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Foreign Mining Investment Law pp 57–73Cite as

May I Mine? The Question of Mining Licenses

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Abstract

A foreign investor will not be able to start mining activities until the respective government has granted the necessary permission, commonly in a form of a mining license.

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Notes

  1. 1.

    According to section 129 MRA 1989: “During the term of an exploration permit the holder of the exploration permit and any person who acts for the purpose of carrying out any activity authorized by the exploration permit, with or by such vehicles, vessels, machinery and equipment as may be necessary or expedient for the purpose of exploring for any mineral to which the exploration permit applies, may, (…), enter any part of the area of the exploration permit that is not the surface area of a reserve; and with the consent of the owner, or the consent of the Governor in Council, any part of the area of the exploration permit that is the surface area of a reserve; for the purposes of facilitating that exploration; (…)”.

    According to section 235 of the MRA 1989: “(…) during the currency of a mining lease, the holder of the mining lease and any person who acts as agent or employee of the holder (or who delivers goods or substances or provides services to the holder) for a purpose or right for which the mining lease is granted may enter and be within the area of the mining lease; and upon the surface area comprised in the mining lease; for any purpose for which the mining lease is granted or for any purpose permitted or required under the lease or by this Act; may do all such things as are permitted or required under the lease or by this Act.”

    “Any purpose permitted or required under the lease or by this Act” and “to do all such things as are permitted or required under the lease or by this Act” refers to mining activities—whereas the scope is specifically determined within each mining lease granted.

  2. 2.

    See infra for further details regarding possible restriction to land access.

  3. 3.

    Section 316 MRA 1989 states that: “(…) if the investors is planning to build for transportation purposes he may over land that is not in the area of the person’s lease for the transportation of something through, over or under the land by a pipeline, aerial ropeway, conveyor apparatus, transmission line or similar method of transport, or road.”

  4. 4.

    According to section 181(3) of the MRA 1989: “Without in any way limiting the activities that the Minister may specify in a mineral development license, activities leading to the evaluation and economic development of an ore body by or on behalf of the holder may include geological, geophysical and geochemical programs and other works as are reasonably necessary to evaluate the potential for development of any mineral occurrence of possible economic potential occurring in or on the area of the mineral development license; and mining feasibility studies; (…) marketing studies;(…).”

  5. 5.

    Queensland Parliament (1970).

  6. 6.

    Queensland Parliament (1962).

  7. 7.

    Thiess Peabody Coal Pty. Ltd. Agreement Act 1962.

  8. 8.

    Queensland Government (2013).

  9. 9.

    Department of Natural Resources and Mines (2013b).

  10. 10.

    Department of Natural Resources and Mines (2013a), p. 4.

  11. 11.

    According to section 129(b) of the MRA 1989: “During the term of an exploration permit (…) the holder of the permit may, subject to compliance with this Act, have considered for grant, in priority to all other persons, an application for the grant of a mining claim, mineral development license or mining lease for all or part of the area of the permit; (…)”.

  12. 12.

    Section 48 of the Mines Legislation Streamlining Amendment Act 2012 states that: “(…) the relevant Minister may be satisfied a mining tenement interest is incompatible with the purpose for which the land is taken if, for that purpose, it is necessary to extinguish all interests in the land, including native title rights and interests. A mining tenement interest may be wholly extinguished; or partially extinguished by excluding land from the land the subject of the interest; or prohibiting the carrying out of activities by the holder of the interest.”

  13. 13.

    According to section 48(5)(b): “In assessing any compensation to be paid to the holder of a mining tenement interest in relation to the taking of the land, allowance cannot be made for the value of minerals known or supposed to be on or below the surface of, or mined from, the land.”

  14. 14.

    HWL Ebsworth (2012).

  15. 15.

    HWL Ebsworth (2012).

  16. 16.

    HWL Ebsworth (2012).

  17. 17.

    Herbert Smith Freehills (2014).

  18. 18.

    Government of Queensland (2013b).

  19. 19.

    Government of Queensland (2013a), p. 1.

  20. 20.

    According to section 19 of the MPRDA 2002 in combination with sections 1 and 5 of the MPRDA 2002, the holder of a prospecting right may “(…) intentionally search for any mineral by means of any method which disturbs the surface or subsurface of the earth, including any portion of the earth that is under the sea or under other water; or in or on any residue stockpile residue deposit, in order to establish the existence of any mineral and to determine the extent and economic value of thereof; (…).”

