A Survey Of Latin-American Mining Law

THE emphasis in some political quarters on hemispheric unity and defense indicates Latin American mineral resources should be more extensively developed. However, United States mining companies have, in many instances, been discouraged by the laws of southern neighbors. At the same time, some of the countries have liberalized their mining laws in an effort to attract investments from the United States. The resultant confusion has been detrimental to all concerned. Ownership of Mineral Deposits Examination of the mining codes of Latin American countries shows that, without exception, governments reserve the right of direct ownership of all mineral resources. Ownership can be divided between the Feredal Government and the states or among the Federal Government, the states, and private individuals. However, in the majority of the nations constitutional authority vests all mineral rights solely in the Federal Government. Mexico is the only country that has expressed Federal ownership as imprescriptible; the other republics have not defined the exact significance of government ownership. The implication derived from the general economic and political climate is that all mineral resources are ultimately to be regarded as a national heritage. Whether a concession granted to an individual or corporation carries any right of private property is shaded with a variety of meanings. The exceptions at one extreme are Argentina and Bolivia, whose laws state explicitly that a concession granted to a juridical person is an act of the state, and the land becomes the private property of the individual, and the concessions constitute real property. However, in Mexico mining concessions or grants do not create rights of fee-simple ownership. The concession only conveys the exclusive right to explore, develop, and work the deposits. The mining property remains the property of the state. In some instances exploitation concessions represent a compromise between private and government ownership. In Honduras the period granted to a mining enterprise is fixed at 90 years. At the end of that time, the enterprise and all installations revert to the state without compensation.