Compiled June 1998
by Foreign Tax
Law, Inc.
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REGULATION OF THE LAW REGULATING CONSTITUTIONAL ARTICLE 27 ON MINING IN MEXICO
FIRST TITLE. General Provisions
CHAPTER I. Definitions and Competent Authorities
CHAPTER II. Other General Provisions
SECOND TITLE. Mining Reserves
CHAPTER I. National Mining Reserves
CHAPTER II. Industrial Mining Reserves
THIRD TITLE. Mining Allotments and Concessions
CHAPTER I. General Provisions (Title III)
CHAPTER II. Mining Allotments
CHAPTER III. Mining Concessions of Exploration and of Exploitation
CHAPTER IV. Special Concessions in National Mining Reserves
CHAPTER V. Co-Existing Allotments and Concessions
CHAPTER VI. Processing Plant Concessions
FOURTH TITLE. Rights of Mining Concession Holders
CHAPTER I. Miscellaneous Rights
CHAPTER II. Expropriations, Temporary Occupations and Easements
CHAPTER III. Transfer of Rights Derived from Mining Concessions
FIFTH TITLE. Obligations of Holders of Mining Concessions
CHAPTER I. Miscellaneous Obligations
CHAPTER II. Proof of the Works and Investments in Concessions of Exploration
CHAPTER III. Verification of the Works in Concessions of Exploitation
CHAPTER IV. Verification of Obligations in Special Concessions
CHAPTER V. Obligations of Concessionaires of Processing Plants
SIXTH TITLE. Mining Companies
SOLE CHAPTER. Mining Companies
SEVENTH TITLE. Public Mining Register
SOLE CHAPTER. Public Mining Register
EIGHTH TITLE. Mining Experts
SOLE CHAPTER. Mining Experts
NINTH TITLE. Inspections, Sanctions and Appeals
CHAPTER I. Inspections and Sanctions
CHAPTER II. Administrative Appeals
TRANSITORY ARTICLES
First Transitory Article.
Second Transitory Article.
Third Transitory Article.
Fourth Transitory Article.
FIRST TITLE. General
Provisions
CHAPTER I. Definitions and Competent Authorities
Art. 1.
For the purposes of this Regulation, the following definitions shall be understood:
I. Law: The Law Regulating Constitutional Article 27 on Mining;
II. Secretary: The Secretary of Energy, Mines and Parastatal Industry; (Translator's Note: Parastatal is a term which is used to indicate Governmental ownership, operation or other involvement in the industry.)
III. Series "A" shares: Series "A" shares or partnership quotas of Mexican mercantile companies, in accordance with article 14 of the Law;
IV. Commission: The Commission of Mining Development;
V. Council: The Council of Mineral Resources;
VI. Process duties: Duties for the study and process of a petition established by the Federal Duties Law;
VII. State enterprises: Mining enterprises with a majority of State participation;
VIII. Parastatal mining entities: The Commission of Mining Development, the Council of Mineral Resources and enterprises with a majority of State participation;
IX. Index of prices: The National Consumer Price Index published by the Bank of Mexico in the "Diario Oficial" of the Federation, in compliance with article 20 of the Fiscal Code of the Federation;
X. Instructive: Administrative provisions issued by the Secretary whose uniform object is the procedure for the matters which this Regulation will govern, as well as to stipulate aspects of a technical order related therewith; this must be published in the "Diario Oficial" of the Federation;
XI. Foreign investors: Persons, economic units and enterprises as defined in the Law to Promote Mexican Investment and to Regulate Foreign Investment;
XII. Point of certified origin: A real, fixed point, identifiable on the land, located preferably within or on the perimeter of the lot, with the characteristics which the respective instructive stipulates, and which serves to identify the lot which is the object of the petition of assignment of mining concession;
XIII. Point of certified definitive: The exact coordinates of location of the point of certified origin, whose determination shall be made by means of expert works, based upon which the Secretary shall grant mining assignments or concessions;
XIV. Register: The Public Mining Register;
XV. Mining company: A mercantile company constituted in accordance with Mexican laws and enabled to obtain mining concessions in accordance with the Law and this Regulation;
XVI. Concessionable substances: Substances whose exploration, exploitation or benefit requires assignment or mining concession in accordance with the Law and this Regulation, and
XVII. Expert works: Works done on the land by an expert miner in order to determine the point of certified definitive, in accordance with the methods and means stipulated in the respective instructive.
Art. 2.
The application and effective date of the Law and of this Regulation shall be
determined by the Secretary.
The Secretary shall stipulate in the Manual of Organization and in the respective instructive to the administrative units responsible for the reception, study and process and resolution of the matters of which they shall be competent.
The administrative units responsible for the reception of petitions, documents and other promotions must turn them over to the administrative units in charge of their study and process immediately after their presentation and registration.
In order to exercise the faculties of verification to which the Law and this Regulation refers, the Secretary may request the collaboration of other federal, state and municipal authorities.
CHAPTER II. Other
General Provisions
Art. 3.
The Secretary shall allow the filing of petitions, reports and promotions provided
that they are delivered to the administrative unit responsible for their receipt
in the following manner:
I. In a direct manner by any person, in which case a copy of the writ with the stamp indicating the date and hour of receipt shall be returned immediately to whoever filed it;
II. By certified mail, with return receipt;
III. By means of a private messenger service, provided that said service picks up a copy of the writ with the stamp of the Secretary indicating the date and hour of receipt at the time of the delivery, or
IV. By telecopy, in accordance with that which the respective instructive shall establish.
The forms of delivery described in items II, III and IV shall be at the cost and risk of the interested party, and without the Secretary incurring any liability.
Art. 4.
Petitions and reports provided by this Regulation must be filed on the forms
which the respective instructive establishes and must be signed by the petitioner
or his representative. These forms shall indicate the number of copies and annexes
which must accompany them.
Individual persons shall accredit their Mexican nationality in the petitions by means of a written declaration, under oath, without prejudice to whatever the Secretary may demand for the accrediting of said nationality by whatever method is provided by the laws.
When there is more than one petitioner, the common representative who is responsible for the subsequent transactions with the Secretary must be stipulated in the petition. In the absence of a common representative, the first-named person in the petition shall be considered as such.
Any petition, report or promotion signed by a representative must be accompanied by a document accrediting his powers. The representation shall be accredited by means of a public deed (a contract registered with an official notary), and in the case of individual persons, by means of a power of attorney ratified before a public notary or broker.
If the representative is recorded in the registry of attorneys kept by the Secretary for this purpose, it is sufficient to mention his registration number in that register and declare, under oath, that his powers have not been revoked. The principal is obligated to immediately notify the Secretary of the revocation or resignation of the corresponding power of attorney.
Art. 5.
Notifications which form, affect, modify or terminate rights and obligations
of private or parastatal mining entities, for the purpose of the application
and enforcement of the Law and of this Regulation, shall be made personally
or by certified mail with return receipt at the last domicile stipulated by
the interested party, and shall take effect on the working day following their
date of delivery. Other notifications shall be made by ordinary mail.
The interested parties may request the Secretary in writing for all resolutions which he issues in relation to these matters be notified to them by means of a private messenger service at their cost and risk and without liability to his office. It shall be the Secretary's option to make the notification through that medium.
The mining concession certificates shall be delivered to the interested parties preferably by means of private messenger service.
If the document is returned by the postal service or the messenger service with a note that it was not delivered to the interested party, the corresponding publication shall be made in the table of notices of the administrative unit of the Secretary which corresponds to the domicile of the interested party, and the notification shall become effective 15 working days following the date it was posted, during which time it shall remain in public view. The date it was posted in the table must be shown in the document itself.
When the Law or this Regulation does not stipulate whether the days which constitute a period are working days or natural calendar days, it shall be understood that they are working days, and if no fixed period is stipulated, a period shall mean 30 calendar days.
All periods are non-extendable and commence as from the working or natural calendar day, as the case may be, following that on which the notification shall take effect. If the date on which a period fixed in calendar days ends is a non-working day, the period shall terminate on the working day immediately following.
The Secretary shall publish the tables for the computation of the periods referred to above annually in the "Diario Oficial of the Federation, as well as that corresponding to the declaration of freedom of land provided by article 18, third paragraph of the Law.
Art. 6.
For the purposes of article 10 of the Law, the beneficiaries or concessionaires
shall present a petition to the Secretary in order to carry on mining works
on lands comprising petroleum allotments, as well as indicating the area in
which they shall be developed, and the nature and manner in which they shall
be carried out.
