The editorial staff

The proposed law amending the 2018 Mining Code clarifies the allocation and control of mining royalties intended for Decentralized Territorial Entities (ETDs). Through the insertion of a new Article 285 decies, the text strengthens the legal framework to ensure that these funds directly benefit local populations impacted by mining operations.

According to this new provision, all resources allocated to the ETD (Territorial Development Establishment) under the mining royalty scheme must now be used exclusively for community investment programs. The use of these funds is thus primarily directed towards basic social sectors, in accordance with local development plans.

Three priority areas for local development

The text sets out three major guidelines for the allocation of these financial resources:

The development of basic infrastructure, in order to address the deficit in public facilities in extraction areas.

Improving basic social services and the living environment of local residents, to guarantee a concrete and measurable social impact of mining projects.

Promoting the local economy and human capital, which includes funding vocational training for the benefit of young people and local communities.

Strengthening accountability

In addition to the allocation of funds, the new article significantly strengthens the monitoring and financial transparency mechanism. From now on, the use of funds will be the subject of an annual report, which must be submitted to the Sector Councils for adoption.

In parallel, a tripartite audit will be conducted by the relevant departments of the Ministries of Mines, the Interior, and Social Affairs and Humanitarian Action. Following this interministerial audit, a comprehensive report summarizing all projects funded by mining royalties will be prepared.

A key element of this governance mechanism is that the Minister of Mines will be required to personally present a copy of this general report to the National Assembly during the ordinary session in March of each year. The practical details of this interministerial oversight will be specified in the Mining Regulations.