MS and candidate countries legislation

Member states

Austria

Belgium

Bulgaria

Croatia

Cyprus

Czechia

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Latvia

Lithuania

Luxembourg

Malta

Netherlands

Poland

Portugal

Romania

Slovakia

Slovenia

Spain

Sweden

Candidate countries

Albania

Bosnia Herzegovina

Georgia

Moldova

Montenegro

North Macedonia

Serbia

Türkiye

Ukraine

Minerals policy, regulatory framework, relevant legislation in Bosnia Herzegovina

BiH represents a multilevel decentralised governance structure, consisting of the autonomous entities of the Federation of Bosnia and Herzegovina (FBiH), and Republika Srpska (RS). The governance system was established by the Dayton Agreement in 1995, according to which both entities have their own constitution, president, government, parliament, and judiciary. The Federation of Bosnia and Herzegovina has 10 autonomous cantons, which further have their own constitution and government. The mining industry in BiH is not subject to regulation at the state level. The responsibility lies with each entity, the FBiH and RS, they have their own agencies that are responsible for mining governance and policy and environmental protection. In RS the mining sector is regulated by the Law on Mining of RS (No. 59/12), the Law on the Geological Survey of RS (No. 110/13), and the Law on Statistic (No. 85/03). The main mining acts in the FBiH include the Law on Geological Exploration (Official Gazette of the Federation of BiH, Nos. 9/10 & 14/10), the Law on Mining (No. 26/10 of 2010), the Law on Concessions (No. 40/02, as amended by No. 61/06), Law on Statistic (No. 26/04) and the Law on Environmental Protection (No. 33/03 of 2003, as amended by No. 38/09). Classification of solid mineral reserves is according to the Rulebook (No. 36/12) by the Federal Ministry of Energy, Mining and Industry of FBiH which yet reflects to soviet A, B, C, D categories. Mineral raw materials covered by the Mining Act are:

energy minerals, all types of fossil fuels, hydrocarbons in solid, liquid and gaseous state, all types of bituminous sand oil rocks, other gases found in soil and radioactive mineral raw materials;
metallic minerals which can be used to produce metals and their compounds;
all types of salt and saltwater, and gases occurring with them;
non-metallic minerals;
subsoil waters: mineral, technical and thermal mineral waters, geothermal sources, and gases that occur with them;
all secondary mineral raw materials occurring as unused residue from the process of obtaining, enriching and processing of primary mineral raw materials; and
any other unlisted mineral raw materials of natural origin.

The governance of mining is complex in the FBiH, as each canton also has its own legislation that is not always compatible with federal legislation. The ministry's jurisdiction over the management of mineral resources is thus shared with the competent cantonal ministries responsible for mining or geology. The division of responsibilities is based on different types of minerals. For example, the Federation's ministry's responsibilities cover metalliferous minerals, whereas cantonal ministries are responsible for the management of non-metallic minerals. Exploration and exploitation permits are issued by the FBiH. However, obtaining a federal permit also requires approval at the cantonal and municipal levels. Concession agreements are issued by the competent cantonal ministries. The management of mineral raw materials under points 1, 2 and 3 is performed by the Federal Ministry of Energy, Mining and Industry. The management of mineral raw materials under 4, 6, 7 is performed by the Cantonal Ministries. The Government of the FBiH has the right to issue the decision for the exploitation of mineral raw materials that are of special interest for the Federation. The management of all minerals is performed by the Ministry of Industry, Energy and Mining of RS. Exceptionally, without a concession contract, the Government may by decision authorize the exploitation of stone in amount of up to 5,000 m³ for the construction or reconstruction of religious buildings and cultural and historical monuments, as well as for the rehabilitation of the consequences of natural disasters.

