activity of investigation.

ArtAculo 50. -A Executive Power, it decreases, simultaneously, the mining reserve for the purpose of protecting the indicated operations, according to the article 52.

CHAPTER X

From the mining reserve

ArtAculoA 51. -A Executive Branch may have the mining reserve in the areas or deposits of mineral substances in the national territory with determination of the same comprising all the substances minerals or part of them.

ArtAculoA 52. -A mining reserve is available:

a) For the purposes of protecting the prospect and exploration operations that are performed for purposes Scientific or relevant mineral resources;

b) For the purpose of promoting mining activity and, fundamentally, the exploitation of resources minerals.

The mining reserve suspends, while in force, the granting of prospecting permits for the areas reached by the reserve.

ArtAculoA 53. -A When the mining reserve is decreed, it will be determined to the agencies that will carry out the tasks that will eventually be made and will be fixed at the same time as the Areas, mineral classes and methods to be used for the explorations to be made, with a maximum of three years extendable for two years, for reasons founded.

ArtAculoA 54. -A mineral deposits and substances discovered under the Mining Reserve are included in Class II of the 7Aº.

The Executive Branch may have the early release of the Mining Reserve, with respect to specific areas or substances, if it considers the purposes of the reservation to be met.

ArtAculoA 55. -A Still in the areas or fields of mineral substances covered by mining rights of prospection, exploration or exploitation, the tasks corresponding to the reserve can be performed The mining industry is prepared for scientific purposes or for the relief of mineral resources, without any impact on the mining rights granted.

In the cases of mining activity, it simulates in A areas covered by a pre-existing mining contract, the discoveries or detections of areas with mining prospects, specifically determined. and which result from operations carried out by a single party shall correspond to the following, upon denunciation before the Registry.

If the discovery or detection of a mining area is simulated or concurrent by virtue of both parties performing operations in common areas, the attribute of the discovery will follow the following rules:

a) Corresponding, without obligation to credit priority, to the particular holder, if this is mineral substances that were nominated when applying for the prospecting permit or the awards granted when the exploration permit or concession was granted to operate;

b) In the cases, it will correspond to the mining reserve.

ArtAculoA 56. -A Executive Branch resolutions disposing of the mining reserves asA as the cessation of the mining reserves, should be published in the "Official Journal", in two newspapers of the Capital and in a daily of the department where the reservation is located.

CHAPTER XI

Of The Violations

ArtAculoA 57. -A Violations, in general of the provisions of this Code and of the corresponding regulations, the non-compliance with the obligations and burdens that these rules impose and all manner To hinder or impede the execution of mining activities, they constitute violations sanctioned by this Code.

ArtAculoA 58. -A Mining activity and mineral substance extraction, without having the enablement of a mining tAchapter, set up administrative infractions.

CHAPTER XII

From Sanctions

ArtAculoA 59. -A Administrative Violations will be the subject of the following sanctions:

a) Aperception;

b) Multas. To be graduated the violation and the aggravating circumstance of reiteration, between N$A 500.00 (new weights five hundred) and N$A 1:000,000.00 (new weights a million). These amounts will be updated as provided for in the 37;

c) The expiration of the mining right.

BOOK SECOND

REGULATION OF MINING ACTIVITY

FIRST PART

GENERAL PROVISIONS

CHAPTER I

Enabling Principle

ArtAculoA 60. -A According to the prescripted by arculosA 10, 11 , and 18 of this code, mining activity in the national territory only can be performed:

a) For the Class I (artAculoA 7Aº) fields:

To the attribution of mining rights to the state and to decentralized, industrial or commercial state entities;

b) For classes II, III, and IV (arculoA 7Aº):

A By the institution of mining titles that grant the rights of prospecting, exploration and exploitation to the agents legitimized for the activity (artAculoA 19).

Industrial and commercial state entities are considered to be included with respect to mineral deposits that are suitable or necessary for the industries or activities of their competitors.

Mining Title Institution Rules

ArtAculoA 61. -A mining titles are instituted, with relationship to the field classes, as follows:

a) For Class II:

A By selection of the holder made by the Executive Branch, in consideration of the best conditions to be agreed for the execution of the activity (82);

b) For Class III:

A Segment the specific rules of this CACOdig;

c) For Class IV:

A For the benefit of the owner of the surface predium (artAculoA 5Aº) or of third parties, in cases where the owner does not exercise the right of reservation.

Regulation of the enjoyment of mining rights

ArtAculoA 62. -A Rigged the general provisions of this CACODE for all regAmens, in which they are not expressly modified for each particular rule:

a) For Class I:

The Executive Branch will determine the specific conditions for the enjoyment of mining rights;

b) For Class ll:

A contractual agreement shall regulate the particular conditions of enjoyment, in the framework of the necessary legal conditions of provision;

c) For Classes III and IV:

The specific provisions of this Code are governed.

