THE CROATIAN PARLIAMENT

Transcription

1 THE CROATIAN PARLIAMENT Pursuant to Article 88 of the Constitution of the Republic of Croatia, I hereby issue the DECISION PROMULGATING THE MINING ACT I hereby promulgate the Mining Act, passed by the Croatian Parliament at its session on 19 June Class: /09-01/94 Reg. No: / Zagreb, 23 June 2009 The President of the Republic of Croatia Stjepan Mesić, m.p. MINING ACT I GENERAL PROVISIONS Scope of the Act Article 1 (1) This Act regulates exploration of mineral raw materials, approval for exploration of mineral raw materials, mineral raw material reserves, mining projects, exploitation of mineral raw materials, concession for exploitation of mineral raw materials, construction of mining facilities and installations, mining plans and measurements, single information system of mineral raw materials, qualifications, occupational health and safety measures, restoration of the environment, supervision of implementation of this Act, penal provisions and other issues. (2) The provisions of this Act refer to the exploration and exploitation of mineral raw materials found in the earth or its surface, in a river, lake or sea bed and underneath it, within interior sea waters or territorial sea within the borders of the Republic of Croatia, or in the undersea of the Adriatic Sea outside the state territory to the borders with the neighbouring countries. (3) By way of derogation from the provision of paragraph 2 of this Article, regulations on waters shall apply to the exploration and exploitation of deposits of construction sand and gravel from renewable deposits in areas of importance for water regime management, whereas the provisions of this Act shall apply to the exploration and exploitation of construction sand and gravel from non-renewable deposits and to stone extraction in areas of importance for water regime management and in areas of sanitary protection of drinking water pumping stations, along with the mandatory water-rights permit.

2 Application of regulations Article 2 (1) Where, pursuant to the provisions of this Act, a concession is awarded for exploitation of mineral raw materials, the provisions of the Concessions Act shall apply to all concessionrelated issues, whereas the provisions of this Act shall apply to the issues not regulated by the Concessions Act, with obligatory compliance with the principles laid down in the Concessions Act. The provisions of the General Administrative Procedure Act shall apply to the issues which are regulated neither by the provisions of this Act nor by the provisions of the Concessions Act. (2) The provisions of this Act shall apply to the proceeding in other administrative issues, which do not pertain to the awarding or terminating of a concession, and the provisions of the General Administrative Procedure Act shall apply to the issues which are not regulated by this Act. (3) Issues of environmental protection which are not regulated by this Act and the regulations passed on the basis thereof shall be governed by provisions of the regulations governing environmental protection and by provisions of special regulations relating to individual environmental components. (4) Provisions of regulations governing the right of access to information shall apply to the issues of the right of access to information which are not regulated by this Act and the regulations passed on the basis thereof. (5) Regulations governing maritime demesne shall apply to issues related to the extraction of sand and gravel from the sea bed. Mineral resources Article 3 (1) Mineral resources are goods of interest to the Republic of Croatia, which enjoy its special protection and which are exploited under the conditions and in the manner prescribed by this Act. (2) Mineral resources are owned by the Republic of Croatia. Article 4 For the purpose of this Act, mineral resources are all organic and inorganic mineral raw materials found in solid, liquid or gaseous state in original deposits, alluviums, tailing dumps, melting slags, or natural solutions (hereinafter referred to as: mineral raw materials). Mineral raw materials Article 5 For the purposes of this Act, mineral raw materials are: 1. energy mineral raw materials: fossil combustible substances: coal (peat, lignite, brown coal, anthracite), hydrocarbons (oil, gas and ozokerit), asphalt and oil rocks; radioactive ores;

3 mineral and geothermal waters out of which mineral raw materials can be extracted or accumulated heat used for energy purposes, except the mineral and geothermal waters used for healing, balneal and recreational purposes or as drinking water and for other purposes, which are covered by regulations on waters, 2. mineral raw materials for industrial processing: graphite, sulphur, barite, mica, gypsum, chalk, bentonites, flint stone, flint sand, kaolin, ceramic and refractory clay, feldspar, talc, tuff, raw materials for the production of cement, carbonate mineral raw materials (lime stone and dolomite) for industrial processing, silicate mineral raw materials for industrial processing, all kinds of salts (sea salt) and saline waters, brome, iodine, peloids, 3. mineral raw materials for production of construction materials: technical construction stone (amphibolite, andesite, basalt, diabase, granite, dolomite and lime stone), construction sand and gravel, brick clay, 4. dimension stone, 5. mineral raw materials containing metals: bauxite, mercury, gold-bearing alluviums, iron oxides and hydroxides and other compounds. Mineral Raw Materials Management Strategy Article 6 (1) The basic document determining mineral raw materials management and planning of the mining economic activity at the State level is the Mineral Raw Materials Management Strategy. (2) The Mineral Raw Materials Management Strategy contains foundations for the direction and alignment of economic, technical, scientific, educational, organisational and other measures, and measures related to the implementation of international commitments with the purpose of managing mineral raw materials. (3) The Mineral Raw Materials Management Strategy determines: state of mineral raw materials management, ensuring safe and reliable supply of mineral raw materials, rational and purposeful exploitation of mineral raw materials, sustainable use of mineral raw materials, ensuring environmental protection in all areas of mining activities. (4) The Mineral Raw Materials Management Strategy shall be passed by the Croatian Parliament at the proposal of the Government of the Republic of Croatia. (5) Local self-government units and regional self-government units are obliged to ensure the implementation of the Mineral Raw Materials Management Strategy through their development acts. Mining-geology studies Article 7 (1) Regional self-government units are obliged to prepare mining-geology studies for their areas, which must be in line with the Mineral Raw Materials Management Strategy. (2) On the basis of the mining-geology studies referred to in paragraph 1 of this Article, local and regional self-government units shall, in their development acts, plan their needs and the manner of supply with mineral raw materials.

