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Dentons: Environmental regulations in mining industry| Dentons
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Dentons: Environmental regulations in mining industry| Dentons

1. Introduction

As it’s generally known, mining is one of the most significant activities carried out in Argentina and has been declared an activity of “national interest” by the National Constitution of 1852.

The high volume of metals used and exported, as well as the growing investments in exploration and extraction projects over the years, reflect the importance of the mining industry.

The mining sector plays an important role in the development local communities. It offers genuine job opportunities, contributes towards the development of infrastructure projects and benefits the government through local taxes or royalties.

The federal government should work with the provinces and the mining companies to ensure sustainable mining. The federal government should take the necessary measures to encourage sustainable mining projects.[1]Adopt the laws concerning minimum standards for protecting the environment. The provinces should then pass laws and regulations to supplement the minimum standards and regulate exploration and extraction activities.

Mining companies must follow the applicable environmental laws and regulations.

2. Environmental laws and regulations applicable

The Federal Mining Code (FMC), and the General Environmental Law No. 25,675 as amended by Law No. These are the most important pieces. The mining industry is also subject to a variety of provincial supplementary regulations that establish higher standards. These regulations are outlined below.

2.1 Complementary Title of Environmental Protection for Mining Activity, as amended by Law No. 24,585

Law No. The most important rules for environmental protection in the mining sector are set out by Law No.

  • Individuals and companies that intend to explore or extort resources must file an EIS with the enforcement authority.
  • The EIS must comply with the Law No. 24,585 and its supplementary rules.
  • After the enforcement authority has issued an EID authorizing the development of the proposed activities, the mining activity can be authorized.
  • The EID is valid for a period of two years. There are often conditions that must also be followed in order to maintain its validity.

The General Environmental Law No. The General Environmental Law No. 25675 also outlines the obligation to conduct an EIS for any activity that could affect the environment. It also imposes the obligation of holding public hearings before authorizing such activities.[2]

2.2 Law 26639 on Minimum Standards to Protect Glaciers

The Minimum Standards for Glacier Protection Law 26,639 was published in the Official Gazette on October 10, 2010. Its main features can be summarized here:

  • To protect glaciers and periglacial areas, minimum standards are established. These include strategic water reserves, scientific information, and tourism attractions.
  • Glaciers can be considered public goods.
  • A National Inventory of Glaciers was established. This inventory includes all glaciers that are periglacial geological forms and water resources.
  • Some activities are prohibited on glaciers, including mining and hydrocarbon exploration. These restrictions also apply to activities that are performed in a periglacial setting.
  • Activities subject to prohibition that were performed before the National Glacier was passed must be subject to a new audit regardless of any environmental authorization or license. If an audit shows that a glacier is or periglacial environment has been significantly affected, enforcement authorities are directed to establish measures to comply the Glaciers Protection Law. These measures could include the removal or relocation of mining activities as well as clean up or remedial actions.

2.3 Federal regulations governing environmental insurances, guarantees

The General Environmental Law is a general guideline. The General Environmental Law (25,675) and its supplementary or amending regulations stipulate that any company that engages in an activity that could pose a risk to the environmental environment should have an environmental insurance policy.

Mining companies are required to allocate an annual amount for financing preventive or remedial measures under the Mining Investment Law. Each mining company determines the amount based on the potential impact of the mining project.

2.4 Guidelines for the closure of a mine

The Resolution No. 161/2021, approving the “Guidelines for the mine closure and the financial guarantees in Argentina” (the “Guidelines”).

The Resolution has the purpose of establishing a uniform criterion to ensure the responsible closures of the mines in Argentina. Accordingly, the Guidelines are being summoned to be adopted by the provinces.

The closure of a mine is a complex process that involves many aspects, including economic, financial, environmental, and engineering. The closure plan must ensure that the site is rehabilitated in accordance to i) levels compatible and sustainable with healthy environments, iii), applicable technical standards and iii). Quality guides for soil, air, and water, as established by local laws and regulations. Rehabilitation must ensure the site’s physical and geochemical stability, safety conditions for the people involved, as well as the socio-economic transition in the communities.

