INDEX

1.5. Executive Summary

The present investigation was carried out with the purpose of the study, it consisted of
the Procedure to obtain the concessions both in their exploration and exploitation,
which generate legal guidelines and common rights and obligations acquired by the
individual concessionaires, then it was determined as the Royal Administrative Law Sui
Géneris generates the Payment of the Right of Validity and the determination of the
influence of the Characteristics of the Mining Concessions in the Work of the
Concession or Minimum Annual Production and finally it was determined how
Obtaining the Mining Concession generates Penalties for Non-compliance with
Minimum Annual Production .

The study was based on using the legal regulations applicable to mining concessions
and their petition establishing an instrument related to rights and obligations, in the
calculation and accounting recognition of the payment of the right to validity, minimum
annual production and its penalties.

1.6. The introduction

The present work on mining exploration and exploitation concessions generate

common rights and obligations acquired by individual concessionaires, there is no
special procedure to obtain the real right, making known what the rights and obligations
of the concessionaire are.

For the research work, analytical reading, filing and documentary analysis technique of
the legal regulation of mining concessions were used, through a petition, common
rights and obligations.

By not having a clear procedure on legal regulation, by ignoring the common rights and
obligations of the individual concessionaire, they are declared extinct claims, as well as
the existence of overlapping rights that occur in situations of conflict and environmental
contamination by informal mining. .

Chapter I corresponds to the Obtaining of the Mining Concession, considering the

identification of the area to request, the Pedimento or Mining Petition, overlapping.

Chapter III corresponds to the forms, the systems that regulate the form of the mining
concession, the system and application of the coordinates.

The II Chapter contains the results of the investigation, presenting the analysis and
discussion of results on the Procedure for obtaining concessions, Presentation of
results, and ending the discussion of results.

Obtaining the Mining Concession.

a) Identification of the area to request.

The Sociedad de Minería Petróleo y Energía [SNMPE] (2011) states that in order to
initiate a concession application, everything must first be known about the area
concerned, determining with the exact coordinates of the land to be explored, this is
manifested in the well-known National Charter.

In the mining deposit there are mineral resources by the work of nature that the
interested individual concessionaire has the right to request a mining concession to be
able to exploit and benefit their needs.

Minerals in their State of Mineral Composition

b) Mineral. It is visualized and studied through the search and prospecting in the place
where there has been suspicion of the existence of the mineral by the individual
concessionaire, whether it is a natural or legal person and the minerals can be in a
solid state, for example: rocks, metals, marbles. , refractory clay, coal, or in a liquid
state, for example: mercury, mineral-medicinal waters, or in a gaseous state, for
example: gas.

They are found in the earth's crust where it can be extracted thanks to nature that,
once extracted and processed, can be marketed and satisfy the needs of man.

c) Mineral Deposit. It is the territory or place where the individual concessionaire finds
the mineral that by nature exists in certain places. It is well known that not all
discovered deposits are exploited, that is, to exploit them. Exploitation are those that
are economically viable and do not project losses, that are useful minerals in sufficient
proportion.

It is here where the exploration is treated and thus be able to evaluate the quantity and
quality of the mineral that the mining deposit contains, as well as in the feasibility study
it will be seen what will be the method of exploitation in the mining deposit and the cost
of the extraction.

Leaf.

Continuing with the mining deposit serves to be able to exploit the minerals either
underground or open pit that the state grants. It can be known thanks to the term mine:
excavation, deposit and concession.

The mine known as mining deposit is the place where the mineral will be extracted and
where all mining activities or processes for exploitation will be located, either open pit
or underground determined thanks to the feasibility study.

For the Citizen Proposal Group (2014), it mentions the legal regime that natural or legal
persons have the right to take advantage of the mineral resources that belong to the
state as established in the Political Constitution where it mentions that all natural
resources belong to the Peruvian state. That is why the state is sovereign in this case
of mineral resources and to be able to facilitate this activity through the law so as not to
incur problems in obtaining the real right.