    According to section 25 MPRDA 2002 in combination with sections 1 and 5 of the MPRDA 2002, the holder of a mining right may: “(…) undertake any operation or activity for the purpose of winning any mineral on, in or under the earth, water or any residue deposit, whether by underground or open working or otherwise and includes any corporation or activity incidental thereto.”

  21. 21.

    Ramsaran (2014).

  22. 22.

    Leon (2013).

  23. 23.

    Government of South Africa (2009), p. 148.

  24. 24.

    Government of South Africa (2012), p. 371.

  25. 25.

    Leon (2013).

  26. 26.

    Democratic Alliance South Africa (2014), p. 4.

  27. 27.

    Democratic Alliance South Africa (2014), p. 4.

  28. 28.

    Sergeant (2014).

  29. 29.

    High Court of South Africa (2008), p. 7.

  30. 30.

    Sergeant (2014).

  31. 31.

    High Court of South Africa (2008), p. 37.

  32. 32.

    High Court of South Africa (2008), p. 37.

  33. 33.

    Sergeant (2014).

  34. 34.

    Sergeant (2014).

  35. 35.

    McKay (2014).

  36. 36.

    Brendan (2010).

  37. 37.

    Sapa (2014).

  38. 38.

    Department of Mineral Resources South Africa (2011), p. 4.

  39. 39.

    Department of Mineral Resources South Africa (2011), p. 4.

  40. 40.

    Peyper (2014).

  41. 41.

    Peyper (2014).

  42. 42.

    Want (2014).

  43. 43.

    According to article 1, the Mining Law 2001 aims to “(…) fomentar la exploración técnica y la explotación de los recursos mineros de propiedad estatal y privada”; and: “(…) se realice en forma armónica con los principios y normas de explotación racional de los recursos naturales no renovables y del ambiente, dentro de un concepto integral de desarrollo sostenible y del fortalecimiento económico y social del país.”

    [(…) promote the technical exploration and exploitation of the mineral resources of State and private ownership; and: (…)see that its use is carried out in a harmonious manner of the principles and norms of rational exploitation of non-renewable natural resources and of the environment, within the integral concept of sustainable development and economic and social strengthening of the country.]

  44. 44.

    According to article 14 of the Mining Law 2001: “(…) únicamente se podrá constituir, declarar y probar el derecho a explorar y explotar minas de propiedad estatal, mediante el contrato de concesión minera, debidamente otorgado e inscrito en el Registro Minero Nacional”.

    [(…) the right to explore and exploit the mines of State’s ownership can only be constituted, declared or proved by means of a contract of mining concession, duly awarded and registered at the National Mining Register].

  45. 45.

    Article 14 in combination with Article 45 of the Mining Law 2001 states: “El contrato de concesión minera es el que se celebra entre el Estado y un particular para efectuar, por cuenta y riesgo de este, los estudios, trabajos y obras de exploración de minerales de propiedad estatal que puedan encontrarse dentro de una zona determinada y para explotarlos en los términos y condiciones establecidos en este Código (…).”

    [The contract of mining concession is that which it is agreed upon between the State and an individual to carry out, on his account and at his own risk, the studies, works and installations of exploration of minerals of State’s ownership that can be found within a determined area and to exploit in the terms and conditions established in this Code.]

    The scope of the mining concession under the Mining Law 2001 includes: “(…) las fases de exploración técnica, explotación económica, beneficio de los minerales por cuenta y riesgo del concesionario y el cierre o abandono de los trabajos y obras correspondientes.”

    [(…) the stages of technical exploration, economic exploitation, beneficiation of minerals at the concessionaire’s own account and risk and the closing or abandonment of the corresponding works and installations.]

  46. 46.

    Law Business Research Ltd (2014), p. 2. The key passage reads: “(…) inexequible la Ley 1382 de 2010 (…)”, but deferred: “(…) los efectos de la inexequibilidad declarada por el término de dos años, de conformidad con lo expuesto en la parte motiva de esta sentencia.”

    [Law 1382 from 2010 unconstitutional, but for a time of 2 years postponed the effect of the judgment except for certain interim measures outlined in the judgment].

