Brazil

1. INTRODUCTION

2. MINERAL LEGISLATION

• 2.1. Introduction
• 2.1.1. Legal Regimes for the Development of Mineral Resources
• 2.2. Aerial Geological Recognisance
• 2.3. Exploration Phase
  • 2.3.1. Application
  • 2.3.2. Priority Rights
  • 2.3.3. Size of Area
  • 2.3.4. Duration
  • 2.3.5. Report
  • 2.3.6. Obligations
  • 2.3.7. Rights
  • 2.3.8. Transferability
  • 2.3.9. Exclusivity
  • 2.3.10. Sanctions
• 2.4. Transition Phase
• 2.5. Mining Phase
  • 2.5.1. Application
  • 2.5.2. Requirements
  • 2.5.3. Size of Area
  • 2.5.4. Duration
  • 2.5.5. Reports
  • 2.5.6. Ownership of the Mining Product
  • 2.5.7. Transferability
  • 2.5.8. Rights
  • 2.5.9. Obligations
  • 2.5.10. Mining Group
  • 2.5.11. Mining Consortium
  • 2.5.12. Sanctions
  • 2.5.13. Depth Limit per Horizontal Surface of the Deposit
• 2.6. Licensing
• 2.7. Garimpeira (alluvial) Mining Regime
• 2.8. Security of Tenure
• 2.9. Settlement of Disputes
• 2.10. Companies that Operate in Mineral Business Activities

3. MINING ACTIVITIES IN SPECIAL AREAS

• 3.1. Indigenous People Reserves
• 3.2. Border Zone

4. ENVIRONMENTAL PROTECTION LEGISLATION

• 4.1. Introduction
• 4.2. Mining Requirements
  • 4.2.1 Licences
  • 4.2.2. EIA/Rima
• 4.2.3. Restoration of Degraded Areas
• 4.3. Sanctions and Responsibility

5. INDEMNIFICATION AND ROYALTIES

• 5.1. Introduction
• 5.2. Rent, Compensation and Participation
  • 5.2.1. Exploration Phase
  • 5.2.2. Mining Phase
• 5.3. Royalties (Financial Compensation for the Exploitation of Mineral Resources)

6. TAXATION

• 6.1. Introduction
• 6.2. Taxes applicable to Mineral Activity
  • 6.2.1. Income Tax - IRPJ
  • 6.2.2. State Sales Tax - ICMS
  • 6.2.3. Importation and Exportation Tax - II and IE
  • 6.2.4. Excise Tax - IPI
  • 6.2.5. Municipal Service Tax - ISS
  • 6.2.6. Cofins, PIS and CSL
  • 6.2.7. Payroll Taxes

7. FOREIGN INVESTMENTS

• 7.1. Introduction
• 7.2. Rules Applied for Foreign Capital in Companies which Operate in Mineral Business Activities

8. GOVERNMENT AGENCIES

• 8.1. Introduction
• 8.2. National Department of Mineral Production - DNPM
• 8.3. Geologic Survey (CPRM)
• 8.4. Environmental Protection Agencies

9. OPENING OF PINHEIRO NETO - ADVOGADOS

10. ANNEXES

Decree-Law No. 227, dated 28 February 1967 - Mining Code Decree No. 62934, dated 2 July 1968 - Regulation of the Mining Code Law No. 6567, dated 24 September 1978 Law No. 7805, dated 20 July 1989

Chile

1. INTRODUCTION

2. MINING LEGISLATION

• 2.1. Introduction
• 2.2. Mining Exploration Concession
  • 2.2.1. Definition
  • 2.2.2. Rights
  • 2.2.3. Duration
  • 2.2.4. Size of area
  • 2.2.5. Constitution proceeding
  • 2.2.6. Transferability
• 2.3. Mining Exploitation Concession
  • 2.3.1. Definition
  • 2.3.2. Rights
  • 2.3.4. Size of area
  • 2.3.5. Constitution proceeding
  • 2.3.6. Transferability
  • 2.4. Royalties
• 2.5. Grounds for the annulment of a mining concession
• 2.6. Mining Easements
• 2.7. Companies that operate in mineral business activities
• 2.7.1 Introduction
• 2.7.2. Corporate structures
  • 2.7.2.1. Limited Liability Partnerships and Corporations
  • 2.7.2.2. Branch of a non-Chilean corporation
  • 2.7.2.3. Partnership Limited by Shares
  • 2.7.2.4. Contractual Mining Company

