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Mining Law

Mining Law

Mining Law: Iran has rich mineral resources and has a long history in mining activities. To regulate and manage this vital sector, Iran has enacted comprehensive mining laws and regulations. This article provides an in-depth exploration of the prospect of mining law in Iran, covering key laws, regulations and licensing procedures.

Chapter 1: New mining law and general regulations

Article 1: Definitions

1- The terms used in this law are used with the following meanings:
A- Mine: any kind of stone and mineral that exists in the ground or underground such as bitumen, iron and is extracted.
B- Raw ore: any kind of stone and mineral that exists in raw and unprocessed form in the ground or underground.
C- Processed ore: any kind of stone and mineral that can be used after extraction and processing.
D- Mining: activities that are carried out in order to extract and process mines.
E- Miner: a natural or legal person who has ownership, rights, shares or any other right to a mine or several mines.
F- Mining unit: any organization or company that specializes in mining and processing mines.
G- Mineral land: land that contains minerals.

Article 2: Ownership of mines


1- Certain mines belong to the Iranian government and there is no private ownership of them.
2- With the exception of mines whose ownership is assigned to others, the right to extract and process mines belongs to the mining units.

Article 3: Mineral concessions


1- Mineral concessions are issued in two forms: “credit” and “export”.
2- A credit mining privilege is granted to a mining unit to extract and process minerals in a specific area for a certain period of time.
3- Mineral export privilege is granted to the mining unit to be able to export the processed products.

Chapter Two: Licenses and Mining Offices

Article 4: Mining licenses

1- No activity in the field of mining and processing of mines is allowed without obtaining a mining license.
2- Mining licenses in the mining law include exploration license, exploitation license and mine processing license.
3- Obtaining a mining license is possible for legal and natural persons and includes special conditions and regulations determined by the Ministry of Industry, Mining and Trade.

Article 5: Mining offices

1- Each mining unit must create its own mining office by the managing director of the mine and register all mining and processing activities in it.
2- The mining office includes documents that show the ownership, privilege, rights and responsibilities of the mining unit.
3- The mining office can be inspected by the officials responsible for mining supervision and inspection.

Chapter 3: Taxes and entry fees

Article 6: Mining tax

1- Mining units are obliged to pay mining tax to the government, the rate of which is determined by the Ministry of Economic Affairs and Finance.
2- Mining tax must be paid regularly and on time.

Article 7: Entry fees

1- Mining units are obliged to pay entry fees to the government.
2- The entry fee rate is determined by the Ministry of Industry, Mining and Trade.

Chapter 4: Supervision and inspection

Article 8: Supervision and inspection

1- The Ministry of Industry, Mining and Trade is responsible for monitoring and inspecting mining activities.
2- Mining inspectors can periodically or, if necessary, suddenly enter the mining units and check their activities.
3- Mining units are obliged to cooperate with mining supervisors and must answer their requests fully and on time.

An example of a mine mentioned in the Mining Law

Chapter 5: Drainage and composition of mines

Article 9: Mine evacuation

1- If a mine is emptied due to lack of technical or economic competence for extraction and processing, the miner is obliged to inform the mining unit and mining supervision.
2- The mining unit must start the mine evacuation and reconstruction process as soon as possible after receiving the evacuation notification.

Article 10: Mine composition

1- If two or more mines are located in the same region due to similar geographical, technical and economic conditions, the miner can submit a request for their combination to the mining supervision.
2- After reviewing the conditions and regulations related to mining, mining supervision will issue the license for mining.

Chapter Six: Crimes and Punishments

Article 11: Crimes and punishments

1- Any violation of mining laws and regulations is subject to legal crimes and punishments.
2- Mining crimes include not obtaining a mining license, emptying a mine without informing the competent authorities, selling a mine without a license, and other similar crimes.
3- Legal penalties include financial fines, confiscation of materials and equipment, suspension of activity licenses, and other similar penalties.

Chapter Seven: Powers of the Ministry of Industry, Mining and Trade

Article 12: Powers of the Ministry of Industry, Mining and Trade

1- The Ministry of Industry, Mining and Trade is responsible for setting and implementing mining laws and regulations.
2- The Ministry of Industry, Mines and Trade is authorized to determine tax rates, entry fees and other necessary financial regulations in the field of mines.
3- The Ministry of Industry, Mining and Trade is authorized to issue mining licenses and supervise mining activities.

Chapter 8: Transfer and settlement of mines

Article 13: Transfer and settlement of mines

1- The miner can transfer the rights and benefits related to the mine he owns to another person or company, provided he receives the prior consent of the mining supervision.
2- If the miner intends to settle the situation of the mine, he should contact the mining supervision to start the process of settling the situation.

Article 14: Miner’s responsibility in settling the situation

The miner is responsible for preparing the financial and technical report related to the mine that he intends to settle.

Article 15: Leaving the mine

1- If the miner intends to leave the mine, he must contact the mining supervision to start the process of leaving the mine.
2- After leaving the mine, the miner must return the place of activity to its original state and dispose of the waste materials properly.

Chapter 9: Specialties of mineral supervision

Article 16: Specialties of mining supervision

Mining supervision is responsible for conducting technical, economic and environmental investigations related to mining activities and can request miners to submit financial and technical reports related to their mining activities in order to comply with mining laws and regulations.

Chapter 10: Specializations of the Judiciary

Article 17: Jurisdictions of the Judiciary

If the miner commits fraud against the mining laws and regulations or violates the laws in his mining activities, the judiciary will be authorized to take legal measures and the necessary punishments.

Chapter 11: Final Provisions

Article 18: Definitions

In this law, the following terms are used in the following meaning:
1- Mining: includes deposits, ores, minerals and any natural material, such as bitumen and stone, which can be extracted and processed due to the existence of economic and industrial properties.
2- Miner: a legal or natural person who works to extract and process minerals.
3- Mining unit: a unit that is established to extract and process minerals, for example Gilsonite Mud Mining Company and can include mining.
4- Mining supervision: an organization formed to monitor and control mining activities.

Article 19: Other definitions

All the terms and expressions used in this law and its executive regulations will be embedded and interpreted in accordance with their clear and specific definitions in the laws and regulations related to mines.

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In order to regulate mining activities in the country, this law has been approved by the Islamic Council and will be implemented after it is notified to the Ministry of Industry, Mining and Trade and the implementation of executive regulations.
The aim of this law is to classify and regulate mining activities, improve productivity in the field of mineral extraction and processing, protect the environment and economic development of the country. With the approval of this law, the rights and obligations of the owners and miners are defined in a more clear and specific way and their responsibilities are defined in the form of laws and regulations.

This law, within the framework of the laws and regulations related to mines, assigns the supervision and control of mining activities to the Mining Supervision Organization and also determines the specifications of mining units and the conditions of extraction and processing of minerals.

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