How to Register a Concession in Peru

The mining concession grants its holder the right to exploit and explore all mineral resources that may be found in the subsoil of the concession area. Mining concessions shall be granted in extensions ranging from 100 to 1000 hectares in grids or groups of adjacent grids that are contiguous to each other at least by one side, except for concessions on the maritime domain, for which grids from 100 to 10,000 hectares may be granted. Concessions are irrevocable provided that the concessionaire fulfills the obligations set forth by the General Mining Act to maintain the concession effectiveness.

The mining concession application shall attach the payment receipts for the Effectiveness Fee corresponding to the first year equivalent to US$ 3.00 per requested hectare, and the Payment Receipt for the Administrative Fee equivalent to 10% of the effective Tax Unit. Mining concession applications shall be received at the National Institute of Concessions and Mining Cadastre (Instituto Nacional de Concesiones y Catastro Minero INACC) on a first-come-first-serve basis.

Upon reception of the mining concession application, the front desk officers at INACC's Office of Mining Concessions (Oficina de Concesiones Mineras-OCM) shall determine priority in the submission of applications. This priority shall be applicable even when the reading of the application, or the review of the attached documents show incompliance with any of the requirements set forth in the General Mining Act as regulated. Deficient mining concession applications may be amended within 10 business days of notification of the omission. Mining concession applications failing to attach receipt of payment for the effectiveness fee and/or the administrative fee; not including information on the UTM coordinates of the requested area; or lacking an opinion or having an unfavorable opinion regarding the mining concession application issued by the Provincial and District Municipality, shall be rejected by the Office of Mining Concessions of INAAC.

Mining concessions shall not be granted within municipality boundaries or within areas designated as expansion zones of municipal boundaries. For reasons of national security, any concessions within 50 kilometers of a national political boundary cannot be held under concession by foreign entities unless and until the concession has been approved by the Ministry of Defense.

If the mining concession application meets the requirements set forth in the Regulations on Mining Procedures, the General Bureau of Mining Concessions of INACC shall notify the interested party, within 7 business days following the mining concession application submission, of the publication of court notices, attaching the notices to be published, and if necessary, to be posted. Simultaneously to the notification to the mining concession applicant, the Head of the General Bureau of Mining Concessions of INACC shall notify the holders of other mining concession applications or previously granted mining concessions, whose areas are located in part of the grid or group of grids included in the mining concession application.

All mining concession applications shall be published only once in the "El Peruano" Official Gazette and in the newspaper in charge of the publication of court notices in the capital city of the province where the requested area is located. In the latter case, if no such newspaper exists, notices shall be posted for 7 business days in the INACC's main office or decentralized offices, as appropriate. Notices shall be published within 30 business days upon notice notification. Within 60 calendar days upon publication, the interested party shall deliver the entire pages evidencing the publication of the notices to INACC's General Bureau of Mining Concessions.

Within 30 business days upon receipt of the publication of notices, if no objection has been filed, INACC's General Bureau of Mining Concessions shall issue the legal and technical opinion.

Once the resolution granting the title to the mining concession is final and unappealable, it shall be registered upon request of the interested party, in the Registry of Mining Rights of the National Superintendence of Public Registration (Superintendencia Nacional de Registros Publicos.)