CASE STUDY OF A HYPOTHETICAL MINING PROJECT - PERUVIAN KEY ASPECTS

• Jurisdiction: Derecho Internacional

International Mining Law and Investment in Latin America and the Caribbean
(Apr 2005)
CHAPTER 9E
CASE STUDY OF A HYPOTHETICAL MINING PROJECT - PERUVIAN KEY ASPECTS
Xennia Forno
Estudio Rubio, Leguia, Norman & Asociados
Lima, Peru

Xennia Forno Castro Pozo practices in the areas of Administrative and Regulatory Law, Agriculture and Water, Environmental Law, and Mining, Oil and Energy.

Xennia was educated at Pontificia Universidad Cat´cmb;olica del Per´cmb;u, receiving a Bachelor's Degree in Law and Law Degree in 1979.

She was Registrar of the Public Mining Registry (1979-83); Legal Advisor of the Public Mining Registry (1984-90); Voting Member of the Mining Council of the Ministry of Energy and Mines (1991-99); Member of the Consultative Council of the Register of the National Superintendence of Public Registries (2000-to-date); Member of the Consultative Council of Instituto Nacional de Concesiones y Catastro Minero (National Institute of Concessions and Mining Cadaster) (2001); Member of the Mining Legal Committee of Sociedad Nacional de Miner´cmb;ia, Petr´cmb;oleo y Energ´cmb;ia (National Society of Mining, Oil and Energy) (2001).

Xennia is a Member of Lima Bar Association, Instituto Nacional de Derecho de Miner´cmb;ia, Petr´cmb;oleo y Energ´cmb;ia (National Institute of Mining, Oil and Energy Law), and Rocky Mountain Mineral Law Foundation.

MINING PROPERTIES TITLE AND PROPERTY SECURITY REGIME

The concessions regime for the development of mining activities in Peru is governed by the Single Revised Text of the General Mining Act, approved by Supreme Decree N%go%g014-92-EM, hereinafter the GMA.

According to the GMA, mining concessions (beneficiation, mining transport, general labor) are granted under public procedures. This means that the rules of the procedure for the procurement of the concession title must be unavoidably complied with as to term and content, and there is no possibility to correct an omission therein.

Regarding the mining concession, the GMA sets forth that the concession entitles its holder to the exploration and exploitation of the mineral resources granted under the concession, which could be metallic or non-metallic. They are contained in a solid element of indefinite depth, limited by vertical planes corresponding to the sides of a closed square, rectangle or polygon, whose vertexes are referred to as Universal Transverse Mercator (UTM) coordinates, with an area of 100 to 1,000 hectares, in grids or set of grids. In the maritime domain they may be granted in...