The Secretary shall send a copy of the petition to Petroleos Mexicanos in order that it shall give an opinion on the convenience of carrying out those works and, as the case may be, on the technical conditions to which they must be subjected, within a period of 15 working days following its receipt. If this period elapses without that organization issuing its opinion, it shall be understood that it has been issued without objections, and the Secretary shall proceed to resolve that which is conducive.
If the Secretary does not notify the interested party of his resolution within the 60 calendar days following the presentation of the petition, the latter shall be considered as approved.
Art. 7.
The right of preference granted by article 22 of the Federal Executive Law for
acquiring installations, machinery and equipment as property of the concessionaire,
must be exercised within the 15 working days following the date on which the
act which terminates the concession was recorded on the Register, provided and
when the concessionaire desires to dispose of them. After that period elapses,
the concessionaire may freely dispose of the referred property.
SECOND TITLE. Mining
Reserves
CHAPTER I. National Mining Reserves
Art. 8.
The Federal Executive shall establish the national mining reserves to which
articles 71 and 72 of the Law refers, by means of a decree which must be published
in the "Diario Oficial" of the Federation.
For any incorporation of a substance to national mining reserves, the Council must previously carry out a study on the mining potential of that substance in national territory, its importance in the economic development of the country and the national and international offer and demand.
Zones shall be incorporated into national mining reserves only for the purpose of satisfying the future necessities of the country. The parastatal mining entities must previously carry out their exploration by means of assignment, determine with precision the mining potential of the zone and justify its incorporation based on the conditions and perspectives of the national and international market.
The corresponding decree must contain sufficient information to justify the incorporation of the substance or zone, and in the latter case, to determine its localization and extension. It shall also stipulate the group to which the reserve corresponds in accordance with article 72 of the Law.
The Secretary may hand down provisional decrees for the incorporation of substances or zones to national mining reserves, which must be ratified by the Federal Executive within the period stipulated in article 71, final paragraph, of the Law. Such ratification must be published in the "Diario Oficial" of the Federation within the period referred to, and if this ratification is not published within that period, the provisional decree shall not take effect and the land shall become free the day following the expiration of such period.
Art. 9.
The following may not be incorporated into national mining reserve zones intended
for exploration or exploitation:
I. Substances to which article 72, items II and III of the Law alludes, or
II. Substances not incorporated into national mining reserves in any of national territory.
The corresponding special or ordinary allotment or concession must be requested for the exploration and exploitation of the substances included in the preceding items.
Art. 10.
When the object or the suppositions which influence the incorporation of a substance
into one of the groups mentioned in article 72 of the Law change, its classification
in the corresponding group must also be changed in accordance with that which
is provided in said article, or its disincorporation must proceed.
Zones in which the object does not prevail or in which the suppositions of their incorporation cease to exist must be disincorporated.
When substances of national mining reserves are disincorporated, the special allotments and concessions which have been granted to aid their exploration or exploitation shall be substituted by ordinary allotments or concessions with the same term of contract as the special ones from which they arose had. The obligations consigned in the special allotment agreement or concession title which are additional to those proper to ordinary allotments or concessions shall become ineffective.
The Federal Executive shall issue the decrees of change of classification or of disincorporation of substances or zones in national mining reserves, which must be published in the "Diario Oficial" of the Federation.
Art. 11.
When the Secretary considers it convenient to promote the approval of mining
resources of the national he may convene a meeting for the exploration or exploitation
of substances incorporated into national mining reserves. For that purpose,
he shall publish the convocation in the terms to which article 42 of this Regulation
refers, and the procedure stipulated by articles 43 and 44 herein shall be followed
in the conducting thereof.
CHAPTER II. Industrial
Mining Reserves
Art. 12.
Petitions for constituting industrial mining reserves may be presented by mining
companies which meet the requirements which article 99 of the Law establishes,
and must contain:
I. The complete name of the petitioner;
II. Federal Taxpayers' Registry (number);
III. Name of the representative, if applicable;
IV. Domicile for receiving notifications;
V. Name of the lot or lots and number of the mining concession certificate or certificates of which he is a beneficiary;
VI. Substance which is the object of the reserves and reasons by which it shall be considered as essential for the industrial development of the country;
VII. Data concerning the industrial establishments to which the petitioner is going to deliver his production and the products which shall be obtained with it;
VIII. Determination of the quantities of the mineral to be supplied and the periodicity thereof, and
IX. Minimum investment withdrawn to be made during the period of exploration which is stipulated in article 101, item I of the Law.
Proof of payment of the process duties, a copy of the contracts executed with the industrial establishments to which the substance which is the object of the reserves shall be supplied (if such exist), as well as the geological and economic studies carried out, shall be attached to the petition.
Art. 13.
The dispatch of the petitions for constituting industrial mining reserves shall
be subject to the following procedure:
I. The Secretary shall analyze whether the petition meets the requirements set forth by the Law and the preceding article.
II. If there is any omission, he shall grant a period of 30 calendar days to the petitioner to correct it, and if it is not satisfactorily corrected within that period the petition shall be considered as cancelled.
III. The Secretary shall request an opinion from the Secretary of Commerce and Industrial Development with respect to whether he considers the substance which is the object of the petition as essential or not to the industrial development of the country, and he shall be given a period of 15 working days to issue such opinion. If the preceding period elapses without said Secretary issuing his opinion, it shall be understood that his department does consider it essential.
IV. The Secretary shall have a period of 60 calendar days, as from the expiration of the period to which the preceding item alludes, to hand down the resolution which shall proceed and to notify the interested party thereof, and if this is not carried out, the petition shall be considered as approved.
Art. 14.
In accordance with that which is provided by article 100 of the Law, the industrial
mining reserves which are authorized to a mining company shall be in such quantity
that, taken together with what it holds in other deposits, they shall guarantee
its proper consumption, as well as that of the supplies which it has contracted
on a long term basis.
The authorized reserves shall be revised by the Secretary, ex officio or upon petition of the interested party because of modifications in the capacity of the plant of the concessionaire or the demand of the industrial establishments to which the substance which is the object of the reserves is supplied.
Art. 15.
The authorizations to constitute industrial mining reserves issued by the Secretary
shall be recorded officially in the Register, as well as the petition of the
interested party, insofar as it was given an affirmative, after constitution
in both cases of the bonds which the mining company shall grant in order to
guarantee the execution of the minimum investment.
Art. 16.
The authorizations of constitution of industrial mining reserves may be transmitted
when the rights derived from all the concessions included in the reserves are
sold, and the new beneficiary satisfies the requirements of article 99 of the
Law.
The Secretary shall be given a period of 60 calendar days, as from the date on which the transmittal requests are received, to hand down the resolution which shall proceed and to notify the interested party thereof; if he does not do so, they shall be considered as approved.
THIRD TITLE. Mining
Allotments and Concessions
CHAPTER I. General Provisions (Title III)
Art. 17.
The Federal Executive, through the Secretary, shall grant mining allotments
and concessions in order to carry out the exploration, exploitation and benefit
of the concessionable substances, in accordance with that which is provided
by the Law and this Regulation.
Art. 18.
In the case of minerals or substances which constitute deposits whose nature
is distinct from the components of the lands or products derived from the decomposition
of the rocks whose exploitation necessitates subterranean works, not cited by
article 3 of the Law, the Federal Executive shall confirm that they are concessionable
substances by means of a decree which must be published in the "Diario
Oficial" of the Federation.
Whoever is to carry out the exploration, exploitation or benefit of said minerals, substances or products based on the rights of legally acquired ownership or possession, shall have a right of preference to obtain the corresponding mining concession, provided and when they request it in the terms of the Law and of this Regulation, within 120 calendar days following the publication mentioned in the preceding paragraph, and certify that circumstance.
Art. 19.
Petitions of mining allotment or concession shall not be allowed in the following
cases:
I. For substances to which article 4 of the Law refers, and
II. For products derived from the decomposition of rocks, when their exploitation does not necessitate subterranean works.
Agreements of mining allotment or concession titles shall not confer any right when it is proved that at the time of presentation of the petition, above-ground works of exploitation for the obtainment of substances not subject to the application of the Law were being carried out on the land which is the object of such contracts or titles. Such proof shall be effected in the terms and conditions provided by article 136 of this Regulation, upon petition of the interested party.
Art. 20.
Salt mines whose waters derive from actual, superficial or subterranean seas,
naturally or artificially, shall be considered as formed directly by marine
waters.
Art. 21.
