In brief

On 23 April 2024, the Senate of the Province of Mendoza (“Province“) approved the reform of the Mining Procedures Code (MPC), incorporating international control standards to promote sustainable mining in the Province. The text indicates that it will become effective 15 days after it is published in the Official Gazette of Mendoza. For now, it has not been published yet.

The modifications grant the Province more control powers and prerogatives, as well as more influence.

Additionally, the Province, through Impulsa Mendoza Sostenible S.A. (“Impulsa“), continues to work on the environmental impact report (EIR) of the Malargüe Western Mining District (“Malargüe“), seeking a joint EIR for all mining projects in that area.

In focus

The main modifications of the CPM include the following:

1. Right of preference in favor of Impulsa: As established by other Argentine mining provinces, if exploration permits expire or are revoked, or mines are declared vacant prior to the publication of legal notices, the mining authority will notify Impulsa or the company replacing it, so that, within a period of 30 business days, it decides whether to declare the areas as geological mining research or to request the areas according to the Mining Code.
2. More control powers: The inspectors of the Mining Police will have more functions and powers than they currently have, gaining free access to all mining works.
3. State Prosecutor: The State Prosecutor is established as an essential party who must issue an opinion prior to any resolution related to granting and registering mining rights, vacant mines, surveying, among other matters.
4. Incorporation of the Mining Council: The first-instance mining authority is the Mining Directorate, and the authority in the next instance is the Mining Council, which has been recently incorporated and will also act as a consultative body. Both bodies are under the supervision of the Ministry of Energy and Environment.
5. Mining contentious procedure: The procedure has been established, indicating the process of oppositions and the different appeals.
6. Social responsibility norms, good practices and community involvement: The obligation to present a Sworn Affidavit of Good Practices, which must be updated biannually, has been incorporated.
7. New chapters: Mining groups, rectifications of coordinates, the Provincial Registry of Mining Producers, the mineral transit guide, among other topics, have been added as chapters.
8. Stages of mining development: The stages are now described according to the state of progress. There are 14 stages in total, including prospecting, feasibility, re-engineering and post-closure, to name but a few.

According to Impulsa’s official website, Malargüe’s EIR includes the analysis of all the necessary aspects to determine the feasibility of a prospecting and exploration process, considering issues such as glaciers, wetlands, communities, paleontology, archeology, speleology and every aspect of the area.

According to official sources, once the EIR is approved, the projects’ approval could be accelerated.

Malargüe would cover the areas with the greatest geological potential, specially regarding copper. According to information provided by the Province, it would have more than 250 mining projects of different progress and size.

Click here to read the Spanish version.