TIMOR-LESTE Law and Practice Contributed by: João Afonso Fialho, Tomás Cabral Anunciação and Teófilo de Jesus, VdA
• there is proof of tax debts for two consecutive fiscal years during the mining phase; • the holder of the mineral rights intentionally provides false information to any government entity or the National Authority of Mineral Resources; • the holder of the mineral rights fails to comply with the obligation of relocating or indemnify - ing local communities for damages caused by mining activities; • an illegal transfer of the mineral right occurs; • an illegal transfer of a dominant interest or participation occurs; or • the mineral activities are suspended for 120 consecutive days, except if such suspen - sion is previously approved by the National Authority of Mineral Resources, or if it is caused by any act or omission on the part of the state or one of its representatives, or if it is caused by a force majeure event. 2. Impact of Environmental Protection and Community Relations on Mining Projects 2.1 Environmental Protection and Licensing of Mining Projects Laws and Regulations The Mining Code contains specific provisions regarding prevention and minimisation of envi - ronmental and human damages, and establish - ing the award of environmental mining licences. Decree-Law 5/2011, of 9 February 2011, which established the environmental review and licens - ing procedure, as amended by Decree-Law 39/2022, of 8 June 2022 (the “Environmental Licensing Regime”); Decree-Law 26/2012, of 4 July 2012, which approved the Framework Envi - ronmental Law; and Decree-Law 41/2022, of 8 June 2022, which created the National Authority
for Environmental Licensing, are also relevant in this respect as they foresee provisions regarding environmental protection and licensing of mining projects in Timor-Leste. Main Environmental Authorities The main environmental authorities responsible for the administration and supervision of com - pliance with the above-mentioned diplomas are the National Authority of Mineral Resources, the National Authority for Environmental Licens - ing, and the Ministry of Petroleum and Mineral Resources. Review and Licensing Processes The environmental review and licensing pro - cesses are regulated by the Mining Code and by the Environmental Licensing Regime. The Min - ing Code foresees the possibility of approval of a specific diploma regarding the environmental review and licensing procedure of mining activi - ties, which has not to date been enacted. The entity responsible for the review process and approval of the environmental licence is the Ministry of Petroleum and Mineral Resources, in co-ordination with the National Authority of Mineral Resources and the National Authority for Environmental Licensing. According to the Environmental Licensing Regime, mining projects are subject to envi - ronmental impact assessments, which must be requested from competent bodies. Pursuant to the Environmental Licensing Regime, the com - pletion of the review and licensing process may take up to 90 days. 2.2 Impact of Environmentally Protected Areas on Mining Pursuant to the Mining Code, certain areas may be declared as excluded areas for mineral activ -
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