Competent authorities:

Federation of Bosnia and Herzegovina:

Ministry for Energy, Mining and Industry (https://fmeri.gov.ba/) and its Mining Division

(https://fmeri.gov.ba/ministarstvo/sektor-rudarstva/)

Geological Survey (https://fzzg.gov.ba/)

Foreign Investment Promotion Agency (www.fipa.gov.ba)

Minerals policy, regulatory framework, relevant legislation in Georgia

In 2019, the Government approved a new strategy for development of the country’s mineral resources which requires companies to commit to a certain level of investment for a production license. Also, investors are encouraged to process mined minerals within the country and then export processed products with higher value added. Mineral exploration and extraction licenses are defined by the Law of Georgia on Subsoil [1](No. 242/1996 as amended several times), and the Law on Licenses and Permits (except oil and gas). The maximum duration of the permits is:

a) energy commodities – 45 years;
b) ferrous and non-ferrous minerals – 40 years;
c) construction materials – 30 years;
d) non-metallic minerals – 30 years;
e) groundwater and natural non-flammable gasses – 25 years;
f) construction of facilities not related to extraction of minerals – 45 years;
g) subsoil exploration – 5 years.

The applications can be submitted electronically Licensing Department to the Mineral Resources Management Department which issues a preliminary geological report and circulates the application among the competent authorities to define their conditions and consent. In case of a positive decision, the information package is posted on the website (www.eauction.ge; https://www.namr.gov.ge/en_GB/auction) where an open auction is announced with a 15 days tight deadline. The winner of the call, having paid all the fees, receives the final permit within a couple of weeks. The license can be transferred to all entities (including foreign citizens/companies) that are registered as payers in the Revenue Service in accordance with the current legislation. The amount of mineral exploitation license fee is determined by the Law of Georgia “On Fees for the Use of Natural Resources”. The discovered economic reserves must be reported to the State Inter-Agency Commission on Mineral Reserves. The National Agency of Mineral Resources (NAMR), founded in 2017 by resolution No. 565 of the Government of Georgia, is a legal entity of public law operating under the Ministry of Economy and Sustainable Development of Georgia. It has a wide range of duties: geological survey, registration of mineral resources, incl. a balance and cadastral database, permitting, managing a register of permits, monitoring, etc..

Competent authorities:

Minister of Economy and Sustainable Development of Georgia (http://www.economy.ge/)

National Agency of Mineral Resources (https://www.namr.gov.ge/en_GB)

Unified State Fund for Subsoil (https://nam-geofund.archival-services.gov.ge/)

National Agency of State Property (http://nasp.gov.ge/?lang=en)

Revenue Service (https://rs.ge/Home-en)

Legislation websites:

https://www.matsne.gov.ge/en

https://www.economy.ge/?page=ecoleg

Sources:

Georgia Mining Act in English

https://www.namr.gov.ge/en_GB/licenses?scrollTo=rules-of-accepting-applications

https://pubs.usgs.gov/myb/vol3/2019/myb3-2019-georgia.pdf

https://greenalt.org/app/uploads/2021/05/mining_report_2017_eng.pdf

[1] https://matsne.gov.ge/en/document/view/33040?publication=17

Minerals policy, regulatory framework, relevant legislation in Moldova

The mineral exploration and extraction is regulated by the Subsoil Code No. 3/2009 and the Law on Licensing No. 451-XV of 2001. The riches of subsoil of the Republic of Moldova, including the useful mineral substances and underground spaces are the exclusive property of the state. Subsoil sectors cannot be alienated, they can only be transferred for use. The right of use of subsoil resources is based on Government decision on concession. The concession agreement is concluded between the user (investor) and the Ministry of Environment. It is the competence of the Government to adopt the decisions regarding the transmission for industrial capitalization of the deposits of useful mineral substances of national importance. The minerals of national value are: hydrocarbons, cement minerals, gypsum, quartz sand, and decoration stones.

The Agency for Geology and Mineral Resources is the central administrative authority under the Ministry of Environment, specialized in geosurvey, recording, regulating and controlling the use of mineral resources, aiming to implement the State Policy in the field of geological research, rational use and protection of the subsoil in Moldova. Its tasks are proposals for investments and legislation ensuring raw materials supply; supervision of explorations connected with the use of subsoil with mining legislation, norms and rules under compliance; maintenance of records of the use of subsoil; organization of activity of the State Fund of information on subsoil and managing “State Geological Register”.