4 Mining activities Article 8 For the purpose of this Act, mining activities are all activities performed in order to explore and exploit mineral raw materials, activities on restoration of the areas excavated in mining activities upon the termination of the exploration and/or exploitation of mineral raw materials and activities of limited exploitation of mineral raw materials the sole purpose of which is to restore parts of the environment endangered by illegal exploitation. Exploration of mineral raw materials Article 9 (1) For the purpose of this Act, exploration of mineral raw materials means activities and investigations undertaken to determine the existence, location and form of mineral raw material deposits, their quality and quantity, and the conditions of their exploitation. (2) Pursuant to this Act, the following is not deemed exploration of mineral raw materials: geological field prospecting; geological, geochemical, geophysical, pedological and geomechanical investigations carried out in order to discover minerals or to prepare complex geological maps; soil investigation, scientific exploration, etc. (3) Geological, geochemical, and geophysical data collected in the course of exploration of mineral raw materials shall be stored in the database of the Geological Survey at the Croatian Geological Survey. The kinds and types of data, preparation for their entry and method of their storing shall be prescribed by a special act regulating geological activities. Exploitation of mineral raw materials Article 10 (1) For the purpose of this Act, exploitation of mineral raw materials means extraction of mineral raw materials from their deposits and processing of mineral raw materials. (2) Pursuant to this Act, exploitation of hydrocarbons and of mineral and geothermal waters, when used for energy purposes, is also the transport of hydrocarbons and of mineral and geothermal waters by means of pipelines, when technologically connected with approved exploitation fields. (3) Pursuant to this Act, storage of hydrocarbons in geological structures is also deemed exploitation of hydrocarbons. (4) Pursuant to this Act, exploitation of dimension stone means extraction and shaping of the dimension stone into blocks on exploitation fields. (5) Pursuant to this Act, processing of mineral raw materials means selecting, sorting out, crushing, grinding, and drying of mineral substances, separation of useful minerals from accompanying tailings, separation of individual mineral components, and removal of dirt and water from hydrocarbons, when the mentioned operations are technologically connected with the exploitation of mineral raw materials.

5 Mining facilities and installations Article 11 For the purpose of this Act, mining facilities and installations are: 1. facilities and installations directly included in the technological process of exploring and exploiting mineral raw materials when performed under ground, including haulage equipment from the shaft tower, and installations for exploration and exploitation of hydrocarbons and of mineral and geothermal waters (when used for energy purposes), 2. facilities and installations directly included in the technological process of exploring and exploiting mineral raw materials when performed on the surface, 3. facilities and installations indirectly included in the technological process of exploring and exploiting hydrocarbons (oil pipelines with loading stations and gas pipelines with measuringreduction stations with pressurised gas intake from exploitation fields), mineral and geothermal waters (when the final intention of the mineral and geothermal waters use is for energy purposes), and other technological pipelines related to the exploitation of mineral raw materials on exploitation fields, 4. facilities and installations indirectly included in the technological process of exploring and exploiting mineral raw materials when performed on the surface. Holder of an approval for exploration of mineral raw materials and holder of a concession for exploitation of mineral raw materials Article 12 (1) A holder of an approval for exploration of mineral raw materials and a holder of a concession for exploitation of mineral raw materials may be a natural person and a legal person with the headquarters or a branch-office in the Republic of Croatia and registered with the competent authority for performing such activities. (2) By way of derogation from paragraph 1 of this Article, the holder of an approval for exploration of mineral raw materials and a holder of a concession for exploitation of mineral raw materials may be a natural person and a legal person seated in any European Union Member State and registered for performing such activities with the competent authority of the EU Member State in question. Prohibition to grant an approval or a concession Article 13 A natural or legal person that has outstanding obligations on the basis of public fees and taxes, on the basis of previous approvals for exploration of mineral raw materials or contracts on concession for exploitation of mineral raw materials, on the basis of illegal exploration of mineral raw materials or illegal exploitation of mineral raw materials, or that has not fulfilled obligations with regard to restoration and environmental protection, may not be a holder of an approval for exploration of mineral raw materials and a holder of a concession for exploitation of mineral raw materials.

