New Mining Regulation is Enacted

The new Mining Operations Implementation Regulation (“Mining Regulation”) was enacted on 21 September 2017, replacing the old 2010 regulation. In fact, this legislative action was long awaited since Mining Law No. 3213 went through substantial changes in 2015, changing some of the established core mining concepts such as the royalty agreements regime, supervision requirements, and non-completion related sanctions.

The 2010 Mining Operations Implementation Regulation was not updated to accompany these substantial changes, but now the Mining Regulation, not only finalized the adjustment phase but also took new steps such as providing the General Directorate of Mining Works (“GDMW“), the governmental body in charge of the mining sector, with certain new control mechanisms.

While the 2015 changes to the Mining Law allowed the companies involved in infrastructure investments under the build- transfer-operate (“BOT”) model to produce the raw materials to be used in the relevant construction works, the Mining Regulation sets out the details of how the relevant permitting processes before the GDMW will work, in addition to explaining the details of the permitting fee exemptions/reductions from which these companies can benefit. The Mining Regulation also addresses those cases where mining operations and other investments may overlap each other in terms of the relevant project zones. Finally, the tendering requirements concerning the mining fields now have their own legislation known as the Mining Areas Tender Regulation.

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