Metallic Minerals or Ores

What is the Metallic Minerals’ Ownership Right

For exploration or/and exploitation of Metallic Minerals or Ores in Greece, one must hold the Metallic Minerals’ Ownership Right. It is a right in rem governed by the Greek civil law relating to immovable property, while it is totally discreet from the land (ground) ownership right where resources are found. However, the owner of this right should eventually obtain also the (private) land ownership right through acquisition or leasing or expropriation activities as foreseen by the Mining Code provisions. For Private Mines, Metallic Minerals’ Ownership Right and Mine Ownership Right can be inherited, gifted or transferred to natural or legal persons from EU Member States and third countries, under the presumptions of the Mining Code.

How to obtain the Metallic Minerals’ Ownership Right?

The procedures to obtain the Metallic Minerals’ Ownership Right for Private Mines are presented in cases one (1) and two (2) and for Public Mines in case three (3):

(1) The Metallic Minerals’ Ownership Right for Metallic Minerals or Ores that are not exempted over the State, may be directly conceded by the State to any private entity under the presumptions of the Mining Code. The procedure involves three (3) stages, concluding with the issuance of a Presidential Decree (PD) which is the title of the Mine Concession. In this case the private entity is concurrently entitled to the Mine Ownership Right. Case 1 is further analyzed in detail separately.

(2) The Metallic Minerals’ Ownership Right on an already established Mine Concession (i.e., Private Mine), may be transferred together with the Mine Ownership Right or leased by the Mine Owner to a third party. In the latter case (i.e., leasing), the third party is not entitled though to the Mine Ownership Right which rests with the Mine Owner. Prior approval of the competent Minister is required, if the Mine Ownership Right (i.e., Mine Concession title) will be transferred to third parties of EU Member States’. Transfer of the right to non-EU Member States’ third parties requires prior approval of the Ministers’ Council. Approval by the Council of Ministers shall also be required in case of acquisition of rights by non-EU Member States’ natural or legal persons, resulting from succession, legacy, or donation upon death.

(3) The Metallic Minerals’ Ownership Right in the case of Public Mines belongs to the State. The State may exercise its right by direct labor operations (i.e., in house award) or concede it to a third party through leasing following a tendering procedure. Exceptionally, for reasons of public interest, the State may lease its right by direct lease agreements (i.e., award a contract without initiating a tendering procedure). Legal or natural persons registered in EU Member States and in third countries are entitled through leasing to this right. In the case of Public Mines, the beneficiaries are not entitled to Mine Ownership Right.

Analysis of the procedure to obtain a Mine Concession of case (1)

Stage I: Apply for a Metallic Minerals’ Exploration License (AME)

(Eligible only to natural or legal persons of EU Member States)

Eligible to apply for AME are only natural and legal persons of EU Member States. AME is granted on a ‘first come – first served’ basis and is valid for 3 years. This stage is obligatory to the beneficiaries of Stage I to proceed to Stage II. After granting the right to perform exploration activities, no further approvals are required to commence these activities. The AME holder may transfer his right to any natural or legal person from EU Member States and third countries. Prior approval of the Ministers’ Council is required when the AME holder transfers his right to natural or legal persons of non-EU member states. Stage I involves five (5) steps.

File an application to the concerned Administrative Region (Perifereia), accompanied by

  • A topographic map of the site of interest signed by the competent person. The coordinates shall be defined according to the Greek Geodetic Reference System 1987 – GGRS87 / ΕΓΣΑ87 (EGSA87). The site of interest shall not exceed an area of 10km2.
  • A Duplicate Receipt of the Treasury of €3.000 value (according to Art.23 of the Mining Code).
  • A Certificate of Nationality if the applicant is a natural person or an extract of the company’s Statute if the applicant is a legal person.

Note: The application is submitted electronically if the service is available. Otherwise, it is submitted by a Bailiff. Legal transaction inter vivos of the right stemming from the application is not possible.

Issuance of Declaratory Act

The Head of the concerned Administrative Region issues a Declaratory Act, within a time limit of two (2) months from the submission date (step I-1). declaring completion of the inspection of all submitted documents and inviting the applicant to submit additional documents.

Note: The site of interest may have been reduced after the check carried out if e.g., part of the requested area extends to the jurisdiction of another Region, if part of it is already reserved etc.

Submit additional documents

The Head of the concerned Administrative Region invites the applicant to specify, within the boundaries of the requested area, the type and location of the envisaged interventions (exploration work). Additional documents must be provided at this point, depending on the type of intervention foreseen.

  • No intervention: Submission of a written declaration, authorized by a competent scientist, when the intended exploration work has no intervention on the ground. In such cases, no further administrative permit or act is required.
  • Limited intervention: Submission of a declaration of subjection to Standard Environmental Commitments (SEC) (MD46294/2013, Annex Α) and approved Standardized Technical Study (L.4512/2018, Annex 2) when exploration work involves small scale excavations (5m3/ha) and a generally limited ground intervention (e.g., seismic profiling methods using explosives).
  • Extensive intervention: Submission of Environmental Terms Approval Decision (AEPO) and approved Standardized Technical Study (approval fee €300), in accordance with L.4512/2018, Annex 2, when exploration work involves drilling and/or any other type of severe intervention on the ground (i.e., opening of exploration galleries).

Issuance of the AME decision

The Head of the concerned Administrative Region, issues the Metallic Minerals’ Exploration License (AME), within a timeframe of sixty (60) days, provided the submitted documents are complete (according to JMD171312/2018). The decision of the AME is published in the Government Gazette (GG). By virtue of the issued AME, the right to carry out mineral exploration in the requested area (as it may have been confined) and the approval of the submitted exploration programme are granted and authorized concurrently. AME is valid for 3 years (Art.34, paragraph 2 of the Mining Code, as amended).

