On August 28, 2025, the Social Transparency Law was published in the Third Supplement of Official Register No. 112. This regulation introduces amendments to the Mining Law, among which the following stand out:
Compliance with activities and investments for change to advanced exploration
A mining concessionaire interested in requesting the change to the advanced exploration period must, in addition to expressly relinquishing part of the total surface area of the originally granted mining concession, prove in its request the compliance with the minimum activities and investments established during the initial exploration period. Additionally, in the case of concessions obtained through public auction or bidding, the concessionaire must have complied with:
a) The minimum investment amounts established by law; and
b) The committed investment set forth in its economic bid for each granted concession.
Evaluation and approval of change to advanced exploration
The Sectoral Ministry will evaluate the application and decide on its approval. Once the application is approved, the Sectoral Ministry will issue a resolution declaring the beginning of the advanced exploration period. If the Sectoral Ministry does not issue the resolution within 60 days following the approval of the application, positive administrative silence will apply, and advanced exploration will be deemed automatically authorized.
Therefore, the time frame for positive administrative silence no longer runs from the filing of the application but from its approval.
Extinction of the concession
Article 37 of the Mining Law specifies as a cause for extinction of the concession not only the failure to request the beginning of the exploitation stage but also the omission to request the change to advanced exploration or to economic evaluation.
Term to submit defenses and remedy non-compliance in expiration proceedings
The term to submit defenses in expiration proceedings, as well as the term to remedy the non-compliance alleged by the authority, is reduced to 15 days.
Expiration due to environmental damage
The mining concession shall expire automatically and without the need for any additional proceeding, solely in cases where the competent environmental authority has determined the existence of environmental damage.
Expiration due to lack of payment
The amendment to Article 110 of the Mining Law expands the types of financial obligations whose non-payment may lead to the expiration of a mining concession, by explicitly including fees. Furthermore, it broadens the regulatory framework by considering not only what is provided by the Law, but also what is established in its General Regulations to the Mining Law.
Expiration due to non-compliance with economic commitments
Mining concessions obtained through the public auction and bidding process shall expire if the concessionaire fails to comply with the minimum investment amounts or the committed investment set forth in its economic bid.
Supplementary and Transitional Provisions
Applications for change of exploration or commencement of exploitation phase filed prior to the entry into force of the Social Transparency Law shall be processed under the original conditions applicable at the time of filing.
Within 90 days, the Mining Regulation and Control Agency must verify compliance with investment obligations in concessions obtained through public auction or bidding and report to the Sectoral Ministry in order to initiate expiration proceedings, if applicable.
For more information, please do not hesitate to contact us.
This bulletin contains a summary of legal developments of interest, and therefore cannot be considered as provided advice. If you have any questions, please contact the AVL Abogados team.
