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Case Study of a Hypothetical Mining Project - Peruvian Key Aspects

Xennia Forno, International Mining Law and Investment in Latin America and the Caribbean (2005)

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 No014-92-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 grids of 100 to 10,000 hectares

A mining concession has the following characteristics:

• It is a real property different and separate from the real estate where it is located. That is why the development of mining activities requires a previous agreement with