Article 30 of the Mining Code (Decree-Law No. 227/1967) defines the possible decisions that the National Mining Agency (ANM), can make after the presentation of the Geological Exploration Report, the final mineral research report. This article is essential to determine the future of a research project and to guide the next steps of the authorization holder.
The Four Possible Decisions
After the presentation of the Geological Exploration Report, the ANM, based on a technical opinion, may issue one of the following rulings:
- Approval of the Report:
- Condition: This decision occurs when the report demonstrates the existence of a deposit that is technically and economically feasible for mining.
- Implication: The approval of the report gives the holder the right to request a mining concession, which is the next step for the start of commercial exploration of the deposit.
- Non-Approval of the Report:
- Condition: This occurs when the ANM finds that the research work was insufficient or that there was a technical deficiency in the preparation of the report, making it impossible to properly assess the deposit.
- Implication: Failure to approve the report will result in the declaration of expiry of the research title and the consequent loss of the mining right.
- Requirements: The ANM may make requirements for the holder to remedy the detected deficiencies within 60 days, extendable for the same period, at the discretion of the ANM. If the requirements are not met, the report will not be approved and the area may be made available.
- Filing of the Report:
- Condition: This occurs when the report demonstrates that there is no deposit that is technically and economically viable.
- Implication: The area where the research was carried out becomes free for future requests, and the interested party has access to the report that concluded that there is no deposit, for its knowledge and eventual use of the information.
- Suspension of the Decision:
- Condition: This occurs when the report indicates that mining is technically possible, but economic feasibility is temporarily unviable, due to factors such as lack of technology or market.
- Implication: The ANM sets a deadline for the interested party to present a new study of the technical and economic feasibility of mining. If this feasibility is not demonstrated, the area may be made available.
- New Studies: If, in the new study presented, the feasibility is not proven, the ANM may grant new deadlines or make the area available, if it understands that a third party may be able to make the mining viable.
- Approval: If feasibility is proven, the ANM will issue a decision approving the report.
Importance of the Decision
The ANM’s decision on the Geological Exploration Report is crucial, as it defines:
- The continuity of the project: Whether the research will proceed to the mining phase or be interrupted.
- The availability of the area: Whether the research area will be free for new requests.
- The need for further studies: If new research or analyses need to be carried out.
Recommendations
- Careful Preparation of the Report: It is essential that the Geological Exploration Report be prepared with technical and scientific rigor, presenting accurate and detailed information about the deposit and the feasibility of its exploitation.
- Compliance with Requirements: In the event of additional requirements from the ANM, it is important that the holder comply with them diligently, in order to avoid the rejection of the report or the loss of rights over the area.
- Understanding the Process: It is essential that the research authorization holder understands the different decisions that can be made by the ANM in order to be able to plan correctly, maximizing the chances of success of their project.
Article 30 of the Mining Code provides a guide for decisions on the Geological Exploration Report, ranging from approval, which allows the application for a mining concession, to filing, which releases the area for other interested parties. Each decision has specific implications for the future of the project, reinforcing the importance of well-executed research work and a complete and accurate final report.
