b. Mineral. Means the existing mining products or minerals
which enjoy economic value
c. Mining reserve: Means natural concentration or
accumulation of one or several mining matter (s) under or over the ground or in
the form of solution in water
d. Mine. Means a mineral reserve whose exploitation is
deemed economical.
e. Exploration. Means willing search to discover mines which might entail the following operations:
g. Discovery certificate. Is an endorsement certificate
issued by the Ministry of Mines and Metals in the name of the owner of
exploration license after the completion of exploration and discovery.
h. Exploitation. Means all operations required to extract
and sort the minerals and achieve salable minerals.
i. Extraction. Means a combination of operations needed to
segregate the mineral from the mine and transfer it to its storage area.
j. Exploitation license. Means license issued by the
Ministry of Mines and Metals to provide building material needed for development
projects and extraction of deposits and limited and marginal reserves as well as
laboratory operations.
k. Government right. Means the government's revenue from
extraction and exploitation of each unit of substance or mineral.
l. Sorting minerals. Means physical, chemical of
physico-chemical operations performed to separate part of the useless matter
from the main mineral or separating minerals from each other.
m. Processing: Includes all operations conducted on raw
mineral or sorted minerals resulting in the production of industrial raw
material.
n. Material depot. Means a place outside exploitation
workshop and tunnels and wells where the extracted material is stored.
o. Waste matters. Means matters which are separated from the
mineral as a result of extraction of sorting.
p. Ordinary sand and gravel: Means sand and gravels which do
not contain valuable minerals and whose segregation is not considered
economically feasible and are normally used for house building, road building,
concrete filling and like operations.
q. Ordinary lime. Is a sort of soil used to fabricate
ordinary unbaked or baked (non-flammable) bricks and also used in building
works, road building and farming.
r. Industrial soil. Is a soil which has different industrial
uses due to its special physical or chemical properties.
s. Building rubble. Means different stones existing in
nature which contain minerals which cannot be separated under the existing
conditions and its processing is not deemed economically feasible and according
to Ministry of Mines and Metals are not rated as decorative stones. The building
rubble is normally used in the foundations or construction of walls in
buildings, road construction, fortification and the like.
t. Decorative stones. Are shining or non-shining sedimentary
or volcanic and transformed stones which do not contain sizable amount of
separate minerals such as marble, semi-marble (marmarite), travertine, granite
and the like whose ordinary method of cutting and polishing is not believed to
be economical.
u. Exploitation license. Is a certificate issued by the
Ministry of Mines and Metals for exploitation of mines within a specified scope.
v. Exploitation plan. is a plan that details the executive
programs for exploitation of mines plus the timetable for operation and other
information based on the identity card of the mine (a special sample form issued
by the Ministry of Mines and Metals and filled by users of mines).
w. Non-transferable mines. Are such mines which are not
exploited and their transfer is not prohibited according to the present law.
Article 2: In compliance with articles 44 and 45 of the
Constitution the government's responsibility for ownership in the state-owned
mines and protection of mineral reserves, issuing license for mining operations
provided in the existing law, supervision of such affairs, preparation of
facilities for promotion of mining and achieving value added in mining raw
material, promoting export of minerals with value added, providing employment
opportunities in that sector and increasing the contribution of mining to state
economic and social development, has been vested on the Ministry of Mines and
Metals.
Enforcement of the above sovereignty shall not prevent the exercise of
ownership by real persons or legal entities within the framework of the above
regulations.
Article 3: Minerals are classified into following sections:
a. First class minerals including limestone, gypsum,
ordinary sand and gravel, sea shell, granulated aggregate, water and stone salt,
marl, building rubble and the like;
b. Second class minerals including;
d. Fourth class minerals including all radioactive matters
including primary and secondary matters.
* Note: The classification of those minerals related to
first or second class minerals whose classification has not been specified
including one matter from one classification or matters from other
classifications will be determined by the Ministry of Mines and Metals.
Article 4: The responsibility to determine whether matters belong to class one or class two with the exception of ordinary sand and gravel and lime under the existing law, is vested on the Ministry of Mines and Metals.
* Note: The Ministry of Mines and Metals is to distinguish
whether the sand, gravel and lime are ordinary in classification.
Article 5: The exploration of reserves shall be performed by
real or legal persons in the government, cooperatives or private sector. The
Ministry of Mines and Metals also is required to take steps to explore and
extract mines throughout the country directly or through its affiliated
departments and organizations or by resorting to qualified real and legal
persons.
Article 6: One needs an exploration license issued by the
Ministry of Mines and Metals to explore minerals. The method of acquisition of
license, requirement for exploration, the term of the license, transfer of
rights related to the license and other related requirements in keeping with
this law will be outlined in the related executive directive.
