Law Updates

MEM Amends Executive Regulation of Mining Law to Include a Chapter on Social Contribution

The Ministry of Energy and Minerals (MEM) issued in this week’s Official Gazette Ministerial Decision 36/2023 Amending Some Provisions of the Executive Regulation of the Mining Law. These amendments include provisions on social contribution under a new chapter numbered Fivebis.

Mining licensees are now obligated to contribute 1% of their total annual production for local community development. This amount, calculated and collected by MEM, is passed to the Ministry of Finance within five working days and subsequently allocated every three months to the development budgets of the offices of the governors. It should be noted that in the event that the licence area includes more than one region, the social contribution is disbursed based on the assessment of the governor depending on the need of the region.

The amendments state that social contribution amounts are earmarked for sustainable and local community-based projects, which include supporting youth activities and environmental projects.

The amendments entered into force on 14 August 2023.

You can read the amendments in full in English on the link below: