The new Mining Regulation ("Regulation") was published in the Official Gazette dated 21.09.2017 and numbered 30187, repealing the old Mining Regulation of 06.11.2010. The Regulation complements the amendments made to the Mining Law No. 3213. To summarize some of the main provisions – in line with the Mining Law, mining licenses may be transferred with the consent of the Ministry of Energy and Natural Resources ("Ministry").
Royalty agreements to be executed between license holders and third parties are subject to the Ministry's approval, and except for governmental entities and their affiliates, royalty agreements cannot be signed for underground coal mines. Transfers concerning royalty agreements must be notified to the General Directorate of Mining Affairs and recorded with the mining registry.
The Regulation provides details on the financial sufficiency of operation license applicants. Accordingly, financial sufficiency equates to at least 20% of the total investment amount indicated in the project. This amount cannot be less than the thresholds determined based on mine groups.
The total duration of operation licenses for I. Group mines, II. Group mines, and other mine groups cannot exceed 30 years, 40 years, and 50 years respectively. The relevant Minister has authority concerning any extension for I. Group and II. Group mines, and the Council of Ministers has such authority for other mine groups. The Regulation also elaborates on operation projects and acting in compliance with them.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