CHAPTER II

General principles governing the execution of mining activity

ArtAculoA 63. -A are basic conditions for the execution of the mining activity, with each of its phases being related:

a) The program of activity and exploitation, appropriate to the field, with specification of method to apply;

b) The investment plan;

c) The security or guarantee that will ensure the compensation of the damages resulting from the mining tasks;

d) The determination of the area that will be the object of mining activity and the execution times of each phase;

e) Special authorization referred to areas subject to special authorities ( artAculo 64);

f) Deslinde, mensura, and seA ± alization of the area that will be exploited.

For Class I, the Executive Branch will determine what is applicable, without prejudice to the subsidiary application of the item 104.

For Class IV, the General Inspectorate of Mines will adapt the system, as long as the area of exploitation is contained within the surface area, if its owner is the holder of the Concesiân.

For Classes II, III, and IV, when the dealership is not the owner of the surface predium, the prescriptions of the artAculsA 104 and the following are applicable.

Zones subject to special authorities

ArtAculoA 64. -A areas that will be the object of mining tasks should be examined prior to the granting of the title by the military authorities to verify that these tasks are executed more than 2,000 meters of the fortified points. For these purposes, the National Directorate of MinerAa and GeologAa will refer to the Ministry of National Defense with description of the area.

The military authorities will grant the corresponding authorization or deny it without cause.

The authorization will be signed after thirty days of the reception by the Ministry of National Defense of the communication sent by the National Directorate of MinerAa and Geologaa. Authorization is required only once it is treated by the same A-area or lower fractionation contained in your perAmeter.

ArtAculoA 65. -A mining work cannot be performed on cultivated land, at a distance less than 40 metres from a building or from a railway or a public road, 70 metres from water courses, Watering holes or any kind of vertients. If the mining operations in these areas are indispensable, the National Directorate of MinerAa and Geologaa will be able to grant a special authorization to this end, prescribing the appropriate security measures.

SECOND PART

SPECIAL PROVISIONS

TITLE I

REGIME OF CLASS I FIELDS

CHAPTER I

ArtAculoA 66. -A prospecting, exploration, and exploitation mining rights relating to the mineral deposits of Class I (artAculoA 7Aº) are attributed to the State and to the Decentralized state entities competent, and regulated specifically by the provisions of this Title, without prejudice to the application of the general rules of this Code, in all that is not expressly modified.

ArtAculoA 67. -A Class I literals (a) are subject to the rule prescribed in Chapter II of this Title.

ArtAculoA 68. -A Class I literalA (b) fields, can be the object of mining activity, as follows:

a) The Executive Branch, directly by its specialized agencies, or by contract under its responsibility, you can perform the prospecting and explore operations;

b) The prospect, exploration, or exploitation may be committed by the Executive Branch, to entities existing or existing industrial or commercial state which will be created in the future with such specific competition.

ArtAculoA 69. -A For the Class I fields, the Executive Branch will establish, in each case, for the realization of the mining activity, the extent and form of the area to be object, of work mining, the period of execution of each stage and the conditions required for the development of this activity. The provisions on mining serfdom and surveillance established by this Code are applicable to this regime.

ArtAculoA 70. -A Mineral substances in the Class l fields, when separated or extracted from the field, are incorporated into the private domain of the State, except for the necessary volumes. to compensate for the cost of production or to give back to the contractor, if applicable, that they are incorporated into the assets of the state entity that performs the mining activity.

CHAPTER II

RA©gimen of the literalA (a) fields of Class I

ArtAculoA 71. -A National Fuels, Alcohol, and Portland Administration (ANCAP) is the body competent to perform the mining activity corresponding to Class I (a) of the artAculoA 7Aº.

ArtAculoA 72. -A ANCAP may execute one, several, or all phases of the oil operation by using third-party contracts, in the name of the State Ente, hiring for such effects with people legal, national or foreign, in public or private law, or with international bodies.

The contract can take any of the forms that can be used in the field, even the one that puts the risk in charge of the contractor.

ArtAculoA 73. -A contract bases should be authorized by the Executive Branch which will also have to approve the contract to subscribe as a condition of validity of the contract.

For the selection of the contractor, it will be carried out by means of tenders or public tender, and can be dispensed with the procedures and the direct contract with authorization of the Executive Branch.

The pact of pay in kind to the contractor, will be understood always under the condition that the State Ente will have the right to acquire to the contractor the volumes of hydrocarbons that have to be destined to the internal market, The corresponding opportunities, proportions and price bases are determined in the contract.

ArtAculoA 74. -A All activities included in the hydrocarbon industry are declared as national.

