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Part A: General Topics - 21. Miscellaneous Topics - 21.3 Treatment of Minerals/Materials Not Under License | 21.3(a) On-Site Procedure Requirements

This topic relates to the immediate measures which must be taken on-site in case of discovery or appearance of other materials or minerals not under license during the execution of the mining right. It is important to address this topic in the mining law to ensure the existence of regulation that allows countries to decide on a case by case basis if they directly want to exercise their rights on the minerals or confer rights to the licensees.

On-site procedure requirements are focused on physically securing the site and refraining from the exploitation of the specific material, until receiving a license, if the rules allow for the obtaining of such license. It is the step immediately before reporting the discovery to the relevant regulating entity. This should be the single way of dealing with discovery of minerals not subject to the existing mining license as it allows the country prerogative to conduct a national interest analysis as to whether such a mineral should be mined or not.

21.3(a) Example:

Article [_]

(1) In the case of discovery of a mineral not included in the license granted, the licensee shall:

(a) Secure the area where the mineral was discovered, not allowing third parties to access it without the permission of the Licensor.

(b) Mark the area in the way established by the governing agency, to identify the site.

(c) Immediately stop the exploitation of the mineral not covered by the license granted.

Annotation

This suggested provision is designed to specifically address the on-site procedures in case a mineral not covered by a valid license is found. The reporting duties are addressed in a different provision. The purpose of this rule is avoid the unlawful appropriation of minerals from the licensee or third parties, and the preservation of the site to facilitate the evaluation of the discovery by the relevant regulating entity.