TIMOR-LESTE Law and Practice Contributed by: João Afonso Fialho, Tomás Cabral Anunciação and Teófilo de Jesus, VdA
1. Mining Law: General Framework 1.1 Main Features of the Mining Industry Most of Timor-Leste’s mineral resources remain unexplored. According to the Atlas of Mineral Resources of the ESCAP Region published by the United Nations Economic and Social Com - mission for Asia and the Pacific, the target min - erals in the country are chromite, copper, cop - per-gold, gold and silver manganese, as well as some non-metallic minerals such as bentonite, limestone, marble and phosphate. The country also has battery mineral reserves such as chro - mium, cobalt and nickel. Notwithstanding the huge potential of Timor- Leste’s mineral resources, the country’s mining industry is still at an early phase of development (on an industrial scale). The government is focused on attracting and developing investment in the sector, which con - tributes to the creation of jobs, improvement in the living conditions of the population, an increase in the country’s tax revenues and diver - sification of the economy, reducing its depend - ency on the oil and gas industry. Acknowledging the potential economic value of the existing mineral resources in Timor-Leste, the government decided to launch a public ten - der in March 2023 for the award of mineral rights over 49 concession areas for the exploration and mining of metallic minerals, gemstones, indus - trial minerals, radioactive minerals, rare earths and coal. In November 2023, the government awarded licences to prospect and research 13 mining areas to four companies, Estrella Resources, Peak Everest Mining, Iron Fortune and Beacon Minerals.
Moreover, between 2023 and 2024, the govern - ment enacted legal frameworks with an impact on the mining sector, which included: • the creation of a regulatory authority exclu - sively dedicated to the mining sector, the National Authority of Mineral Resources or ANM (which is the result of a split from the former Petroleum and Mineral Resources National Authority or ANPM); • the legal redefinition of the state-owned min - ing company Murak Rai Timor, EP; and • the legal regime for classifying and marketing strategic minerals. 1.2 Legal System and Sources of Mining Law Timor-Leste has a civil law legal system. The main sources of mining legislation in Timor- Leste are the Timorese Constitution and the Min - ing Code (approved by Law 12/2021, of 30 June 2021). The Mining Code is the main legal instrument in the sector, governing the award and exercise of mineral rights, from exploration to process - ing and marketing of all types of minerals. Sec - tions of the environmental licensing process and the tax regime are also applicable to the min - ing industry. The approval of the Regulations to the Mining Code (including rules for the clas - sification of minerals, management and use of the mine closure reserve, health and safety in mining operations, administrative offences and investigation procedures in mining operations, etc) is still under review by the government, with approval pending. 1.3 Ownership of Mineral Resources In accordance with the Timorese Constitution and the Mining Code, the Timorese State is the
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