The Secretary shall furnish a monthly report of the mining allotments and concessions
issued in the immediately preceding month to the Secretary of Finance and Public
Credit, and an annual report thereto of those which remain in force at the end
of each calendar year.
CHAPTER II. Mining
Allotments
Art. 22.
The Secretary may grant mining allotments upon petition of the parastatal mining
entities. In the case of the exploration of substances on lands not free, the
allotment shall be granted by means of a decree of the Federal Executive which
must be published in the "Diario Oficial" of the Federation.
The mining allotments must satisfy the requirements of process and have the same duration, rights and obligations as mining concessions, except that the rights derived from the same shall be non-transferrable and may not be the object of any encumbrance.
Art. 23.
When the Council plans to carry out works of exploration on lands which are
not free, it shall notify the Secretary of the object and nature of the works,
the procedure or system for executing them, the substances which are the reason
for the exploration, the program of the works and the effect of the same on
pre-existing allotments or concessions. The Secretary shall transfer by mail
the above notification to the assignee or concessionaire, who shall manifest
the following within a period of 15 working days:
I. Whether he shall exercise the right of preference which article 26, second paragraph, of the Law confers, for which he must prove before the Secretary that he is technically and economically capable, or
II. Whether he opposes the project of exploration; in this case he may proceed in accordance to article 137 of this Regulation.
When the holder of the pre-existing allotment or concession does not exercise the right of preference, cannot prove his technical and economic capacity or if his opposition is turned down, the Secretary, considering the petition well-founded, shall submit the agreement for the granting of the co-existing allotment of exploration to the consideration of the Federal Executive.
When the holder of the pre-existing allotment or concession proves his technical and economic capacity in exercise of the right of preference, the Secretary shall authorize him to execute the works of exploration, through execution, by direct adjudication, of the respective work contract with the Council.
Art. 24.
If petitions of allotment are presented simultaneously on the same land and
substance, the parastatal mining entity whose specific purpose is the exploitation
of that substance shall have a preferential right of authorization of the allotment,
and, in the absence of such specific purpose, the preferential right shall go
to the entity that presents better technical and economic conditions.
If the substances which are the objects of simultaneous petitions are different, and the requirements of co-existence stipulated in article 20 of the Law are fulfilled, both exploitations shall be authorized, subject to that which is provided by articles 48 to 50 of this Regulation.
Art. 25.
The execution of work contracts shall be authorized to parastatal entities,
provided and when:
I. The contractor is person legally capable of holding mining concessions in the terms of the Law and this Regulation;
II. The contract and the acts related thereto are subject to that which is provided by the Law of Public Works and its Regulation;
III. The contract shall be executed for the attainment of the purposes of the parastatal mining entity;
IV. It has been approved by the respective government organ, and
V. The contract shall be recorded in the Register.
If the contract is executed in order to carry out exploration works, the contractor shall have a preferential right to effect works relative to the exploitation thereof, by means of the direct adjudication of the corresponding contract of work or joint venture, when he has complied with the obligations consigned therein.
Art. 26.
The execution of contracts of joint venture with private parties shall be authorized
to the Commission and to State enterprises for the purposes provided in article
72, fourth paragraph, of the Law, provided and when:
I. The private party participates as an associate and is the holder of a special concession in national mining reserves for the exploration of sulphur, phosphorus or potassium, and has complied with the obligations which the Law and the corresponding title impose upon him;
II. The assignee participates as a partner and contributes the rights to the exploitation of the substance included in the special concession title of the private party, within the lot covered by the latter;
III. It is expressly stipulated in the contract that the rights to the exploitation which the partner contributes shall not be transmitted in ownership to the private party and that the allotment which is covered thereby cannot be the object of any encumbrance.
IV. The compensation of the partner for the contribution of the rights to the exploitation which shall be agreed upon, shall not be less than 2.5% or more than 3% of the invoice or liquidation value of the mineral which shall be obtained. Said compensation shall be independent of the percentage which shall be established in accordance with that which is established by article 81 of the Law;
V. The distribution of the profits or losses of the joint ventures shall be carried out based on the contributions of the parties, other than the contribution of the rights to the exploitation;
VI. The contract has been approved by the Government organ of the assignee, and
VII. The contract is recorded in the Register.
The Commission and the State enterprises may execute contracts of joint venture for the development of priority projects with which they have been charged, with a different purpose from that stipulated by article 72, fourth paragraph, of the Law, with prior authorization of the Secretary, subject to the conditions mentioned in items III, V, VI and VII, above, following, for their adjudication, as appropriate, the procedures for taking bids established by the Public Works Law and its Regulation.
The private party associate in the contracts provided by the preceding paragraph shall have a preferential right to obtain the mining concession under the terms and conditions of this Regulation, if the land which is the matter of the contract remains free during its term and if he complies with the obligations consigned therein. The right which shall be conferred must be exercised on the date and hour which the publication of the freedom of the land which was covered under the cancelled allotment took effect.
Art. 27.
When an assignee loses its character as a State enterprise and subsists as a
mercantile company, it shall have a period of 120 calendar days, as from the
date on which the disposal or the withdrawal of the State participation in the
same was formalized, to petition the Secretary for the substitution of corresponding
allotments for ordinary or special concessions, which shall be issued with a
new period of duration and adjusted to the terms and conditions set forth in
the Law and this Regulation.
Art. 28.
The reports of results of the works of exploration which article 33, final paragraph,
of the Law establishes, and the results of the geological studies and the explorations
made by the Council, in compliance with the conventions provided by article
89, letters a) and b), of the same ordinance, may only be communicated to the
interested party, without prejudice to that which shall be utilized by the Secretary
and by the Council for the purposes of the inventory of the non-renewable resources
and of the geological mapping of the country.
The preceding information shall be confidential and the public servants who receive it, know of it or are in custody of it shall have an obligation to guard the secrecy thereof; default of this obligation shall result in the application of the proper administrative and penal sanctions.
Art. 29.
Mining allotments shall be cancelled when:
I. The Federal Executive so determines;
II. The assignee desists from his rights;
III. The assignee does not comply with the obligations established by the Law, those consigned in the agreement of its authorization or failure to pay the duties which the allotments require, or
IV. The assignee disappears or loses its character as a State enterprise, in which case the period provided by article 27 of this Regulation shall be respected.
CHAPTER III. Mining
Concessions of Exploration and of Exploitation
Art. 30.
Petitions of mining concession of exploration must contain:
I. The complete name of the petitioner or petitioners:
1. If he is an individual person, his age and civil estate, and
2. If it is a legal person, data of its registration in the Register;
II. Federal Taxpayers' Registry (number);
III. Name of the representative, if appropriate;
IV. Address for receiving notifications;
V. Name of the lot;
VI. Municipality and State in which the lot is located;
VII. Substances, specifying each one of them;
VIII. Surface (area) of the lot in hectares;
IX. Description of the point of certified origin, data of its location and references to connected places and nearest population centers;
X. Sides, directions and horizontal distances of the perimeter of the lot and, as the case may be, of the auxiliary line of the point of certified origin to said perimeter. The sides must be North-South and East-West oriented and their length shall be expressed in 100 meters or multiples thereof. The auxiliary line must be perpendicular to any of the sides of the perimeter and its length shall be expressed in multiples of meters;
XI. Declaration on whether the land solicited shall be totally or partially contained within the urban perimeter or is occupied by property of public interest, for the purposes of article 18, final paragraph of the Law;
XII. Declaration under oath that no above-ground open works of exploitation for the obtainment of substances not subject to the application of the Law are situated on the land which is the object of the petition.
XIII. Declaration under oath of being of Mexican nationality, in the case of individual persons, and
XIV. Minimum investment to be made during each one of the three years of duration of the concession.
To the petition shall be attached the proof of payment of the process duties and two photographs of a minimum size of 9 cm. X 13 cm. and a maximum size of 13 cm. X 18 cm. signed by the petitioner or his representative. The first must be a detail of the point of certified origin, which permits an appraisal of its characteristics, and the second should be a panoramic view, in which said point can be clearly observed and the details of the land which is around it, indicating the position of the same with an arrow.
Art. 31.
Any petition for a mining concession of exploration must be presented directly
by any person, and shall be registered before the administrative unit responsible
for its receipt in the act of its presentation, the day and hour of its presentation,
as well as its progressive registration number being recorded in the body of
the same.
When two or more persons try to present petitions simultaneously, an act mentioning that circumstance shall be filed, as well as a report of those petitions and the signatures of the interested parties and of the head of the mentioned unit. The following act shall be registered with the same date and hour.