Mining projects must include formal closure plans for the exploration and exploitation activities, as well as the funds required to implement them.

The Resolution requires the creation of a financial guarantee to ensure the above-mentioned closing activities. It also lists the available options on the national market such as guarantees on first demand, pledged deposit, surety insurance and bonds.

2.5. Guidelines for the Management of Mining Waste

Resolution No. 181/21 issued by the National Mining Secretariat, approving the “Guidelines for the Appropriate Management of Mining Waste” was published in the Official Gazette.

The resolution is enacted in accordance with the “Strategic Plan for Argentine Mining Development” and establishes guidelines for the appropriate management of the mining waste throughout the mine life cycle and provide a framework for its uniform and coherent implementation. Mining waste is defined as solid sludges that result from exploration and/or exploitation a geological resource. This includes sterile waste, gangue mineral, and minerals resulting from treatment, transformation, and smelting processes. The tailings and topsoil can be deemed waste or contaminated soil according to local laws and regulations.

Moreover, this resolution highlights the need to create a “Mining Waste Management Plan” to prevent, reduce, reprocess, reutilize, valorize, treat, and adequately dispose of mining waste in accordance with the applicable environmental principles, namely the precautionary principle, the intergenerational equity principle, and the proximity principle.

In addition, the resolution also highlights the importance of the waste’s valorization to achieve a so-called “circular economy,” which includes the reutilization, recycling, transformation, or reuse of mining waste.

Finally, the resolution has no administrative or regulatory purpose and must be approved by the provinces in order to be enforced.

2.6 Provincial regulations

The National Constitution’s article 41 states that the federal government must publish the laws containing the minimum standards of environmental protection. Meanwhile, the laws and regulations must be passed by the provinces to implement these standards.

The mining industry is subject to a variety of environmental regulations, including those governing hazardous waste management, liquid effluent disposal, monitoring air emissions, and protecting biodiversity.[3]

3. Final thoughts

According to what has been said, mining activities can still be sustainable and in compliance with all applicable environmental regulations.

This will ensure that sustainable mining not only benefits mining companies, but also local communities in the long-term. It will increase access to work, improve income, and contribute to the well-being and prosperity of the community, among other positive social factors.

[1]The United Nations adopted the Sustainable Development Goals as follows: (i), no poverty;(iii); (iii); good health and well being;;;v) gender equality; vi) affordable and clean electricity; (xiii); responsible consumption and production; xiiii: climate action; xv) life below water; xvi) peace and justice strong institutions; xviii) partnerships to achieve the goals. See https://www.undp.org/sustainable-development-goalsm, last visited on 02.18.22.

[2]Concerning the application of Law No. 24,585 and the General Environmental Law No. 25,675 see the decision adopted by the Supreme Court in the case “Villivar, Silvana C. Provincia de Chubut y otros”, 04.17.07, pag. 7 and 8 available at https://sjconsulta.csjn.gov.ar/sjconsulta/documentos/verDocumentoById.html?idDocumento=6249631.

[3]The following laws and regulations are applicable at the provincial level, for example: Water Code approved under Law No. 4,392 were passed by the Province San Juan; Hazardous waste Law No. 6,665 were passed by the Province San Juan; Law No. 5,665 was passed by San Juan Province and supplementary regulations concerning water resources protection; Hazardous Waste Law No. 3,742 were passed by the Province Chubut; Hazardous Waste Act No. 4,865 passed the Province of Catamarca; Water Code Law passed by Law 2,577 and supplementary regulations by the Province. Hazardous Waste Law No. 2,567 was passed by the Province of Santa Cruz with supplementary regulations; Water Resources Law No. 1,451 were passed by Santa Cruz Province, amending and adding to existing regulations.

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