3. MINING ACTIVITIES IN SPECIAL AREAS

4. ENVIRONMENTAL PROTECTION LEGISLATION

• 4.1. Introduction
• 4.2. Environmental Requirements
  • 4.2.1. Environmental Impact Assessment System
  • 4.2.2. Licenses
  • 4.2.3. Restoration of Degraded Areas
• 4.3. Sanctions and Liability
  • 4.3.1. General Sanctions
  • 4.3.2. Land Pollution
  • 4.3.3. The environmental action

5. TAXATION

• 5.1. Income Tax
• 5.2. Capital Gains Tax
• 5.3. Taxation on Foreign Financing and Financial Investments
• 5.4. Taxation of Royalties and Fees Payable Abroad
• 5.5. Stamp Tax
• 5.6. Value Added Tax
• 5.7. Mining income tax
  • 5.7.1. Taxing of small artisan miners
  • 5.7.2. Taxing of Small Miners of Relative Importance
  • 5.7.3. Taxing of Miners of Major Importance and Great Mining Companies

6. FOREIGN INVESTMENT

7. GOVERNMENT AGENCIES

Colombia

1. INTRODUCTION

2. MINING LEGISLATION

• 2.1. Mining Titles
  • 2.1.1. Rights
  • 2.1.2. Transferability
• 2.2. Types Of Mining Exploration And Exploitation Titles
  • 2.2.1. Exploration License
  • 2.2.2. Exploitation License
  • 2.2.3. APORTE
  • 2.2.4. Mining Concession
  • 2.2.5. Special Licenses
• 2.3. Special Rules For Different Types Of Mining Activities.
  • 2.3.1. Coal, Radioactive Minerals, Precious Stones And Salt
  • 2.3.2 Construction Materials
  • 2.3.3. Shore And Off-Shore Exploration And Exploitation
  • 2.3.4. Other Minerals
• 2.4. Mining Registry
• 2.5. Settlement of Disputes
  • 2.5.1. Unilateral Interpretation, Modification And Termination
  • 2.5.2. Contract Revision Clause

3. MINING ACTIVITIES IN SPECIAL AREAS.

4. ECONOMIC CONSIDERATION

• 4.1. Surface Fee
• 4.2. Royalties
• 4.3. Profit Share
• 4.4. Specific Taxes
• 4.5. Economic Consideration In Large Mining Projects

5. TAXATION

• 6. ENVIRONMENTAL PROTECTION LEGISLATION
• 6.1. Environmental Licenses And Authorizations
  • 6.7.7. Environmental License
  • 6.7.2. Environmental Authorizations
  • 6.1.2.1. Waters
  • 6.1.2.2. Air
  • 6.1.2.3. Noise
  • 6.1.2.4. Solid Residues
  • 6.1.2.5. Odors
  • 6.1.2.6. Complementary Permits
  • 6.7.3. Regulations Applicable To Transitional Period
• 6.2. Reports
• 6.3. Liability For Environmental Damages And Sanctions
• 6.4. Administrative Sanctions
  • 6.4.1. Sanctions
  • 6.4.2. Preventive Measures

7. FOREIGN INVESTMENTS

• 7.1. Introduction
• 7.2. Special Foreign Exchange Regime For Mining Companies
• 7.3. International Agreements For The Protection Of Foreign Investment

