ECUADOR Law and Practice Contributed by: Roque Bernardo Bustamante and Claudia Bustamante, Flor Bustamante Pizarro & Hurtado
lance, auditing, intervention and control of the phases of mining activity carried out by ENAMI, and in mixed-mining companies, private initia - tive, small-scale mining and artisanal and liveli - hood mining, in accordance with the regulations of this law and its regulations. ARCOM has the competence to supervise and adopt administrative actions that contribute to the rational and technical exploitation of the mining resource, and to the claiming of the fair share of the benefits by the State as a result of its exploitation, as well as to the fulfilment of social and environmental responsibility obliga - tions assumed by the holders of mining rights. ARCOM has the following attributions, among others: • to keep a register and cadastre of mining concessions and publish it by electronic means; • to inspect the mining activities carried out by the holders of mining rights and titles; and • to grant licences for the commercialisation of mineral substances determined in the present law. ARCOM also regulates the assignment and transfer of mining rights as well as other industry All minerals and products thereof found under - ground belong to the State of Ecuador, as per the provisions of the Ecuadorian Constitution. The law allows the State of Ecuador to grant a mining concession through the issuance by the central government of a mining concession title, which, subject to the provisions of the law, including environmental laws and regulations, enables the mining concession holder to explore issues, as it is the regulating entity. 1.5 Nature of Mineral Rights
and produce minerals. Mineral rights granted through concessions do not have the status of property, but of rights to explore and produce. Once the minerals are produced, they become the property of the concession holder, who can sell them freely on the market. Any natural or legal person, national or foreign, except those prohibited by the Constitution of the Republic, has the power to prospect freely, for the purpose of seeking minerals, except in protected areas and within the limits of mining concessions, in urban areas, populated areas, archaeological areas, goods declared to be of public utility and in Special Mining Areas. The President of the Republic of Ecuador may declare Special Mining Areas, subject to Arti - cle 407 of the Constitution of the Republic, in those areas in which there is potential for mining development and which are not concessioned, with the purpose that the Ministry of Energy and Mines, through its attached entities, carry out cadastres, geological-mining investigations or other types of activity of scientific interest, within their respective competencies. The declaration of a Special Mining Area shall expressly establish the term of validity of the Special Mining Area, which may not exceed four years; once this term has expired, it shall be lifted without the need for any provision that so declares. In all cases, the declaration will respect the legally established rights or those derived from them. Natural or juridical persons, national or foreign, who are holders of mining rights or who carry out mining activities, are subject to the laws, courts and judges of the country.
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