SUSTAINABLE DEVELOPMENT: CENTRAL GOVERNMENT VS. PROVINCIAL GOVERNMENT RELATIONSHIP WITH THE COMMUNITIES IN MINING ACTIVITY

• Jurisdiction: Derecho Internacional

International Mining Law and Investment in Latin America and the Caribbean
(Apr 2005)
CHAPTER 10B
SUSTAINABLE DEVELOPMENT: CENTRAL GOVERNMENT VS. PROVINCIAL GOVERNMENT RELATIONSHIP WITH THE COMMUNITIES IN MINING ACTIVITY
Daniel Meil§n
Consultora: Druetta, Meil§n & Asociadoes
Buenos Aires, Argentina

Daniel Meil´cmb;an is currently Vice President of Studies Economical and Regional Development of Argentina (FEDERAR). He is also Councitor of OKITA Fundation and Team Leader of Mining Sector of Argentina-Japanese Committee.

He is licensed in Geology and Master of Engineering Mine Sciences.

He has been a Consultant on mining issues for: United Nations Organization (ONU), Economical Commission for Latin America (CEPAL), United Nations Development Program (PNUD), United Nations Organization/Industrial Development (ONUDI), International Development Bank (BID), and International Bank of Reconstruction and Promotion (BIRF). He is also a Consultant on Mining issues for the Argentine National Senate.

Mr. Meil´cmb;an was Subsecretary of Mines (1994-99). During his administration, political, legal, environmental and socioeconomic measures were implemented, and as a result, Argentina was included in Worldwide Mining. He also carried out the political and operating issues that materialized the Integration and Mining Complementation Treaty between Argentina and Chile (1994-99). He is an International Auditor for the Mining, Minerals and Sustainable Development (MMSD) Project sponsored by the Business Council of Sustainable Development. In the private sector, he was a Founding Member of DMiner´cmb;ia & Asociados and of Compan´cmb;ias Minera Integradas S.A. (CMI).

I. INSTITUTIONAL POLITICAL ORGANIZATION

THE REPUBLIC OF ARGENTINA ADOPTS THE REPRESENTATIVE, REPUBLICAN AND FEDERAL FORM OF GOVERNMENT

THE FEDERAL GOVERNMENT SYSTEM DEVOTED UNDER OUR NATIONAL CONSTITUTION GIVES THE AUTHORITY AND THE REGIONAL AUTONOMY TO THE PROVINCIES THAT CONFORM THE ARGENTINE NATION.

THEREFORE AND ACCORDING TO OUR NATIONAL CONSTITUTION, THE PROVINCIES KEEP ALL THE POWER NOT DELEGATED TO THE NATION.

AMONG THE AUTHORITIES DELEGATED BY THE PROVINCIES TO THE NATION ARE THE LEGAL CODES REGARDING COMMERCIAL, CIVIL, CRIMINAL AND MINING ACTIVITIES.

THIS SUBJECT IS HIGHLY IMPORTANT TO UNDERSTAND THE ARGENTINE STATUS, WHICH GOVERNS THE MINING PPOPERTY IN OUR COUNTRY.

UNDER CONSTITUTIONAL ORDER, THE DOMAIN OF THE NATURAL RESOURCES BELONGS TO THE PROVINCIES.

ALTHOUGH THE NATURAL RESOURCES CORRESPOND TO THE PROVINCIAL DOMAIN, THEY HAVE DELEGATED THE ENFORCEMENT OF THE MINING CODE TO THE NATIONAL CONGRESS, WHICH IS CONFORMED BY TWO CHAMBERS SENATOR AND DEPUTY THE MINING CODE IS THE LAW WHICH REGULATES THE ACQUISITION, EXPLORATION AND THE EXPLOITATION OF THE MINERALS.

IN SUMMARY, THE ARGENTINA FEDERAL SYSTEM HAS REGULATIONS OF A FEDERAL, PROVINCIAL AND MUNICIPAL CHARACTER.

THE INTERNATIONAL CONTEXT, WHICH IS A SOURCE OF VENTURE INVESTMENT, REQUIRES A CLEAR, PREDETERMINATED POLICY THAT OFFERS LEGAL SECURITY AND SUSTAINTABILITY TO THE INVESTMENTS TOWARDS THE INDUSTRIAL MINING SECTOR.

IN SUCH A MANNER AND IN RESPONSE THE NECESSITY OF THE CONSENT OF THE 23 PROVINCES WHICH CONFORM THE ARGENTINA NATION AND UNDER THE INITIATIVE OF THE NATIONAL EXECUTIVE POWER, IN THE YEAR 1993 THE FEDERAL MINING AGREEMENT WAS SIGNED, WHICH WAS THEN RATIFIED BY A NATIONAL CONGRESS LAW.

THIS FEDERAL MINING AGREEMENT ESTABLISHED THE BASIS AND CONDITIONS OF THE FUTURE POLITICAL AND INSTITUTIONAL RELATIONSHIP BETWEEN THE FEDERAL AND PROVINCIAL GOVERNMENTS WHO'S OBJECTIVES, AMONG OTHERS, HAVE BEEN THE FOLLOWING:

• THE PROMOTION AND DEVELOPMENT OF FOREIGN VENTURE INVESTMENTS,

• THE UNIFICATION AND HOMOGENIZATION OF MINING PROCEEDINGS,

• THE UPDATE OF ESSENTIAL INSTITUTIONS OF THE MINING LAW SUCH AS THE CADASTRAL SYSTEM AND PUBLIC ACCESS SYSTEM,

• THE SANCTION OF A PREVENTIVE ENVIRONMENTAL MINING REGIME,

• THE ELIMINATION OF ADVERSE TAXES FOR MINING ACTIVITIES,

• THE RATIONAL EXPLOITATION OF MINING RESOURCES IN THE ENTIRE COUNTRY,

• THE DESCENTRALIZATION AND OPERATIVE...