8. GOVERNMENT AGENCIES

BRIGARD & URRUTIA

ANNEX N• 1: MINING APORTES CURRENTLY IN FORCE

ANNEX N• 2: DIRECTORY OF COLOMBIAN GOVERNMENT AGENCIES AND

OFFICES OF FOREIGN COUNTRIES IN COLOMBIA

APPENDIX: RELEVANT LAWS AND REGULATIONS: COLOMBIAN MINING CODE

Ecuador

1. INTRODUCTION

2. MINING LEGISLATION

• 2.1 Introduction
  • 2.1.1 Legal Regimen for the Development of Mineral Resources:
• 2.2 Aerial Geological Survey:
• 2.3 Exploration Phase:
  • 2.3.1 Application:
  • 2.3.2 Priority Rights:
  • 2.3.3 Size of Area:
  • 2.3.4 Duration:
  • 2.3.5 Report:
  • 2.3.6 Obligations:
  • 2.3.7 Rights:
  • 2.3.8 Transferability:
  • 2.3.9 Exclusivity:
  • 2.3.10 Sanctions:
• 2.4 Transition Phase:
• 2.5 Mining Phase:
  • 2.5.1 Application:
  • 2.5.2 Requirements:
  • 2.5.3 Size of Area:
  • 2.5.4 Duration:
  • 2.5.5 Reports:
  • 2.5.6 Ownership of the Mining Product:
  • 2.5.7 Transferability:
  • 2.5.8 Rights:
  • 2.5.9 Obligations:
  • 2.5.10 Mining group:
  • 2.5.11 Mining Consortia:
  • 2.5.12 Sanctions:
  • 2.5.13 Depth Limit per Horizontal Surface of the Deposit:
• 2.6 Licensing:
• 2.7 Alluvial Or Open Pit Mining Regimen:
• 2.8 Security of Tenure:
• 2.9 Settlement of Disputes:
• 2.10 Companies That Operate In Mineral Business Activities:

3. MINING ACTIVITIES IN SPECIAL AREAS

• 3.1 Indigenous Peoples Reservations:
• 3.2 Border Zone:

4. ENVIRONMENTAL PROTECTION LEGISLATION

• 4.1 Introduction:
• 4.2 Mining Requirements:
  • 4.2.1 Licenses:
  • 4.2.2 Restoration of Degraded Areas:
• 4.3 Sanctions and Liability:

5. INDEMNIFICATION AND ROYALTIES

• 5.1 Introduction:
• 5.2 Rent, Compensation and Participation
• 5.3 Royalties (Financial Compensation For The Commercial Development of Mineral Resources):

6. TAXATION

• 6.1 Introduction:
• 6.2 Taxes Applicable To Mineral Activities:
  • 6.2.1 Corporate Income Tax:
  • 6.2.2 State Sales Tax:
  • 6.2.3 Import and Export Duties:
  • 6.2.4 Excise Tax:
  • 6.2.5 Municipal Service Tax:
  • 6.2.6 Payroll Taxes:

7. FOREIGN INVESTMENTS

• 7.1 Introduction:
• 7.2 Rules Applied For Foreign Capital In Mining Companies:

8. GOVERNMENT AGENCIES

• 8.1 Ecuadorian Department Of Minerals:
• 8.2 Geological Survey:
• 8.3 Environmental Protection Agencies:

Mexico

1 INTRODUCTION.

2 MINING LEGISLATION.

• 2.1 Introduction.
  • 2.1.1 Legal regimes for the Development of Mineral Resources.
• 2.2 Exploration Phase.
  • 2.2.1 Applications.
  • 2.2.2 Preemptive Rights.
  • 2.2.3 Size of Area.
  • 2.2.4 Duration.
  • 2.2.5 Reports.
  • 2.2.6 Obligations.
  • 2.2.7 Rights.
  • 2.2.8 Transferability.
  • 2.2.9 Exclusivity.
  • 2.2.10 Sanctions.
• 2.3 Transition Phase.
• 2.4 Mining Phase.
  • 2.4.1 Applications.
  • 2.4.2 Size of Area.
  • 2.4.3 Duration.
  • 2.4.4 Reports.
  • 2.4.5 Ownership of the Mining Products.
  • 2.4.6 Transferability.
  • 2.4.7 Rights.
  • 2.4.8 Obligations.
  • 2.4.9 Mining Groups.
  • 2.4.10 Mining Consortium.
  • 2.4.11 Sanctions.
  • 2.4.12 Depth Limit per Horizontal Surface of Deposit.
• 2.5 Licensing.
• 2.6 Security of Tenure.
• 2.7 Dispute Resolution.
• 2.8 Companies that Operate in Minerals Business Activities.

