PORTUGAL Trends and Developments Contributed by: Manuel Protásio and Catarina Coimbra, VdA
between the government and responsible investors. Another issue faced by investors in the min - ing sector in Portugal relates to obtaining land rights. While mining rights enable a promoter to explore and market mineral resources, they do not confer any real property interest over the land in which a mining facility is located. This means that promoters must obtain all the neces - sary permits before landowners and pay them due compensation. An awarding scheme where the required land rights are secured before the granting of the mining rights could enhance the approval process and facilitate the start-up of mining operations. Sustainable and Responsible Mining As global awareness of environmental issues increases, there is a strong push for sustainable and responsible mining practices in Portugal. In recent years, the Portuguese government intro - duced new regulations for the mining sector which reflect the growing awareness of the need to balance economic development with environ - mental protection and social responsibility. The changes introduced to the regulation of mining rights and the extractive industry sector in gen - eral relate, notably, to: (a) the distribution of exploitation benefits (ie, royalties) between the state, the munici - palities and local populations; (b) having concession agreements impose that minerals be processed on national territory; (c) introducing more stringent environmental sustainability standards (in compliance with green mining standards); (d) the recognition of the wider inspection powers of the regulatory agency; and
(e) the promotion of public participation/con - sultation in the awarding procedures for granting mining rights. Mining companies in Portugal are also commit - ted to implementing environmentally friendly technologies and practices to minimise the eco - logical impact of their activities. Efforts include reducing carbon emissions, managing water resources effectively, and rehabilitating mining sites after closure. This focus on sustainability aims to ensure that mining operations align with the broader objectives of environmental preser - vation and social responsibility. This has been a topic of major concern for min - ing companies, as the local communities and the environmental organisations have been quite challenging for recent mining projects in Portu - gal, particularly lithium projects. Environmental, Social, and Governance (ESG) principles have become crucial pillars in the min - ing sector, shaping the way companies operate and interact with their stakeholders. Integrating ESG principles into the mining sector offers numerous benefits, as follows. • Enhanced reputation – companies that prioritise ESG factors build stronger reputa - tions and brand loyalty among stakeholders, including investors, customers, and commu - nities. • Access to capital – investors are increasingly considering ESG criteria when making invest - ment decisions. Companies with a strong ESG performance are more likely to attract capital from responsible investors and finan - cial institutions. • Operational efficiency – sustainable practices often lead to greater operational efficiency,
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