The Ministry of Energy and Minerals (MOEM) has issued a circular to all companies and institutions that the ownership of mining licenses cannot be transferred without its approval.
The decision is based on provisions of the Mineral Resources Law promulgated by Royal Decree No. 19/2019 and the ministry calls upon all companies and institutions, ” Not to assign the license issued to them to others, or to waive all or some of the rights and obligations arising from the license, rent mining sites, or delegate others to extract and sell raw materials by any means. The Ministry provides a period until March 31, to correct the violation of the aforementioned, and in the event that a violation of this is proven in any way, the license will be permanently canceled.”
The ministry added, “There shall no changes to the legal form of the company/institution, sell shares, amend partners’ shares, merge, divide or acquire, enter new partners, transfer ownership of the company/institution by assignment or sale without prior notice to the ministry and prove the technical competence and financial solvency of the new owners or partners and obtaining the written approval of the Ministry on that, and in the event that it is proven violating this in any way, the license will be permanently canceled.”
“Disclosure to the Ministry, first-hand, of all service contracts justified with subsidiary companies that have the provision of a specific service for a limited period in exchange for an amount agreed upon by the two parties without having any entitlement to the metal services at the site, and in the event that a violation of this is proven in any way, the license will be canceled permanently.”
And all companies must implement what was stated in this circular, and in the event that a violation of this is proven in any way, the license will be permanently canceled and the necessary legal litigation will be taken.