6 Transfer of an approval for exploration of mineral raw materials and of a concession Article 14 (1) On an exceptional basis, an approval for exploration of mineral raw materials and a contract on concession for exploitation of mineral raw materials may, under the conditions laid down by this Act relating to the granting of approvals and concessions by subordinate regulations passed on the basis thereof, be transferred to another natural or legal person, upon approval by the body which granted the approval or the concession. (2) With the transfer of the approval for exploration of mineral raw materials and the concession for exploitation of mineral raw materials to another natural or legal person, all rights and obligations arising from the exploration of mineral raw materials in the approved exploration area and/or from the exploitation of mineral raw materials on the exploitation field concerned shall be transferred to that person as well. (3) The criteria and conditions relating to the transfer of the approval or the concession referred to in paragraph 1 of this Article shall be prescribed by the Government of the Republic of Croatia by virtue of a regulation. Participation in administrative proceedings Article 15 In administrative proceedings carried out in line with the provisions of this Act pertaining to the granting of an approval for exploration of mineral raw materials and in the proceedings pertaining to the awarding of a concession for exploitation of mineral raw materials, owners of land plots in relation to whom such proceedings are conducted shall be enabled to take part in the proceedings in the capacity of a party. Bankruptcy proceedings Article 16 (1) In bankruptcy proceedings against a bankruptcy debtor, the rights arising from an approval for exploration of mineral raw materials and a contract on concession for exploitation of mineral raw materials shall not constitute part of the bankruptcy estate. (2) A holder of an approval for exploration of mineral raw materials and a holder of a concession for exploitation of mineral raw materials against which bankruptcy proceedings have been initiated cannot transfer their approval for exploration or contract on concession to another natural or legal person. Obligation of damage compensation Article 17 A holder of an approval for exploration of mineral raw materials and a holder of a concession for exploitation of mineral raw materials shall be obliged to compensate for the damage caused when conducting exploration and/or exploitation of mineral raw materials, except where evidence may be produced that the damage was caused by force majeure, by an action of the damaged person or a third person.

7 Records and supervision Article 18 If facilities and installations were erected while taking restoration measures for the purpose of environmental protection during exploration and exploitation of mineral raw materials in line with the provisions of this Act, records on those facilities and installations shall be kept by the bodies issuing approvals for exploration of mineral raw materials and the bodies awarding concessions for exploitation of mineral raw materials referred to in this Act, whereas the supervision shall be carried out by the State Inspectorate. II EXPLORATION OF MINERAL RAW MATERIALS Approval for exploration of mineral raw materials and exploration area Article 19 (1) For the exploration of mineral raw materials, an approval shall be needed. (2) Exploration of mineral raw materials shall be permitted only within the area approved for exploration of mineral raw materials. (3) The mineral raw materials exploration area is a part of the land plots on which the exploration of mineral raw materials has been approved, defined by joining the endpoint coordinates. (4) In the approval for exploration of mineral raw materials, land plots on which the approved mineral raw materials exploration area is situated shall be identified (cadastral and land registry numbers of plots). Register of exploration areas Article 20 Data on the approved exploration area shall be entered into the Register of mineral raw materials exploration areas, kept by the ministry in charge of mining (for the mineral raw materials referred to in Article 5 items 1, 2, 4 and 5 of this Act) and the state administration office of the regional self-government unit competent for mining affairs or the city office of the City of Zagreb competent for mining affairs (for the mineral raw materials referred to in Article 5 item 3 of this Act). Competent bodies for issuing approvals for exploration of mineral raw materials Article 21 (1) The approval for exploration of the mineral raw materials referred to in Article 5 items 1, 2, 4 and 5 of this Article shall be issued by the ministry in charge of mining. (2) If exploration of mineral raw materials is carried out in the areas of sanitary protection of drinking water pumping stations and/or in the areas of significance for the water regime, the approval for exploration of the mineral raw materials referred to in Article 5 items 1, 2, 4 and

