Decree 292-98 General Mining Law (repealed)

The purpose of this Law is to regulate mining and metallurgical activities in the country; therefore, it is of public order, general interest, and mandatory application.

The State of Honduras exercises eminent, inalienable, and imprescriptible dominion over all mines and quarries located in the national territory, continental maritime platform, exclusive economic zone, and contiguous zone. In exercise of its right of dominion, the State regulates mining and metallurgical activities and supervises the technical and rational utilization of mineral resources. CHAPTER II PROSPECTION

Prospection has the purpose of investigating a prospect in order to determine indications of mineral deposits.

Prospection is free throughout the national territory, with the exception of perimeters in use, subject to legal procedure. The State of Honduras has granted mining rights and such rights remain in force and when a request for the latter right is pending before the mining authority. When dealing with privately owned land, written authorization must be obtained from the owner or legal possessor; in case of denial, at the request of the interested party, the mining authority shall summarily resolve the matter. CHAPTER III OF EXPLORATION AND EXPLOITATION

Exploration comprises all work necessary for the location and determination of the mine structure, morphology, dimensions and conditions of the mineral body occurrence, the tectonics of the zone containing it, the calculation of reserves and the content and concentration of mineral species therein, determining the geophysical and geochemical characteristics of the explored perimeter.

Exploitation comprises the operations, works, and mining labor aimed at the preparation and development of mines and quarries for the technical and rational extraction of minerals, their commercialization, including processing, although it constitutes an accessory right of the Mining Concession, that is, a complementary metallurgical process, regulated by this Law.

Exploration and exploitation activities are conducted under the title of Mining Concession. The mining concession grants its holder the right to explore and exploit the granted mineral substances found within a solid of indefinite depth, limited by vertical planes corresponding to the sides of a grid, rectilinear or closed polygon, whose vertices are referenced to Universal Transverse Mercator (UTM) coordinates. The mining concession constitutes a real right distinct and separate from the ownership of the property where it is located. The mining concession is an immovable property and its integral and accessory parts retain such character even if located outside its perimeter. Integral parts of the mining concession are the mineral resources contained within its perimeter, according to the type of concession and the work executed that is exploitable. Accessory parts of the mining concession are all property belonging to the mining concessionaire that is permanently applied to the economic purpose of the concession and that the concessionaire expressly identifies as such in any relation with third parties.

The basic unit of surface measurement for mining concessions granted during the validity of this Law is a geometric figure, delimited by Universal Transverse Mercator (UTM) coordinates, with an extension of 100 hectares, according to the Grid System that the mining authority shall formalize. Mining concessions shall be granted in extensions of 100 to 1,000 hectares, in grids or groups of adjacent grids sharing at least one side, except on the continental maritime platform where they may be granted in grids of 100 to 10,000 hectares. The area of the mining concession may be subdivided into grids not smaller than 100 hectares.

When exploration licenses or exploitation concessions requested or granted prior to the validity of this Law exist within the area enclosed by a grid, new applications, although requested for the entirety of the grid or group of grids, shall comprise the unoccupied area of the grid or group of grids.

Mining concessions are classified into metallic, non-metallic, and gems or precious stones.

The concessionaire of metallic substances acquires the exclusive right to explore and exploit such metallic and non-metallic mineral substances found within the area of the concession.

The concessionaire of gems or precious stones acquires the exclusive right to explore and exploit such resources found within the area of the concession, as well as non-metallic substances.

The concessionaire of non-metallic substances acquires the exclusive right to explore and exploit all non-metallic substances found within the area of the concession. Non-metallic concessions shall not be granted when a metallic concession or one for gems or precious stones previously exists on the same area.

In the event that a metallic concession has been requested over a prior gems or precious stones concession, or conversely, one of the latter class over a prior metallic one, the concessions may subsist provided it is demonstrated, at the judgment of the mining authority, the feasibility of conducting both operations without major interference between them. If it is not possible to conduct both operations simultaneously, the new applicant must demonstrate that his concession has greater economic importance, in which case the granted concession shall be cancelled, subject to justified compensation to the holder of the new applicant, and the new concession request shall be granted. On the contrary, if the new applicant does not demonstrate the greater importance, his request shall be denied.

Non-metallic concessions shall not be granted within 500 meters measured from the axis of national highways.

By exception, the residues or small quantities of metals or precious stones referred to in Article 3 may be freely exploited by natural persons provided that operations are carried out manually. When extraction from the deposit is exploited by simple mechanical means, authorization from the mining authority must be obtained. Authorization for exploitation of non-metallic alluvial deposits, superficial clays, sands, rocks and other substances directly applicable to construction shall be the exclusive competence of the corresponding municipalities, when extraction does not exceed ten cubic meters daily; exploitation of larger volumes shall require authorization by mining concession. In no case may these operations be carried out through underground mining, within mining concessions, nor shall they interfere with the work carried out by holders of mining concessions. CHAPTER IV OF PROCESSING

Processing is the set of physical, chemical and/or physicochemical processes carried out to extract or concentrate the valuable parts of an aggregate of minerals and/or to purify, smelt or refine metals; it comprises the following stages:

• 1)

  Mechanical preparation: Process by which a mineral is reduced in size, classified and/or washed.