It should be noted that the search, prospecting and commercialization does not require
a mining concession since this is established by the Constitution and only exploration
and exploitation if it requires a concession from the state to the individual
concessionaire.
Thus showing who requires a concession to be able to develop it.

Mining Activities that Require Obtaining a Mining Concession

The Pedimento or Mining Petition.

The SNMPE (2011) states that the interested party, whether a natural or legal person,
having the identified area, will have to start the petition process through a request
called a mining petition before the Geological, Mining and Metallurgical Institute
[INGEMMET].

a) Application for the Mining Petition. The form will be filled in indicating the data of the
petitioner:

Petitioner Information
Natural person Legal person

 Personal  Participation Percentage

information  Registration Data from Public Registries Legal
 legal address address
 Spouse data  Data of the Legal Representative
 Regime to Adopt (Contractual or Legal Partnership)
Source: National Society of Mining, Oil and Energy (2013). The Process of Obtaining a
Mining Concession.

In addition, it must be noted:

 The name of the mining claim
 The type of substance to be extracted (metallic or non-metallic).
 The location of the requested area
 exact coordinates.

After the request is made, another requirement is to comply by signing the Affidavit
since it is a prior commitment to be able to comply with what the law dictates and
achieve sustainable development. These are:

 Contribute to the population where the mining deposit is located, grow thanks to
the exploitation, with a development that will benefit the population
economically and can be developed with the given projects.
 Comply with the environmental management that the environmental
remediation project will grant and carry out the extraction of minerals in an
adequate and responsible manner; Comply with what has been promised in the
agreements.

 Respect those people, authorities that are located in the population where the
mining site is located and promote solutions to any conflict.

 Promote the preference of the inhabitants to carry out some tasks in the mining
activity through training and thus receive their remuneration, giving more
opportunities to develop as a population.
  Help the inhabitants in the improvement of their economy through preference
with the acquisition of goods and services, but with the conditions of being
moderate prices and quality for both parties so that neither party is harmed;

 Permanently maintain good communication with the authorities about mining

activities in order to be aware of what is happening in the locality and thus there
is a clear and precise exchange of opinions.

 Proof of payment of the Processing Fee and Validity Fee must also be added
as an essential requirement.

b) Consultation Procedure.

The following procedure is to carry out the consultation procedure to those populations
that it deems necessary (in coordination with the Ministry of Culture). The petition file
will go to the Directorate of Mining Concessions once the consultation process is
completed. (SNMPE, 2011, p. 2)

c) Technical Evaluation. After the petition, the Directorate of Mining Concessions will
be the one who will see if the established requirements are met, everything about the
concession to which class it belongs, its name, location and the data of the individual
concessionaire and other requirements such as:

 Identify your terrain grids by their UTM coordinates;

 Plasma of how much the area measures;
 Mention if the mining concession you wish to have overlaps with other land;
Names and address of the owner of the surface land where the mining
concession is located, if known.
 Name of the owner of the surface property with respect to the requested place.

Here the procedure of evaluating if the coordinates are well established and if there is
an overlap of the real right is carried out, as well as if it is in an area that the state
allows by defining its geographical location.

After having evaluated and verified the aforementioned, a technical report will be
issued.

legal report:

This second report shows compliance with the General Mining Law and the Regulation
of Mineral Procedures and thus being able to continue with the other established
procedures.

It is also verified if the petition of the “mining petition” application meets the
requirements to be admitted, if the payment of the validity and processing fee was
made.
After verifying if it meets the requirements in the mining claim, a legal report is
prepared and thus continues with the process to obtain the right.

d) Publications.

After going through the first processes mentioned above and being approved, the
interested party in this case, the individual concessionaire will have the obligation to
make a publication in the official newspaper "El Peruano" and in a newspaper of the
capital of the region where the deposit is located. mining in order to demonstrate that
there is an interested party on that property and to prevent overlapping conflicts from
occurring. (SNMPE, 2011, p. 2)

e) Reentry of the Publications for their Technical Evaluation.