8 5 of this Act shall be issued by the ministry in charge of mining, subject to approval by the ministry in charge of water management. (3) The approval for exploration of the mineral raw materials referred to in Article 5 item 3 of this Act shall be issued by the state administration office of the regional self-government unit competent for mining affairs (hereinafter referred to as: state administration office) or the city office of the City of Zagreb competent for mining affairs (hereinafter referred to as: Zagreb city office). (4) If exploration of mineral raw materials is carried out in the areas of sanitary protection of drinking water pumping stations and/or in the areas of significance for the water regime, the approval for exploration of the mineral raw materials referred to in Article 5 item 3 of this Act shall be issued by the state administration office or the Zagreb city office, subject to approval by the ministry in charge of water management. (5) An approval for exploration of mineral and geothermal waters, (when the final intention of the mineral and geothermal waters use is for energy purposes), shall be issued by the ministry in charge of mining, subject to approval by the ministry in charge of water management. (6) The approval for exploration of mineral raw materials, where the exploration of mineral raw materials is carried out on a maritime demesne, shall be issued by the competent authority, with the approval of the competent port authority in matters of navigation safety. Procedure of issuing approvals for exploration of mineral raw materials Article 22 (1) An approval for exploration of mineral raw materials shall be issued on the basis of a public tender. (2) The competent body referred to in Article 21 of this Act shall render a decision on conducting a public tender for exploration of mineral raw materials if it estimates that there is a need to determine individual mineral raw materials in a certain area or to determine their economic exploitability, or on the basis of a proposal of a natural or legal person registered for exploration of mineral raw materials. (3) The public tender for the issuance of an approval for exploration of mineral raw materials shall be published in the Official Gazette, whereas the public tender for the issuance of an approval for exploration of hydrocarbons shall also be published in the Official Journal of the European Community, at least 90 days prior to the expiry of the deadline for the submission of applications defined in the tender. (4) The public tender announced by the competent authority for issuing approvals for exploration of mineral raw materials, or the submitted proposal of a natural or legal person shall contain the following: 1. mineral raw material which is intended to be explored, 2. geographical location, size and name of the exploration area, 3. programme of total exploration activities categorised by their type and scope, along with the cost estimate, and a detailed plan of activities which will be carried out in the first year of exploration, 4. day by which the exploration is intended to be carried out,

9 5. total amount of funds required for the performance of the planned exploration activities and the manner of their provision, 6. plan of restoration of the exploration area occupied by the exploration activities. (5) Along with the public tender, the person submitting a proposal for issuance of an approval for exploration of mineral raw materials must enclose the following: - excerpt from the court register or craft register where it is visible that the person submitting the proposal is registered for exploration or exploitation of mineral raw materials; - six copies of the map of the larger area of exploration in the scale 1:25,000 (or larger) with a delineated exploration area and stated coordinates of the endpoints by which the exploration area is unambiguously defined; - geological or other documentation on the probability of existence of mineral raw materials in the exploration area. (6) If the Republic of Croatia owns the land plots for which a proposal for the issuance of an approval for exploring mineral raw materials has been submitted, the ministry in charge of mining and the state administration office or the Zagreb city office shall inform the central state administration body competent for managing state property or the ministry competent for maritime affairs in the case of maritime demesne, about the submitted proposal for the issuance of an approval for exploration of mineral raw materials, at least 30 days prior to the publication of the tender. (7) The content of the proposal for the issuance of an approval for exploration of mineral raw materials, the procedure of conducting the tender for the issuance of an approval for exploration of mineral raw materials, the method of determining the size of the mineral raw materials exploration area, the content of the approval for exploration of mineral raw materials, the professional qualifications, work experience and licensing examination of the manager in charge of exploration activities, and the content and deadlines for submitting reports on the exploration of mineral raw materials shall be prescribed in an ordinance passed by the minister in charge of mining. Special requirements for the issuance of an approval for exploration and for the commencement of exploration Article 23 (1) An approval for exploration of mineral raw materials may be issued only for the areas planned for that purpose in physical planning documents and for the areas for which there are no obstacles in physical planning documents with regard to exploration of mineral raw materials. (2) For the mineral raw materials referred to in Article 5 item 3 of this Act, the minimum quantity exploration activities shall be defined. Approval for exploration of mineral raw materials Article 24 An approval for exploration of mineral raw materials shall contain the following: 1. name of the natural or legal person that is approved the exploration, 2. type of the mineral raw material which will be explored,

