Mining Act.

The preliminary articles of the Mining Act in Chapter one provides for the classification of minerals. This classification is important and has legal implications because items such as the cost of exploration rights, the area of exploration licenses and exploitation licenses, the amount of government salaries, the inclusion of safety regulations and the employment of a technical manager in the mine are initially dependent on the mineral class. Minerals can also be classified in terms of chemical composition and application in industry. Article 4 of the Act provides classification of the minerals in 4 categories. The first class include limestone, gypsum, ordinary sand, salt (blue and stone), building stone and similar stones, class two refer to metal-minerals such as iron, gold, silver, cream, tin, mercury, lead, zinc and copper. Class three refer to petroleum materials such as oil, natural gas, natural bitumen, natural asphalt and oil shale and similar ones. Class four include radioactive materials used for nuclear power and fuel for nuclear power plants. According to this Act Large mines are identified by the High Council of Mines according to the amount of reserves, grade, amount of extraction, value of the mineral, number of employees, amount of investment, geographical location and socio-economic and political considerations. Exploration and exploitation of the mines shall be processed in accordance to this Act.
Chapter Two of this Act refers to exploration that will be conducted directly by the Ministry of Mines and Metals or its affiliated organisations and companies. The Ministry of Mines and Metals or its affiliated organisations and companies may use the services of government agencies or the private sector under their direct supervision in mining. The results of the exploration and the discovered reserves belong to the government. Exploration is allowed further to gain of permit (Principle Agreement) that is valid for one year. In the course of validity of the Principle Agreement a board of expert nominated by the Ministry of Mines and Metals shall be sent to the site to assess the feasibility of the exploration plan, examine records, documents, plans and budget for the exploration. In case of failure of the exploration plan, the Principle Agreement shall become invalid. The Principal Agreement can be transferred only for one time under the conditions mentioned in the Act. Each natural person can not have more than one exploration contract in progress at a time, and the number of exploration contracts for legal entities according to the capital and experience of the company and the number of technicians hired and the number of shareholders and how the shares are distributed among them by the Supreme Council Mines are determined.
Chapter Three of the Act refers to exploitation and extraction of mines that requires obtaining an exploitation license or concluding an extraction and sale contract. Extraction from large mines will be carried out directly by the Ministry of Mines and Metals and its affiliated institutions or one of the relevant government agencies whose shares are 100% owned by the government. Transfer of exploitation license is subject to the approval of the Ministry of Mines and Metals while the extraction and sale contracts are non-transferable. The Act further provides for the offences and failure of compliance with its regulations. In Chapter Four, respite is granted to the license holders to certify their permits and licenses based on the regulations mentioned in this Act. In case any applicant has objection on the decision of the Ministry of Mines and Metals, the dispute can be referred to the court. Chapter Five of the Act refers to the general conditions and in Article 35 the composition of the High Council of Mines is referred. This Council has 9 members who are nominated from different governmental authorities including the Ministry of Mines and Metals, geologist scholars, leal expert from High Council of Justice for two years, the nomination of the Council members should be approved by the Board of Ministers. Article 36 of the Act provides some limitation for exploration and exploitation and any kind of extraction and accumulation of minerals, waste materials and waste disposal that may damage the environment. This Act has 42 Articles.