* Note: Exploration during exploitation does not require an
exploration license, but should a new mineral reserve or matter be discovered
during the operation, the exploitation license will be amended according to the
provisions of the existing law or a new certificate will be issued.
Article 7: After examination and endorsement of exploration
operation the Ministry of Mines and Metals is required to issue a discovery
certificate in the name of the holder of exploration license. In that license
the type or types of discovered mineral (minerals), quantity, scope, area and
cost of exploration should be inserted. Upon the approval of Ministry of Mines
and Metals one year after the issuance of the license it can be transferred to a
third party.
* Note 1: The method of enforcement of the above article
particularly when the exploration operation is not approved will be outlined in
the executive directive of the existing law.
** Note 2: In case of failure to discover mineral after
exploration operation, the holder of exploration license will have no claim
whatsoever.
Article 8: Holders of discovery certificates can, within a
maximum of one year after the issuance of the discovery certificate, submit
their application for discovery of the mineral to the Ministry of Mines and
Metals. Failure to file such an application in the specified term will cancel
the priority of the user.
Note: In case of failure to submit the above application on
time, the expenses mentioned in the discovery certificate will be paid by the
exploiter of the discovered mineral to the holder of the certificate as provided
in the executive directive of the existing law.
Article 9: One needs to acquire exploitation license from
Ministry of Mines and Metals to exploit minerals. This license is issued on the
basis of the identity card of the mine and the exploitation plan issued by the
related ministry.
Article 10: The following are considered as exploiters of
minerals:
a. Legal and real persons upon the approval of the Ministry of Mines and Metals:
The above departments and companies may benefit from the services of
qualified real or legal persons or exploit mineral reserves with their
participation.
c. Mining cooperative companies consisting of mining
personnel
* Note 1: In case the exploitation applicants are numerous
and do not fall in the above categories the basis for action will be the
regulations for state transactions and the regulations governing general
computations.
** Note 2: The identity card of each mine will cover the
mine specifications, quantity and quality of the mineral reserve, technical and
economic assessment report including the rate of return of domestic capital, the
requirements for mining operations, optimal extraction of the said mineral and
compliance with the safety rules and technical protection as well as other
requirements. The definite mineral reserves cited in the identity card will be
guaranteed by the Ministry of Mines and Metals and will be acceptable as a
security.
*** Note 3: The exploitation license is an official and
binding document which specifies the period of exploitation according to the
mine's identity card and the approved exploitation plan which and can be
extended, transacted or transferred to third parties including a right to
benefit from the mine by the license holder and includes a guarantee by the
holder to comply with the related requirements. With an eye to the above
stipulations and the existing reserves each term of exploitation will be a
maximum of 25 years and the license holder will have the privilege to extend the
term.
Article 11: In case of issuing an exploration license the
Ministry of Mines and Metals is committed to allow priority to the family of
martyrs, disabled war veterans and former prisoners of war, cooperative
companies and qualified local individuals in keeping with the existing law.
Article 12: Big mines and their method of exploitation are
distinguished by the recommendation of Ministry of Mines and Metals and approval
of the council of ministers with an eye to the volume of reserves, purity,
extent of extraction, value of the mineral, amount of capital, geographical
situation as well as political, social and economic considerations.
Article 13: If necessary and at its own discretion the
Ministry of Mines and Metals is permitted to issue license for limited
exploitation of mineral reserves or extract specified volumes of limited
discovered mines in order to provide building material for development projects
or supply material for laboratory tests.
Article 14: The holder of exploitation license must pay a
certain annual percentage of the value of the mineral at the mining site to the
Ministry of Mines and Metals as mentioned in the exploitation license at daily
rates in lieu of government charges. If necessary the ministry is permitted to
demand equivalent amount of mineral instead of the government charge.
With an eye to the influential factors including the location and situation
of the mine, volume of mineral reserves, method of exploitation, the obligations
and preferred profits of exploitation, method of implementation of this article
as well as requirements for fixing the above mentioned percentage will be
determined in the executive directive of the existing law.
Surely all revenues accumulated as a result of enforcement of this article
will be deposited in the state treasury.
* Note 1: The basis for basic price for minerals which are
delegated through endorsement of the state general computation system will be
the average government rights of similar permissible mines.
** Note 2: The government rights for owners of exploitation
licenses will be the average government rights imposed on adjacent mines.
Laboratory and applied examination up to one ton of mineral will be exempted
from such charges.
*** Note 3: The basis for revenues in the last paragraph (a)
of Note 66 of the budget law for 1363 (1984/5) will be used to determine the
percentage cited in the above article.
Article 15: Should the operator fail to use the waste
extracted from mining during the term of operation it will be owned by the
government after the expiration of exploitation term and the Ministry of Mines
and Metals will dispose such matters as it deems appropriate.