10 3. name of the exploration area, 4. borders and size of the exploration area, 5. quantity and kind of exploration activities which must be carried out in the first year of exploration, 6. quantity of the mineral raw material which may be extracted from the deposit for the purpose of technological exploration and determining of exploration conditions, 7. requirements and restrictions which must be respected by the holder of the right to exploration, 8. date by which the exploration must commence, 9. name of the state administration bodies and other entities which must be notified of the commencement of exploration activities, 10. the obligations to prepare a mining project for exploration activities and to restore the exploration area occupied by exploration activities if mineral raw material reserves have not been determined by exploration activities, 11. deadline in which the final report on exploration must be submitted, if mineral raw material reserves have not been determined by exploration activities, 12. deadline in which the Study on mineral raw material reserves in the exploration area must be prepared and in which a decision on the determined quantity and quality of mineral raw material reserves must be obtained, 13. deadline in which the final and effective location permit must be submitted to the competent authority referred to in Article 47 of this Act, along with a statement of costs of exploration activities, of the environmental impact assessment procedure and of obtaining the location permit, 14. date by which the mining project for exploration of mineral raw materials must be prepared and verified, 15. date by which the approval for exploration of mineral raw materials is valid, 16. amount and method of payment of the fee for exploration of mineral raw materials. Validity of an approval for exploration Article 25 (1) An approval for exploration of mineral raw materials may be issued for a maximum period of three years. (2) By way of derogation from paragraph 1 of this Article, the approval for exploration of hydrocarbons may be issued for a maximum period of five years. (3) In the case of force majeure, the duration of the approval referred to in paragraphs 1 and 2 of this Article for exploration of mineral raw materials may be prolonged by the period of duration of the force majeure. Manager in charge of exploration activities and reporting obligations Article 26 A holder of an approval for exploration of mineral raw materials shall appoint the manager in charge of the execution of exploration activities and, in the course of exploration, submit on a semi-annual basis reports on the executed exploration activities and on the results of mineral raw materials exploration to the ministry in charge of mining.

11 Obligatory notification of the commencement of mineral raw materials exploration Article 27 (1) A holder of an approval for exploration of mineral raw materials in an approved exploration area shall notify the State Inspectorate, the ministry in charge of mining and the state administration office or the Zagreb city office of the commencement of the exploration activities, at least 15 days prior to the commencement of the exploration activities. (2) For exploration of hydrocarbons and of mineral and geothermal waters, when the final intention of the mineral and geothermal waters use is for energy purposes, the holder of the approval for exploration of mineral raw materials shall notify the competent authorities of the commencement and termination of activities at each well within the deadline referred to in paragraph 1 of this Article. (3) Within the deadline referred to in paragraph 1 of this Article, the holder of the approval for exploration of mineral raw materials shall also notify all the entities determined in the approval for exploration of mineral raw materials of the commencement of the exploration activities. Exploration fee Article 28 (1) A holder of an approval for exploration of mineral raw materials shall pay a fee for exploration of mineral raw materials in the amount and in the manner as determined by the approval for exploration. (2) The fee for exploration may be defined as a constant, equal amount and/or as a variable amount, depending on the specific features of the individual type of exploration. (3) The amount of the minimum annual fee for exploration of mineral raw materials shall be prescribed in a regulation by the Government of the Republic of Croatia, depending on the kind of exploration, period of exploration, business risk and expected profit, equipment and size of the exploration area, at the proposal of the ministry in charge of mining. (4) The fee for exploration shall be revenue of the State Budget and/or the budget of local and regional self-government units. (5) The ministry in charge of mining shall regularly monitor payment of the fee for exploration of mineral raw materials based on issued approvals for exploration of mineral raw materials and supervise collection of the fee for exploration of mineral raw materials by state administration offices and the Zagreb city office. (6) The pattern of allocation of the revenue based on the fee for exploration referred to in paragraph 4 of this Article shall be determined by the Government of the Republic of Croatia in the regulation referred to in paragraph 3 of this Article.

12 Prohibition of sale of extracted raw materials Article 29 (1) It shall be prohibited to sell mineral raw materials extracted in the course of exploration of mineral raw materials. (2) The mineral raw materials extracted in the course of exploration of mineral raw materials shall be the ownership of the Republic of Croatia and must be delivered to the owner in the same manner as the surplus of mineral raw materials produced during excavation of large structures, laid down by this Act. Experimental exploitation of mineral raw materials for investigation purposes Article 30 (1) During explorations, mineral raw materials may be experimentally exploited for the purpose of conducting laboratory investigations, technological tests and determining the conditions for exploration, in the maximum quantities laid down in the approval for exploration of mineral raw materials. (2) If the ministry in charge of mining or the state administration office or the Zagreb city office establishes, on the basis of the proposed scope and type of exploration activities, that the planned exploration activities are of such an importance as to be performed only on the basis of a mining project, the approval for exploration of mineral raw materials shall require an appropriate mining project to be prepared for the execution of the exploration activities. Security measures to prevent danger to people, property and the environment, occupational health and safety measures and restoration Article 31 (1) In the course of exploration of mineral raw materials and after the termination or permanent suspension of exploration of mineral raw materials, the holder of the approval for exploration of mineral raw materials shall take all necessary security measures to prevent danger to people, property and the environment in the area where the exploration activities are or were executed and to inform the State Inspectorate and the Environmental Protection Inspection thereof. (2) In addition to the security measures referred to in paragraph 1 of this Article, the holder of the approval for exploration of mineral raw materials shall carry out restoration of the land where the exploration had been carried out. (3) If the State Inspectorate and the Environmental Protection Inspection find that the taken security measures, environmental protection measures and restoration of the exploration area after the termination of exploration of mineral raw materials are sufficient, it shall issue the holder of the approval a certificate to this regard and inform the ministry in charge of mining or the state administration office or the Zagreb city office thereof. (4) After receiving the report referred to in paragraph 3 of this Article, the ministry in charge of mining or the state administration office or the Zagreb city office shall issue the holder of the approval for exploration of mineral raw materials a decision on the expiry of validity of

