Mining

REMSa. S.A. manages and articulates mining investment projects, organization that promotes the study, exploration, and/or exploitation of mining resources, which is one of the main objectives of the company.

There is an enormous geological potential in metalliferous and non-metalliferous elements in Salta, and in Argentina, compared to other mining countries in South America. It can be said that exploitation in Argentina is still at an early stage as there are many potential areas to be analyzed, and our province, Salta, is in continuous development and growth in mining.

In Salta, mining production is considered to be a government policy, and it is governed by special provincial and federal regulations. Moreover, concessions are granted by a judge with complete independence f rom other government agencies.

In order to understand how REMSa S.A. participates in the mining industry, it is essential to know the legal mechanism through which its mining portfolio is consolidated.

For REMSa S.A. to acquire mining properties, it must submit the corresponding application following the same procedure as any other mining company, and it has the same rights and obligations as any other company in the field.

Section No. 346 of the National Mining Code establishes that basic geological-mining research carried out by the National State, throughout the country, and by the provinces in their territories, is free and does not require permission from the mining authority.

The research carried out by the National State is launched with the prior consent of the provinces where the activity is done.

The provincial authority, the company or provincial state entity in charge of the investigation may provide, through a communication sent to the mining authority, with exclusive areas of interest for mining prospection; this exploration is carried out directly, or with the participation of third parties.

This means that mining exploration can be executed directly by our company, as well as in partnership with third parties. In the modification of section 29 of the Mining Procedure Code of the Province of Salta, it is established that before the publication of vacancy or expiration of mines in the official journal, REMSa S.A. must be granted for review, for 120 working days, if it is going to submit the mentioned mines to the investigation area in terms of section 346 of the National Mining Code.

A mine is declared vacant when the owner of the legal rights fails to comply with any of the following requirements: payment of fees, submission of environmental reports, or submission of investments plans.

The areas of investigation have a legal identification file and a maximum duration of 2 years. The area's tenderer may request or may make such statements, or petitions, as it deems appropriate, during that time.