ArtAculoA 75. -A Class I, literalA (a) substances of the 7Aº and the substances that accompany them, whichever is the fAsic state in which they are located or present, due to the fact of the exploitation or extracciation are unaffected from the original domain, incorporated in the domain of the State.

The volumes that need to be used for the operations as required for the compensation of the cost of production, or to give back to the contractor, for the fact of the exploration or the extraction will be incorporated to the ANCAP heritage.

The remaining volumes will be administered by ANCAP.

The contractor may freely arrange for the export of the volumes of substances that correspond to the contract.

ArtAculoA 76. -A public utility is declared to be the expropriations required for the performance of any of the activities related to the substances of Class I literals (a) of the arculoA 7Aº in any of its shapes and phases.

TITLE II

REGIME OF THE CLASS II FIELDS

CHAPTER I

ArtAculoA 77. -A Class II (artAculoA 7Aº) fields, may be the object of mining activity, under the mining titles that the competent authority establishes, with subject to the conditions stipulated in the following items.

ArtAculoA 78. -A Executive Branch will institute the mining title, attributing the corresponding rights, to the agent you select if you consider, in accordance with the following provisions, that you comply with the necessary conditions, from the technical, economic and business point of view, to carry out the mining tasks related to these fields.

CHAPTER II

Selection bases

ArtAculoA 79. -A are basic conditions: those set by the arculoA 64, with the following specifications:

a) The term of the prospecting and exploration operations will not exceed, in aggregate, five years, You should be prescribed free of A-area for each year of the perAodo;

b) The term of operation shall not exceed thirty years, extendable by ten years per day one;

c) The areas for each operation will be set by the Executive Branch, in consideration, at the type of field and exploit;

d) The activity programs for each stage and, particularly, the development of the exploit;

e) The mAnimas investment plan, projected for successive stages.

. -A particular conditioning object, within the framework of the basic conditions:

a) The concrete determination of the areas and deadlines;

b) The user's commitments of the activity to be developed, the production to be reached and the investments to be made;

c) The stipulation of pecuniary benefits, prospect rights, surface and area nones production, setting the cuantAa, variability, revisiting, and exency/perAodes, if it corresponds.

CHAPTER III

Regulation of the enjoyment of mining law

ArtAculo 81. -A special legal conditions and conditions will be the subject of a special contract that will govern the enjoyment of the mining right that the respective title attributes.

The quoted contract must set:

1) The conditions of the enjoyment of the mining right by the agreed period;

2) The need for mining activity by the holder to preserve the right;

3) The fixing of a sufficient concession term to write off the investment;

4) The precise listing of the causes of the full right of the contract, which will include expressly:

a) Non-compliance with the exploitation program or the investment plan.

b) Non-payment of pecuniary capabilities.

CHAPTER IV

ArtAculo 82. -A Executive Branch will perform the selection of the holder, considering the proposals submitted. The selection, will be founded on the appreciation, the assurances and guarantees that the future holder of a rational exploitation will provide, according to the best economic use of the field.

ArtAculo 83. -A If the Executive Branch considers the proposed conditions to be acceptable, it shall institute the corresponding mining titles, and approve the contract for the enjoyment of the rights. miners, who will subscribe to the notice of the granting of the title.

CHAPTER V

Mixed-Economic Enterprises

ArtAculo 84. -A In the call for proposals provided by the 82, the Executive Power can set, as a condition of preference or as a condition of acceptance, that the Proposer participates in a mixed economics company.

TITLE III

REGIME OF THE FIELDS OF CLASS III

CHAPTER I

ArtAculo 85. -A Class III (artAculoA 7Aº) mineral fields can be the object of mining activity under the corresponding titles, according to the provisions of the next.

CHAPTER II

From the prospect

ArtAculoA 86. -A prospective operation can be performed by the holder of a prospective permit that will be granted according to the following ends that should justify the applicant:

1) Unlinde plane from the area to prospecting and zone croquis;

2) Activity programs, specifying methods and techniques to use;

3) Mineral substances that are taxatively determined to be the object of the prospect;

4) Mining server that you deem necessary to declare;

5) Caution or endorsement that ensures the compensation of the damages that may derive from the activity.

The amount shall be set by the General Mine Inspectorate and shall not be released until 60 calendar days completed by the expiry of the permit period, A if they have not filed any outstanding claims; if any, the guarantee shall be maintained. up to its definition.

The Reglamentation will establish the technical details and the development of the preceding extremes.

Prospect areas and deadlines

ArtAculoA 87. -A prospect permission will have a validity between a minimum of twelve months and a maximum of twenty-four months, which may be extended for twelve months, and must be released, to be the right to the first, 50% of the original area.

The maximum extent of the area or area to be prospecting for each permit will be 100,000 hectares and the total limit, in case of granting a permit to the same person of 200,000 hectares.