13 the approval for exploration of mineral raw materials and on erasing the exploration area from the Register of mineral raw materials exploration areas. (5) The holder of the approval for exploration of mineral raw materials shall submit security instruments prescribed by the minister in charge of mining, for the purpose of restoration of the exploration area in which the exploration of mineral raw materials is carried out. (6) The holder of the approval for exploration of mineral raw materials shall be responsible for the environmental damage caused by the exploration of mineral raw materials. Elimination of deficiencies and implementation of other security measures at the expense of the holder of the approval Article 32 (1) If the State Inspectorate and the Environmental Protection Inspection establish that the taken security measures referred to in Article 31 paragraph 1 of this Act are not sufficient, they shall give an order to the holder of the approval for exploration of mineral raw materials to eliminate the established deficiencies within a specific period of time, which must not be longer than six months, and if required, to take additional security measures. (2) If the holder of the approval for exploration of mineral raw materials does not proceed in accordance with the order referred to in paragraph 1 of this Article, the State Inspectorate and the Environmental Protection Inspection shall notify the ministry in charge of mining or the state administration office or the Zagreb city office thereof, and they shall undertake the necessary security measures at the expense of the holder of the approval for exploration of mineral raw materials. Restoration of the environment Article 33 (1) The holder of exploration of mineral raw materials that performs exploration of mineral raw materials without an approval for exploration of mineral raw materials shall carry out restoration of the environment endangered by illegal exploration and restoration of the environmental damage resulting from illegal exploration, in line with environmental protection regulations. (2) In case that the holder of exploration of mineral raw materials fails to carry out restoration of the environment endangered by illegal exploration, the State Directorate and the Environmental Protection Inspection shall notify the ministry in charge of mining or the state administration office or the Zagreb city office thereof, and shall undertake the necessary security measures at the expense of the holder of exploration of mineral raw materials that performed the exploration without an approval. Termination of validity of an approval for exploration of mineral raw materials Article 34 An approval for exploration of mineral raw materials shall cease to be valid: a) if the validity period for which it was issued has expired,

14 b) upon the death of the natural person or termination of the legal person that was the holder of the approval. Revocation of an approval for exploration of mineral raw materials Article 35 (1) The Ministry in charge of mining or the state administration office or the Zagreb city office shall revoke the approval for exploration of mineral raw materials granted to the holder: 1. if the holder has not fulfilled the obligations determined in the approval for exploration of mineral raw materials, 2. if the prescribed occupational health and safety measures and the required measures for the security of people, property and protection of the environment ordered in the decision of the State Inspectorate and the Environmental Protection Inspection have not been carried out, 3. if the exploration of mineral raw materials obstructs or imperils another exploration in the same or in the neighbouring exploration areas, or if the exploration imperils future exploitation of mineral raw materials, 4. if under the pretext of exploration of mineral raw materials the exploitation of mineral raw materials is performed, except where it is permitted pursuant to the provisions of this Act, or if during the exploration larger amounts of mineral raw materials are extracted than laid down in the approval for exploration of mineral raw materials, or if the exploration is carried out outside the borders of the approved exploration area, 5. if, notwithstanding a written warning, the annual fee for mineral raw materials exploration has not been paid, 6. if needed for the defence of the Republic of Croatia, 7. if the exploration does not begin within the deadline laid down in the approval for exploration or mineral raw materials, except in the case of a force majeure, 8. if it is established that the mineral raw materials exploration area is a permanent or seasonal habitat (nesting, winter or resting site) of a strictly protected plant or animal species. (2) The ministry in charge of mining or the state administration office or the Zagreb city office may revoke the approval for exploration of mineral raw materials granted to the holder: 1. if the extent of exploration laid down as minimum in the approval for exploration of mineral raw materials was not respected, and a force majeure event had not occurred, 2. if it is established that the holder of the approval is performing exploration of mineral raw materials which obstructs development, significantly disturbs, chases away, or destroys a strictly protected plant or animal species, 3. if the holder of an approval that received the approval for exploration of mineral raw materials later, performs activities that obstruct activities of the holder of an approval that had received the approval for exploration of mineral raw materials before, 4. if the holder of the approval for exploration of mineral raw materials does not, in line with the issued approval and in the course of exploration of mineral raw materials, submit a report on the performed exploration and the results of the mineral raw materials exploration to the ministry in charge of mining in line with this Act.