• 2)

  Metallurgy: Set of physical, chemical and/or physicochemical processes carried out to concentrate and/or extract the valuable substances from minerals.

• 3)

  Refining: Process to purify metals from the products obtained from the previous metallurgical procedures.

The processing concession grants its holder the right to extract or concentrate the valuable part of an aggregate of disaggregated minerals and/or to smelt, purify or refine metals, whether through a set of physical, chemical and physicochemical processes. Obtaining this concession shall be mandatory for those who, not being holders of a mining concession, capture minerals or mineral intermediate products of third parties in order to process them.

The mining concession holder and the processing concession holder, as the case may be, as authorized persons have free disposal of their products. The commercialization of mineral products is free, both internally and externally and for its exercise the granting of a concession is not required. CHAPTER V OF COMMERCIALIZATION

Mineral products purchased from persons authorized to dispose of them are not the responsibility of them. The purchase made from unauthorized persons subjects the buyer to the corresponding responsibility. The buyer is obliged to verify the origin of mineral substances. TITLE IV OF COMMON RIGHTS OF CONCESSION HOLDERS CHAPTER I OF BENEFITS AND GUARANTEES TO CONCESSION HOLDERS

The holders of concessions enjoy the following benefits:

• 1)

  The free use of the surface of the concession when it is unproductive state lands, for the purpose of the concession, without need for any additional request;

• 2)

  To request from the mining authority the right of free use of productive state lands for the same purpose, located outside the concession;

• 3)

  To request from the mining authority, authorization to establish easements on lands of third parties that are necessary for the easement.

• 4)

  To request authorization to establish easements, as the case may be, over the surface lands of other concessions, provided that the mining activity of their holders is not prevented or hindered.

• 5)

  To construct in neighboring concessions the operations necessary for access, ventilation and drainage of their own mining concessions, transport of minerals and worker safety, prior to the corresponding indemnification if they cause damage and without any burden for the servient concessions, leaving at the site, free of costs for these concessions, the materials resulting from such operations performed. The holders of the servient concessions may use these operations by paying the respective compensation, whose amount shall be fixed by the mining authority in accordance with the provisions of Article 22 of this Law.

• 6)

  To use waters within or outside the concession, which are necessary for the domestic service of worker personnel and for concession operations, in conformity with the legal provisions on the matter.

• 7)

  To exploit the mineral substances contained in waters that spring from their operations;

• 8)

  To request from the mining authority inspection of the operations of neighboring or adjoining mining concessions, when suspecting infiltration or when fearing flooding, spill or fire, environmental contamination or the poor state of the operations of neighbors or adjoining areas or due to the development of work carried out in these;

• 9)

  To conduct their operations directly or through third parties. In this case, responsibility for the conduct of operations is joint and several;

• 10)

  To present requests to the mining authority and obtain a response within the legal time periods. If the authority does not respond within the period indicated in the corresponding legal regulation, it is considered by full right that the request has merited tacit approval from the authority.

• 11)

  To enjoy confidentiality regarding the technical or financial information they provide to the mining authority, except for requirements of competent authority;

• 12)

  To enjoy the franchises, benefits and guarantees set forth in this Law; and,

• 13)

  To temporarily suspend operations when conditions of the national or international market do not permit mining operations to continue, as well as for reasons of fortuitous event or force majeure. In both cases, the holder must notify in the following month after suspension by giving express notice to the mining authority indicating the reasons that motivate them. Suspension does not exempt payment of the territorial fee.

Mining and processing concessions are irrevocable as long as the holder pays the territorial fee established in Article 35 and, as the case may be, the penalty referred to in Article 36 of this Law.

Mining and processing concessions are transferable, renounceables, divisible and encumberable in accordance with common law and must be registered in the corresponding Registry. CHAPTER II OF THE SURFACE PROPERTY TENURE REGIME

Without prejudice to the guarantee of private property established by the Constitution of the Republic and required by the Civil Code with respect to the soil, understood as the lower layers of real property, to the extent required by the owner's interest, the mining right granted by the State constitutes a complete legal title with the same real legal nature as ownership and property.

The holder of a mining right, by mutual agreement with the owners of the land or with the mining authority in case the properties are a state asset, may establish over the surface lands on which mining and processing concessions are located. The easements referred to in this Law, by principle, shall be agreed upon in writing granted by the owners of the surface property and the holder of the mining right, but in case the interested parties do not reach agreement, the easements shall be imposed by the mining authority, to which it shall previously convene a single conciliation meeting of interests and if this fails, it shall constitute an easement.