For the concrete setting of the prospect area, the Mining Authority will take into account the programme of the proposed activity, the technology and equipment to be used.

In areas of the world, the most extensive in the area will be set, in each case, by the Executive Branch.

The deadline is counted from the following day of the notification to the granted permission. The course of the term can be interrupted for reasons justified by the holder and accepted by the General Inspectorate of Mines, not extending this interruption in any case for more than six months calendar.

Grant conditions

ArtAculoA 88. -A prospect permission will be granted after verification of the following conditions:

a) That do not affect other existing mining rights in the A area or in the same way

b) Not found in the area subject to mining reserve;

c) To justify compliance with the ends determined by the artAculo 86 and those arranged by the regulation;

d) The special authorization provided by the arculoA 64has been granted.

ArtAculoA 89. -A During the lifetime of a mining right or as long as the formal limit is found, no requests for other titles will be admitted or the application will be a priority of any kind. Only when the given area or ore has been issued and the priority will be exclusively chronological, will the request be accepted.

Rights that the title grants

ArtAculoA 90. -A permission enables, in exclusivity, the realization of all tasks to determine areas with mining expectations, through appropriate procedures or techniques and to the extraction of samples for testing and laboratory testing.

During the validity of the permit and up to thirty calendar days following the expiration of the deadline, only the holder can report new deposits or areas with mining expectations, and obtain, with the exclusive rights of any other, a permit to exploration or a concession to exploit, if you are in a position to credit the ends required for the granting of such titles.

Required Permissary

ArtAculoA 91. -By beating the deadline of the permission, whatever the outcome of the activity, you will have to present to the General Inspectorate of Mines, a detailed and documented report of the work done. This report will be conditional on the return or release of the constituted caution.

CHAPTER III

From Explore

ArtAculo 92. -A scan operations can be performed by the holder of an exploration permission.

ArtAculoA 93. -A Grant of the scan permission will be done according to the following quotes:

1) For priority reason the holder of a prospect permission, who requests it in time and form;

2) To any third party, to fields or to mining areas inscribed in the Register of Vacancies or In respect of areas that the applicant considers with fundamentals that present mining perspectives subject to approval of the General Inspectorate of Mines. In all cases, with prior verification of the conditions required by the 88;

3) The requestor should accredit:

a) Plano or sketch of the area to be scanned, with location information, unlinde and extensionn;

b) The or the taxatively determined substances that you intend to explore and the technical studies performed;

c) Program of operations, specifying tasks, methods, techniques, mA, and equipment to be employed;

d) Mining server that you consider necessary for your activity;

e) Designation of the cnical responsible for the activity;

f) Investment plan;

g) Economic or financial capacity appropriate to the Work Program;

h) Caution or endorsement that ensures the compensation of the damages resulting from the activity mining.

The regulation will develop the preceding extremes with specification of the technical details that correspond.

Explore areas and deadlines

ArtAculoA 94. -A area, object of the scan permission will be of a single body and its form as regular as possible with a maximum extent of 1,000 HA., for each permission and a total maximum, for the case from a permission to the same person of 2,000 HA.

The scan permission is granted for a period of two years, twice as long as it can be extended by a year of a year.

In order to qualify for the first loan, 50% of the original exploration area must be released and 50% of the remaining A-area must be released for the second period.

The deadline will be initiated from the date of notification of the grant of the permit and will be allowed to interrupt for justified reasons, not being able to exceed that interruption of a period of six calendar months.

Rights that the title grants

ArtAculoA 95. -A scan permission enables the holder to perform, in exclusivity, on the A-area all the tasks that require the study and evaluation of the field.

During the permit period, only the holder may request permission to operate on the A-area and mineral substances included in the exploration permit, crediting the required ends for the granting of the title.

Obligations of the Permissary

ArtAculo 96. -A Permissary Is Required:

1) To start the exploration within six months of the start of the deadline with the discount of the interrupt that was authorized;

2) To rationally run the proposed activity program and projected investments;

3) To communicate, within the sixty calendar days of all discovery of minerals not included in the permit;

4) Present quarterly report of the accomplished activity, with sample aggregation and analysis.

5) Present at the end of the scan, whatever the cause of the permission extincation, a detailed and documented final report of the work done.

ArtAculoA 97. -A The holder of the scan permission will not be able to establish a formal operation, but if you request authorization from the General Mine Inspectorate for preparatory experiences In this case, you can dispose of the mineral substances extracted in the most amounts that you set up the authorization.

CHAPTER IV

From the exploit

Section I

ArtAculoA 98. -A Class III field exploitation may be performed under a concession to exploit, granted in accordance with the following provisions.

Section II

Number of Concessions

ArtAculo 99. -A physical or legal person may be the holder of an undetermined number of concessions to exploit up to a maximum of 1,000 hectares for the same ore.

the Executive Branch may authorize the excess to be exceeded if the exploitation, industrialization, or market-based reasons make it necessary to have an area above the maximum.

