Ministerio de Energía y Minas

Mining Obligations

Law of Validity

All miners holding a mining or profit concession are obliged to pay an amount of money to the State, in order to keep their concession in force. This payment is also known as “right of validity”.

IN THE CASE OF A MINING CONCESSION, WHEN SHOULD I START PAYING THE RIGHT OF VALIDITY?

The right of validity shall be paid on an annual basis, starting from the date of your petition:

YEAR 1:
You must pay it when your first make your petition.

YEAR 2:
You must pay it between January 1 and June 30 of that year. The second year is calculated as of January 1 of the year following the petition of the mining concession.

YEAR 3 AND FOLLOWING YEARS:
As for the second year, you must pay it between January 1 and June 30 of that year. The same rule is applicable for the following years.

HOW MUCH MUST I PAY FOR THE RIGHT OF VALIDITY?

If you are a small mining producer or an artisanal mining producer qualified by the General Directorate of Mining of the Ministry of Energy and Mines, the amount you are obligated to pay for the right of validity is:

If you are accredited as a Small Mining Producer:
US$ 1.00 (one dollar) or its equivalent in national currency, per hectare requested or granted.
For example:
If you have applied for 800 hectares, you must pay the validity fee of US$ 800, since 800 hectares x US$ 1.00 = US$ 800.

If you are accredited as an artisanal mining producer
US$ 0.50 (half dollar) or its equivalent in national currency, per hectare requested or granted.
For example:
If you have applied for 800 hectares, you must pay the validity fee of US$ 400, since 800 hectares x US$ 0.50 = US$ 400.

If you do not have this certificate or belong to the General Regime of Medium and Large Mining,
the payment for validity is greater (US$ 3.00 per hectare requested or granted).

WHERE DO I PAY THE RIGHT OF VALIDITY?

To the bank account established by INGEMMET for this purpose. When you make this payment for the first time, you must indicate that it corresponds to a new petition.
To find out the number of the account and the bank where you will make the payment, you can telephone INGEMMET or go to one of its offices.

WHAT HAPPENS IF I DO NOT PAY THE RIGHT OF VALIDITY?

In the event that the validity right for 1 year is not paid, such payment may be regularized during the following year. However, if the payment is not made for two consecutive years, the mining petition or concession expires. That is, the mining right is lost.

IN CASE OF A BENEFIT CONCESSION, WHEN SHOULD I PAY THE RIGHT OF VALIDITY?

In the case of a benefit concession, as in the case of the mining concession, the payment shall be made on an annual basis and must be made from the year in which the benefit concession is requested.

WHERE AND HOW MUCH MUST I PAY FOR A RIGHT OF VALIDITY IN THE CASE OF A BENEFIT CONCESSION?

In this case, the right of validity is also paid at any of the banks authorized by INGEMMET to receive the payment of validity.
The annual amount to be paid by a small mining producer, holder of a benefit concession, corresponds to 0.0014 of a Tax Unit (UIT) for each MT/day.

WHERE DO I GET MORE INFORMATION?

More information is available on the INGEMMET website or by calling ALO INGEMMET at 618-9800.>