3 MINING ACTIVITIES IN SPECIAL AREAS.

4 ENVIRONMENTAL PROTECTION LEGISLATION.

• 4.1 Introduction.
• 4.2 Mining Requirements.
  • 4.2.1 Licenses.
  • 4.2.2 Environmental Impact Assessment.
  • 4.2.3 Restoration of degraded areas .
• 4.3 Sanctions and Liabilities.
  • 4.3.1 Sanctions.
  • 4.3.2 Liabilities.

5 INDEMNIFICATIONS AND ROYALTIES

• 5.1 Introduction.
• 5.2 Rent, Compensation and participation.

6 TAXATION.

7 FOREIGN INVESTMENT.

• 7.1 Introduction.
• 7.2 Rules Applied for Foreign Capital in Mining Companies.

8 LABOR MATTERS.

• 8.1 Basis of Employment Relationship.
• 8.2 Duration of the Employment Relationship.
• 8.3 Dismissals.
• 8.4 Fringe Benefits.
• 8.5 Employee's Profit Sharing.
• 8.6 Social Security Law and Employees9 Housing Fund Law.
• 8.7 INFONAVIT -The National Employees' Housing Fund Institute.
• 8.8 Employee Savings Fund ("SARM).
• 8.9 Substitution of Employer.
• 8.10 Collective Bargaining Agreements.
• 8.11 Right to Strike.

9 GOVERNMENTAL AGENCIES.

• 9.1 Introduction.
• 9.2 Mexican Ministry of Commerce and Industrial Development.
• 9.3 Environmental protection agencies.

10 ABOUT BASHAM, RINGE Y CORREA, S.C.

Peru

1. INTRODUCTION

2. MINING LEGISLATION

• 2.1 Introduction
  • 2.1.1 Mining Activities and Ways to Perform Them
  • 2.1.1.1 Sampling and Prospecting
  • 2.1.1.2 Exploration and Operation Concession
  • 2.1.1.3 Smelting Concession
  • 2.1.1.4 General Development Concession
  • 2.1.1.5 Mining Transportation Concession
  • 2.1.1.6 Marketing
• 2.1.2 Government Mining Activities
• 2.1.3 Attributions of the Holders of Mining Rights
  • 2.1.3.1 Use of the surface of barren lands
  • 2.1.3.2 Establishment of easements
  • 2.1.3.3 Construction of necessary development
  • 2.1.3.4 Right to water use
  • 2.1.3.5 Right of inspection on neighboring concessions
  • 2.1.3.6 Right to execute juridical acts on the concession.
• 2.1.4 Obligations of the Holders of Mining Rights
  • 2.1.4.1 Payment of the processing fee.
  • 2.1.4.2 Protection Systems for mining concession rights.
  • 2.1.4.2.1 Minimum Annual Production Investment
  • 2.1.4.2.2 Payment of Maintenance Fee
• 2.1.5 Extinction of Concessions
  • 2.1.5.1 Lapse
  • 2.1.5.2 Abandonment
  • 2.1.5.3 Annulment
  • 2.1.5.4 Cancellation

3. ENVIRONMENTAL LEGISLATION

• 3.1 Introduction
• 3.2 Peruvian Environmental Mining Rules
  • 3.2.1 The Political Constitution of Peru and the Organic Law for the Development of Natural Resources
  • 3.2.2 The Environmental and Natural Resources Code
• 3.2.3 Single Ordered Text of the General Mining Law, Regulations for Environmental Protection in Metallurgical Mining Activities and Regulations for Environmental Protection for Mining Exploration Activities
  • 3.2.3.1 Obligation to submit an annual affidavit.
  • 3.2.3.2 Environmental Management and Adaptation Program (PAMA)
  • 3.2.3.3 Environmental Impact Survey (EIA)

4. TAXATION

• 4.1 Introduction
• 4.2 Taxes applicable to mining activity
  • 4.2.1 Income Tax
  • 4.2.2 Special Tax on Net Assets (IEAN)
  • 4.2.3 General Sales Tax
  • 4.2.4 Selective Tax on Consumption
  • 4.2.5 Tariffs
  • 4.2.6 Local Government Taxes
  • 4.2.7 Contributions
  • 4.2.8 Rates
• 4.3 Tax Stability Regime
  • 4.3.1 Characteristics of tax stability agreements
  • 4.3.2 Basic benefits granted by the tax stability agreement.