In no case, the most basic physical can be exceeded if it leads the miner to the position of the sole exploiter of a given mineral.

Section III

Conditions for granting the concession

ArtAculo 100. -A granting of a concession to exploit will be made according to the following quotes:

1) For priority reason of the holder of a prospect permission or an exploration permission, if formula your request in time and form;

2) To any third party, to fields or to mining areas inscribed in the Register of Vacancies or for areas which the applicant considers to be on the basis of prior studies offering certain mining prospects, subject to acceptance by the respective authority.

A In all cases with pre-verification of the conditions set by the arculoA 88 and the authorization for special zones (artAculo 64);

3) The requestor should justify the following ends:

a) Site description, location, form, class, and ore law, reserve volumes checked and all other data and evidence of the possibility of rational exploitation;

b) Croquis of the area and unlinde of the area, determining the extent required for the exploitation of the field and for the installation of equipment, machines, use, and other elements of the exploitation;

c) Determined procedures or techniques to use, detailing equipment and machines;

d) Operating program discriminating:

- Product volumes.

- Characters that you assume, raw, benefited, industrialized.

- MAnimas investments to be performed.

e) Credit appropriate financial and technical capacity to the Explore Plan to be developed;

f) Determine the mining easement that you deem necessary for the exploitation;

g) Propose the or the techniques that will be used by the operator;

h) Constituir garantAa sufficient to answer for the damages resulting from the Mining activity, fixing the amount of the General Inspectorate of Mines.

ArtAculoA 101. -A the exploitation program with the determination of the annual mAnima production, can be revisited, if the conditions of the exploitation process or the characteristics it reveals the mine during this process, justifies it.

The revisiting may be done in terms not less than three years.

Section IV

Special forms of exploitation

ArtAculoA 102. -A Executive Power with a favorable report from the National Directorate of MinerAa and GeologAa can authorize a special exploitation scheme, to concession holders to exploit, in the following cases:

a) Whether the industry or product placement programs on the markets justify the exploitation process present various stages of activity, inactivity, or decreased production;

b) If there are reasons for a technical or economic order that justify deferring, per particular perAodes the exploitation of the various mines of the holder.

In cases where inactivity is authorized or the mine is not exploited, the perAodes will be up to three years, extendable twice for the same time.

In authorized inactivity periods, the holder must pay the Surface Canyon, corresponding to the exploration stage, multiplied by 2, 3, and 4, according to the first period or the following terms.

Section V

Concessional areas and deadlines

ArtAculoA 103. -A concession to exploit will set the extent of the area to be loved, between the minimum compatible with a rational exploitation and a maximum of 500 hectares.

For the specific setting of the Area, the mining authority will take into account the following determinants:

a) Type of mine or mine;

b) ExplocioningProgram;

c) Investment plan.

The term of validity of the concession shall be set by the mining authority, in the same act of granting of the concession, for the requested period, with a maximum of thirty years.

This period is extendable by successive perAodes of up to fifteen years each, while the mine is susceptible to exploitation.

The terms must be requested within the first half of the year of validity of the existing deadline and shall be granted against the submission of the new operations program (literalA d), artAculoA 100 and justification of Be at the payment of the Canon of Production and Surface.

The term, managed in time, will be deemed to be granted if there is no pronouncement by the mining authority at the expiration of the period of validity until then in force.

Section VI

Deslinde and mensura of the exploitation area

ArtAculoA 104. -A If the General Mine Inspectorate considers the concession to be exploited, the rights of the permiser will be automatically extended, if applicable, until the grant is granted. concession.

Likewise, the General Inspectorate of Mines will have the instructions concerning the deslinde, mensura and amojonamiento, considering to this effect, the proposal of the petitioner. This should proceed to the operation, with technical expertise and under the supervision of the General Inspectorate of Mines, according to the conditions to be determined by the regulation.

The statement of instructions of the General Inspectorate of Mines shall be personally notified to the petitioner, giving a period of sixty calendar days for the operation. This period may be extended by reasonable grounds.

Linderand demasAas concessions

ArtAculoA 105. -A If there were any linderings, the mine managers or directors will be personally quoted, so that within five days they will be in the process of operations of the mine. (

) shall be subject to the following conditions:

These observations shall be entered in the minutes accompanying the proceedings of a measure.

If between the new concession and the lindera there is not enough land to perform the planned dislint to obtain a regular form or there will be free spaces between the concessions the concession will be extended to the limit of the other concession.

ArtAculoA 106. -A All measures of mensura and amojonation shall be recorded under minutes signed by the technical officer of the General Inspectorate of Mines, the technical of the petitioner and of all persons participating in the operations.