15 III MINERAL RAW MATERIAL RESERVES Obligation to submit data and documents on mineral raw material reserves Article 36 (1) Natural and legal persons shall, prior to submitting a proposal for a concession for mineral raw materials exploitation and within no more than five years after the day of the issuance of the concession for exploitation of mineral raw materials or a decision certifying the quantity and quality of mineral raw material reserves, submit to the commission for determination of mineral raw material reserves the data and documents on the mineral raw material reserves, together with a proposal of classification of these reserves into classes and categories. (2) The final deadline for submitting the data and documents referred to in paragraph 1 of this Article for the approved mineral raw materials exploitation fields shall be defined in a decision certifying the quantity and quality of mineral raw material reserves. Classification of mineral raw material reserves and documents on reserves Article 37 (1) Mineral raw material reserves shall be classified into classes and categories pursuant to the regulations on the unified method of establishing, recording and collecting the data on mineral raw material reserves and a balance of these reserves. (2) Documents on mineral raw material reserves may be prepared by the legal persons fulfilling conditions for preparation of documents on mineral raw material reserves. (3) Legal persons that prepare documents on mineral raw material reserves shall, prior to commencement of preparation, appoint the manager in charge. (4) The manager in charge referred to in paragraph 3 of this Article shall be a person with necessary professional qualifications, passed licensing examination and work experience as prescribed by a special ordinance. Commission for determination of mineral raw material reserves Article 38 (1) On the basis of a proposal by a holder of an approval and/or a concession for exploitation of mineral raw materials, including documents on mineral raw material reserves, the commission for determination of mineral raw material reserves shall determine and verify the quantities and the quality of the mineral raw material reserves and issue a decision thereon. (2) Members of the commission for determination of mineral raw material reserves must have the necessary professional qualifications, passed licensing examination and work experience as prescribed by a special ordinance passed by the minister in charge of mining. (3) A member of the commission for determination of mineral raw material reserves shall not perform control of the documents on mineral raw material reserves in the preparation of which he/she participated in entirety or in part or if those documents were entirely or partially prepared by the legal person he/she is employed with.

16 (4) The minister in charge of mining shall establish the commission for determination of mineral raw material reserves and nominate its members from among scientific and expert workers. Ordinance on mineral raw material reserves Article 39 The conditions that must be fulfilled by the legal persons preparing documents on mineral raw material reserves, the professional qualifications, work experience and licensing examination of the manager in charge of the preparation of documents on mineral raw material reserves, the content of the request for certifying the quantity and quality of mineral raw material reserves, the method and conditions of classifying mineral raw material reserves into classes and categories, the procedure of determining and verifying mineral raw material reserves, the professional qualifications, work experience and licensing examination of members of the commission for determination of mineral raw material reserves, the work of the commission for determination of mineral raw material reserves, and the content of the decision certifying mineral raw material reserves shall be prescribed in a special ordinance passed by the minister in charge of mining. Records on mineral raw material reserves Article 40 (1) A holder of a concession for exploitation of mineral raw materials shall keep records on the reserves and annual exploitation of mineral raw materials. (2) A holder of a concession for exploitation of mineral raw materials shall each year by 15 March submit to the ministry in charge of mining the data on the reserves and annual exploitation of the mineral raw material reserves as at 31 December of the previous year. IV MINING PROJECTS Types of mining projects Article 41 (1) In order to commence with the exploitation of mineral raw materials a mining project for exploitation of mineral raw materials shall be required. (2) The proposal for the issuing of a concession for the exploitation of mineral raw materials must be accompanied by the mining project for exploitation of mineral raw materials. (3) For significant deviations from the projects referred to in paragraphs 1 and 2 of this Article, a new mining projects shall be prepared, in line with the conditions and methods prescribed for the preparation of the projects referred to in paragraphs 1 and 2 of this Act. (4) For minor deviations from the projects referred to in paragraphs 1, 2 and 3 of this Article, a simplified mining project shall be prepared.

