NORTH MACEDONIA Law and Practice Contributed by: Ana Tosic Chubrinovski, Ivica Jevtic, Ljupka Naumoska Gjorgjievska and Marija Boceska, JPM Partners North Macedonia
mandatory government joint venture, equity partici - pation or contracting requirements apply to mining projects. Exploration and exploitation are carried out by private operators holding concessions awarded and supervised by the competent authorities, subject to strict environmental protection and environmental, social and governance (ESG) compliance obligations. 1.5 Nature of Mineral Rights Mineral rights derive from statute and concession contracts, not from constitutional ownership rights. A concession constitutes an exclusive right to explore or exploit minerals within a defined area. While it does not provide ownership of mineral deposits, the con - cession has characteristics of a protected property interest, including exclusivity, transferability (subject to state approval), enforceability before courts and the Mineral rights are granted at the national level by the Ministry of Energy, Mining and Mineral Resources. There is no regional or municipal licensing authority, and no overlapping jurisdiction. Rights are awarded through a public tender process, formalised by a concession agreement executed between the state and the successful bidder. The agreement defines the concession area, duration, ESG obligations, royalties, reporting obligations and rehabilitation duties. 1.7 Mining: Security of Tenure ability to be pledged as security. 1.6 Granting of Mineral Rights Security of tenure is ensured through a combination of statutory and contractual protections. Concessions for the exploitation of mineral resources are granted for periods of up to 30 years and, depending on the verified mineral reserves established in approved geo - logical studies, may be extended for an additional period of up to 30 years, subject to continued com - pliance with applicable legal and contractual require - ments. Holders of exploration rights are entitled to progress to exploitation upon confirmation of com - mercially viable reserves and completion of all nec - essary permitting procedures. Revocation of mineral rights is permitted solely in cases of material breaches of legal or contractual obligations and is subject to due administrative process and judicial review. Con - cessions may be transferred or pledged as security with prior governmental approval. Concessionaires
retain full operational control over extraction, pro - cessing and marketing activities within the applicable regulatory framework. 2. Impact of Environmental Protection and Community Relations on Mining Projects 2.1 Environmental Protection and Licensing of Mining Projects The legal framework regulating environmental protec - tion in the context of mining projects is comprehen - sive and consists of several laws that establish the obligations for nature protection, control of industrial emissions and duties related to the exploitation of mineral resources. The Law on the Environment is the primary law govern - ing the rights and obligations of all entities in ensuring conditions for the protection and improvement of the environment. This law regulates key principles such as the precautionary principle, under which meas - ures are taken even when there is only a suspicion of harmful consequences, and the prevention principle, under which measures are undertaken before harmful consequences occur. The Law on Mineral Resources is the law regulating geological research and the exploitation of mineral resources. It explicitly states that every activity must comply with the principles of sustainable development and environmental protection for the duration of the activities, and also imposes an obligation to carry out remediation and reclamation of the area after the com - pletion of activities. The Law on Industrial Emissions Control is essential because it regulates the integrated prevention and control of pollution from industrial activities. The Law on Waters regulates the management of surface and groundwater, their protection and pro - tection from their harmful effects, as mining projects involve activities such as the abstraction, pumping or discharge of water.
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