Amendments to the Mining Law introduced by the Organic Law on Social Transparency
On August 28, 2025, the Organic Law on Social Transparency was published in the Third Supplement of the Official Gazette No. 122, which amended various legal frameworks, including the Mining Law.
Below is a summary of the main amendments:
- Exploration Stage: The holder of a mining concession must conduct exploration activities for up to four (4) years, constituting the initial exploration stage.
Prior to the expiration of this period, if the concession holder wishes to continue exploration activities, they must request an additional period of up to four (4) years from the relevant Ministry, which constitutes the advanced exploration stage. To this end, the holder must include in their request a relinquishment of a portion of the total surface area of the originally granted concession and provide documented evidence of compliance with the minimum activities and investments committed to during the initial exploration stage.
For mining concessions obtained through auction or bidding, to request a change of stage, the holder must demonstrate compliance with the minimum investment amounts established by law, as well as the investment offered in their economic proposal for each granted concession.
- Approval of the Request: After verifying compliance with the aforementioned requirements, the relevant Ministry may approve or deny the request to change stages.
- Positive Administrative Silence: Once the request is approved, the relevant Ministry will issue an administrative resolution declaring the start of the advanced exploration stage within sixty (60) days from the approval of the request. If it fails to do so within this period, positive administrative silence will apply, and the change to the advanced exploration stage will be deemed authorized.
- Economic Evaluation of the Deposit: Upon expiration of the advanced exploration stage, the concession holder will have a period of up to two (2) years to conduct the economic evaluation of the deposit and request, within this period, the start of the exploitation stage and the subsequent signing of the Mining Exploitation Contract with the State.
- Extension of the Economic Evaluation Period: The mining concession holder may request an extension of this stage for up to two (2) additional years from the date of the administrative act approving the request, provided they pay the annual concession conservation fee for the economic evaluation period with a 50% surcharge.
- Termination of the Mining Concession: If the concession holder does not request the corresponding stage change within the specified deadlines, the relevant Ministry will declare the concession terminated.
- Procedure for Declaring the Forfeiture of Mining Rights: The relevant Ministry may declare the forfeiture of mining rights, ensuring due process. This procedure may be initiated ex officio, based on a substantiated complaint from third parties previously investigated by the Ministry, or at the request of other Ministries related to mining activities.
The Mining Regulation and Control Agency (hereinafter, ARCOM) will issue a report or analysis document on the factual grounds, which will serve as the basis for the forfeiture declaration.
The relevant Ministry will notify the mining rights holder with the ARCOM report substantiating the non-compliance, allowing them fifteen (15) workdays to prove compliance with their obligations and/or submit defense documents and supporting evidence.
If the Ministry finds no grounds to proceed or if the holder disproves the cause within the specified period, the procedure will be concluded, and the case will be archived. Otherwise, the Ministry will issue a duly substantiated administrative resolution ordering the concession holder to remedy the non-compliance within fifteen (15) workdays.
If the concession holder fails to remedy the non-compliance within the established period, the relevant Ministry will issue a substantiated resolution declaring the forfeiture of mining rights. In cases of forfeiture due to human rights violations, a final judicial ruling will be required beforehand.
Once the administrative procedure for forfeiture has been initiated, the concession holder may not relinquish the concession.
- Grounds for Forfeiture: A new ground for automatic forfeiture, without additional procedures, is introduced in cases where the competent environmental authority has notified and classified the existence of environmental damage.
- Forfeiture for Non-Payment: This provision is expanded to include fees, royalties, patents, and other rights or taxes established in the Mining Law and its regulations.
- Forfeiture for Non-Compliance with Economic Commitments in Auction or Bidding Processes: A new ground for forfeiture is introduced for mining concessions obtained through auction or bidding when holders fail to meet the legal minimum investment amounts or the investment committed in their economic proposal.
- Requests for changes in the exploration stage or the start of the exploitation stage submitted prior to the entry into force of the Organic Law on Social Transparency will be subject to the regulations in effect at the time the process was initiated.
- Verification of Investments: Within ninety (90) workdays from the entry into force of the Organic Law on Social Transparency (August 28, 2025), ARCOM must verify compliance with the legal minimum and committed investments in the economic proposal for concessions granted through auction or bidding and report to the relevant Ministry to initiate forfeiture procedures if applicable.
Are you concerned about the impact of these recent reforms on your mining operations? Contact us! At LASPINA LEGAL, we specialize in providing tailored legal solutions for the mining industry. We are ready to help you navigate these changes and protect your company’s interests with the support of our expert team.