The General Inspectorate of Mines shall examine and resolve any observations and complaints contained in those minutes and shall decide whether to approve the operation if applicable.

An authenticated copy of the mensura plane will be added to the concession act.

Operations expenses (technical, transportation, travel, pawns, food, statistics, fees, etc.) be charged to the petitioners,

Section VII

Mine Pothesiology Act

ArtAculoA 107. -A Grant of the concession to operate, the National Directorate of MinerAa and GeologAa, after notification to the petitioner, will give the mine the possession of the respective minutes.

Section VIII

Rights to be granted to exploit

ArtAculoA 108. -A This concession gives its holder the right to exploit the mine in exclusivity and to dispose of the mineral substances that it extracts from it. If they were not individually individualized substances, they should make the formal and immediate complaint to the National Directorate of MinerAa and Geologaa, without prejudice to their right to dispose of them. The substances of the fields of Class I, II and IV shall be excluded, which shall be subject to their specific rule, without prejudice to the obligation of the holder of the concession to denounce it, under the penalty of the expiration of their right.

The concurrency or concurrency of exploitation in the case of the preceding incident, will be arranged and regulated by the Executive Branch, even with the reduction of areas, and if it is not possible to exploit the online, the aforementioned authority will decide According to the importance or value of the fields which should prevail, if applicable, the expiration of the concession to exploit, indemnifying its holder of the damages and damages that result from the stated expiration.

Section IX

From the Internation

ArtAculoA 109. -A dealerships will not be able to extend their work beyond the limits of their concession.

All internaciated in a lindera mine forces the effect to the payment of the mineral that it has extracted and to indemnify all the damages caused.

If the minerals are in the power of the internant, the affected person may demand the restitution, deduced the costs of extraction, in addition to the compensation of the damages.

If there is bad faith, the payment of the mineral or the restitution will be made without any deduction without prejudice to the criminal responsibility of the internante for the crime of theft.

Bad faith is presumed:

a) If the intervention exceeds 10 meters, measured from the vertical plane that limits the mines;

b) If the internante objects or makes it difficult to visit your mine.

Section X

Right of visit

Rights of the colliery miners

ArtAculoA 110. -A Linear Dealerships have the right to visit the neighboring mine personally or through an engineer appointed to their requirement by the General Mine Inspectorate, provided that suspected to have occurred internations or that it was necessary to carry out or fear flooding or other injury of this species or when of the geological inspection they will believe to be able to obtain useful observations for their holdings respective.

When the visit has been requested on the occasion of an intervention that is suspected, or for fear of flooding, the immediate tasks to the mine of the applicant may be measured.

ArtAculoA 111. -A unfounded refusal, the hiding of internal tasks, or any difficulties and obstacles placed for inspection or examination, will assume a lack of good faith in the international, If the fact of the intervention is proven to be proven the fact of the intervention, the General Inspectorate of Mines will order to temporarily suspend the work on the internal tasks and to fix stamps in the dividing points, while the the dispute in the court is settled.

Section XI

From abandonment

ArtAculoA 112. -A exploiter who would like to leave his mine should declare it in writing to the General Mine Inspectorate. It is after the necessary inspection and to verify that the mine is in adequate safety conditions, to order to register the declaration of abandonment in the Register and to publish it in the "Official Journal" for three consecutive days and in two other journals for one time.

If there are mortgage creditors on the mine, the concessionaire must notify them prior to the declaration of abandonment and transfer their rights if they so require.

In the abandonment declaration, you cannot put any conditions.

Dealer liability

ArtAculoA 113. -A If the operator operator does not formally abandon the prescriptive mode, it remains subject to all charges and obligations inherent in the possession of the mine and will be responsible for the (a) damages which shall be caused by the abandonment in fact, without prejudice to the fines and other penalties applicable.

Section XII

Mining work-system of mines

ArtAculoA 114. -A mine work scheme and all relevant requirements and measures of technical order will be in line with existing regulations or those that will be issued in the future.

TITLE IV

RA©gimen of the fields of Class IV

CHAPTER I

ArtAculoA 115. -A Class IV mineral deposits may be the object of mining activity under the corresponding mining titles, according to the conditions laid down in the provisions of the next.

CHAPTER II

Surface Predium Owner Rights

(ArtAculoA 5Aº)

ArtAculoA 116. -A The owner of the surface predium, location of the field, by virtue of the reservation set by the arculoA 5Aº, can perform mining activity, under these conditions:

a) If the mining activity does not have an industrial character or is developed for non-profit purposes, or required by public bodies:

- The owner is empowered to perform it without the need for a mining title, without prejudice to the monitoring of the mining authorities and the submission to safety and health regulations and the rules that ensure the rationality of the work;

b) If the mining activity to be developed is for lucrative purposes, it may be executed by virtue of the corresponding mining title.

