The holder of a Mining Operation Title or Mining operation permit for Quarry Substances is required to open and fund, in accordance with the Environmental and Social Management Plan, an environmental rehabilitation trust account to guarantee the rehabilitation and closure of its mining site. This account is established by decree and the terms of its operation shall be determined by a joint order of the Ministers in charge of Mines, Environment and Finance.
The amounts so allocated are exempt from the tax on industrial and commercial profits.
The rehabilitation and closure of mining sites imply the removal by the holder of all facilities including any production factory on the land. To the extent possible, all former mining sites must be restored to conditions that are stable with respect to safety, agricultural and forestry productivity, and surroundings and landscape restored as closely as possible to their original state, in a sustainable fashion and deemed adequate and acceptable by the administrations in charge of Mines and Environment.
The post-inspection report by the administrations in charge of Mines and Environment regarding the proper rehabilitation of mining sites is evidenced by the issuance of a notice of discharge, following the approval by the competent technical departments, which discharges the former operator of any obligation on its former Mining Title.
The approval of the competent technical departments must include:
- an assessment of the implementation of mitigation or rehabilitation measures prescribed in the environmental and social impact study, the health impact study and in the program to support the development of basic healthcare of the Local Community;
- an analysis of the health system in the zone where the project is located including the identification of potential hazards, assessment of the level of exposure and characterization of the major risks with a calculation of the likelihood of conditions leading to death; and
- an analysis of the site’s environmental system, including a description of the physical, biological and sociological environment.
Failing this, and without prejudice to any other action that may be taken against the holder, the National Environment Authority or any other administration designated for this purpose in collaboration with the National Mining Authority will carry out the work for the restoration and repair of health and environmental damage on its own initiative and at the holder’s expense.