DOMINICAN REPUBLIC Law and Practice Contributed by: Giselle Pérez Reyes and María Virginia Ditrén Báez, Guzmán Ariza Abogados
for itself the right to directly undertake these activi - ties, shifting from a traditional grantor-regulator role to an owner-operator model for this specific category of strategic minerals. The decree authorises the State, acting through the MEM or a designated State-owned entity, to carry out exploration and exploitation activi - ties directly, or to engage private parties only under special contractual schemes in which the State leads or retains control. As a result, rare earth projects fall outside the standard concession regime and are sub - ject to heightened State participation and strategic oversight. This exception reinforces the State’s sovereign author - ity over critical mineral resources and establishes a dual system: a concession-based regime for general mining activities, and a State-operated or State-con - trolled regime for rare earth elements deemed essen - Mineral rights in the Dominican Republic have an indi - rect constitutional basis and derive formally from stat - ute, not from contract. The Constitution establishes that non-renewable natural resources are part of the public domain of the State, which provides the foun - dation for the regime of State-granted mineral rights. Under this framework, mineral rights are created exclusively through administrative concessions grant - ed pursuant to Mining Law No. 146-71 (as amended by Law No. 79-03). These concessions confer a real right in rem over the defined concession area, allowing the holder to explore or exploit mineral substances under State supervision. Although the underlying minerals remain the property of the State, the concession itself is recognised as a property right of the concessionaire with economic value, capable of being transferred, encumbered or inherited, subject to regulatory approval. 1.6 Granting of Mineral Rights Mineral rights in the Dominican Republic are granted exclusively at the national level. The MEM, acting through the DGM, serves as the competent authority to evaluate applications and issue administrative reso - lutions granting reconnaissance permits, exploration tial to national strategic interests. 1.5 Nature of Mineral Rights
concessions and exploitation concessions pursuant to Mining Law No. 146-71 (as amended by Law No. 79-03). Although the MEM is the sole authority empowered to grant mineral rights, project development requires interaction with other governmental bodies, which creates areas of jurisdictional overlap – particularly in the case of non-metallic mining. Under Non-Metal - lic Mining Law No. 123-71 and the Mining Law, the MEM and the Ministry of Environment share concur - rent responsibilities over quarrying and non-metallic resource exploitation. The MEM retains authority over the granting and technical regulation of mining rights, while the Ministry of Environment exercises manda - tory environmental control, including the issuance of environmental authorisations, operational conditions and land-use restrictions. As a result, non-metallic mining projects must comply simultaneously with the MEM’s mining regulations and the Ministry of Envi - ronment’s environmental and territorial requirements, which often produces practical overlaps in permitting, inspection and enforcement. Despite these overlaps, mineral rights themselves remain strictly within national jurisdiction. Municipal governments may issue land-use or operating permits for specific activities, but they hold no authority to grant or deny mineral rights. Mineral rights are not granted through private con - tracts. They arise solely from administrative acts issued by the MEM in accordance with the Mining Law. In exceptional situations – such as when the State declares a fiscal reserve or strategic area – the State may enter into a special contract with a private operator to structure exploitation activities; however, the underlying entitlement continues to derive from the State’s administrative authority rather than from private law. 1.7 Mining: Security of Tenure Security of tenure in the Dominican Republic is based on State-granted administrative concessions, which confer exclusive rights over a defined area for legally established periods, subject to compliance with tech - nical, fiscal and environmental obligations.
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