TIMOR-LESTE Law and Practice Contributed by: João Afonso Fialho, Tomás Cabral Anunciação and Teófilo de Jesus, VdA
• where mineral passes (for artisanal mining) are being awarded. Mineral resources may be classified as strategic by the Council of Ministers on any of the follow - ing grounds: • economic importance; • energy security; • balance of the country’s commercial trade; • rarity; • national defence and security; and • growth support of domestic manufacturing industries. Public Tender According to the Mining Code, the procedure for the award of mineral rights is as follows: • Reconnaissance authorisation must be requested from the National Authority of Min - eral Resources. • A natural or legal person is then required to apply for an exploration and appraisal licence. An exploration and reconnaissance licence may then be granted, provided that it has been previously approved by the Council of Ministers (or by the Ministry of Petroleum and Mineral Resources, as applicable). • The award of a mining licence is granted through a mining agreement (previously approved by the Council of Ministers) between the third party and the National Authority of Mineral Resources, in which the operational and economic terms and con - ditions of the agreement are defined. The operation and mining licence is issued by the National Authority of Mineral Resources (sub - ject to previous authorisation by the Ministry of Petroleum and Mineral Resources). • Mineral permits for the exploration and min - ing of construction materials or ornamental
stones are awarded by the Ministry of Petro- leum and Mineral Resources (upon proposal by the National Authority of Mineral Resourc - es), except where the applicant intends to export the construction materials produced, in which case, the Council of Ministers must also be consulted. • Mineral permits for the exploration and mining of transformation minerals are awarded by the Ministry of Petroleum and Mineral Resources upon consultation with the Council of Minis - ters. • Mineral passes for artisanal mining are issued by the Ministry of Petroleum and Mineral Resources and/or the National Authority of Mineral Resources (with delegated powers). • Marketing licences are issued by the National Authority of Mineral Resources, following a request by an interested party who is not the holder of the mining licence. 1.7 Mining: Security of Tenure Award of Mineral Rights and Progress From Exploration to Mining Mineral rights can be awarded by means of pub - lic tender or by direct award. According to the Mining Code, mineral activities are exercised in four stages: • reconnaissance (optional phase); • exploration and appraisal; The rights and obligations of the holders of min - ing rights are set out in the Mining Code and fur - ther developed in the relevant mineral contracts (where applicable). To develop exploration and appraisal activities, a natural or legal person is required to apply • mining; and • marketing.
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