On July 4, 2018, the National Mining Agency (“ANM”) issued Resolution No. 352 of 2018 (the “Resolution”), which sets forth the criteria to evaluate the economic capacity of applicants to: (i) mining concession agreements; (ii) procedures of assignment of mining rights; and (iii) procedures of assignment of mining areas. The Resolution fully supersedes Resolution No. 831 of 2015 which regulated this matter.

The Resolution introduces new criteria to evaluate the economic capacity of applicants in consideration of the classification of mining activities set forth by Resolution No. 1666 of 2016: small, medium and large mining. In this way, the ANM is aiming to perform a more adequate analysis of mining activities, adjusted to the reality of mining operations.

On the other hand, it is important to point out that the Resolution continues to allow companies to provide the financial statements of their parent company in order to certify their financial capacity and introduces the possibility to certify the financial capacity through the financial statements of shareholders.

In addition, as Resolution No. 831 of 2015 did, the Resolution demands applicants with more than one concession agreement application to provide sufficient evidence of their financial capacity to guarantee the performance of the exploratory activities of all filed applications.

The Resolution applies to all new mining concession agreement applications and procedures of assignment of mining rights and areas, and to those procedures and proposals that are currently being analyzed and have not been decided by the ANM. To this end, the ANM will require applicants to adjust their applications within a certain time in accordance with the Resolution.

In order to see the full text of the Resolution please enter the following link: Resolution 352 of 2018.