Notify the competent authority if additional actions are needed

If the results of the exploration work indicate the need to perform further surveys on another location, within the licensed area, the AME holder shall notify the the Administrative Region according to Annex II of MD171312/2018, within the validity period of the AME, and submit the supporting documents mentioned in step I-3, prior to the commencement of any new exploration work. The notification is done via a Monitoring Information System (M.I.S.). If the latter has not been set up yet, the notification takes place via www.notifybusiness.gov.gr

Stage I simplified flow diagram

Step 1 File an application to the concerned Administrative Region, accompanied by
a topographic map + a certificate of nationality or an extract of the company’s Statute + a Duplicate Receipt of the Treasury of €3.000 value

Step 2 Within 2 months from the application date, the Head of the Administrative Region issues a Declaratory Act

Step 3 Depending on the type of interventions foreseen, the applicant should subsequently submit:

  • A written declaration authorized by a competent scientist (no intervention foreseen), or
  • A declaration of subjection to Standard Environmental Commitments (SEC) + approved Standardized Technical Study after opinion of the concerned Mining Inspection Department (limited intervention foreseen), or
  • The Environmental Terms Approval Decision (AEPO) + approved Standardized Technical Study after opinion of the concerned Mining Inspection Department (extensive intervention foreseen).

Step 4 Within 30 days, the decision for the AME is published in the GG, having a validity of 3 years.
The AME decision is granting concurrently the right to carry out exploration and the approval of the exploration program.

Step 5 Notify the competent authority if additional research actions are needed

 

Stage II: Apply for Mine Concession (i.e., Mine Ownership Right)

(Eligible to natural or legal persons of EU Member States, holders of the AME title obtained in Stage I and to natural or legal persons of non-EU Member States who lawfully obtained the right by acquiring an existing AME title)

Following a successful completion of mineral exploration programme, the AME holder is entitled to apply for the Mine Concession within the validity period of AME. Stage II is decisive for the granting of Mine Concession which largely depends on the accuracy and completeness of the submitted feasibility study. At this Stage the AME may be extended for another year pursuant to Art.48 of the Mining Code as amended. Stage II involves three (3) steps.

File an application to the concerned Administrative Region for Mine Concession

Apply, the latest by the expiry date of the validity period of the AME, defining the exact boundaries of the requested area, and declaring the metallic mineral resources, discovered during exploration: The application shall be accompanied by:

  • A Duplicate Receipt of the Treasury of €10.000 value (according to MD24023/2011).
  • A Letter of guarantee of €20.000 value, if the requested area is smaller than 5km2, or of €30.000 value, if the requested area is larger than 5km2 and smaller than 10km2(according to MD24023/2011).
  • Feasibility study, accurate and suffice, reporting fully in detail the results of the performed exploration work and the investment plan foreseen for the mine to be established. This study is a key and decisive element to obtain the mine concession.

Note: The amounts may be adjusted by ministerial decisions published in the Government Gazette (pursuant to Art. 188A of the Mining Code).

The file is forwarded to YPEN

After the inspection of the submitted documents, the Head of the concerned Administrative Region, shall forward the file along with the feasibility study to the YPEN. The Ministry asks the Hellenic Survey of Geology and Mineral Exploration (HSGME) to assess the accuracy of the submitted feasibility study.

Actions foreseen after evaluation of the feasibility study

    • a) If the feasibility study is evaluated as accurate and adequate, the Minister returns the complete file back to the Head of the Administrative Region to proceed to Stage III. For the approval of the study a fee must be paid calculated as a 2‰ percentage on the budget of the investment foreseen and ranging from a minimum amount of €300 to a maximum amount of €6.000 (MD71099/2018).
      b) If the feasibility study is evaluated as inadequate or inaccurate, the Minister may extend the duration of the AME for an additional year, on top of the original three years, to facilitate the AME holder in upgrading the feasibility study. If the new study remains insufficient or in the event of no resubmission, the Minister rejects the application for the mine concession and frees up the area.

Stage III: Establishment of the Mine Ownership Right (Mine Concession)

This Stage concludes with the issuance of the Presidential Decree establishing the Mine Concession title. This title is granting Ownership Right for all metallic minerals occurring in the area of the Concession, except those for which the Ownership Right rests with the State. The Mine Concession title is valid for fifty (50) years with the possibility to extend its validity for two additional periods of twenty-five (25) years each. Stage III involves three (3) steps.

The Head of the concerned Administrative Region issues a concession notice

The Head, issues a concession notice, proposing the concession of the area, that coincides with the AME site, to the AME holder. At this stage, pursuant to Art.51 of the Mining Code as amended, the concession applicant, as well as anyone invoking mining rights on the site under concession has the right to appeal within a specified timeframe. The notice is published in the Government Gazette (GG) and is notified by bailiff or by police authority to the person who applied for the concession, against receipt. The Head of the Administrative Region forwards the file and all supporting documents to the Ministry (i.e., YPEN) in case no appeal has been brought against the notice.

Final review of the procedure

The competent Ministry (i.e., YPEN), examines whether the procedures followed in previous steps comply with the MC provisions.

Issuance of the PD establishing the Mine Concession

The competent minister issues a PD on the Mine Concession. The PD is published in the GG. The Mine Ownership Right is established following publication in the GG of the PD. The title is valid for fifty (50) years with the possibility to extend its initial validity period for two additional periods of twenty-five (25) years each. The mine owner shall have the exclusive right to explore, extract and in general exploit all Metallic Minerals occurring within the boundaries of mine concession, excluding those for which this right rests with the State.