ArtAculoA 117. -A In the case provided for in literalA (b) of artAculo 116, the owner should request that the mining title be granted to him or her field conditions, providing the information relevant to these effects (ArtAculoA 120).

If there are no mining rights in place on that field and the exploitation does not affect a provision of general interest, the mining title will be granted in favor of the owner.

CHAPTER III

Third Party Rights

ArtAculoA 118. -A If there are no mining rights in place on the site, any third party may submit to the mining authority an application for a mining title (prospecting, exploration, or exploration). or concession to exploit) according to the nature and conditions of the deposit, which should be credited with the corresponding information.

The request, whatever the title you manage in the first term, should indicate the type of exploitation to be performed and the time required for this stage.

The mining authority will notify the owner of the surface area of the mentioned request, so that, in the course of ninety calendar days counted from its notification, it will present its own petition of mining title if wishes to assert the reservation made by the article 5Aº.

If the holder of the predium presents the request in time and is granted the mining title, the management of the third party will be without effect.

If at the expiration of the period granted to the holder of the property, he would not have presented his petition of title, the mining authority will give course to the management of the third.

ArtAculoA 119. -A Fields of Class IV -incisoa first-of the 7Aº), located in state or municipal property or belonging to the public domain, may be object of exploitation, without the need for a mining title, according to the following rules:

a) To meet the purposes of the public body, holder of the surface predium or understood in the ability of their competence;

b) Third-party exploitation, for private purposes, may be agreed upon by the above. public bodies, prior to the intervention of the National Directorate of Mineraa and Geologaa. If the exploitation will affect the objectives of the national mining policy, the National Directorate of MinerAa and GeologAa will be able to formulate the recommendations or the modality of exploitation that it considers to be adjusted to that polAttica or, with authorization of the Executive branch, determine the prohibition of exploitation.

The activity that takes place, according to the preceding paragraphs, will be communicated to the National Directorate of MinerAa and Geologaa, for the purposes foreseen by the article 126.

CHAPTER IV

Special provisions of this scheme

ArtAculoA 120. -A general provisions governing the mining (artAculoA 63) and the Class III fields are applicable to this system. except for modifications and adjustments that are established:

a) The exploitation programs and the investment plans will be adapted to the characteristics of these deposits, admitting the variability of the rate of extraction and production of the mineral substances. The inactivity periods may not be greater than one year, requiring the express authorization of the General Inspectorate of Mines.

b) When the mining activity is developed by the owner of the surface area, it will be exonerated from the Payment of prospecting rights and surface Canon only by paying the state Canon only.

c) If the mining activity is developed by a third party, the rights and corresponding nones will be paid.

The owner of the surface predium will perceive the participation of the production Canon prescribed by the 45.

THIRD BOOK

OF THE MINING AUTHORITIES AND CONTROL REGIME

TITLE I

CHAPTER I

From Authorities

ArtAculoA 121. -A mining authorities are:

a) The Executive Power;

b) The Ministry of Industry and Energy;

c) The National Directorate of MinerAa and GeologAa.

ArtAculoA 122. -A National Directorate of MinerAa and GeologAa replaces the " Ing. Eduardo Terra Arocena ", succeeding him in all his tasks.

CHAPTER II

Of competencies

ArtAculoA 123. -A

I. The Executive Branch is responsible for:

1) Set the general mining policy;

2) Authorizing contracts that are agreed by state entities referring to mining activity Class I fields;

3) Grant the mining-related mining titles of Class II of artAculoA 7Aº and authorize contracts for the enjoyment of the corresponding mining rights;

4) Grant the concessions to exploit and authorize the disposals of the concessions;

5) Declare mining easements;

6) Dispose mining reserves;

7) Decreting the required expropriations to the mining activity;

8) Dictate mining rights ' rights;

9) Declare deposits or mineral substances that meet the ends set in the Second of Class III of the 7Aº;

10) Dictate the general minerAa regulation and the special regulations that correspond.

II. To the Ministry of Industry and Energy:

1) Understand all issues of minerAa not attributed to the Executive Branch or the Directorate National of MinerAa and Geologa;

2) Grant the authorizations and approvals that correspond according to the provisions of this Cândigo;

3) Apply on a proposal from the National Directorate of MinerAa and GeologAto fines exceeding N$A 50,000.00 (new pesos fifty thousand).

III. To the National Directorate of MinerAa and GeologAa:

1) Advising the Ministry of Industry and Energy on all mining issues;

2) Grant the prospecting and exploration permissions that the CACODE regulates and authorize the disposals of the same;

3) Grant the required authorizations in the Code, Laws, and Regulations;

4) Impose the administrative penalties prescribed by the artAculo 59. (a) and (b).

