Mining Algeria: Guide for the granting of mining permits

2019-07-24 Opinion Article

mining Algeria

Mining Law No. 01-10, of July 3, 2001, was repealed and replaced by Law No. 14-05, of February 24, 2014. However, in the latter it is specified that the texts approved under Mining Law No. 01-10 will continue to apply until the promulgation of the texts of application of the new law. Thus, the old provisions regarding the modalities and procedures for granting mining exploitation permits have continued to be applied until now, when they were replaced by Executive Decree No. 18-202, of August 5, 2018, which has just been published.

This decree is fundamental and allows the administration of almost all mining activity in Algeria. The fundamental principles developed in the Decree are summarized below.

Who assigns mining permits?

The allocation of mining permits is the prerogative of the National Mining Activities Agency (ANAM). However, within the framework of the execution of infrastructure, equipment and housing projects provided for in the district’s development programs, the territorially competent governor may grant quarry exploitation permits. However, not all mineral substances covered by the quarry system may be subject to such permits, which may be granted by the governor, but only the mineral substances used in such projects, the list of which is established in the aforementioned decree.

How are permits issued?

Permits will be granted by direct adjudication or by bidding to the applicant, who must have the necessary technical and financial capacity. Before any award or direct attribution, technical files are prepared and submitted to the competent services for prior investigation.

Direct attribution applies:

-Mining research programs on behalf of the State

Holders of a prospecting (or exploration) license who wish to carry out an exploration (or exploitation) activity

Renewal of prospecting, exploration or exploitation licenses

But also:

-Requests for mining permits for strategic substances, made by a public economic company or a public institution. For the exercise of its mining activity, this company or establishment may enter into a contract with a legal entity under Algerian or foreign law

Licensee requests for the exclusive satisfaction of the needs of their active mineral processing facilities

-Requests from the companies selected by the governor, within the framework of the realization of infrastructure, equipment and housing projects planned in the district’s development programs

-At the request of public economic companies responsible for projects assigned by public authorities

In the case of the aforementioned applications, the direct attribution of permits is accompanied by the payment of allocation rate.

The tender will be applied, in cases other than those mentioned above, and will be aimed at obtaining bids from several bidders, after calling for bids and selecting them, in accordance with the requirements established in the specifications in which they set the conditions applicable to the tender in question.

Thus, the granting of permits by auction is based on the following procedures and principles:

-Verification of the conformity of the offers: After the preparation of the specifications, the reception of the offers and the public opening of the same, by the ANAM, the latter checks, in public session, the material existence of the required documents and decides on the admissibility or rejection of the file, in accordance with the provisions of the specifications

-Evaluation of technical offers: The ANAM then evaluates the technical offers of the offers declared admissible, in order to select those that comply with the provisions of the tender specifications

-Notification of the results of the technical evaluation: At the end of this evaluation, ANAM notifies the non-selected bidders of the reasons why its technical offer was rejected and invites the selected bidders to submit a financial offer

-Evaluation of financial offers: When opening financial offers, ANAM selects, during the meeting, those that are in compliance and selects the most advantageous proposal, based on the criteria (s) established in the specifications of conditions

-At the end of the selection process of the bidder who submitted the most advantageous offer, ANAM delivers to the bidder a report of the award, which returns the checks that constitute its financial offer to the unselected bidders. He/she who be successful has three months to submit to the ANAM the application file for the required mining permit. During this period, ANAM examines the mining permit application file and can express reservations to be raised by the bidder

-As soon as the permit application file is admissible, ANAM grants mining permission to the winning bidder

Some provisions regarding different permits

-You cannot issue permits in a protected site

-The different permits cover: mining exploration, mining exploration, mining, quarries, artisanal mining and the collection, collection and / or harvest of mineral substances

-These permits are issued by ANAM. However, the governor may grant quarry permits under the conditions indicated at the beginning of this presentation

-The authorization request forms, the standard regulatory files and the documents forms and the corresponding scheme, which must be attached to the application, are attached to the aforementioned Decree

-Permits are granted for fixed terms and can be renewed if the holder has fulfilled his obligations. However, they may be suspended or withdrawn after a requirement in case of infringement

-The rejection of the permit application, or the withdrawal of a permit granted, may be appealed to the Minister responsible for the mines within thirty days from the date of notification of the rejection or withdrawal

-The decree also specifies, for the different permits, the conditions of renewal, renunciation, transfer or total or partial transfer, extension or modification of the scope and extension to other mineral or fossil substances

Authors: Khemessi Hetatache


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