MINING UPDATE

On 6 March 2014, Ministerial Resolution 120-2014-MEM/DM was published in the Official Gazette, approving new (mining related) specifications that need to be observed for preparing, filing and approving the so-called Technical Report (Informe Técnico Sustentatorio or ITS for its acronym in Spanish) to which Article 4 of Supreme Decree 054-2013-PCM refers to (an ITS is applicable to modifications introduced to projects that do not cause significant negative environmental impacts and that, as a result thereof, do not require the approval of an amendment to the relevant environmental certification).

Among other, the following new aspects have been regulated by this recently enacted provision:

  • A maximum of 3 ITS may be filed in connection with modifications introduced to main components (it is unclear whether this limit also applies to exploration projects). Only 1 ITS may be filed when dealing with the “re-dimensioning” of components of exploitation projects.
  • Technological improvements included in an ITS have been limited to those addressing the needs of the general population, quality of life and the environment.
  • ITS can now refer to the reuse of tailings, exploration in areas neighboring open pits, temporary camps and quarries.
  • ITS should be filed through the SEAL system, provided, however, that a meeting with the mining authorities is held before such filing is made, in order for those authorities to verify that the relevant modification can actually be subject of an ITS.

Even though this new provision has introduced positive amendments to the existent legal framework, some of its regulations remain unclear. Thus, each case with respect of which an ITS wants to be filed, should be carefully assessed.

The Mining Practice Group of Rodrigo, Elías & Medrano Abogados will be available to answer any questions you may have in such respect.