JULY 01, 2021

Mining Secretariat Resolution No. 195/2021: Registration with the R.U.M.P. – Preventive Deregistration.



Mining Department report | Mining Secretariat Resolution No. 195/2021: Registration with the R.U.M.P. – Preventive Deregistration

Summary: The Federal Mining Secretariat has ordered that the mining companies that do not register within 30 days in the R.U.M.P. (Unique Registry of the Ministry of Production), will be given a “Preventive Deregistration”, will be suspended, and will not be able to use certain benefits of the Mining Investments Law (LIM), such as exemptions for mining imports.

Comment: This Resolution follows the policy of deeper auditing, established by Resolution No. 47/2020, which generated the “Annual Inspection Plan” (with consequent summaries, audits, and Preventive Deregistrations), and the Resolutions of 2021 No. 50, 51, 71, and 83, which resolved the Preventive Deregistration of more than 220 registrations from the Registry of beneficiaries of the Mining Investment Law.

Dear Sir or Madam,

Resolution No. 195/2021 of the Ministry of Productive Development – Federal Mining Secretariat (the “Resolution”), published in the Official Gazette on July 1st, 2021, provides for a series of measures, including:

1) The obligation – to the identified parties in the Sole Annex IF-2021-55301697-APN-SSDM#MDP – to fulfill the registration procedure before the Ministry of Production Single Regime (R.U.M.P.), within thirty (30) calendar days as from the Resolution.

2) It establishes that if the interested party does not comply with what is established, the registration status of the interested party will be updated as “Preventive Deregistration”, following Resolution No. 118/20.

The Sole Annex (Anexo Único) indicates the registered entities with the FMIL Registry that must comply with the Resolution. Thus, the Sole Annex indicates that this includes: (a) 248 mining producers and (b) 20 service providers.

The Sole Annex identifies these entities by their Tax ID (“CUIT”) as issued by the Federal Tax Authority (“AFIP”).

The Preventive Deregistration is the result of non-compliance with the obligations established in the Federal Mining Investment Law No. 24,196 (“FMIL”), which set forth a special promotion regime for the development of the mining activity in Argentina.

The FMIL grants tax benefits and customs exemptions to those that are registered in the FMIL’s Registry. At the same time, it establishes that being registered in such Registry entails the fulfillment of certain obligations, such as the submission of affidavits on the use of aforementioned benefits, the obligation to use the goods imported under FMIL, Section 21 exclusively for mining activities, and to ensure compliance with the requirements made by the Enforcement Authority (the Mining Secretariat), among others.
Previously, Resolutions No. 50/2021 and No. 51/2021, dated 03/08/2021, and Resolutions No. 71/2021 and No. 83/2021 dated 04/13/2021 ordered the Preventive Deregistration of certain registrants in the FMIL Registry.

The Resolution establishes that those affected by the issuance of the declaration of Preventive Deregistration may request their reinstatement following the provisions of Resolution No. 118/20, Section 4. In other words, to be reinstated, it must: (a) accredit its registration before the RUMP; (b) accredit the constitution of electronic headquarters, and (c) submit all the sworn statements due corresponding to the FMIL and the regulations in force at the time of requesting the rehabilitation.

The Resolution also establishes that this new provision will not interfere with the continuation and/or initiation of the summary proceedings in process or initiated for alleged infringement of the FMIL. And concerning those registrants who have initiated summary proceedings, they will continue the relevant process according to Resolution No. 26/2021

Resolution No. 195/2021 will be effective as of 07/01/2021.

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

Marcos Moreno Hueyo
Dolores Reyes