In the preceding case, it shall not be allowed that the same person shall sign, either himself or through his representative, more than one petition or that the representative of a petitioner shall draw up a petition in his own right or represent two or more interested parties.
Art. 32.
When the petition is registered, the unit shall record, without qualifying its
content, that the full data are consigned therein and that the documents stipulated
by article 30 of this Regulation were attached thereto, and shall proceed in
the following manner:
I. If it contains the complete data and the cited documents are attached, it shall allow it and extend the certified credential, which shall specify its duration, having recorded that the petition was received for its study and process and shall serve as credential to the proper petitioner and/or to the expert to look over the land on which the lot is located for the purpose of executing expert work.
II. If any of the data or documents required are omitted, it shall verbally request whoever presented the petition to furnish them at that moment. If they are furnished at that moment, the measures mentioned in the preceding item shall proceed, but if not, it shall be rejected and the causes of rejection shall be entered on the original petition which shall be kept and in a copy which shall be delivered to the interested party.
The land covered by a petition shall cease to be free as from the date and hour of its registration, provided and when the respective certified credential is extended.
Art. 33.
Once the certified credential is issued, the petitioner shall have a period
of 60 calendar days, as from the date of registration of the petition, to present
the expert works before the administrative unit which will receive it. If the
interested party does not present those works within the cited period, his petition
shall be considered as abandoned, and said unit must inform the unit responsible
for the study and process of the same immediately, for the purpose that it shall
proceed to publish that the land which had legally been covered is free.
Art. 34.
The administrative unit responsible for the study and process must verify that
the registration and receipt of the petition was made in accordance with the
provisions of the Law and of this Regulation, and that it satisfies exactly
the requirements indicated thereby.
If said unit determines that the expert works do not adjust to that which is provided by the respective instructive, it shall notify the petitioner of the deficiencies and omissions encountered and shall grant him a one-time only period of 30 calendar days to present the favorable corrections or new expert works, drawn up by either the same expert or another, at the option of the petitioner.
When the petition does not adjust to that which is provided by the Law, this Regulation or the respective instructives, for causes imputable to the petitioner or to his mining expert, the petition shall be disapproved and, if appropriate, publication shall be made that the land which had been legally covered is now free. If the violations are not imputable to the petitioner or to his mining expert, replacement of the procedure in the proper portion shall be ordered, if necessary, without prejudice to the liabilities incurred by the public servants.
Art. 35.
The Secretary, based on the point of certified definitive and on his mining
cartography, shall determine whether the petitioned lot totally or partially
covers free land, and, except in that provided by article 20 of the Law, shall
issue the title for the portion which is free, in accordance with that stipulated
in article 43 of said ordinance, and shall remit it officially to the Register
for its registration.
The Secretary must notify the petitioner of the antecedents of the lands which comprise the portion which is not free.
When a title is issued for a surface area of lesser dimensions than requested, in accordance with that which is provided in the preceding paragraphs, and the petitioner is not in agreement therewith, without prejudice that he shall receive said title and exercise the rights derived from the same, he may interpose an administrative appeal to which article 138 of this Regulation alludes. If he obtains a favorable resolution, the Secretary must issue a new title only for the remaining surface area.
Art. 36.
If upon determination of the freedom of a land, two or more petitions include
totally or partially the same portion of land, and the petitions were registered
simultaneously, the following shall proceed:
I. The titles for the free portion of each petition shall be issued.
II. The Secretary shall order a summons to the petitioners whose lots totally or partially include the same portion of land, in order that they shall be present before the unit receiving the petitions on the day and hour which he shall indicate to them, for the purpose of drawing lots to determine the petitioner in whose favor the disputed portion shall be given.
III. Once the day and hour is fixed for the drawing, said unit shall verify the assistance of the petitioners or of their duly accredited representatives, and if they do not assist, they shall lose their rights.
IV. That unit shall carry out the drawing and the procedure shall be concluded if the favored petition covered all the disputed land. If it does not cover it, another drawing shall be made for the remaining portion of the disputed land between the petitioners whose lots included it, and so on successively until it has been totally covered.
V. Once the drawing or drawings are concluded, an act shall be drawn up, signed by the head of the unit and the interested parties present, and if any of them refuse to sign it, that fact shall be reported therein.
VI. The unit shall notify the result of the drawing or drawings to the Secretary within the five working days following, in order that he shall issue the corresponding title or titles.
Art. 37.
When the conditions of the works so demand, the holders of concessions of exploration
may present, before the termination of the duration of their concession, one
or more petitions for a new concession of exploration, provided and when they
shall be adjusted to that which is provided by article 33, third paragraph,
of the Law, they shall present the report of verification to which article 78
of this Regulation refers and justify that it is necessary to continue the works
of exploration.
Each petition must contain the data which article 30 of this Regulation establishes and shall be accompanied by the proof of payment of the process duties and the justification to which the preceding paragraph alludes. When the point of certified origin is different from that of the concession lot from which it derives, they must furnish the photographs stipulated in the final paragraph of said article and their corresponding expert works.
If in the judgment of the Secretary, the continuation of the works of exploration is justified, it shall proceed in the terms of article 39 of this Regulation.
In the contrary case, the Secretary shall notify the concessionaire in order that in a period of 15 working days he shall manifest that which concurs to his right, and if he does not do so within the period his conformity shall be understood in order that the Secretary shall issue the title of concession of exploitation.
Art. 38.
Holders of concessions of exploration may present one or more petitions of concession
of exploitation, whose lots comprise all or part of the surface area covered
by their previous concession at any time before the termination of the term
of their concession.
Each petition must contain the data established in article 30 of this Regulation, with exception of that mentioned in item XIV which must be referred to the minimum investment to be made during the first four years of duration of the concession. To the same shall be attached the proof of payment of the duties for processing, the report of verification which article 78 of this ordinance provides or a voucher of its previous delivery.
If the point of certified origin is different from the lot of the concession from which it derives, the photographs stipulated by article 30, final paragraph, of this Regulation, must be furnished, as well as their corresponding expert works.
Art. 39.
Once the requirements set forth for the authorization of the concession by the
Law and this Regulation are satisfied, and it is determined that the perimeter
of the petitioned lot is totally included within the surface area covered by
the concession of exploration from which it derives and that it pertains to
land which is not free, the title of new concession of exploration or of concession
of exploitation shall be issued, as the case may be, in accordance with article
43 of the Law, and shall be officially remitted to the Register for its registration.
In a contrary case, the procedure shall conform to that provided by articles 34, second and third paragraphs or Art. 35 of this Regulation.
CHAPTER IV. Special
Concessions in National Mining Reserves
Art. 40.
Special concessions in national mining reserves shall only be for exploitation,
except in the case of deposits of sulphur, potassium, iron and coal as provided
in article 72, fourth and fifth paragraphs, of the Law, in which case a concession
must first be granted for exploration, with a duration of three years as from
its issue.
Art. 41.
Petitions to open a competition for the granting of a special in national mining
reserves shall be processed, insofar as is applicable, in accordance with that
which is provided by articles 30 to 35 of this Regulation, with exception of
that which is stipulated in the matter of the minimum investment provided in
item XIV of the cited article 30.
If two or more petitions to open a competition are presented simultaneously on lands which are essentially the same, and the petitioners satisfy the requirements contained in the articles to which the preceding paragraph alludes, the competition shall be held for all of the land and all of the petitioners shall be considered as promoters of the competition. If said land is not the same, the Secretary shall subject the portions which are not contested to an individual competition in respect to each one of the petitioners; if the portion of common land is significant, said portion shall likewise be subject to competition, and the promoters shall be considered as all who have petitioned.
Once the petition is registered, the Secretary shall order its textual publication for 30 calendar days in the table of notices of the administrative unit responsible for its receipt, as well as the publication of an extract of the same, at the cost of the interested party, one time only, in one of the daily newspapers widely circulated in the capital of the Republic and in the capital of the federated entity (state) in which the lot is located for the purpose set forth in article 79 of the Law.
Art. 42.
After the period to which the preceding article refers has elapsed, provided
that oppositions or rejections have not been received and that the expert works
have been approved, the Secretary shall publish the convocation to meeting,
once only, at the cost of the interested party or parties, in one of the daily
newspapers widely circulated in the capital of the Republic.
