Initiative to reform the Mining Law

By Santamarina Steta

Executive Summary:

On March 24, 2023, the President sent an initiative to reform several laws, including the Mining Law, to radically modify the regulation of mining concessions.
Such a reform would go against multiple constitutional rights, including, among others, those of legal certainty and non-retroactivity of the law.
This initiative may be modified during the legislative process, which may alter the possible violations of constitutional rights.

On March 24, 2023, the President sent to the Chamber of Deputies an initiative to reform several laws, including the Mining Law. The aforementioned is to radically modify the regulation of mining concessions.

The points we consider most relevant are the following:

Assignments may now be granted to parastatal companies.
The term of new concessions is reduced from 50 to 15 years, which may only be extended once.
It is incorporated as a requirement to obtain a mining concession to obtain concession on national waters.
Applications currently in process will be immediately rejected.
The concession titles currently in force will have a new 15-year extension and will not be renewable.

We consider that such a reform would go against multiple constitutional rights, including, among others, those of legal certainty and non-retroactivity of the law.

In this regard, if applicable, holders of concessions that were issued before the reform, those who have applications pending to be resolved, and even those who file new applications will have the right to file an appeal for relief before a District Judge.

Of course, this initiative may be modified during the legislative process, which may alter the possible violations of constitutional rights.