Concession for extraction of mineral beds (except hydrocarbons)

Concession for extraction of mineral beds (except hydrocarbons)

According to Polish Mining and Geological Law, each entity which is going to conduct works on extraction mineral beds considered as mining property is obliged to obtain concession for those activities. Nevertheless, it shall be noted that as a rule obtaining such concession is preceded by obtaining concession for exploration and recognition of mineral beds within the same area.

The concession for extraction mineral beds is required with regard to all minerals considered as mining property. This term refers to minerals crucial for Polish economy. The exhaustive catalogue of these substances is included in article 10 of Polish Geological and Mining Law. The catalogue contains:

  • hydrocarbon deposits,
  • coal deposits,
  • methane as accompanying mineral,
  • lignite,
  • ores except bog iron ores,
  • metals in natural,
  • radioactive elements,
  • sulphur in natural,
  • salt,
  • gypsum and anhydrite,
  • gemstones.

The mineral beds of the above are considered as property of State Treasury.

Concession-granting authority

Minister of Environment grants concession for extraction of mineral beds by issuing decision after conducting appropriate procedure. It shall be noted that granting this type of concession has to be preceded by obtaining opinion of appropriate minister within the scope of management of mineral deposits. According to provisions of Polish law, minister responsible for management of mineral deposits is Minister of Energy.

However, if the area of mineral bed does not exceed 2 hectares, the amount of extracted mineral does not exceed 20 000 m3 and the mining works are conducted as strip mining, the concession granting authority is appropriate starostee.

Procedure

Entity interested in obtaining such concession is obliged to fill appropriate motion, which shall contain inter alia:

  • the owners of property on which the entity will conduct the works,
  • applicant’s entitlements to property,
  • timeframes for which the concession shall be granted,
  • funds which will secure proper execution of concession,
  • list of areas covered by any environmental protection forms
  • environmental policy documentation.

Motion shall be dully justified and well documented. Moreover, it shall contain purpose and scope of geological works as well as information on intended use of mineral beds. The entity which applies for such concession shall also attach to motion deposit development plan. This document is shall be also approved by appropriate Mining Regulatory Authority.

Assessment of the motion and decision

The concession-granting authority assesses filled motions with regard to:

  • scope of proposed activities (including geological works),
  • time proposed for execution of concession,
  • financial abilities of the applicant,
  • technology to be used for performance of geological works.

After assessing submitted documentation, the authority issues decision on granting the concession to entity which obtain the highest rate.

Content of concession

Each concession determines especially: type and method of conducting the intended activity, area covered by concession, timeframes of validity and specific date of commencing the works. Moreover, concession for extraction mineral beds indicates also the borders of mining region and mining area. This type of concession may also contain the limitations on minimal level of exploiting the deposit and projects required with regard to rational deposit management.

The procedure of obtaining concession for extraction mineral beds is conducted upon provisions of Polish Administrative Procedure Code. The most important part of procedure is collecting appropriate documentation and convincing the concession granting authority about ability to proper performance of concession.

Should you need any legal advise or assistance with regard to concession on extraction mineral beds, please contact with our lawyers at [email protected]

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