The text of the convocation must contain:
I. The substance or substances whose exploration or exploitation is in question;
II. The surface area and location of the lot;
III. The minimum investment and the period within which it must be effected;
IV. The minimum percentage on the invoice or liquidation value of the product of the exploitation which article 81 of the Law establishes;
V. The amount of the guarantees which must be authorized in the terms of article 78 of the Law. In the case of investments the guarantee must be for 10% of its amount;
VI. The manner in which the technical capacity and the economic solvency of the competitors shall be proved;
VII. Any other requirement which may deemed convenient by the Secretary on a case-by-case basis, and
VIII. The place, day and hour in which the act of receipt and opening of offers shall take place. A minimum of 30 and a maximum of 90 calendar days must elapse between the date of publication of the convocation and the carrying out of the act of receipt and opening of offers.
Art. 43.
The offers of the competitors must be written and contain their proposed investment
and the percentage which they offer on the invoice or liquidation value of the
product of the exploitation, as well as the documents which accredit their economic
solvency and technical capacity, and others required by the convocation.
In the place, day and hour stipulated in the convocation for the receipt and opening of offers, the act shall be carried out with the intervention of two public servants of the Secretary and in the presence of the competitors, and shall proceed in the following manner:
I. The identity of the competitors shall be entered on the record.
II. The offers shall be received and read aloud, and they shall be numbered on their original and the copy by the two public servants.
III. Any offers which do not contain the data and documents stipulated in the first paragraph of this article shall be rejected without further process.
IV. In the preceding case, a detailed act shall be written up, containing the resume of each one of the offers and shall be signed by the two public servants, and each one of those attending, and if anyone refuses to sign it, that fact shall be recorded.
V. The place, day and hour in which the verdict shall be given shall be stipulated, at least two working days duly elapsing before its issue when there are more than two competitors.
Art. 44.
The Secretary shall let the best offer be known in the place, day and hour stipulated
for the issue of the verdict. If this does not correspond to that of the promoter
of the competition, he shall be given the option to equal, at the same time,
the conditions of the best offer. If there are more than two promoters, in the
latter instance whoever draws up the best offer shall be chosen.
Next, an act giving account of the above shall be drawn up, signed by those present, and if anyone refuses to sign it, this fact shall be noted therein.
The title of the special concession in national mining reserves shall be issued to the winner of the competition, after constitution of the guarantees, and the title shall be officially remitted to the Register for its registration.
The resolution which the Secretary hands down shall not be appealable administratively.
Art. 45.
Petitions for a special concession in national mining reserves, whose surface
area does not exceed 100 hectares, shall be processed exclusively based on that
which is provided by articles 30 to 35 of this Regulation, provided and when
the petitioner does not hold or is not processing another special concession
in national mining reserves. Such special concessions shall be subject to the
minimum investments which are stipulated in article 96 of this Regulation and
they shall also be subject to the additional obligation of payment of the minimum
percentage established in article 98 of this same ordinance.
Art. 46.
The additional obligations stipulated by the Law and this Regulation to which
the holder is subject shall be conveyed in the titles of special concession
in national mining reserves. Non-compliance with any of the obligations shall
be cause of cancellation of the concession in accordance with the procedure
provided by article 54 of the Law, and the bonds granted in the terms of article
78 of the same shall become effective.
Art. 47.
Holders of special concessions for the exploration of iron and coal may present,
before the termination of the duration of their concession, one or more petitions
for a new special concession of exploration or of exploitation of national mining
reserves, in accordance with that which is established by articles 37 and 38
of this Regulation.
For their part, holders of special concessions for the exploration of sulphur, phosphorous and potassium may present, before the termination of the duration of their concession, one or more petitions for a new special concession of exploration, in accordance with that which is provided by article 37 of this Regulation, or they shall a right to the exploitation of the respective deposits, by means of the execution of joint venture contracts with the Commission or the State enterprises. The execution of said contracts shall be optional for the concessionaire and obligatory for the Commission and State enterprises.
CHAPTER V. Co-Existing
Allotments and Concessions
Art. 48.
Petitions of allotment or of concession of co-existing exploitation as provided
by articles 20 and 74 of the Law, must contain the data mentioned in article
30 of this Regulation, with exception of those relative to items X, XI and XII,
as well as that corresponding to item IX, which shall be referred to the point
of certified definitive of the pre-existing lot assigned or conceded, and the
following documents shall be attached:
I. Proof of the payment of the process duties;
II. A technical study signed by a mining or geological engineer who is legally authorized to practice, which shall accredit:
1. The existence of the substance which is the object of the co-existent petition in quantities which are economically profitable,
2. That said substances are contained in deposits physically independent of those covered by the pre-existing allotment or concession, and
3. That the new exploitation may be carried out without interfering with those authorized previously;
III. Curriculum of the petitioner referring to his technical experience in the exploitation of similar deposits, and
IV. Financial statements of the last fiscal year examined by a public accountant, in case of a legal person, and a copy of the last annual income tax declaration.
Petitions for allotment or concession of co-existing exploitation must exclusively include land not free covered by only one pre-existing allotment or concession.
Art. 49.
The process of the petitions of allotment or concession of co-existing exploitation
shall be carried out in accordance with that which is provided in article 20,
third, fourth and fifth paragraphs of the Law.
Art. 50.
The amount of the cooperation which the holder of the co-existing allotment
or concession must give to the holder of the pre-existing allotment or concession,
in accordance with that which is provided in article 20, penultimate paragraph,
of the Law, shall be established by agreement of the parties. If this is not
done, the Secretary shall establish it through a hearing of them.
CHAPTER VI. Processing
Plant Concessions
Art. 51.
The following installation shall not require a processing plant concession,
in the terms of article 57 of the Law:
I. Those which only carry on operations of mechanical preparation;
II. Those which carry on operations on substances not subject to the application of the Law;
III. Those intended only for the processing of mineral substances derived from abroad or of residuals, or
IV. Those operated by the Commission and State enterprises.
When doubt exists as to whether an installation requires a processing plant concession or not, the Secretary shall hand down the corresponding resolution.
Art. 52.
Petitions for processing plant concessions must contain:
I. The class of the processing plant concession;
II. Complete name of the petitioner or petitioners:
1. If an individual person, his age and civil estate, and
2. If a legal person, data of its registration in the Register;
III. Federal Taxpayers' Register (number);
IV. Name of the representative, if appropriate;
V. Address for receiving notifications;
VI. Place of location of the plant, expressing the municipality and State;
VII. Treatment system or systems;
VIII. Capacity of treatment and of final product for 24 hours of service;
IX. Derivation and nature of the minerals to be dealt with;
X. Nature and foreseen destination of the products which are obtained;
XI. Total surface area of the land of the installations;
XII. Estimated period between the beginning and conclusion of construction works and installation;
XIII. Amount of the investment;
XIV. Name of the lot and number of the title or of the file of the petition of concession of exploitation, as the case may be, and
XV. Declaration under oath of being of Mexican nationality, in the case of individual persons.
The proof of payment of the process duties shall be attached to the petition.
Art. 53.
The dispatch of petitions of a processing plant concession shall be subject
to the following procedure:
I. The Secretary shall analyze whether the petition contains complete data and the document mentioned in the preceding article.
II. If there is any omission, he shall grant the petitioner a period of 30 calendar days to correct the omission, and if he does not do so satisfactorily in that period, the petition shall be considered abandoned.
III. In the case of petitions for concession of a processing plant for service to the public, the Secretary shall request the opinion of the Departments of Programming, Budget and Commerce and Industrial Development with respect to whether the installation satisfies necessities for regional development; these Departments shall be given a period of 15 working to issue its opinion. If the period elapses without the Departments issuing their opinion, it shall be understood that they consider that the installation contributes to regional development.
IV. Once the preceding requirements are satisfied, the Secretary shall issue the respective title in the terms of articles 57 and 58 of the Law, without prejudice to the corresponding authorizations in accordance with the General Law of Ecological Balance and the Protection of the Environment and its Regulations, and shall remit it officially to the Register for its registration. In the contrary case, the petition shall be disapproved and such resolution shall be communicated to the interested party.
FOURTH TITLE. Rights
of Mining Concession Holders
CHAPTER I. Miscellaneous Rights
Art. 54.
The Secretary, upon request of an interested party and previous payment of the
process duties, may issue duplicates of mining concession titles, which must
be recorded officially in the Register and which shall cancel the originals.
Art. 55.
The preferential right, which article 44 of the Law grants to holders of mining
concessions, on holes which exist on the lands adjacent to their lots shall
be exercised in accordance with the following rules:
I. When the Secretary, in determining whether a land is free or not, encounters land comprised totally or partially of a hole, he shall summon the holders of concessions of exploration and of exploitation of lots adjacent thereto in order that this right can be exercised in a period of 15 working days, if suitable to their interests, by means of the presentation of the corresponding concession petition, attending to that which is provided by article 30 of this Regulation.
