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Part B: Mineral Rights - Part B-6: Beneficiation - Processing, Trade & Transport - 35. Beneficiation – Processing, Trade and Transport | 35.9 Domestic Sales

Domestic sales refers to the rules or conditions that govern sales of development minerals and mineral products within the internal market of the licensing country. In order to promote the growth of the domestic development minerals subsector, participation in the domestic market for development minerals should be restricted to licenced integrated producers of such minerals and Authorised Processing Facility, Authorised Trader/Dealer and Authorised Transporter licence holders. Imports of development minerals should only be made by licenced Authorised Processing Facilities and Authorised Trader/Dealers.

The terms, including price, of all domestic sales of development minerals should be freely negotiated between purchasers and licenced sellers. General laws on fair trade should protect against the exercise of market power or any deceptive or manipulative practice by any seller or buyer to artificially inflate or depress prices. Licenced sellers should be required to sell their products as either certified as to quality and/or origin or not, and to regularly report unit prices at which they have sold specific types of development minerals or mineral products of a particular quality, as indicated above.

The Government may be authorised to implement certain measures to promote domestic sales if there is an insufficiency of supply to meet domestic demand, or in the case of an opportunity to promote the development of a domestic project with significant and sustainable multiplier effects.

35.9 Example:

Article [_]

Subject to the terms of any binding international trade agreements to which [country] is a party, sales of development minerals and processed development mineral products within [Country] may only be made by Authorised Processing Facilities and Authorised Trader/Dealers in accordance with the terms of this [Act][Code][Law].

Article [_]

All sellers of development minerals or processed development mineral products in [Country] must either (a) furnish to their purchaser a copy of the certificate of quality and the certificate of origin of their products or (b) sell their development minerals or processed development mineral products as uncertified with respect to quality and origin.

Article [_]

The terms of sale, including prices, of development minerals and processed development mineral products sold within [Country] shall be freely determined by the sellers and buyers in the domestic market for such products.

Article [_]

(1) In the event of shortages of development minerals and processed products in the domestic market, the Government may implement temporary measures to relieve such shortages provided that such measures do no lasting damage to the natural or social environment. Such measures may include authorising imports from other sources, stabilizing prices and restricting exports.

(2) In the event that any such temporary measures are implemented, the Government shall report to the [Legislature] on the measures implemented and the justification for such measures within their implementation and shall furnish such reports to [Legislature] on the results of such measures as the Legislature shall request.

Annotation

This example reserves the domestic market for development minerals and processed mineral products to licence holders under the Act. This is subject to any binding international trade agreements to which the country is a party.

The authorised sellers are required to either furnish certificates of quality and origin to their purchasers or sell their products as uncertified with respect to quality and origin. The principle of freedom of terms of sale, including price, is established by this example.

The example also provides the Government with the authority to take temporary measures to relieve any shortages in the domestic market, subject to strict requirements to report to the Legislature on the reasons for such measures and the results achieved.