  47. 47.

    Corte Constitucional de Colombia (2011).

  48. 48.

    Corte Constitucional de Colombia (2011), p. 1.

  49. 49.

    Article 31 Mining Law 2001 as proposed would have stated: “La Autoridad Minera también podrá delimitar otras áreas especiales que se encuentren libres, sobre las cuales, de conformidad con la información geológica existente, se puede adelantar un proyecto minero de gran importancia para el país, con el objeto de otorgarlas en contrato de concesión a través de un proceso de selección objetiva, a quien ofrezca mejores condiciones técnicas, económicas, sociales y ambientales para el aprovechamiento del recurso.”

    [The Mining Authority may also define other special areas that are free, on which, in accordance with existing geological information, a mining project of great importance for the country can be advanced, in order to grant the concession agreement through an objective selection process, based upon who offers the best technical, economic, social and environmental conditions for the use of the resource.]

  50. 50.

    Government of Colombia 2011, Plan Nacional de Desarrollo. Regarding the tender process it requests: “(…) Lo anterior con el fin de que estas áreas sean otorgadas en contrato de concesión especial a través de un proceso de selección objetiva, en el cual la autoridad minera establecerá en los términos de referencia, las contraprestaciones económicas mínimas distintas de las regalías, que los interesados deben ofrecer.”

    [This is to ensure that these areas are granted by special concession through a strict selection process, in which the mining authority will establish in the terms of reference the minimum payments other than royalties, which the applicants must offer.]

  51. 51.

    USGS (2012).

  52. 52.

    Law Business Research Ltd (2014), p. 5.

  53. 53.

    Beltrán (2013).

  54. 54.

    The general rule in article 159 of the Mining Law of 2001 is that: “La exploración y explotación ilícita de yacimientos mineros, constitutivo del delito contemplado en el artículo 244 del Código Penal (…).”

    [Illicit exploration and exploitation of mining deposits constitutes a criminal offense according to Article 244 of the Penal Code of Colombia].

    The Mining Law of 2001 differentiates between “ilícit” [illicit] mining and “occasional” [occasional] mining. According to article 152 of the Mining Law 2001: “La extracción ocasional y transitoria de minerales industriales a cielo abierto, que realicen los propietarios de la superficie, en cantidades pequeñas y a poca profundidad y por medios manuales, no requerirá de concesión del Estado.”

    [The occasional and transitory extraction of industrial minerals by open pit mining—that is carried out by the owners of the surface in small amounts, not much depth and by manual work—will not require of a concession of the State.] and is therefore not to be considered illicit. Occasional activities are restricted as the extracted minerals may only: “(…) tener como destino el consumo de los mismos propietarios, en obras y reparaciones de sus viviendas e instalaciones, previa autorización del dueño del predio. Todo otro destino industrial o comercial que le den a los minerales extraídos, al amparo de este artículo, les está prohibido.” [(…) be used by the owners in works and repairs of their homes and installations, [by] previous authorization of the owner of the properties. Any other industrial or commercial destination given to the extracted minerals, covered by this Article, is prohibited.] According to article 155 small scale gold panning is also permitted.

    Regarding criminal prosecution the Mining Law 2001 states that: “Hasta tanto la Autoridad Minera no resuelva las solicitudes de legalización (…), ni a proseguirles las acciones penales señaladas en los artículos 159 y 160 de este Código.”

    [Until the Mining Authority resolves the legalization processes (…) it shall not proceed for criminal actions provided for in Articles 159 and 160 of this Code [the Mining Law 2001].

  55. 55.

    According to the mining the law 1440 of 2011, “El plan nacional de desarrollo 2010–2014 “(…) se prohibe en todo el territorio nacional, la utilización de dragas, minidragas, retroexcavadoras y demás equipos mecánicos en las actividades mineras sin título minero inscrito en el Registro Minero Nacional.”

    [Since the enactment of this law, is prohibited throughout the country, to use dredges, diggers, backhoes and other mechanical equipment in mining not registered in the National Mining Registry].

  56. 56.

    Schmidt (2015).

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    Richard W. Roeder

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Roeder, R.W. (2016). May I Mine? The Question of Mining Licenses. In: Foreign Mining Investment Law. Springer, Cham. https://doi.org/10.1007/978-3-319-31217-0_5

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