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Mining Code of I.R. Iran- Part 04

  1/21/2014

Article 18: The Ministry of Mines and Metals shall be obliged to gradually conform the status of the exploitation permits and licenses previously issued by the provisions of this Act, prior to expiration of their validity, and to issue new exploitation licenses therefore subject to fulfillment of related obligations. The said actions must not, in any case, vitiate the acquired rights of the said licenses. 

Article 19: Anyone undertaking exploration, excavation, extraction or exploitation of mineral subst~c7s without obtaining exploration or exploitation license or short-term exploitation permit, shall be deemed usurper of public and state property and shall be penalized in accordance with related laws and regulations. In such cases, disciplinary officers shall be obliged, upon the request of the Ministry of Mines and Metals, to repress such activities forthwith and to report the accused to juridical authorities for trail. 

Article 20: The Ministry of Mines and Metals shall give notice, providing appropriate respite to those holders of the exploitation license and short -term exploitation permit, who fail, or are unable to fulfill their commitments. In the event the said respite has expired and no action has been taken by the obligor, or the action taken deemed insufficient, the said obligor shall be compelled to payment of damage arising from non fulfillment of related obligations and may be deemed incompetent for continuation of related operations. Such action shall not affect the validity of the exploitation license or the rights of third parties. Note: the Ministry of Mines and Metals shall be obligated to state the conditions pertaining to the manner of compensation of damages arising from non-fulfillment of obligations subject of this Article in the exploitation license and short-term exploitation permit. 

Article 21: The former holder of exploitation license and holder of short -term exploitation permit shall be obligated to assign to the new holder of exploitation license such property and equipment associated with the mine, the removal of which shall, at the discretion of the Ministry of Mines and Metals, cause loss or damage to the mine, at the current price determined on the basis of valuation by the official experts of the justice Administration. In case of non-assignment of the property and equipment related to the mine in accordance with the said conditions, the former holder of exploitation license or holder of short -term exploitation permit, shall bear the responsibility for compensation of the damage caused. 

Article 22: In cases where mining activities are required to be performed within cultivated land or properties with record of cultivation by individuals and there should be I need for possession of same, following confirmation of the Minister of Mines and Metals, the executor of works shall be obligated to pay the rental or the price thereof to the owner of the property, without calculation of the value of the mineral deposits therein and in accordance with the current price valuation by the official experts of the justice Administration, and in case of refusal of the property owner from receiving these payments, to deposit same with the fund of the State Organization for Registration of Deeds and Properties, and therefore necessary arrangements for execution of mining activities shall be provided by the Ministry of Mines and Metals in coordination with authorities in charge. Cultivation or the existence of record of cultivation of properties and the status of ownership of the owner or owners shall be established by appropriate authorities. 
Note 1: 
In cases that execution or continuation of exploration or exploitation activities and extraction of mines situated outside the above said properties, needs excavations into canals or underground drifts, within the customary depth of the said properties, the provisions of the above Article shall be applied, otherwise it shall be unrelated to the property. The customary depth criterion of this Note shall be established by an expert of the justice Administration with due regard to the type of usage of the lands of the mining operation region. 
Note 2: 
The owner or owners of the aforesaid properties or the legal representatives thereof, shall have right of priority for obtaining exploration license for deposits of construction stones and decorative and facade stones, located in the customary depth of their cultivated properties or properties with record of cultivation thereof, which shall be determined in the manner provided in the latter part of the above (1 Note, subject to submission of application to the Ministry of Mines and Metals prior to issuance of exploration license for other applicants, in which the mineral substances explored up to the customary depth shall belong to the property owned by same, and in addition to exemption from payments of royalty, they shall be treated on the basis of the provisions of Article 10 and sub-paragraph 1 of paragraph A of the said Articles. 
Note 3: 
In the event the property owner, represses execution of mining activities subject of this Article, upon the request of the Ministry of Mines and Metals, disciplinary officers shall be obligated to forthwith abate the impedance and hindrance in accordance with regulations.

Article 23: Any action within mineral substance exploitation and short-term exploitation boundaries by executive agencies, including Ministries, governmental companies and organizations, non-profit public institution, foundations of the revolution and subsidiary units thereof shall be subjected to obtain permission from the Ministry of Mines and Metals.






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