17 (5) If exploration and exploitation of mineral raw materials executed in accordance with the mining project requires deep wells, an adaptation project shall be prepared in the form of a simplified mining project. (6) The content of the mining projects referred to in paragraphs 1, 2 and 3 of this Article, the procedure of verification of a mining project and the content and form of the statement on the performed verification of a mining project shall be prescribed in an ordinance by the minister in charge of mining. Persons authorised to prepare mining projects Article 42 (1) Mining projects may be prepared only by the legal persons meeting the requirements referred to in Article 44 of this Act for the performance of the activity of preparing mining projects. (2) Prior to the commencement of preparation of a mining project, legal persons that prepare mining projects must appoint the main designer in charge of the mining project and, as required, designers of individual parts of the mining project. (3) The main designer and the designer shall be persons with the required professional qualifications, passed licensing examination and work experience as prescribed in an ordinance passed by the minister in charge of mining. Verification of mining projects Article 43 (1) Mining projects shall be subject to verification regarding rational exploitation of mineral raw materials, measures and standards of occupational health and safety, security of the installations and people, and of the underground, surface and neighbouring facilities, and compliance of the project with the site requirements and the provisions of this Act, other acts and regulations for their implementation. (2) Verification of a mining project shall be performed by the expert commission for verification of mining projects of the ministry in charge of mining or of the state administration office or the Zagreb city office. (3) A member of the expert commission for verification of mining projects shall not perform verification of the mining project in the preparation of which he/she participated in entirety or in part or if that project was entirely or partially prepared by the legal person he/she is employed with. (4) Members of the expert commission for verification of mining projects shall be appointed by the minister in charge of mining from among scientific and expert workers. Ordinance on professional requirements Article 44 The conditions to be fulfilled by the legal persons preparing mining projects, the professional qualifications, licensing examination and work experience of the main designer and the

18 designer of mining projects, the professional qualifications, licensing examination and work experience of members of the expert commission for verification of mining projects shall be prescribed by the ordinance referred to in Article 41 paragraph 6 of this Act. V EXPLOITATION OF MINERAL RAW MATERIALS Concession for exploitation of mineral raw materials Article 45 (1) A concession shall be required for exploitation of mineral raw materials. (2) Exploitation of mineral raw materials shall be permitted only within the exploitation field specified in the concession contract and within the boundaries defined in the mining project. (3) The mineral raw materials exploitation field is a part of land plots defined by joining endpoint co-ordinates, identified by cadastral and land registry numbers of plots. (4) The mineral raw materials exploitation field shall be determined in accordance with the Mineral Raw Materials Management Strategy and its implementing documents. (5) The mineral raw materials exploitation field shall be determined in accordance with the location permit. (6) The particulars on the exploitation field shall be entered in the Register of mineral raw materials exploration fields kept by the ministry in charge of mining and the state administration office or the office of the City of Zagreb within 15 days from the day the concession was granted. Rights obtained by concession, type of procedure and purpose of concession Article 46 (1) The concession for exploitation of mineral raw materials grants the right to exploit mineral raw materials for economic purposes, including the right to conduct mining activity with the purpose of exploitation. (2) The concession referred to in paragraph 1 of this Article shall be awarded pursuant to a public invitation to tender in conformity with the provisions of the Concessions Act. (3) The concession for exploitation of mineral raw materials is the concession for the right to exploit a common good or other goods in conformity with the provisions of the Concessions Act. Concession grantors Article 47 (1) The grantor of the concession for exploitation of mineral raw materials referred to in Article 5, items 1, 2, 4 and 5 of this Act is the ministry in charge of mining.

19 (2) The grantor of the concession for exploitation of mineral raw materials referred to in Article 5 item 3 of this Act is the state administration office or the office of the City of Zagreb. (3) The grantor of the concession for exploitation of mineral and geothermal waters (when the final intention of the use of mineral and geothermal waters is for energy purposes) is the ministry in charge of mining. For granting the concession, the ministry in charge of mining shall obtain prior approval from the ministry in charge of water management. Preparatory actions for award of concession for exploitation of mineral raw materials Article 48 (1) Preparatory actions for the award of the concession for exploitation of mineral raw materials shall be performed by the concession grantor in accordance with the provisions of this Act and the provisions of the Concessions Act. (2) Preparatory actions shall particularly imply the following: - estimating the value of the concession, - preparing a concession justification study, - appointing an expert commission for the concession, - preparing tender documents, - defining the exploitation field, - defining the type and the amount of the tender guarantee, - defining the amount of the fee for access to or purchase of the documents necessary to prepare a tender, - defining criteria for the selection of the most advantageous tenderer. (3) The Government of the Republic of Croatia may, by a Regulation, stipulate other preparatory actions preceding the concession award procedure. Concession award procedure Article 49 (1) The concession award procedure shall commence on the day of the publication of the notice of intent to award a concession in the Official Gazette and shall terminate once the decision on the selection of the most advantageous tenderer or the decision on cancellation of the concession award procedure become final and effective. (2) The notice of intent to award a concession for exploitation of mineral raw materials shall contain the information referred to in Article 18, paragraph 2 of the Concessions Act. (3) The notice of intent to award a concession for exploitation of mineral raw materials shall contain the information that the concession is granted pursuant to a public invitation to tender. (4) The notice of intent to award a concession shall be published in the Official Gazette, and after that, provided there are no modifications in the contents, the notice may be published in other mass media and on the web site of the concession grantor, quoting the date of publication in the Official Gazette.