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Mining Alert – January 2024

ALERT – MINING

Approve Supreme Decree 002-2024-EM amending Articles 85 and 86 of the Mining Procedures Regulations approved by Supreme Decree 020-2020-EM

On January 24, 2024, the Official Gazette “El Peruano” published Supreme Decree 002-2024-EM (the “Decree”), which amended Articles 85 and 86 of the Mining Procedures Regulations, approved by Supreme Decree 020-2020-EM.

The most important aspects of the Decree are:

1. A new procedure is created for obtaining the operating authorisation of the concession and/or its modifications, which involves an inspection by the mining operator, provided that it is not in one of the following cases (the “New Procedure”):

– In the case of the first operating authorisation of the plant and other components of a new concession.
– For new tailings deposits and new leaching PAD, only in case of single stage or first stage of the approved project.
– When in some component, during the review stage of the communication of completion of works, there are variations between what was approved in the construction authorization and what was executed.
– If the geotechnical instrumentation system is found to be malfunctioning.
– If available, depending on the risk assessment or analysis.

2.The new procedure provides for the following stages:

– The holder of the mining activity shall submit to the Directorate General of Mining (the “DGM”) or competent Regional Government (the “GORE”)a notice of completion of the construction and installation of the components of the concession or amendment granted.
– If the documents submitted are not observed, within 10 working days of receiving such communication, the DGM or the GORE shall approve the Terms of Reference (the “DTRs”) and notify the mining operator.
– Upon receipt of the TDR, the mining operator shall conduct the verification inspection of the completion of the works and installation of the communication matter components and the performance of pre-operational/commissioning tests.
– Once the verification inspection has been carried out, the mining operator shall submit to the DGM or the GORE a duly signed sworn statement of verification (the “Affidavit”) stating:

1. That the construction and installation works of the components of the concession of benefit granted or the approved modification, are in accordance with the approved construction authorization.
2. That the execution of preoperative tests/ commissioning of the project, is subject to the approved construction authorization.

The deadline for submission of the Affidavit shall be 10 working days from the notification of the TDRs to the holder of the mining activity.

– Within 10 working days of the submission of the Affidavit, the DGM shall approve the verification of completion of the construction of works and facilities of the project and authorize its operation.
– The Affidavit constitutes the document by which the license of use of water and the authorization of discharge of treated wastewater can be requested, if required by the holder of the mining activity.
– In case the DGM determines that there are substantial changes between what is approved in the construction authorization and the information contained in the Affidavit, it will declare the application for operating authorization inadmissible. The DGM shall approve within a maximum of 10 calendar days from the publication of the Decree, the format of the Affidavit and the TDR to be used in the New Procedure.

5.The Decree shall enter into force on the day following the publication of the direct decision approving the format of the affidavit and the TDR.

6.The administrative procedures under way are in accordance with the provisions of the Decree, provided that the inspection procedure for verifying the completion of the construction and installation of components of the concession has not been designated and ordered, on the date of publication of the Decree.

7.Where the holder of the mining activity is in one of the cases referred to in paragraph 1., he shall follow the procedure for the authorisation of regular operation, which involves the conduct of the field inspection by DGM officials. To this end, the authority shall have a period of 10 working days after the notification of the TDRs to the mining operator. Thereafter, and in the absence of any comments, the DGM shall approve the requested operating authorisation within 10 working days of the date of completion of the field inspection.

For further information, please contact Francisco Tong (ftong@estudiorodrigo.com), Francisco Barrios (fbarrios@estudiorodrigo.com) and/or Diego Pachas (dpachas@estudiorodrigo.com)