II. If one or more holders of concessions of exploitation try to exercise the right, the holder or holders of concurrent concessions of exploration shall be given preference.
III. If two or more holders of mining concessions with equal rights on the hole concur, a drawing shall be held in accordance with that which is established by article 36, items II to VI of this Regulation.
IV. If within the period to which item I alludes no petition to exercise the preferential right on the hole is presented, the Secretary shall issue the title in favor of the original petitioner.
Petitions for the hole which have not prevailed shall be disapproved.
When the preferential right is exercised, delivery of the expert works shall be prescinded and the title shall be issued for the totality of the hole.
Art. 56.
Inclusion of the substances shall be authorized once the title of mining concession
is issued in the terms of article 32, second paragraph, of the Law, provided
and when:
I. It deals with concessionable substances which the concessionaire encounters in the course of the exploration or exploitation.
II. It does not include substances incorporated to national mining reserves, and
III. The inclusion is recorded in the Register and the title or duplicate thereof is presented for that purpose.
Likewise, the exclusion of substances shall be authorized once the mining concession title is issued, subject to that which is provided by item III, above.
Art. 57.
Petitions to reduce, unify, divide or identify the surface area covered by mining
concession titles must contain:
I. The complete name of the holder;
II. Federal Taxpayers' Register (number);
III. Name of the representative, if appropriate;
IV. Address for receiving notifications;
V. Name of the lot or lots and number of the title;
VI. Surface area to keep, total area or area of each new lot, in accordance with the type of petition;
VII. Point of certified definitive of the new lot or lots, and
VIII. Sides, directions and horizontal distances of the perimeter of the new lot or lots and of each auxiliary line of the point of certified definitive to its respective perimeter, in the terms of article 30, item X of this Regulation.
Additionally, in the petitions of division the name of the new lots and of their holders must be specified, provided and when they are co-proprietors of the rights to the lot to be divided, as well as the indication of to which of them shall correspond the rights and obligations which shall derive from the expropriation, temporary occupation or easements of the new lots.
The title or duplicate of it shall be attached to the petition, as well as the proof of payment of the process duties and the reports of partial proof, in accordance with that which is established by articles 78, 79, 80, 84 and 85 of this Regulation, up to the month preceding that of the presentation of the petition; said report shall only be required when the period for verification is greater than 90 calendar days.
In the case of petitions for identification and when the point of certified origin is different from that of the lot of the concession from which it derives, the photographs stipulated in article 30, final paragraph, of this Regulation and their corresponding expert works must be furnished.
If any datum or document is missing, the Secretary shall summon the petitioner to furnish it within a period of 30 calendar days, and if he does not do so satisfactorily in the period given, his petition shall be considered as abandoned.
Art. 58.
Petitions of reduction, unification, division or identification shall not be
approved when:
I. The works of exploration or exploitation, to which the report of partial verification refers, are not considered verified;
II. The location of the lot which is the object of the concession from which they derive is modified, or the surface area covered by the same is rebased, or
III. Rights of third parties inscribed in the Register are affected, except as provided by articles 36 and 104 of the Law, in which case the third parties shall be notified that they could be affected thereby.
Art. 59.
Where any of the preceding petitions are declared, the new title or titles which
correspond shall be issued after cancellation of the pre-existing ones, and
they shall be remitted officially to the Register for their inscription.
The new titles shall confer, as appropriate, the same rights and obligations as the one or ones from which they derive, and in the case of petitions of reduction, division and identification, such titles shall be issued for the same duration as was given on the original titles, and in the cases of petitions of unification, the oldest duration shall be established.
In the case of land which became free in case of reduction, the Secretary shall publish such fact.
Art. 60.
For cases of reduction of the surface area covered by mining concessions to
which articles 36 and 104 of the Law alludes, the Secretary shall notify the
holder of the commencement of the process of reduction and specify the surface
area which must be segregated, and the holder shall have a period of 15 working
days to manifest that which concurs with his right. If he does not do so in
the period, the Secretary shall segregate the proposed surface area.
Art. 61.
Holders of mining concessions of exploitation may dispose of the earth which
they encounter within the perimeter of their concession, as well as that which
proceeds from works which they have effected, regardless of the place where
they shall be deposited, during the time in which said concession or those deriving
therefrom are in force.
Jales, dross and greases shall be regulated in accordance with common law, insofar as not provided for in article 37, item I, of the Law.
CHAPTER II. Expropriations,
Temporary Occupations and Easements
Art. 62.
Petitions of expropriation, temporary occupation or constitution of easements,
to which articles 19, 37 and 60 of the Law refer, must contain:
I. Class of petition, and in the case of easements, whether the latter is internal or external;
II. Complete name of the concessionaire;
III. Federal Taxpayers' Register (number);
IV. Name of the representative, if appropriate;
V. Address for receiving notifications;
VI. Name of the lot and number of the title which covers the rights of the petitioner;
VII. Class of concession;
VIII. Surface area of the land which is desired to expropriate, occupy or to place an easement, if the latter is external;
IX. Data relative to the perimeter of the land petitioned and an auxiliary line to the point of certified definitive of the lot to which preceding item VI refers, and in the case of an internal easement, data on the mining allotment or concession to be affected;
X. Name and address of the proprietor of the land or of the agrarian nucleus involved or of the holder of the allotment or concession to be affected;
XI. Works which shall be carried out, how the land shall be affected and justification of the expropriation, temporary occupation or easement, and
XII. Duration of the occupation or easement, which shall not exceed the duration of the concession.
Certification of the Public Register of Ownership or of the National Agrarian Register, as the case may be, which accredits the rights which are desired to be affected shall be attached to the petition, as well as an appraisal made at the cost of the interested party by the Commission of Appraisals of National Property, in accordance with the criteria stipulated in the respective instructive; this appraisal need not be made in the case of a petition for internal easement.
If any datum or document is omitted, the Secretary shall summon the petitioner to supply it within a period of 30 calendar days, and if he does not do so satisfactorily within that period, his petition shall be considered abandoned.
Expropriations of lands of small farmers (ejidos) or communal ownership shall be subject to the provisions established in the Federal Agrarian Reform Law.
Art. 63.
The Secretary shall favorably process a petition of expropriation, temporary
occupation or constitution of easement when the owner of the land, the agrarian
nucleus or the holder of the mining allotment or concession, in the case of
internal easement, agrees with the petitioner's desired use thereof, the foregoing
is accredited in a timely manner, and the amount of the indemnity agreed upon
is at least equal to that which corresponds in accordance with the appraisal
made by the Commission of Appraisals of National Property.
The agreement of the affected party shall be considered accredited in a timely manner provided and when it is recorded before a notary public, in the cases of expropriation, easement on land of private property or under a mining allotment or concession, or by means of a resolution of an extraordinary general meeting of an agrarian nucleus whose validity is recognized by the Secretary of Agrarian Reform, in the case of temporary occupation or easement on small farms (ejidos) or communal lands.
Art. 64.
When the agreement of the affected party does not exist or is not accredited,
the Secretary shall proceed in the following manner:
I. Notify the affected party of the petition of expropriation, temporary occupation or easement in order that he shall manifest his interests within a period of 15 working days.
II. If the affected party manifests his disagreement or does not reply within the period specified, the petitioner shall be summoned to deposit the amount of the costs to cover the inspection visit to be made, within a period of 15 working days, and if he does not do so, his petition shall be considered as abandoned.
III. Once the deposit has been made, an inspection visit shall be ordered to be made, in order that, having heard the parties, the inspector shall decide on the necessity of the expropriation, temporary occupation or easement, the extension of the petitioned land, the motives for the disagreement of the affected party and, as the case may be, whether it shall prejudice property of public interest or not.
IV. After the inspection visit, the determination shall be made and, if it is affirmative, the petition shall be favorably processed and the amount of the indemnification shall be established in accordance with the appraisal made by the Commission of Appraisals of National Property.
In the cases of temporary occupation or easement on small farms (ejidos) or communal lands, the Secretary of Agrarian Reform shall be notified of said amount in order that he shall issue his opinion in the terms of article 19, item I, third paragraph, of the Law.
V. The corresponding resolution shall be handed down, the interested parties notified of it, and it shall be sent officially to the Register for its inscription.
The resolution shall be executed with no further requirements other than the deposit provided by article 40, first paragraph, of the Law.
Art. 65.