A Fines they impose will not exceed N$A 50,000.00 (new weights fifty thousand);

5) Propose special minerAa;

s regulations to the Executive Power
6) Exercise the Mining Administrative Policy and the monitoring and control of all activities mining;

7) Dictate the acts, instructions, prescriptions, and measures set forth in this Code and the laws and regulations of the matter.

CHAPTER III

From The General Registry of MinerAa

ArtAculoA 124. -A General Registry of MinerAa will constitute a dependency on the National Directorate of MinerAa and GeologAa.

The roles of the Registry are:

1) The enrollment of all mining titles, their modifications, headline changes, disposals, and extinctions;

2) The inscription of all the actual taxes that have an impact on the mining rights, without prejudice of the other ones that correspond;

3) The enrollment of the vacancies;

4) The annotation of the declared mining easements;

5) The inscription of the deciduous and abandoned;

6) The encryption of discoveries;

7) The logging of mining reserves: granting and extincing;

8) Bring the Mining Catstar;

9) Grant the appropriate certifications and constances.

The registration number, registration system and the formalities and operating conditions shall be regulated by the regulation of the Service.

ArtAculoA 125. -A The Registration Department will have all the relevant publications and public sites that correspond according to the statutory and regulatory requirements.

In this order you will have:

1) The publication of permission and grant grants;

2) The publication of mining discoveries and holidays, and all other relevant or order the mining authorities.

TITLE II

MINING SURVEILLANCE

ArtAculoA 126. -A surveillance and monitoring of mining activity shall be carried out by the National Directorate of MinerAa and Geologaa, without prejudice to other public entities. segment their specific competence.

For these purposes, all mining activity that takes place in the country, without exception, is subject to the monitoring and control system established by the present CACODE, the laws of the matter, the general regulation of minerAa, the regulations of the polyaa and security and the special regulations in force or which are issued in the future.

ArtAculoA 127. -A For the exercise of the mining surveillance, the National Directorate of MinerAa and Geologaa and the authorized officials of the same, are empowered to require the aid of the force public as necessary for the performance of their tasks.

ArtAculoA 128. -A mining rights holders and contractors enabled to develop mining activity are required to allow access to and facilitate all inspection and inspection tasks. Audit to the authorized officials and technics of the National Directorate of MinerAa and GeologAa under penalty of sanctions, that they can reach the expiration of the mining right granted.

FOURTH BOOK

TITLE I

SPECIAL PROVISIONS

ArtAculoA 129. -A Time limits for permissions and concessions granted for the purposes of the 1943 MinerAa Code and amending laws, shall subsist until their expiration.

ArtAculoA 130. -A the management of mining titles with a limit on the promulgation of this Code shall be available in ninety calendar days from its entry into force, in order to conform to its provisions, without affecting the priority given by the date of initiation of the limit.

ArtAculoA 131. -A The provisions of this Code, relating to obligations, charges, taxes, forms of comptroller and audit, and those that grant benefits in terms of time, extent To areas and others that do not exist in the previous rule, it will govern from the validity of this code.

ArtAculoA 132. -A The updating of the monetary values set forth in this Code shall be performed in the month of January of each year by the Executive Branch in accordance with the official variation of the Says the cost of living.

ArtAculoA 133. -A Derogbe the Code of MinerAa, sanctioned by decree law 10.327, dated January 28, 1943, the law 14.302, dated 26 November 1974, the law 15.112, dated 26 March 1981 and the artAculosA 1Aº, 3Aº, 4Aº, 6Aº, 7Aº, 9, 12, 14, 15, 18, 19 and 22 of Law 14.181, of March 29, 1974.

TITLE II

TRANSIENT PROVISIONS

ArtAculoA 134. -A current regulations will continue in effect, in whatever way they do not contradict the new legal provisions.

ArtAculoA 135. -A present-code of MinerAa will enter into force on the 1st of April 1982.

ArtAculo 136. -A Community, etc.

A A A A A Sala de Sessions del Consejo de Estado, en Montevideo, a 28 de décembra de 1981.

HAMLET REYES,
President.
Nelson Simonetti,
Julio A. Waller,
Secretaries.

MINISTRY OF INDUSTRY AND ENERGY
TO MINISTRY OF ECONOMY AND FINANCE
TO MINISTRY OF NATIONAL DEFENSE
A TO MINISTRY OF JUSTICE

Montevideo, January 8, 1982.

CA-mplase, acorsese recibo, comunAquese, publáquese e insáltese en el Registro Nacional de Leias y Decretos.

GREGORIO C. ALVAREZ.
FRANCISCO D. TOUREILLES.
VALENTIN ARISMENDI.
JUST M. ALONSO.
JULIO CESAR SPINOLA.

Línea del pie de página
Montevideo, Uruguay. Legislative Power.