Article 16: In order to invest capital for processing
minerals the Ministry of Mines and Metals is required to support and supervise
the related departments and companies as well as non-governmental investment in
that sector. In order to do so the Ministry must make necessary feasibility
studies and prepare typical projects and specify them in the executive
directive.
Article 17: In order to promote processing and export of
minerals with value added and boost mining exploration and exploitation
activities, upon the recommendation of the Ministry of Mines and Metals the
government must examine the policies covering production, trade, financial and
monetary aspects and to include them in its development program if ratified.
Moreover the government must make necessary provisions to include such plans in
its annual budget bills.
* Note: The Ministry of Mines and Metals must give priority
to the promotion of mineral processing and exports in its executive programs.
Article 18: The Ministry of Mines and Metals shall gradually
adjust the condition of exploitation of the existing mines before the expiration
of the term of licenses and shall issue new exploitation licenses for users if
they are found to be discharging their commitments. Anyhow the above steps must
in no way infringe the rights obtained by the mine exploiters.
Article 19: Whoever makes exploration drilling, extraction
or exploitation of minerals without receiving exploration or exploitation
licenses will be considered as usurper of public and government properties and
will be treated according to related law. In such cases upon the request of the
Ministry of Mines and Metals the disciplinary personnel must stop such illegal
operation and introduce the delinquent (delinquents) to the judicial authorities
for necessary legal action. While taking the above steps the ministry is
required to make timely assessment of the amount of damage resulting from such
crimes and to inform the judicial authorities accordingly.
Article 20: Should the holder of exploitation license fail
to discharge his duties or be unable to discharge them in an appropriate manner,
the Ministry of Mines and Metals will warn the holder to comply with his
obligations. In case during the term specified in the warning notice the license
holder fails to discharge his duties or his performance is deemed insufficient
he will be bound to pay damage for non-compliance with his obligations or might
be considered incompetent to discharge his obligations in the end. However such
a poor performance will not affect the validity of exploitation license or the
rights of third parties.
* Note: The Ministry of Mines and Metals is bound to insert
the conditions for compensation of damage for failure to discharge obligations
in the exploitation license as mentioned in this article.
Article 21: The user and holder of former exploitation
license is required to transfer all the related properties which damage or harm
the mine and separated from the mine upon the discretion of an expert from
Ministry of Mines and Metals to the new user at the latest price and on the
basis of a rate fixed by the official auditor of the Ministry of Justice. In
case the user fails to transfer the properties related to the mine according to
the above conditions he will be bound to compensate for the damage inflicted to
the mine.
Article 22: If the owners of rehabilitated mine or a site
needing rehabilitation is required to take charge of his property, after the
endorsement of the Ministry of Mines and Metals the operator will be bound to
pay the rent of the premises without computation of the mineral reserves to the
landowner upon the discretion of the official expert of the Ministry of Justice
on the basis of the latest price. In case the landowner refuses to receive the
rent, he shall deposit it at the treasury of the State Land and Deed
Organization. In such a case after the ministry has coordinated the matter with
related departments the operator will be permitted to continue his work at the
site.
The related authorities are to recognize whether a property is rehabilitated
or must be rehabilitated as well as the condition of the ownership or
ownerships.
* Note 1: If the operator needs to dig canals or tunnels in
areas outside the above mentioned properties for continuation of exploration or
exploitation which canals or tunnels pass the depth of the above mentioned
properties, he will be subject to the above regulations; otherwise he will not
be bound to the said property. The Ministry of Justice will discern the
conventional depth mentioned in this note according to the nature of the
application of the lands under mining operation.
** Note 2: The owner or owners of the above mentioned
properties or their lawful substitutes who are receiving exploitation license to
dig building rubbles or decorative or facing stones within the depth of
rehabilitated lands or lands under rehabilitation, as mentioned in the above
note, are required to submit their application to the Ministry of Mines and
Metals. Before a mining exploration certificate is issued for others the owner
will have priority and in such a case any object discovered on the conventional
depth of the property will be owned by the owner. Meanwhile being exempt from
paying government charges for such explorations, they will be treated according
to Article 10, para. 1, item a.
*** Note 3: Should the landowner prevent the implementation
of mining operation mentioned in this article, upon the request of Ministry of
Mines and Metals and according to related regulations the disciplinary officers
shall immediately lift the prohibition.
Article 23: Any steps taken for exploitation of minerals by
executive departments including ministries and government affiliated companies
and organizations and public and non-profit revolutionary organs or their
subsidiaries, are subject to acquisition of license from the Ministry.
