The importance of geological explorations is reflected in the fact that energy and mining represent crucially significant areas for the economic development of our country, and that the fundamental prerequisite for the exploitation of mineral resources and foreign investment in our country is precisely the encouragement of geological explorations in its territory. Bearing in mind the importance of the mentioned areas, a new Law on Geological Explorations was adopted in the Republika Srpska, which was published in the Official Gazette of the Republika Srpska No. 64/22 on July 6, 2022, and entered into force on July 14, 2022. This Law regulates in more detail the area of approval of geological explorations of mineral resources, all with an aim to encourage investors from all over the world to carry out geological explorations and later invest in infrastructure and the exploitation of mineral resources on the territory of the Republika Srpska.
1. What represents geological explorations, who can carry out geological explorations and in which manner?
Geological explorations is a complex process and it involves series of activities that include the application of appropriate methods and technical means, carried out with the aim of: knowing the development, composition and structure of the earth’s crust, finding, examining and geologically and economically evaluating mineral and other geological resources, determining the reserves of mineral raw materials and the possibility of their exploitation, determining and assessing the geological, engineering-geological, hydrogeological and geophysical characteristics of the terrain, especially from the aspect of spatial and urban planning, design and construction of facilities, determining and eliminating the harmful effects of geological and technogenic processes on the geological and environmental environment, cultural assets and assets that enjoy protection.
The Law on Geological Explorations of the Republika Srpska prescribes that detailed geological explorations of all types of coal, hydrocarbons and other natural gases, oil shale, radioactive ores and geothermal resources are carried out on the basis of a concession, granted in accordance with the law governing the area of concessions, and a project detailed geological explorations, while all other types of detailed geological explorations are carried out according to the project of detailed geological explorations.
Detailed geological explorations, exploratory drilling and expert supervision during the performance of detailed geological explorations can exclusively be performed by a legal entity that possesses a license for detailed geological explorations, exploratory drilling and expert supervision during the performance of detailed geological explorations. The said license is issued by the Ministry of Energy and Mining but after meeting all requirements provided for by the Law on Geological Explorations of the Republika Srpska (Article 13, 14, 15). A legal entity interested in explorations shall regulate relations with the holder of the right to explorations, i.e. the concessionaire, by agreement, and shall submit the same to the request for approval of explorations. Along with the request, it is necessary to submit the project of detailed geological explorations of mineral raw materials, which is approved by the Ministry.
2. Where can detailed geological explorations be carried out?
Detailed geological explorations of mineral resources are carried out within the limits of the approved explorations area which can be up to 50 km2, except for the explorations of underground water and geothermal resources, when it is up to 30 km2 and the explorations of non-metallic mineral resources for obtaining construction and industrial materials, to a maximum of 2 km2. The cadastre of approved explorations areas is maintained by the Ministry.
If those explorations are carried out in protected areas, areas under previous protection, as well as areas that are planned for protection due to its cultural-historical, architectural and archaeological significance, the possibility of granting approval is foreseen only under the conditions prescribed by the laws regulating nature protection, protection of cultural assets, protection of national parks, as well as the regulation declaring the area protected, while in settlements at a distance of less than 100 m from residential buildings, it is not allowed to carry out geological explorations works, except for engineering geological, geotechnical and hydrogeological explorations.
3. For which period the concession can be granted and how can it be extended?
The period for which a concession for the exploration of mineral resources can be granted cannot be longer than eight years. The exploration period for the exploration of metallic mineral raw materials is three years, while the exploration period for the exploration of non-metallic mineral raw materials, raw materials for industrial processing and for obtaining construction materials, all types of salt and saline water, underground water and technogenic mineral raw materials is two years.
The exploration period can be extended at the request of the exploration right holder if the conditions on the basis of which the exploration permit was issued have not changed and if more than 75% of the planned exploration works have been carried out, and the request for the extension of the exploration period is submitted no later than 60 days before the end of the exploration deadline specified in the decision approving the execution of detailed geological explorations of mineral raw materials.
The minimum scope and type of exploration works, which must be carried out within the approved exploration period, is 75% of the project’s planned scope of exploration works. The Ministry can also cancel the Decision by which a detailed geological exploration was approved before the expiry of the exploration period under the conditions stipulated in Article 43 of the Law on Geological Explorations.
4. Fee for detailed geological explorations
The holder of the right to exploration is obliged to pay a fee for detailed geological exploration of mineral raw materials in the amount of 2% of the value of the planned exploration works, no later than within 30 days from the day of obtaining approval for exploration. The fee for detailed geological exploration is not paid by the applicant who owns the research concession contract.
5. Who supervises the implementation of the exploration?
The holder of the right to exploration is obliged to hire expert supervisor over the performance of detailed geological exploration, which can only be performed by a legal entity that holds a license issued by the Ministry of Energy and Mining. The beginning of exploration works must be reported to the Inspectorate and the competent authority of the local self-government unit, and if the holder of the exploration right hires a legal entity to carry out detailed geological exploration, along with the application, the same is obliged to submit a contract on business and technical cooperation concluded with the legal entity that performs the exploration works. The concessionaire is obliged to prepare a detailed Geological Survey Project based on the Geological Survey Plan, and the Project must be prepared and revised by a legal entity that meets the conditions prescribed by the Law.
6. Who asserts the right to use the results of geological explorations?
The holder of the explorations right is entitled to use and dispose of the results of detailed geological explorations of mineral resources and documents containing the results of geological explorations of mineral resources. If the holder of the right to exploration does not initiate the process of awarding a concession for exploitation within two years from the date of completion of the exploration, the right to use the results of that exploration belongs to the Republic, i.e. belongs to the Ministry. In the event that the holder of the right to exploration initiates the process of awarding a concession within the prescribed period, the same will have priority in the awarding of the concession for exploitation, because in the public call for the award of the concession, the possession of a Study on Reserves will be included in the evaluation criteria.
If the concession for the exploitation of mineral raw materials is awarded to another bidder, the selected bidder is obliged to compensate the holder of the right to exploration for the invested funds before concluding the concession contract for exploitation.
In the event that the holder of the right to exploration is no longer recognized or ceases to exist, the Ministry disposes of the results of geological exploration, as well as documents containing geological results.
Author: Vesna Grujic
E-mail: [email protected]
