In the mining legal framework, the loss of a title is the most severe sanction an entrepreneur can suffer. However, the extinction of a right does not occur in a unique way. The legislation provides for different instruments for this: Forfeiture, Nullity andCancellation.
Although all result in the loss of the right over the area, their causes, the affected titles, and the competent authorities to apply them are distinct. Understanding these differences is vital for compliance management and the defense of your mineral asset.
1. Forfeiture: The Penalty for Operational Failure
Forfeiture is an administrative sanction applied when the holder of an Exploration Permit or Mining Lease fails to comply with their operational obligations. Generally, it is the final stage of a process that involved previous warnings and fines.
Main Causes:
- Formal abandonment of the mine or deposit.
- Failure to start or suspension of exploration or mining works, after the application of a fine.
- Execution of works in disagreement with the title conditions.
- Practice of ambitious mining (predatory extraction) or extraction of unauthorized substances, after warning and fine.
- Recidivism in inspection infractions (third recurrence in one year).
- Serious environmental damage resulting from the rupture or leakage of a mining dam.
Decision-Making Authority: The final decision falls to the Minister of Mines and Energy (MME), upon a substantiated proposal from the Collegiate Board of the ANM.
2. Ex Officio Nullity: The Consequence of Financial Default
Ex Officio Nullity is a specific sanction that results in the extinction of an Exploration Permit. Its focus is not on operation, but rather on the non-compliance with financial obligations.
Main Cause:
- Non-payment of the Annual Fee per Hectare (TAH) and the fine resulting from this default. If, after being fined for the delay or lack of payment of the TAH, the holder still does not settle the debt, the ANM may declare the nullity of the permit.
Decision-Making Authority: The competence belongs to the ANM itself, usually executed by the Superintendence or Collection Coordination.
3. Cancellation: Extinction in Simplified Regimes
The term “Cancellation” is used for the extinction of titles in simpler regimes, such as Mineral Licensing and the Small-Scale Mining Permit (PLG).
Main Cause:
- Non-compliance with specific obligations and conditions established for these regimes, verified during an inspection process.
Decision-Making Authority: The competence belongs to the ANM Superintendent responsible for the inspection action.
Summary of Differences
| Penalty | Affected Titles | Main Focus of the Infraction | Deciding Authority |
| Forfeiture | Exploration Permit, Mining Concession | Failure to execute work, abandonment, predatory mining, non-compliance after fines, and severe environmental damages (Dams). | MME, upon proposal by the ANM’s Collegiate Board. |
| Nullity | Exploration Permit | Default on a financial obligation (TAH and associated fine). | ANM (Superintendence/Revenue Collection Coordination). |
| Cancellation | Licensing, Small-Scale Mining Permit | Non-compliance with specific obligations of these regimes. | Superintendent responsible for ANM’s inspection actions. |
Maintaining a mining right requires continuous and attentive compliance management. While a punctual infraction, such as failing to send a declaration, may result in a fine, persistence in non-compliance with operational or financial obligations can escalate to the definitive loss of the title.
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