THE LEGAL SYSTEM OF MINING CONCESSIONS IN ARGENTINA (ENGLISH VERSION)

• Jurisdiction: Derecho Internacional

Mineral Development in Latin America
(Nov 1997)
CHAPTER 2D
THE LEGAL SYSTEM OF MINING CONCESSIONS IN ARGENTINA (ENGLISH VERSION)
Edmundo Catalano
Allende & Brea
Buenos Aires, Argentina

Prepared by Delivery at the Rocky Mountain Mineral Law Foundation Special Institute on Mineral Development in Latin America

November 3 and 4, 1997 at Santiago, Chile.

Argentina is a rocky country by two-thirds, including a vast plateau, the Patagonian plateau. It is an extended territory, almost 2,800,000 square kilometer surface, in its continental part, insufficiently explored from the point of view of mineral resources.

The law which provides the régime of title to and exploitation of these resources is the Mining Code, which became effective in 1887, i.e. one hundred and ten years ago. Some partial amendments were made in 1919, 1980 and the last two, and perhaps, the most important ones, in 1993 and 1995. Despite the changes made in so different times, the legal basis to grant the mining concessions remains intact and resembles the old colonial mining ordinances, the Ordinances of Peru and of Mexico, which came into force for almost all of the American kingdoms by the Spanish Empire, in the XVII and XVIII centuries.

Argentina is a country of federal constitutional organization, composed of a National State and 23 provincial states. Nevertheless, there is one sole Mining Code enacted by the National Congress and in force and effect throughout the country, with its regulations being enacted by the provincial authorities, since mines are private property of the Provinces.

I. GENERAL CONTENTS OF THE MINING CODE

The Code classifies the mines, according to the kind of mineral substances contained, into three categories. All metal, non-metal bearing substances and solid mineral fuels are concessible to private individuals. The so called construction rocks or quarries are the exclusive property of the owner of the land. The Code provides how they are acquired, how they are kept and how the rights to explore and exploit the mining fields are forfeited. It regulates the two more important mining institutions, the exploration and the exploitation rights providing the legal conditions for the acquisition, affectiveness

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and forfeiture of these rights. It does not provide the industrial or commercial aspects of the activity, nor on the labor, tax and promotional aspects, which are governed by general or special laws, separate from the Code. One of them is Law 24,196 on Mining Investments. In this respect it differs from the mining codes or laws of other Latin American countries which have incorporated some of these special rules into their texts. More than a mining code, the Argentine code, like the Chilean Code, is a code of mines since it does not regulate the economic and industrial aspects of the activity. It is a code of the mining property and not of the mining industry.

II. MINING EXPLORATION AND DISCOVERY

Under Argentine mining law in force, the exploration permit is an optional right. Nobody is obliged to explore a land or a field, under a permit of this kind, as a previous legal instance to obtain his explitation concession. Who discovers a mining field may directly acquire the concession, reporting the discovery to the mining authority of the respective province, irrespective of the prior exploration. This mechanism encourages discoveries, by releasing the miner of the need to obtain from the authority a previous exploration permit, avoiding the bureaucratization of the activity, but poses the inconvenience that facilitates the registration of apparent mines, the value of which has not been sufficiently proven. It is enough for the discoverer to attach to his report a simple sample of the mineral discovered and perform a small well or labor of up to 10 meters on the mining deposit to obtain the concession of that alleged mine. No further work or additional investment is required to acquire the mine. This additional investment comes afterwards, once the "mine" has been legally granted. As a result of this legal concession system, simple and expeditious, without many formalities or technical requirements, our mining registers are full of these so called "mines", which in fact are simple legal prospects, since they have never demonstrated -except for a few cases- to be commercially exploitable.

III. MORE THAN 13,000 REGISTERED MINES

In Argentina there are at present more than 13,000 mines identified and registered throughout the national territory, obtained under this legal procedure, without any technical requirement. The law does not require proving the existence of a real mine to obtain the concession. The sufficiency of the discovery is proved, for law purposes, with the simple presence of

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mineral in the field, verified through the mandatory well or labor of 10 m, or less, to be performed by the applicant immediately after the discovery statement. The 13,000 registered mines, which are the entirety of the mining properties known in the country, abide by this legal system, without great...