5. PROMOTION OF INVESTMENTS IN MINING ACTIVITY

• 5.1 Introduction
• 5.2 Main characteristics of the general regime for private investment promotion in Peru.
  • 5.2.1 Unrestricted private initiative
  • 5.2.2 Protection of the right to private property
  • 5.2.3 Equal treatment for foreign and Peruvian investors.
  • 5.2.4 Remittances abroad.
  • 5.2.5 Right to enter into Juridical Stability Agreements.
• 5.3 Register of Foreign Capital
• 5.4 Characteristics of the special regime for promotion of investments within the mining sector

6. GOVERNMENT AGENCIES

• 6.1 Introduction
• 6.2 Ministry of Energy and Mines (MEM)
  • 6.2.1 General Bureau of Mining (DGM)
  • 6.2.2 General Bureau of Environmental Affairs (DGAA)
• 6.3 Regional Bureaus of Energy and Mines
• 6.4 Mining and Metallurgical Geological Institute-INGEMMET
• 6.5 Environmental Protection Agencies
  • 6.5.1 National Environment Council (CONAM)
  • 6.5.2 National Environmental Fund (FONAM)

ABOUT OLAECHEA LAW FIRM

APPENDIX: RELEVANT LAWS AND REGULATIONS
Single Revised Text of the General Mining Law

Venezuela

I. MINING LEGISLATION IN VENEZUELA

• A. Introduction. (+)
  • A.1 Venezuelan mineral resources.
  • A.2 Major mining operations in Venezuela.
• B. Brief history of Venezuelan mining regulation.
• C. Present Venezuelan Mining Regulations.
• D. Property and management of minerals resources located in Venezuelan soil.
  • D.1 Property of the mineral deposits located in Venezuelan soil.
  • D.2 Management of the mineral deposits located in Venezuelan soil.
  • D.3 Access to the land for mining activities.
• E. Mechanisms by which private parties may carry out Mining activities.
• F. Special Regulations Imposed on certain Minerals.
• G. Fines, penalties and criminal sanctions regulated by the Mining Law.
• H. Special regulations on mining companies.

II. THE VENEZUELAN MINING TAX REGIME.

A. Overview.

• A.1 Income Tax.
  • A.2 The Luxury and Wholesale Tax (Impuesto al Consumo Suntuario y Ventas al Mayor, also known as Sales Tax, IVA Tax or Value Added Tax).
  • A.3. Business Assets Tax.
  • A.4. Municipal Taxes.
• B. Tax Regime of the Mining Industry.
  • B.1 Income Tax Law.
  • B.2 Value Added Tax.
  • B.3 Municipal Taxes.
  • B.4 Special Taxes.

III. ENVIRONMENTAL MINING LEGISLATION.

• A. Introduction.
• B. Environmental Authorities.
• C. Mining requirements.
• D. Restoration of Degraded Areas.
• E. Registration before the MARNR as an Activity Capable of Degrading the Environment.
• F. Regulations related to the mining activity.
• G. Sanctions and Liability.
  • G.1 Criminal Liability and Sanctions.
  • G.2 Civil Liability.

IV. FOREIGN INVESTMENT IN MINING.

• A. Introduction.
• B. Andean Pact Foreign Investment Code
• C. Repatriation of profits.
• D. Current Venezuelan Regulations - No Restrictions
• E. Technology.
• F. Registration of Foreign Investment.

V. ABOUT TRAVIESO EVANS HUGHES ARRIA RENGEL & PAZ.

APPENDIX: RELEVANT LAWS AND REGULATIONS