Mining Alert – August 2020

New Mining Procedures Regulation was adopted

On August 8, 2020, through Supreme Decree No. 020-2020-EM, the new Mining Procedures Regulation (the “RPM”) was adopted. Below, we mention some of its most important aspects:

• Positive administrative silence: Among others, the evaluation of the following procedures shall be subject to positive administrative silence:

a) Constitution or amendment of an administrative economic unit (UEA) (30 working days);

and, accumulation, division and resignation of mining concessions (37 working days).

b) Amendment of a benefit concession for the installation and/or construction of additional facilities and/or process improvement without expanding the area (90 working days).

c) Operating Authorization granting benefit (30 working days).

d) Amendment of a mining transport concession (without area expansion) (45 working days).

• Inadmissibility of a concession of benefit, general work or mining transport: In the event of overlap (total or partial) of a request for any of said concessions with a previous request or concession of a different nature (e.g. mining), the General Directorate of Mining (“DGM”) or the Regional Government (“GORE”) shall assess the level of affectation to the previously granted right and, if applicable, shall require the applicant to obtain an authorization from the affected holder for the granting of the requested concession. Failing this, the DGM or GORE may declare the request inadmissible.
•  New procedure for granting the benefit concession and operating authorization: The granting of the benefit concession title and the construction authorization are granted jointly within a maximum period of 90 working days, subject to negative administrative silence. Once the construction is completed, the mining owner requests the respective operating authorization, which is granted within a maximum period of 30 working days, subject to positive administrative silence.
• New criteria for the Mining Technical Report (“ITM”) and communication of completion of works: In the benefit concession, the ITM shall no longer be applicable for amendments with area expansion. In exploitation authorizations, the ITM shall only be applicable for amendments outside the mining plan; and, for height and/or extension of the waste rock deposit and/or pit no greater than 20%. In any case, the mining owner must notify the DGM and the mining control authorities of the completion of the works subject to an ITM, within 3 working days following their completion.
• New cases of “amendment by communication”: Annex IV and X of the RPM adopt the new cases exempted from the processing of an amendment or ITM for benefit concessions or exploitation authorization, respectively.
• New obligation for holders with continuous mining activities: Holders of continuous mining activities must submit to the DGM and the mining inspection authorities, within a period of no more than 120 calendar days from the entry into force of the RPM, the following information:

 a) List and description of the components of the mining or production unit.

b) Location map of the mining concession and the polygon containing the components of the mining or production unit.

c) List of mining concessions or UEAs in which they have been developing their activity.

d) Descriptive report of the operations.

•  Application to administrative procedures in process: Administrative procedures that are in process continue to be governed by the provisions under which they were initiated, with the exception of the provisions of the RPM that are most beneficial to them.