MINING CODE LAW 24,585 Modification Sanctioned: November 1, 1995. Promulgated: November 21, 1995. Official Gazette: November 24, 1995. The Senate and Chamber of Deputies of the Argentine Nation gathered in Congress, etc. sanction with force of law: ARTICLE 1 - Article 282 of the Mining Code is replaced by the following: "ARTICLE 282.- The miners can exploit their belongings freely, without being subject to other rules than those of their security, police and environmental conservation. The protection of the environment and the conservation of the natural and cultural heritage in the field of mining activity will remain subject to the provisions of the complementary title and those that are established in due course by virtue of article 41 of the National Constitution". ARTICLE 2 - The following shall be incorporated as a complementary title preceding the final title of the Mining Code: "COMPLEMENTARY TITLE From environmental protection to mining activity First Section Scope of Application and Scope Article 1 - The protection of the environment and the conservation of the natural and cultural heritage, which may be affected by the mining activity, shall be governed by the provisions of this title. Art. 2º- They are included within the regime of this Title, all natural and legal persons, public and private, centralized and decentralized entities and companies of the National, Provincial and Municipal State that develop activities included in article 4º of this title . Art. 3 - The people included in the activities indicated in article 4 will be responsible for all environmental damage that occurs due to non-compliance with the provisions of this title, whether they cause it directly or by people who are under its dependence or by contractors or subcontractors, or caused by the risk or vice of the thing. The holder of the mining right will be jointly and severally liable, in the same cases, for the damage caused by the persons authorized by him to exercise such right. Art. 4º- The activities included in this title are: a) Prospecting, exploration, exploitation, development, preparation, extraction and storage of mineral substances included in the Mining Code, including all activities aimed at closing the mine; b) The processes of crushing, grinding, processing, pelletizing, sintering, briquetting, primary processing, calcination, smelting, refining, sawing, carving, polishing, polishing and others that may arise from new technologies and the disposal of waste whatever its nature. . Art. 5º- The authorities that the provinces determine within the scope of their jurisdiction will be the enforcement authority for the provisions of this title. Second Section Of the Environmental Management Instruments Art. 6 - Those responsible included in article 3 of this title must submit an Environmental Impact Report to the enforcement authority before the start of any activity specified in article 4 of this title. The enforcement authority may provide advice to small producers for the preparation of the same. Art. 7º- The application authority will evaluate the Environmental Impact Report and will decide for the approval by means of an Environmental Impact Declaration for each one of the stages of the project or effective implementation. Art. 8 - The Environmental Impact Report for the prospecting stage must contain the type of actions to be carried out and the eventual risk of environmental impact that they could entail. For the exploration stage, said report must contain a description of the methods to be used and the environmental protection measures that may be necessary. In the stages mentioned above, the prior approval of the Report by the application authority will be necessary for the start of the activities, without prejudice to the responsibilities provided for in article 3 of this title for the damages that may be caused. Art. 9º- The enforcement authority will expressly approve or reject the Environmental Impact Report within a period not exceeding sixty (60) business days from the time the interested party submits it. Art. 10.- If, through a well-founded decision, the content of the Environmental Impact Report is deemed insufficient, the person in charge may make a new presentation within a term of thirty (30) business days of being notified. The enforcement authority within thirty (30) business days will be issued, approving or rejecting the report expressly. Art. 11.- The Environmental Impact Statement will be updated twice a year at most, and a report must be submitted containing the results of the environmental protection actions carried out, as well as any new events that may have occurred. Art. 12.- The enforcement authority, in case of discrepancies between the results actually achieved and those expected according to the Environmental Impact Statement, will order the introduction of modifications, taking into account the existence of new knowledge about the behavior of the affected ecosystems and actions aimed at greater efficiency for the protection of the area of influence of the activity. These measures may also be considered at the request of the mining operator. Art 13.- The equipment, facilities, systems, actions and activities of prevention, mitigation, rehabilitation, restoration or environmental recomposition, consigned by the person in charge and included in the Environmental Impact Statement will constitute the obligation of the person in charge and will be subject to compliance control by part of the enforcement authority. Art. 14.- The presentation will not be accepted when the owner or any type of agent or professional of the company, is disqualified or fulfilling sanctions for violation of this title. Art 15.- Any individual or legal entity that carries out the activities included in this title and meets the requirements demanded by it, may request an Environmental Quality Certificate from the enforcement authority. Third Section Of the Norms of Protection and Environmental Conservation Art. 16.- The rules that regulate this title will establish: a) The procedures, methods and standards required, leading to environmental protection, according to the stages of activity included in article 4 of this title, categorization of activities by degree of environmental risk and ecosystem characterization of the area of influence; b) The creation of a Registry of consultants and laboratories to which the interested parties and the application authority may request assistance to carry out monitoring and external auditing tasks; c) The creation of a Registry of Offenders. Art. 17.- The Environmental Impact Report must include: a) The location and environmental description of the area of influence. b) The description of the mining project. c) The possible modifications on soil, water, atmosphere, flora and fauna, relief and socio-cultural environment. d) The measures of prevention, mitigation, rehabilitation, restoration or recomposition of the altered environment, as appropriate. e) Methods used. Fourth Section Of the Responsibilities before the Environmental Damage Art. 18.- Without prejudice to the administrative and penal sanctions established by the regulations in force, anyone who causes current or residual damage to the environmental heritage will be obliged to mitigate, rehabilitate, restore or recompose it, as appropriate. Fifth Section Offences and penalties Art. 19.- Failure to comply with the provisions established in this title, when they are not included within the scope of criminal responsibilities, will be sanctioned with: a) Warning; b) Fines, which will be established by the Enforcement Authority in accordance with the guidelines set forth in article 292 of the Mining Code; c) Suspension of the enjoyment of the Environmental Quality Certificate of the products; d) Repair of environmental damage; e) Temporary closure, which will be progressive in cases of recurrence. In case of three (3) serious infractions, the establishment will be permanently closed; f) Disqualification. Art. 20.- The sanctions established in article 19 will be applied prior summary, by the rules of the administrative process, which ensures due legal process and will be graduated according to the nature of the infraction and the damage produced. Art. 21.- Anyone who commits an infraction having been sanctioned previously for another infraction under this title, will be considered a recidivist for the purposes of grading the penalty. Sixth Section On Environmental Education and Defense Art. 22.- The enforcement authority will implement a training and illustration program in order to guide the population, particularly those linked to mining activity, on the understanding of environmental problems, their consequences and prevention in accordance with the regional, ethnic, social, economic and technological particularities of the place where the tasks are carried out. Art. 23.- The enforcement authority shall be obliged to provide information to whomever requests it regarding the application of the provisions of this title. Section Seven Transitory and General Provisions Art. 24.- For those activities included in article 4 of this title, and whose initiation is prior to the validity of this law, the concessionaire or owner of the plant and facilities must present, within the year of its entry into force , the Environmental Impact Report. Art. 25.- In accordance with the provisions of Article 24 of this title: a) The irreversible and unavoidable impacts produced may not affect in any way the activities that are being carried out. b) The actions leading to the correction of future impacts, as a consequence of the continuity of the activities, will be demanded of those responsible by the enforcement authority, the execution of the same being in charge of the former." ARTICLE 3 - This Law will enter into force ninety (90) days after its publication. ARTICLE 4º- Communicate to the Executive Power.