NORTH MACEDONIA Law and Practice Contributed by: Ana Tosic Chubrinovski, Ivica Jevtic, Ljupka Naumoska Gjorgjievska and Marija Boceska, JPM Partners North Macedonia
responsibility for conducting these consultations is divided between the state authorities and the investor.
ernment participation, strict occupational safety rules as well as obligations regarding transparency, over - sight, and corporate governance, a de facto frame - work has been established that addresses the ESG risks and impacts in the mineral sector. 2.8 Illegal Mining The existence of detailed and strict legal provisions regulating and sanctioning the illegal exploitation of mineral resources indicates that the legislature rec - ognises this as a significant problem. The legal system establishes a clear distinction between legal and illegal activity, whereby legal exploitation is conditioned on obtaining a concession and an exploitation permit, while any activity without these documents is considered unlawful and entails administrative and criminal liability. Moreover, the state authorities respond to illegal exploitation, starting from detection and urgent field measures, up to serious administrative and criminal sanctions, including imprisonment and permanent confiscation of equipment. 2.9 Good and Bad Examples of Community Relations/Consultation Impacting Mining Projects A good example of community relations and consulta - tions would be a mining project that follows all legally prescribed steps for transparency, public participa - tion and respect for local rights. Such a project would proceed through the following phases: • planning and information phase; • co-operation with local self-government; • protection of property and community rights; and • operational phase and continuous dialogue. In this scenario, the project is implemented with mini - mal social conflict, as the community is involved and informed, and its rights are respected at every stage. A bad example would be a project where the investor and/or competent authorities neglect or merely for - mally implement the legal obligations for consultation, leading to conflict, mistrust and legal challenges.
2.5 Impact of Specially Protected Communities on Mining Projects
The legal system does not use the terms “indigenous” or “traditional people”; it provides an exceptionally high level of protection for groups defined as “com - munities” based on their ethnic, cultural, linguistic and religious identity. This protection is enshrined in the Constitution of the Republic of North Macedonia and is elaborated in detail through specific laws that guarantee a range of rights – from the protection of identity, language and culture to political participa - tion and equitable representation in the public sector. Specialised institutions at the national and local levels have also been established to implement these rights, indicating a systemic and comprehensive approach to the protection of these communities. 2.6 Community Development Agreement for Mining Projects A community development agreement is not legally mandatory in the Republic of North Macedonia, but the legislation provides mandatory mechanisms that largely fulfill the same function, such as: • the mandatory requirement for an opinion from the local self-government, which provides significant negotiating power; • mandatory public participation; and • the possibility for citizens to directly express them - selves through referendums and assemblies. Consequently, these mechanisms imply that investors in mining projects are almost compelled to establish a constructive dialogue and take into account the inter - ests of the local community in order to ensure the smooth implementation of the project. 2.7 ESG Guidelines and Regulations In the legislation of the Republic of North Macedo - nia, there is no single law or set of regulations called “ESG”; rather, there exists a complex and intercon - nected system of laws covering all three components. Through mandatory environmental permits and assessments, mechanisms for public and local gov -
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