Competent authorities:

Government of Republic of Moldova (https://gov.md/en)

Ministry of Environment (https://www.mediu.gov.md/en)

Agency for Geology and Mineral Resources (https://agrm.gov.md/en/despre-noi/functiile-si-sarcini-en)

Legislation websites:

https://gov.md/en/content/legislation-republic-moldova

https://cis-legislation.com/search.fwx?countryid=7

http://lex.justice.md/

https://maia.gov.md/ro/content/legisla%C5%A3ia-na%C5%A3ional%C4%83

Sources:

Moldova Mining Act in English

Approval of the Regulations on the Agency on geology and mineral resources in English

Law of the Republic of Moldova on licensing some type of activities in English

Approval of the List of minerals of national value in English

https://ceelegalmatters.com/oil-gas-2022/oil-gas-moldova-2022

Tiess, G. 2011: Legal basics of mineral policy in Europe – Springer, 394 p., https://doi.org/10.1007/978-3-211-89003-5

Minerals policy, regulatory framework, relevant legislation in North Macedonia

The Law on Mineral Resources (no. 136/2012) is to regulate the exploration and extraction of mineral resources, promoting optimum utilization in harmony with the principles of sustainable development, environmental protection and human health. The Law was adopted with the aim of lowering restrictions on procedures for issuing permits and concessions to secure important foreign direct investment. The procedure for granting concessions is carried out by the Ministry of Economy (Official Gazette of the RNM, No. 189/2016). The concession for geological research is provided on the basis of a public auction. The auction excludes public companies from the competition, while concessionaires are selected based on the criteria defined in the Law on Concessions and Private-Public Equity (Official Gazette RM-No.120/2018). Companies must present in the tender documentation (OG.RM-No.120/2018) the target, the location, the necessary financial means, positive financial reports in the last 5 years of economic activity, company residency, number of employees and business objectives, taxes and contributions paid, the level of assets and debts, proof of payment of 0.25% of the estimated value specified in the tender documentation. The criterion for selection of the most favourable bid is the highest offered financial compensation. The concessionaire is also obligated to pay an annual compensation for the use of the space allocated depending on the type of mineral resource, and the royalty which, for metallic minerals, amounts to 2% of their market value. In accordance with Article 76 of the Law, 78% of the concession compensation goes to the municipalities where the concession activity takes place, while only 22% goes to the state budget. The Law was amended several times to better protect the population’s health and the environment. The Ministry of Economy is currently developing a new Strategy for Geological Research and Sustainable Use and Exploitation of Mineral Resources for 2025-2045 in consultation with the Macedonian Academy for Science and Arts and the Mining Association. The strategy aims to develop the mining sector, with a focus on sustainable use of resources in line with environmental protection standards, and incorporating circularity principles.

Competent authorities:

Ministry of Economy (https://vlada.mk/node/17973?ln=en-gb)

Ministry of Environment and Physical Planning (https://vlada.mk/node/17980?ln=en-gb)

Macedonian Mining Association, Economic Chamber of North Macedonia (https://www.mchamber.mk/Default.aspx?mId=15&id=4&lng=2)

Geological Survey (http://www.geol.gov.mk/)

Legislation websites:

https://vlada.mk/zakoni

https://vlada.mk/podzakonski-akti

Sources:

North Macedonia Mining Act in English

https://tosicjevtic-law.com/sustainable-development-of-the-mining-sector-in-north-macedonia/

Tiess, G. 2011: Legal basics of mineral policy in Europe – Springer, 394 p., https://doi.org/10.1007/978-3-211-89003-5

https://cea.org.mk/?lang=en

https://webbut.unitbv.ro/index.php/Series_V/article/view/1232/1110

Minerals policy, regulatory framework, relevant legislation in Türkiye

Under mining legislations and the Constitution, all minerals are under the ownership of the state and are not the property of the landowner where they are located. The state may transfer the rights of exploration and extraction to a natural person or legal entity for a specific period and subject to payment of a royalty and compliance with licensing requirements.

Mining activities are regulated by the Mining Law No. 3213/1985, together with the Regulation on Mining dated 11 December 2022. The provisions on exploration activities are to ensure investment commitment, requiring investors to demonstrate their ability to make financial investments through a detailed and monitored licensing regime. The transfer of rights agreements with license holders and third parties is possible, however, Turkish citizenship or legal entity is required. In case of gold and hydrocarbons the state may reserve a share in the venture. All mine lease agreements, the so-called “royalty agreements”, are subject to the approval by the General Directorate of Mining and Petroleum Affairs (MAPEG) under the Ministry of Energy and Natural Resources (MENR).