The indemnifications which the concessionaires must cover for the purpose of
expropriation shall be paid in only one installment, within the 30 calendar
days following the day on which they were notified of the resolution.
Indemnifications for the purpose of temporary occupation or constitution of an easement shall be paid annually, within the 30 calendar days following the day of notification of the resolution and on each anniversary thereof. These indemnifications shall be up-dated (for inflation purposes) on the date of each anniversary, in accordance with the variation of the price index in the immediately preceding 12 months.
Art. 66.
The causes for reversion of expropriations mentioned in article 41 of the Law,
as well as judicial declaration of non-compliance in the payment of the annual
indemnification, shall be causes of extinction of temporary occupation or of
easement.
For that purpose, the owner of the land, the agrarian nucleus or the holder of the mining allotment or concession of the lot in question must present a petition and accredit the above-mentioned allegations. The Secretary shall send a copy of the same to the beneficiary concessionaire in order that the latter may assert his concurring right within a period of 15 working days, after the elapse of which the Secretary shall issue his resolution.
CHAPTER III. Transfer
of Rights Derived from Mining Concessions
Art. 67.
When compensations or royalties based on the value or volume of the mineral
which shall be extracted are accorded in contracts of mining exploitation, the
parties may freely arrange the deductions which shall be applied to the liquidations
of the first hand purchaser of the mineral.
In exploitation contracts compensations or royalties which grant a participation in the profits of said exploitation are not considered as based on the value or volume of the mineral which shall be extracted.
If it is agreed that the exploiter shall assume the obligations which the Law and this Regulation imposes on the concessionaire, the Secretary shall accept said agreement; non-compliance on the part of the exploiter shall not relieve the concessionaire from the liability of fulfilling said obligations.
In transfers of rights derived from contracts of mining exploitation, the exploiter transferring the rights may not receive royalties in payment.
Art. 68.
Any total or partial transfer of mining concessions and of the rights which
derive from them shall be authorized, provided and when:
I. The acquirer has the capacity to be holder of mining concessions in accordance with that which is provided by articles 7, final paragraph, and 11 of the Law;
II. The rights and obligations derived from an expropriation, temporary occupation or easement, if such exist, shall be transferred simultaneously with the concession;
III. The acquirer shall expressly assume the additional obligations consigned by the title of concession in the document in which the transfer is recorded and, as the case may be, shall substitute the guarantees constituted for assuring the compliance of those obligations by new ones, in the case of special concessions in national mining reserves;
IV. The concession is not included in industrial mining reserves;
V. The acquirer is holder of a mining concession of exploitation, in the case of the transfer of a concession of a processing plant, and
VI. It is recorded in the Register.
It is the responsibility of the acquirer to ascertain that the concession is in force and up-to-date in compliance with the obligations which the Law and this Regulation impose. The Secretary may issue a voucher concerning this, upon petition of the interested party and prior payment of the corresponding duties.
FIFTH TITLE. Obligations
of Holders of Mining Concessions
CHAPTER I. Miscellaneous Obligations
Art. 69.
When the Secretary discovers that the data consigned in a concession title are
erroneous or that they do not correspond to the land which should be legally
covered, he shall communicate this to its holder in order that the latter can
manifest, within a period of 30 calendar days, what his right conveys and furnish
the data and documents which are required.
The Secretary shall hand down a resolution based on the reply of the interested party and the records of the file and, as the case may be, shall order the correction of the title, as well as its inscription in the Register in the terms of article 46 of the Law.
Art. 70.
When the Secretary notes that duties on mining concessions have not been paid,
he proceed to cancel them in accordance with the procedure which article 54
of the Law stipulates. If the holder of the concession certifies, within the
period to which the cited article alludes, that the respective duties and other
accessory charges which might be due in accordance with the fiscal dispositions
have been paid, the cancellation procedure shall be without effect.
Art. 71.
Holders of mining concessions shall present the reports determined in article
51, items V and VI of the Law, before the Secretary, in accordance with the
respective instructive.
Art. 72.
Holders of mining concessions must be held responsible for compliance with the
insurance regulations to which articles 51, item XI and 62, item IX, of the
Law refer, when more than 50 persons labor directly under one legally authorized
mining engineer, metallurgist or geologist in the exploration, exploitation
and/or processing plant.
The designation of the responsible party must be communicated to the Secretary within the 15 working days following the appointment and a copy of his professional card shall be attached.
The responsible party's fundamental duty is to verify compliance with the insurance regulations, to verify that necessary measures have been taken to prevent accidents and to notify the Secretary immediately of those which have not been adopted.
Art. 73.
Concessionaires are obligated to maintain the landmark from which the position
of the point of certified definitive can be determined in the same place and
to keep it in good condition.
In any case, the point of certified definitive shall prevail under whatever testimony, description, datum or work which is intended to identify the location of the lot which is the object of the mining concession.
The point of certified origin may only be modified for purposes of its location within or on the perimeter of the lot or lots which shall derive for the purpose of the presentation of petitions for a new concession of exploration or of exploitation, as well as for the reduction, unification, division or identification of the surface area covered by mining concession titles.
Art. 74.
Holders of concessions of exploration shall present the annual report of the
results of the works of exploration as established in article 33, final paragraph,
of the Law, directly before the Council in the form and under the terms indicated
in the respective instructive.
Said report shall be considered as presented in the case of concessions which cover lots with a surface area of no greater than 100 hectares.
CHAPTER II. Proof
of the Works and Investments in Concessions of Exploration
Art. 75.
The program of works provided by article 33, fifth and sixth paragraphs, of
the Law, shall consist in the expression of the minimum investment to be made
in the exploration of the mining lot requested during the time the concession
is in force, a quantity which must be expressed in the petition for the concession
of exploration, in accordance with that which is provided in article 30, item
XIV, of this Regulation. If said quantity is different from the minimum which
corresponds to the lot, calculated in accordance with the following article,
it shall be understood that the petitioner is obligated to invest the latter
amount.
Art. 76.
The investment in works of exploration mentioned in the preceding article must
be equivalent at least to the quantity resulting from the application of the
following table, on the date of issue of the title, to the number of hectares
corresponding to the titled lot for each one of the three years in which the
concession shall be in force:
Range Surface Area(Hectares)
Fixed Annual Quota (Pesos)
Additional Annual Quota per Hectare of Surface Area Petitioned(Pesos) First
Year
Second Year
Third Year
1 to 10
0
27,000
81,000
162,000
11 to 50
37,500
21,410
71,045
145,500
51 to 100
45,000
20,880
69,705
142,550
101 to 200
105,000
20,100
68,445
141,040
201 to 400
242,250
19,340
67,440
139,685
401 to 800
513,000
18,620
66,600
138,645
801 to 1600
1,072,500
18,200
66,000
137,800
1601 to 3000
2,227,500
17,590
65,315
137,050
3001 to 6000
4,432,500
16,990
64,600
136,350
6001 to 12000
7,998,750
16,400
64,050
135,750
12001 to 25000
16,058,250
15,750
63,400
135,080
25001 to 50000
32,899,500
15,100
62,750
134,405
The amounts expressed in the preceding table shall be updated (for inflation) on the first of January of each year in the following manner: said amounts shall be divided by the price index of the month of December 1989, and the quotient shall be multiplied by the price index corresponding to the immediately preceding month of November. The Secretary shall publish the actualization of the table annually in the "Diario Oficial" of the Federation.
Art. 77.
In the cases of reduction, unification and division stipulated in article 57
of this Regulation, the program of exploration works to be consigned in the
new title or titles shall be determined on the new surface area and for the
remaining period of its duration, based on the updated minimum investment amounts,
in accordance with the last paragraph of the preceding article. Any excess investments
verified during the period shall be deducted from such program.
Art. 78.
Reports to verify that the program of works is being carried out must be filed
prior to the conclusion of the duration of the concession of exploration, and
the following shall be conveyed therein:
I. The complete name of the holder;
II. Federal Taxpayers' Register (number);
III. Name of the representative, if appropriate;
IV. Address for receiving notifications;
V. Name of the lot or lots and number of the title;
VI. Period to be verified;
VII. Amount withdrawn from the investment effected, and
VIII. Declaration under oath that the data of the report are verifiable.
When the partial execution of the program of works must be verified, the report must include the minimum investment which corresponds proportionally to the time elapsed between the date of issue of the title, or of the last partial verification, and the month immediately preceding that in which said report must be filed.
Art. 79.