Article 24: In order to expedite the exploration and
exploitation of mines the executives bodies are bound to respond to the Ministry
of Mines and Metals about the lawful scope of operation and prohibited zones
subject of paragraph (a) of Article 3 of the environment protection and
rehabilitation law ratified in 1974. Moreover they must observe the law
governing the exploitation of state forests and rangelands ratified in 1967 and
the subsequent amendment thereto as well as the law governing application of
agricultural and horticultural lands ratified in 1995 during the issuance of
exploration and exploitation licenses. Failure by executive bodies to announce
their opinion in the specified term will construe as their agreement with the
above mentioned mining operations.
Article 25: In case the scope of mining operations falls
within the scope of national and natural resources, steps will be taken
according to Note 4 of Article 3 of state forests and rangelands protection and
rehabilitation law and subsequent amendments, but instead of land ownership
interests or land fees as specified in the above note and acquisition of 3
percent government charges specified in Article 4 of the present law and notes 1
and 2 for rehabilitation of mining sites, besides the above government fees, the
Ministry of Mines and Metals will receive rental fees from users and holders of
exploitation licenses and will deposit the money in the related accounts.
Article 26: The limits imposed on the extraction, storage
and exploitation of minerals and disposal of mineral waste within national and
naturals areas which have been specified in the license is considered the mining
operation zone and will be the property of the Ministry of Mines and Metals
until the end of the mine's life. Any operation beyond those specified in the
licenses issued by the Ministry will be considered as unlawful ownership of
public properties.
Article 27: In order to properly utilize the services of
mining and experts and geologists and specialists in related fields the Ministry
of Mines and Metals shall set up technical and engineering office for these
groups of personnel. The government is obliged to prepare a mining and geology
engineering discipline and submit the bill to the Majlis within six months of
ratification of the present law.
Article 28: With an eye to the geographical situation of
mines and in order to promote the mining sector the executive departments are
required to consider the mining sites as their preferred development plans and
to impose preferential and tariff rates for such operations.
Article 29: In order to stabilize the economic feasibility
studies of production of minerals, those regulations which lead to unrelated and
overhead expenses in production will be considered as null and void after the
ratification of the present law.
Article 30: The credits of Ministry of Mines and Metals from
the private real or legal persons about government rights, 3 percent fee for
rehabilitation and compensation of damage due to failure to comply with
obligations as specified in Article 14 and its notes 1 and 2 and articles 20 and
25 of the existing law, are considered as authenticated credits of the
government and will be binding on the basis of related documents and are
recoverable on the strength of Article 48 of the state general computation law
ratified on October 23, 1987 by the Majlis and according to the executive
regulations of direct taxes.
The damage resulting from delay in recovering such credits will be according
to a table which will be prepared by the Ministry of Mines and Metals and
ratified by the council of ministers in the executive directive of the law.
Article 31: In order to achieve sustainable growth in mining
the government is required to establish a capital investment insurance fund in
the Ministry of Mines and Metals for mining activities to compensate all or part
of the possible damage resulting from failure to discover mineral and loss of
present capital according to articles of associations which will be ratified by
the council of ministers and to propose the needed credits if necessary each
year for the government with due attention to production policies in its annual
budget.
Article 32: In compliance with paragraph 14 of Article 1 of
the law for formation of Ministry of Mines and Metals, ratified in 1984 by the
Majlis, in order to expedite research for exploration and identification of
minerals and to conduct other mining operations the Ministry of Mines and Metals
is permitted to establish operating companies whose articles of association will
be ratified by the Council of Ministers.
Article 33: Official government employees in the Ministry of
Mines and Metals and companies and organizations affiliated to the government
are not allowed directly or indirectly to participate in mining transactions or
obtaining mining privileges referred to in this law or benefit from these
operations unless a minimum of one year has passed since their resignation from
such services. If they are found to be violating the existing law they will be
permanently suspended from government duty and will be deprived from concluding
any mining contracts or obtaining license for mining operation for a period of 5
to 10 years.
Article 34: The Ministry of Mines and Metals shall fully
supervise all mining operations throughout the country according to the
executive directive of the present law in order to prevent destruction or waste
of minerals, failure by explorers or exploiters of mines from discharging their
obligations and to ensure that all safety regulations covering protection of
mining employees are fully adhered to.
Article 35: The executive directive of the present law will
be prepared by the Ministry of Mines and Metals with cooperation of other
ministries and related organizations or organs within a period of 3 months and
will be ratified by the council of ministers.
Article 36: Once the approval of the present law go into
effect, the former mining law and its subsequent amendments as well as any other
related contrary rules and regulations will be considered as null and void.
The above law consisting of 36 articles and 7 notes was ratified in the open
session of the Islamic Consultative Assembly on April 27, 1998 and was endorsed
by the Expediency Council on July 13, 1998 after a series of amendments.
Ali Akbar Nateq-Nouri
Speaker of Islamic Consultative Assembly.
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