PORTUGAL Trends and Developments Contributed by: Manuel Protásio and Catarina Coimbra, VdA
Optimising the Award Process Although the applicable legislation allows for the granting of mining rights through public tender procedures, this is not common practice in Por - tugal. Instead, most mining rights are typically awarded following a request from the interested party, with public tenders only used if several parties are interested in the same mining area. In recent years, there have been attempts to shift this paradigm, making the state the project ini - tiator, although no concrete steps have yet been taken to implement this modification. This change aims to ensure transparency, fair - ness, and optimal management of natural resources, as well as to foster community trust. The advantages of the public tender for the award of mining rights can be described as fol - lows. • Transparency a public tender process pro - motes transparency by providing a clear and open platform for all potential investors and companies in which to participate. This openness helps to minimise corruption and favouritism, ensuring that the process is fair and that all stakeholders have equal access to information and opportunities. • Fair competition – public tenders encourage healthy competition among bidders, driving them to present their best proposals in terms of technical expertise, financial commitments and sustainable practices. This competitive environment helps ensure that the mining rights are awarded to the most capable and responsible company, which can effectively manage and develop the resource. • Optimal resource management – by evaluat- ing multiple bids through a structured tender process, the government can select a bidder that offers the best value and most respon - sible approach to resource extraction. This
process ensures that natural resources are managed efficiently, maximising economic benefits and minimising environmental and social impacts. • Increased revenue – public tenders can lead to higher financial returns for the government. The competitive bidding process often drives up financial offers, ensuring that the state receives a fair, often higher, price for granting the mining rights. This increased revenue can be utilised for public services, infrastructure, and community development. • Sustainability and accountability – a public tender can include specific criteria related to environmental protection, social respon - sibility, and sustainable mining practices. By setting these standards in the tender require - ments, the government can ensure that only companies committed to sustainability and accountability are awarded mining rights. • Community trust and engagement – trans- parent and fair processes help build trust between the government, the mining industry, and local communities. When communities see that mining rights are granted through an open and competitive process, they are more likely to have confidence in the decision-mak - ing process and in the companies selected to operate in their regions. • Legal and regulatory compliance – the tender process can ensure that all bidders comply with national and international legal and regu - latory frameworks. This reduces the risk of future legal disputes and environmental dam - ages, promoting a more stable and predict - able investment climate. • Attracting high-quality investors an open ten - der process can attract high-quality, reputa - ble investors who are confident in operating within a transparent and competitive context. This can lead to better overall project out - comes and foster long-term relationships
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