The verification of the execution of the program of works shall be accepted
with the following sub-headings:
I. Direct mining works, such as ditches (trenches), wells, underground caverns and all that contributes to the geological knowledge of the lot or to the cubication of reserves;
II. Drillings;
III. Geological, geophysical or geochemical constructions, as well as photogrametric;
IV. Topographical or geodesic constructions, even when they are carried out prior to the issue of the title;
V. Physio-chemical analysis;
VI. Proofs of metallurgical experimentation;
VII. Acquisition and maintenance of equipment for drilling or development of mining works;
VIII. Acquisition and maintenance of physio-chemical laboratory or of metallurgical investigation equipment;
IX. Acquisition and maintenance of work vehicles, and
X. Installations of camp, offices and workshops.
The value of the assets provided by the preceding items to be considered for purposes of verification shall be that which is used for accounting purposes.
Art. 80.
The Secretary may require the holder of the mining concession to file, within
a period of 30 calendar days, clarifications, missing data or documentation
verifying that the accredited investment has been made. If the holder does not
reply satisfactorily to the requirement within that period of time, the works
of exploration shall be considered unverified and the concession shall be cancelled
in accordance with article 54 of the Law.
If the Secretary, in exercising his faculties of audit, finds that the report of verification contains false data or is not adjusted to that which has been actually carried out on the land, the works of exploration shall be considered as not legally verified and he shall declare the cancellation of the concession in accordance with the procedure stipulated in article 54 of the Law.
CHAPTER III. Verification
of the Works in Concessions of Exploitation
Art. 81.
The program of works provided by article 34, fourth paragraph, of the Law, shall
consist in the expression of the annual value of the economically profitable
mineral products to be obtained or of the minimum investment to be made annually
in the exploitation of the lot, within the first four years during which the
concession is in force, which amount must be expressed in the petition for the
concession of exploitation, in accordance with the provisions of article 30
and 38, second paragraph, of this Regulation. If said quantity is different
from the minimum corresponding to the lot, calculated in accordance with the
following article, it shall be understood that the petitioner will be obligated
to produce or invest the latter amount.
Art. 82.
The value of the mineral products to obtain or the investment in exploitation
works mentioned in the preceding article must be equivalent to at least the
quantity resulting from the application of the following table, on the date
of issue of the title, to the number of hectares corresponding to the titled
lot for each one of the first four years during which the concession is in force:
Range - Surface
Area(Hectares)
Fixed Annual Quota (Pesos) Per Hectare of the Petitioned Surface Area
Additional Annual Quota (Pesos)
1 to 10
0
121,610
11 to 50
37,500
130,000
51 to 100
45,000
132,500
101 to 200
105,000
135,540
201 to 400
242,250
199,390
401 to 800
513,000
261,860
801 to 1,600
1,072,500
399,330
1,601 to 3,000
2,227,500
565,900
3,001 to 5,000
4,432,500
719,115
The value of the investment corresponding to non-metallic minerals must be equivalent to at least 75% of the quantity which results from the application of this table.
The amounts expressed in the preceding table shall be updated in accordance with that which is established by article 76, second paragraph, of this Regulation.
Art. 83.
In the case of petitions for reduction, unification and division stipulated
by article 59 of this Regulation, the program of works of exploitation to be
consigned, if appropriate, in the new title or titles shall be determined on
the new surface area, and for the period remaining of the duration of the program,
based on the minimum amounts determined in the preceding article.
Art. 84.
Reports to verify that the program of works of exploitation is being carried
out and that the minimum investment has been made in the years subsequent to
those which comprise said program must be filed for the period and within the
time allowed by article 68, third paragraph, of the Law, and shall contain the
data mentioned in article 78 of this Regulation, except in the case of items
V and VII which may be related to the name of the lot and number of the title
which heads the grouping and to the invoice or liquidation value of the production
obtained, respectively.
The study, process and verification of said report shall be made in accordance with that which is provided by article 80 of this Regulation.
Art. 85.
The verification of the execution of the program of works of exploitation and
of the minimum investment to be carried out in the years subsequent to those
which comprise said program shall be accepted in the following sub-headings:
I. Invoice or liquidation value of the minerals obtained;
II. Development or rehabilitation of mining works;
III. Acquisition and maintenance of equipment for mining, portage and general services in the mine;
IV. Acquisition, installation and maintenance of equipment for processing plants and dams of jales;
V. Acquisition, installation and maintenance of equipment of physio-chemical laboratories or for metallurgical investigation;
VI. Acquisition and maintenance of work vehicles and vehicles for transportation of personnel;
VII. Works and equipment intended for work safety and security and for the prevention of contamination or recovery of the environmental medium;
VIII. Drillings;
IX. Physio-chemical analyses and proofs of metallurgical experimentation;
X. Installations of warehouses, offices, workshops, housing and services to the workers, and
XI. Acquisition, construction and maintenance of works and equipment related to access, generation and conduction of electricity, extraction, conduction and storage of water and infrastructure in general.
The value of the assets provided by items II to XI which shall be considered for purposes of verification shall be that used for accounting purposes.
Art. 86.
Petitions for the grouping of lots, or for the incorporation thereof, for the
execution and verification of works of exploitation, must contain:
I. The complete name of the petitioner;
II. Federal Taxpayers' Register (number);
III. Name of the representative, if appropriate;
IV. Address for receiving notifications;
V. Name of the lot and number of the title which leads or shall lead the group;
VI. Name and surface area of the lot or lots to be grouped together and the number of the title thereof, and
VII. Declaration under oath that the lots are adjacent or form part of one exploitation unit from the economic and administrative point of view.
Reports of partial verification of the exploitation works carried out in each of the lots to be grouped together, related up to the month preceding that of the presentation of the petition, shall be attached to the petition. A report of partial verification of a lot shall only be required when the period to be verified is greater than 90 calendar days.
Art. 87.
If clarifications or additional data are required, the secretary shall summon
the petitioner to present them within a period of 30 calendar days; if he does
not do so satisfactorily within the period, his petition shall be considered
as abandoned. If the Secretary does not issue and notify the petitioner of his
resolution within the 60 calendar days following the presentation of the petition
or of the clarifications, the petition shall be considered approved.
When the Secretary, in exercise of his faculties of verification, finds that the lots are not adjacent or do not form an exploitation unit from the economic and administrative point of view, he shall revoke the authorization for the group, consider that the works of the lots which do not constitute an exploitation unit are not legally verified and declare the cancellation of the mining concessions which cover them, in accordance with the procedure of article 54 of the Law.
Art. 88.
In the case of a grouping of lots, the minimum investment which must be verified
shall be that which corresponds to the total surface area of the group.
Verification reports relative to a group of lots shall be filed biannually as from the date of petition for the grouping, within the period established in article 68, third paragraph, of the Law.
Art. 89.
Petitions for separation of lots from the group to which they belong must contain:
I. The complete name of the petitioner;
II. Federal Taxpayers' Register (number);
III. Name of the representative, if appropriate;
IV. Address for receiving notifications;
V. Name of the lot and number of the title which leads the group, and
VI. Name and surface area of the lot or lots to be separated, and number of the title thereof.
The report of partial verification of the exploitation works corresponding to the surface area to be separated, related up to the month preceding that of the presentation of the petition, shall be attached to the petition. Such report shall only be required when the period to be verified is greater than 90 calendar days.
The study, process and audit of such petitions shall be made in accordance with that which is provided in article 87, first paragraph, of this Regulation.
Art. 90.
Upon separation of a lot from the group to which it belongs, its holder must
file the next verification report of said lot within the period which corresponds
to the following anniversary date of issuance of its concession, unless the
verification will comprise a period of less than 180 days, in which case it
must be filed within the period corresponding to the date of the subsequent
anniversary.
Art. 91.
Incorporations or separations of lots to one or more groups may be carried out
only once in a period of 365 days.
Art. 92.
When the circumstances to which article 53 of the Law alludes occur, the concessionaire
must report them in writing to the Secretary and attach the evidence accrediting
them, before the termination of the period for verifying the exploration or
exploitation works.
The study, process and audit of the report referred to above shall be made in accordance with that which is provided in article 80 of this Regulation.
Art. 93.
The Secretary may reduce the amount of the minimum investment to be verified
or grant extensions for fulfillment thereof when the quotation or demand for
a mineral is decreased which occasions the temporary unprofitability of the
exploitations in a general manner. For this purpose, he shall publish the respective
decree in the "Diario Oficial" of the Federation, in which the necessary
requirements for taking advantage of the same shall be specified, as well as
the substances and types of deposits affected, the quotations on the basis of
which this shall become effective and its duration.