JUNE 29, 2020

Ministry of Production, Mining Secretariat: Resolution No. 36/2020.

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Mining Law Department Report | Ministry of Production, Mining Secretariat: Resolution No. 36/2020.

Dear Sir or Madam,

The purpose of Resolution No. 36/2020 is to provide support to vulnerable communities linked to the mining activity.

Considering the public and health emergency caused by COVID-19, the Mining Secretariat (the “Secretariat”) has the purpose to help communities coping with the social, economic, and financial struggles that affect them.

Resolution No. 36/2020 establishes that it is necessary to prompt the use of the budgetary resources committed by the Secretariat with an allegation to welfare, in order to make possible the quick execution of new mining projects, training, and other activities that mainly benefit small communities in vulnerable situations.

Resolution No. 36/2020, Section 1, approves the “Adjustment of the National Plan for Social Mining” during the public health emergency enacted by Law No. 27,541 and extended within one (1) year by Decree No. 260 dated March 12, 2020, and its amendment, in line with the National Mining Plan dated May 11, 2009. Section 2 approves the models of agreements, act of initiation, completion and work deliveries.

The National Mining Plan published in the Official Gazette No. 31650 dated May 11, 2009, was developed with the aim of sponsoring the promotion and growth of mining activity and establishing it as a national productive model, on the base of six (6) structural axes:
1) Mining as a State Policy,
2) Foreseeable scenarios for investment,
3) Promotion of the national production model,
4) Relationship between production and community,
5) Regional integration, and
6) The democratization of public information.

Within the framework of the National Mining Plan, various actions were implemented to support mining producers, among which the Social Mining Plan stands out, which include the Support Plan for Brick makers, the Mining Footprint Plan, and the Mining Incentive Plan, Assistance to Mining SMEs and Labor Training, all of which are in force.

Pursuant to Section 3, Resolution No. 36/2020 invites the provinces to submit new requests for transfer of funds within the framework of Resolution No. 134/08 of the Secretariat, in order to support microbusinesses in the brick industry, pirqueros, artisanal mining activity, and other mining projects in small communities whose vulnerability has been aggravated by the extraordinary emergency caused by the COVID-19.

Pursuant to Section 4, Resolution No. 36/2020, requires each of the provinces that have received funds within the framework of Resolution No. 134/08 of the Secretariat to render accounts within thirty (30) business days, certifying the destination of the transferred funds and informing projects that have not been executed in the agreed periods. The provinces that have funds that have not been executed in the agreed periods for each one of the projects dully filled must either return said funds or express their purpose to reassign said funds to a new project fitting under the guidelines of Section 1 of Resolution No. 36/2020.

Please, do not hesitate to contact us should you require any further information on this matter.

Sincerely,

Marcos Moreno Hueyo
Dolores Reyes