The minerals under the Mining Law: (i) construction minerals (Group I); (ii) decorative stones (Group II); (iii) mineral salts (Group III); (iv) energy, metal, industrial and radioactive minerals (Group IV); and (v) precious minerals (Group V). The area of an exploration is a max. 2000 hectares for Group IV minerals. MAPEG issues (i) exploration license; (ii) mine development license; and (iii) mine operation permit. For Group IV minerals the exploration may last for 1+2+4+2 years. The duration of the mine development license is 10-50 years, it also serves to obtain all the required permits, incl. the EIA approval. Within this period, the mine operation permit is the final resolution which is eligible only for a proven mineral reserve and enables the company to start the extraction of the deposit. Failing to reach production targets generate financial sanctions or withdraw of the permit. FDI and downstream activities, such as domestic processing are supported by financial incentives and royalty waivers.

https://enerji.gov.tr/info-bank-investors-guide-for-mining

Major laws:

Mining Law, Official Gazette No. 3213/1985 numbered 18785

Law Amending the Mining Law and Certain Laws and Decrees, Official Gazette No. 7164/2019 numbered 30700

Regulation on Mining Activity Permits, Official Gazette No. 25852/2005

Regulation on the Tender of Mining Fields, Official Gazette No. 30187/2017

Regulation on the Transfer of Mining Districts and Licences, Official Gazette No. 30429/2018

Environmental Law No. 2872/1983

Environmental Impact Assessment Regulation, Official Gazette No. 29186/2014

Competent authorities:

Ministry of Energy and Natural Resources (MENR) (https://www.enerji.gov.tr/homepage/)

Directorate of Mining and Petroleum Affairs (MAPEG) (https://mapeg.gov.tr)

Mineral Research and Exploration General Directorate (MTA) (https://www.mta.gov.tr/en/mta/about)

General Directorate of Turkish Coal Enterprises (https://www.tki.gov.tr/en)

Türkiye Geoscience Data and Core Data Bank (TUVEK) (www.kbb.ankare.com)

National Resources and Reserves Reporting Committee (UMREK) (www.umrek.com.tr)

Legislation websites:

https://www.mevzuat.gov.tr/

https://www.resmigazete.gov.tr/

Sources:

https://www.intercon-tr.com/wp-content/uploads/2022/11/Turkiyede-Maden-Sektoru-Yatirimi.pdf

https://www.pekin.com.tr/wp-content/uploads/2023/04/US_50233_Turkey-Mining-Brochure_R3_NOT-FOR-PRINTING.pdf

https://www.dentonsmininglaw.com/turkeys-mining-regulations-overview-of-the-legal-framework-and-key-considerations/

https://ozkan.av.tr/turkish-mining-law/

Tiess, G. 2011: Legal basics of mineral policy in Europe – Springer, 394 p., https://doi.org/10.1007/978-3-211-89003-5

Minerals policy, regulatory framework, relevant legislation in Ukraine

In 2011 a national program on minerals strategy for 2030 was published[1] in order to increase domestic supply and reduce dependence on imports. In 2022, Ukraine adopted the European integration Law No. 2805-IX “On amendments to certain legislative acts of Ukraine to improve legislation in the field of subsoil use”. It is on deregulating and modernising the rules of doing business in the sector, in particular, provides for simplification of licensing procedures by abolishing co-authority involvements, digitalisation of the sector, guarantees of predictability for subsoil users, and protection of national interests[2]. In some cases, it will no longer be necessary to participate in tenders to start activities. The mining process can commence as early as one and a half years after the approval of an environmental impact assessment. Investment opportunities are promoted by introducing the electronic Atlas of Investment Opportunities. Through Resolution No. 132/2023, the Cabinet of Ministers approved a list of 14 minerals of strategic importance for the sustainable development of the economy and defence capability of the state, prioritised through production sharing agreements. The Ministry of Environmental Protection and Natural Resources ensures the annual revision. The e-permit scheme is shown below.