The Ministry of Energy and Non-Renewable Natural Resources issued the guide to obtaining licenses for the commercialization and export of metallic and non-metallic mineral substances[1]. The ministerial decree establishes the following main points:
Scope of Application
- The provisions of the guide apply to all persons who, regardless of whether or not they hold mining concessions, are engaged in the commercialization and export of metallic and non-metallic mineral substances outside of their concessions.
Issuance of Licenses
- Those who wish to obtain a license for commercialization must apply through the Mining Management System (SGM) and include all the required information.
- Once an application is created on the SGM, hard copies of all the requirements must be submitted within five days. This includes the Taxpayer ID Number (RUC), certificate of tax compliance, certification of equity, deed of incorporation of the company in the case of artificial persons or a certificate of domiciliation in the case of foreign artificial persons.
- The Ministry will decide if the application meets the requirements and was submitted by the deadline. If the deadline is not met, the application will be closed. If the application fails to meet the requirements, a 10-day period will be granted to complete or clarify the application, otherwise it will be closed.
- Once the application is successfully completed, it will be sent to the Mining Regulatory Agency which will issue the respective report. If there are observations, the applicant will be asked to provide the respective clarifications.
- The license for commercialization will either be issued or rejected based on the legal and economic report, in a reasoned resolution.
License:
- The license for commercialization will be valid for three years and can be renewed.
- The resolution for issuance and information will be recorded in the Mining Regulatory Agency’s register of sellers of metallic mineral substances and exporters of metallic and non-metallic minerals.
- The license for commercialization is not transferable.
- An annual sum for the license must be paid and will be set by the mining authority.
- The resolution authorizing the license for commercialization and export of metallic and non-metallic mineral substances must be filed with any notary in the country and recorded in the Mining Register within 30 days of notification.
- The Mining Regulatory Agency must publish the list of authorized sellers and a list of persons who are excluded from the register.
- Sellers and exporters of mineral substances have at least the following obligations:
- Act as withholding agents.
- Send semiannual reports on the origin, volume and value of their purchases; the destination, volume and value of sales; withholdings applied; copies of purchase and sale invoices, and any other information which is required.
- Update the register each year, specifically the list of suppliers and compliance with obligations.
Termination of the Mining Right
- If, due to non-compliance with obligations or unjustified activities, it is determined that the minimum conditions for the issuance of the license for commercialization or its renewal have changed, it can be cancelled. In this case a new license cannot be obtained for at least one year.
- If a license for commercialization is not renewed or is cancelled, this does not exempt the former holder from any pending administrative, civil or criminal liability.
- The license for commercialization and export of metallic and non-metallic minerals will be terminated at the end of the period for which it was granted.
- The license holder may give up the license while it is still in effect. This will result in the cancellation of the title’s registration in the respective registers.
Other Provisions:
- Applications for authorization to obtain a license for commercialization which have been submitted before the guide was issued will be processed according to the rules in effect at the time of the application.
[1] Decree No. MERNNR-MERNNR-2020-0028-AM, published in the Special Edition of Official Register 1125 on October 6, 2020.
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