Mining 2025

ARGENTINA Law and Practice Contributed by: Sebastián P. Vedoya, Sergio Arbeleche and Dolores Cattaneo, Bruchou & Funes de Rioja

concessions from the respective provincial min - ing authorities, under the applicable rules of the FMC. Exceptionally, exploration or exploita - tion rights may be obtained through contracts executed with state-owned companies holding mining properties. Types of Mineral Rights According to the Federal Mining Code Exploration permit or cateo Prior to conducting prospection and/or explora - tion activities, it is advisable that an exploration permit ( cateo ) be obtained. An environmental permit must be obtained in order to conduct the exploration works. Although discoveries as a result of exploration activities without an exploration permit can occur (provided any such exploration is conducted in an area free of regis - tered mining rights), thus making the exploration permit not always a material requirement, doing so is not advisable and may lead to conflict with other registered holders of mining rights and surface landowners, resulting in significant fines and potential criminal accusations. A cateo is an exclusive exploration permit grant - ed by the Mining Authority for a certain period, covering a specific area. During its validity term, the cateo gives the concessionaire the exclu - sive right to conduct exploration activities in the defined exploration area, and exclusivity to declare discoveries in such area. An impor - tant aspect of being able to perform exploration activities allowed under a permit is the ability to maintain the exploration permit in good stand - ing. The size of a cateo is measured in units of 500 hectares (has), which is the minimum size of a cateo the maximum size is 20 units (10,000 has). No single person or entity (nor its agents) can

hold more than 20 cateos or more than 400 units (200,000 has) per province. A cateo of one unit has a duration of 150 days. For each additional unit, the overall duration is increased by 50 additional days. Cateos exceed - ing four units in size must be periodically reduced in size. Once 300 days have elapsed, 50% of the area in excess of four units must be relin - quished. After 700 days, 50% of the remaining area in excess of four units must be relinquished. The application for relinquishment must show the co-ordinates of the area being kept by the applicant. The steps to be taken to obtain a cateo can mainly be summarised as follows: • application and payment of canon (explora - tion fee); • Graphic Register certification that the area is available; • registration of the application; • publication of the application and notice to the surface owner; and • granting of the cateo to the applicant. The cateo application filed first in time with the Mining Authority gives the applicant priority over third parties claiming permits for the same areas. Discoveries made in a cate by third parties is not allowed and would only benefit the holder of the cateo . The cateo permit does not allow the conducting of exploitation activities, and for this purpose a registered discovery claim is required. Exploitation Permit (Registered Discovery Claims and Mining Concessions) In order to be able to conduct mining exploi - tation activities, a discovery claim needs to be

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