After making the publications, the newspapers are re-entered and presented to
INGEMMET, where it will be in charge of re-evaluating the technical and legal areas.

In this second analysis, the technical report updates the information from the first
technical report, while the case may arise that a new restricted area has become
known or there is some update in the demarcation data of the INEI or another similar
one.

In the re-entry of the publications, the information in the file of the first technical report
will be studied and updated. And in the legal report it will be verified if all the
procedures have been fulfilled within the established deadlines and without errors in
the publications. (SNMPE, 2011, p. 2)

f) Issuance of Real Law Resolution.

After the entire file attached by the individual concessionaire has been evaluated, for
the technical and legal file and they are favorable, then the President of INGEMMET
will grant the mining concession title 30 days after having made the last publication, by
means of a Resolution. Once the entire obtaining procedure has been determined and
the title of the real right (mining concession) has been obtained, it may be registered in
the Mining Rights Registry of the National Superintendence of Public Registries
[SUNARP] where the concession is located and as requirements must Submit a copy
of your ID of the concession holder and its resolution.

g) Registration of Real Law.

Once the entire file is completed and approved, the title will be granted, then the real
right (mining concession) can be registered in the Registry of Mining Rights of the
National Superintendency of Public Records [SUNARP]. To do this, you must go to the
SUNARP offices where the concession is located and request the registration of the
title. To do this, you must present a copy of the DNI and a copy of the resolution where
the mining right is granted. (SNMPE, 2011, p. 3)

h) Other Important Characteristics.

The SNMPE (2011) states that the state grants the individual concessionaire the right
to explore and exploit the resources, but does not grant them rights over the surface
since the land may have an owner and in this case an agreement must be reached
between the two parties to avoid conflicts of said terrain. The holder of the mining
concession to be able to carry out the activities must have the following requirements,
such as prospecting certificates, water use license, environmental impact approval and
the Certificate of Absence of Archaeological Remains and finally the approval of the
mining plan.

The mining concession will be shaped according to the minerals obtained from the
mining deposit where it can be classified as metallic and metallic and thus be able to
be transformed through processes and have value to be able to commercialize.

Regarding the size of the mining concession, it is delimited by UTM coordinates where
in the terrestrial domain they are granted in grid extensions of 100 to 1,000 hectares
and extensions are also granted in the maritime domain, from 100 to 10,000 hectares.
(Second paragraph of article 11 of the TUO). In order to make the request, the mining
concessionaire must take into account that a request can only be made when the
concession area is not less than 100 hectares.

CONCLUSIONS
1. Mining exploration and exploitation concessions generate common rights and
obligations at the moment of beginning the processing of the request for a petition or
mining petition in order to obtain the right in rem.

The Mining Concession that the concession holder acquires in the subsoil in the
domain of the mineral substances generates the payment of Validity Right to the State
to be able to explore and exploit the minerals.

The Characteristics of the Mining Concessions influence the Minimum Annual

Production, because by not complying with the characteristics, the Protection System
for the work cannot be carried out.

Obtaining the Mining Concession generates Penalties due to the breach of obligations
of the mining concessionaire within the terms established by law, having to pay the
penalties in order not to lose the right in rem.
RECOMMENDATIONS

The holder of the mining concession at the time of starting the legal process of the
mining request petition must comply with the rights and obligations (the work obligation
that consists of the investment for the production of mineral substances and the other
obligation to comply with the timely payment of right of validity so as not to lose the real
right.

The private concessionaire must comply with the Payment of Valid Rights to keep the
Mining Exploration and Exploitation Concession Valid and not reach expiration.

In order to have an adequate mining exploration and exploitation concession, carrying

out the minimum Annual Production required by law, the due characteristics must be
met.

The holder must comply with his obligations, the payment of the annual validity right
and the minimum annual production up to the tenth year, in order not to incur the
payment of a penalty and pay within the established terms so as not to reach
expiration.