JORDAN MINING REGULATION
Jordan, officially known as the Hashemite Kingdom of Jordan, is a middle-eastern country that is bordered by Saudi Arabia, Iraq, Syria and Israel. Jordan is a constitutional monarchy, however its king holds considerable executive and legislative powers and sits as Head of State and Commander-in-Chief. The King appoints the executive branch, which consists of the Prime Minister, the Cabinet and regional governors. Parliament consists of two chambers: the House of Representatives and the Senate. The members of the House are democratically elected but the members of the Senate are appointed by the King. In 2012, Jordan passed a law (the Political Parties Law) that prohibited the establishment of parties based on religion, including the Muslim Brotherhood.
Jordan has few natural resources and a small industrial base. Its reserves of crude oil are largely non-commercial, placing it at a distinct disadvantage to some of its neighbors. Nevertheless, Jordan is a significant global producer of bromine, phosphate rock and potash. In 2012, the country ranked among the world’s top three producers of bromine, it was ranked fifth for phosphate rock and seventh for potash (USGS, 2012 Minerals Yearbook). Generally speaking, Jordan is seen as open to foreign investment and it has adopted laws aimed at promoting foreign direct investment. Only quarries are restricted within the mineral sector, where Article 6 of the Regulation of Foreign Investments (No. 54 of 2000) prohibits non-Jordan investors from participating, wholly or partially, in quarries.
PRINCIPAL LEGISLATION AND REGULATOR
The primary legislation related to mining in Jordan is the Organization of Natural Resources Affairs Law (No. 12 of 1968) as updated by Law No. 30 of 1985 (Law) and Mining Regulation No. 131 of 1966 (Regulation). Pursuant to Article 30 of the Law, “All minerals existing within the borders of the Hashemite Kingdom of Jordan, whether found on the surface, underground or in territorial waters, rivers and internal seas shall be considered state domain.” The Ministry of Energy and Mineral Resources, through the Natural Resources Authority, is responsible for implementing the Law.
GRANT AND FORMS OF MINERAL TITLE
Jordan provides two forms of mineral title, as follows:
- Prospecting Licence: Art. 35 of the Law permits any person who has sufficient technical and financial qualifications to be granted a prospecting licence upon the payment of fees. No permits may be directly obtained by a foreigner (Art. 36). The holder has the exclusive right to explore within the defined area of the licence (Art. 41). The licence is valid for one year and may be renewed at the discretion of the NRA (Regulation, Art 3). Upon a discovery, one is entitled to a discovery certificate, which confers a preferential right to a mining right.
- Mining Right: The decision to award a mining licence is, ultimately, discretionary. The key criteria for a mining licence are: (1) a feasibility study; and (2) technical and financial competence (Art. 42). The right may be given for a term of up to 30 years, but renewal is largely of right (Art. 42(b)). Transfers are only permitted upon consent of the Council of Ministers (Art 43).
With respect to foreign investors, an indirect investment in a project is possible without special conditions, but a direct holding of mining rights will necessitate a special agreement (which amounts to a special law). All terms and conditions may be negotiated in such an agreement, including those pertaining to the exploration phase and fiscal terms (Art. 36).
Art. 31 of the Law indicates that mining shall be deemed to be a public utility when considering the expropriation of lands for the public interest. Article 33 goes on to state that if a landowner refuses to sell or rent land needed for exploration or mining purposes, the Council of Ministers may decide a fair price or, where applicable, to expropriate the land. Pursuant to the Environmental Impact Assessment Regulation (No. 37 of 2005), an environmental approval is required for any mining project identified. The proponent must submit a preliminary draft of the terms of reference for the EIA, after agreeing with the Ministry on the content of the report, and public comment is sought in appropriate cases. The ultimate decision is left with the Minister after a Technical Committee has rendered its decision.
See Jordan Environmental Regulation.