Mining Secretariat Resolution No. 40/2022 – Companies registered in the FMIL Registry – Violations.
Mining Department Report | Mining Secretariat Resolution No. 40/2022 – Companies registered in the FMIL Registry – Violations
Dear Sir or Madam,
Mining Secretariat Resolution No. 40/2022 (the “Resolution”), published in the Official Gazette today, modifies the procedure, previously established by Resolution No. 26/2021, applicable to the infringements established by the Federal Mining Investment Law No. 24,196 (the “FMIL”).
The Resolution amends Resolution No. 26/2021, Section 10, by establishing that, at the sole discretion of the Federal Mining Secretariat (“FMS”), the company registered in the FMIL Registry, incurs any of the violations provided by the FMIL, Section 28 (c) it will be notified within ten (10) administrative working days, so that:
(a) submit any evidence of having complied in due time and in the required conditions.
(b) rectify the non-compiled requirement, by submitting the relevant information and/or documentation.
(c) submit a statement that the non-compliance is not due to force majeure, acts of God, or acts of third parties for which it is not responsible.
If in the criteria of FMS, compliance is evidenced in accordance with paragraph (a), the proceedings shall be filed without further action. If subsection (b) is met, the FMS will apply the appropriate penalties provided for in FMIL, Section 29 subsections 3 and 4. In the event of the occurrence of subsection (c), the FMS may: (i) order the proceedings to continue by means of the procedural steps provided for in Resolution No. 26/2021, Section 5; (ii) apply the sanctions resulting from the FMIL, Section 29, subsections 3 and 4 or (iii) proceed to archive the proceedings, according to the circumstances of the case.
In all cases, once the infraction that gave rise to the proceedings has been verified, the administrative act that determines the application of sanctions shall be issued after a final report and the intervention of the Permanent Legal Service.
During the course of the simplified procedure and until the penalties are effectively complied with, the FMS will take the appropriate precautionary measures to protect the tax interest, of which -if applicable- the Tax Authority (“AFIP”) will be informed.
The Resolution also defines “recidivism” as the repetition of infringements for at least five (5) opportunities in the calendar year, by the company registered in the Registry of the FMIL, which have been sanctioned in accordance with the established procedure”. The definition of “recidivism” must be analyzed with the FMIL, Section 29, subsection 3.
The Resolution will be effective as of June 3rd., 2022.
Please, do not hesitate to contact us should you require any further information.
Marcos Moreno Hueyo