The definition of “free area” is a fundamental pillar for the development of new ventures in the mining sector. In essence, a free area is one that is not currently subject to pre-existing mining rights, nor does it face other legal restrictions that prevent research or mineral extraction activities from being carried out.
Determining what constitutes a free area is crucial to ensuring the legality and viability of any new mining project.
The Mining Code, in its Art. 18, establishes the conditions that prevent an area from being considered free. These conditions cover a variety of situations, from areas already linked to active mining titles to areas under analysis for possible future concessions.
Detailing Art. 18, Item III, of the Mining Code
A point of particular relevance is Art. 18, item III, which specifically deals with license registration requirements. This provision is designed to ensure that miners who have already obtained a municipal license have a reasonable period to register that license with the ANM (National Mining Agency) before the area is considered available to other interested parties.
The text of item III establishes that an area will not be considered free if it is subject to a prior license registration requirement, or if it is linked to a license whose registration is required within 30 days from the date of its issuance. This means that a miner who has obtained a municipal license has a period of 30 days to file the license registration with the ANM, thus guaranteeing priority over the area.
Normative Instruction No. 01/1983 and the Term of the Municipal License
Normative Instruction No. 01/1983 of the DNPM (National Department of Mineral Production), complements this provision by detailing how the term of the municipal license is counted. Item 29.1 of IN 01/1983 establishes that “the term of the Municipal License is counted from the date of its issue, unless a date is expressed for the start of the respective term.”
This clarity is essential to avoid ambiguities and ensure that both miners and the ANM have a clear understanding of when the 30-day period begins to run. In other words, the deadline for registering the license starts from the date the license was issued by the city hall, unless the license itself specifies a different start date.
Practical Implications and Potential Challenges
The regulation of free areas has significant implications for the mining sector. It seeks to balance the need to protect the rights of miners who are already in the process of legalizing their activities with the need to ensure that mineral resources are exploited efficiently and in a timely manner.
However, the application of these rules can generate controversies and challenges. For example, disputes may arise over the validity of a municipal license, or over whether a registration requirement was submitted within the appropriate period. In addition, the interpretation of free area rules can be complex in situations where there is overlapping mining requirements or where there are changes in laws and regulations.