The easements referred to in this Law, by principle, shall be agreed upon in writing granted by the owners of the surface property and the holder of the mining right, but in case the interested parties do not reach agreement, the easements shall be imposed by the mining authority, to which it shall previously convene a single conciliation meeting of interests and if this fails, it shall constitute an easement.

The agreed or imposed easements shall, in all cases, contain the obligation of the concession holder to indemnify the owner of the land for the damages and losses caused to the properties, arising from the soil or from the easement, following expert evaluation ordered by the mining authority.

The judicial action that is filed to oppose the constitution of an easement or to demand payment of the indemnification for damages caused by the exercise of the same, shall not prevent or suspend the mining work proper to the right granted by the mining authority.

The easements that are constituted in accordance with this Title must be registered in the corresponding Registry and from the date of their registration they shall be considered an integral part of the mining concession.

The holders of a mining right, upon proving the impossibility of executing the benefits of the concession or of using an agreed or imposed easement, due to actions arising directly or indirectly from the owner of the surface property, may request before the competent authority the expropriation of the concession for cause of public utility and necessity, which shall resolve in accordance with the terms and procedures indicated by Law. TITLE V OF THE OBLIGATIONS OF CONCESSION HOLDERS CHAPTER I OF MINING PRODUCTION AND TERRITORIAL FEE

The mining concession obligates the execution of the Investment Project for the production of mineral substances, under the terms provided therein. Production may not be less than the equivalent in national currency of FIVE HUNDRED UNITED STATES DOLLARS (US$.500.00) per year and per hectare granted, in the case of metallic substances and the equivalent in national currency of ONE HUNDRED FIFTY UNITED STATES DOLLARS (US$.150.00) per year and per hectare granted, in the case of non-metallic substances or gemstones or precious stones. Production must commence no later than the expiration of the eighth year, counted from the year in which the concession was granted, with the exception of mining concessions for non-metallic substances and gemstones or precious stones in which the minimum production must be obtained no later than the expiration of the fourth year in which the concession was granted. Production must be proven with sales statements issued before the mining authority together with the Consolidated Annual Declaration referred to in Article 42 of this Law. Such sales statements must be presented before the mining authority together with the Consolidated Annual Declaration referred to in Article 42 of this Law.

For the calculation of the minimum production referred to in the preceding Article, the holder of more than one mining concession may consider, as part of the aggregate production, that which has been obtained and commercialized in the concessions within five kilometers for each side. For this purpose, the holder shall be considered the concessionaire or the third party that exploits the mineral substances, by contract with the concessionaire.

From the year in which the application is filed, the mining concessionaire shall be obligated to pay the Territorial Canon. The Territorial Canon shall be paid in the following manner:

• 1)

  The equivalent in national currency of TWENTY-FIVE CENTS OF UNITED STATES DOLLAR (US$.0.25) per year and per hectare or fraction granted or requested, in the case of metallic concessions during the first four (4) years;

• 2)

  The equivalent in national currency of SEVENTY-FIVE CENTS OF UNITED STATES DOLLAR (US$.0.75) per year and per hectare or fraction granted or requested, in the case of metallic concessions during the fifth and sixth year;

• 3)

  The equivalent in national currency of ONE DOLLAR FIFTY CENTS OF UNITED STATES DOLLAR (US$.1.50) per year and per hectare or fraction granted or requested, in the case of metallic concessions during the seventh and eighth year; and,

• 4)

  The equivalent in national currency of THREE UNITED STATES DOLLARS (US$.3.00) per year and per hectare or fraction granted or requested, in the case of metallic concessions from the ninth year onward.

• 5)

  The equivalent in national currency of TWENTY-FIVE CENTS OF UNITED STATES DOLLAR (US$.0.25) per year and per hectare or fraction granted for non-metallic concessions or gemstones or precious stones during the first and second year, and,

• 6)

  The equivalent in national currency of ONE DOLLAR FIFTY CENTS OF UNITED STATES DOLLARS (US$.1.50) per year and per hectare or fraction granted for non-metallic concessions or gemstones or precious stones from the third year onward. The Territorial Canon corresponding to the year in which the application for the mining concession is filed must be paid and proven upon the filing thereof, in any case so that the application is processed, the amount paid shall not be refundable. The Territorial Canon corresponding to the second year, calculated from January first of the year following the year in which the application for the mining concession was filed, must be paid in the first half of the month of January of the following year. The same rule shall apply for the following years. The permit holders and concessionaires of mining rights, granted prior to the entry into force of this Law, shall pay the mining canon in the same values established in this Article. In this case, January first when this Law enters into force shall be calculated as the first year.

In the event that the provisions of Article 33 of this Law are not complied with, from the ninth year calculated from the year in which the mining concession was granted, the concessionaire must pay, in addition to the Territorial Canon, a penalty equivalent in national currency of SIX UNITED STATES DOLLARS (US$.6.00) per year, per hectare, in the case of metallic concessions and of (US$.3.00) for non-metallic concessions or gemstones or precious stones. This penalty shall be doubled annually while the concessionaire does not achieve the minimum production established in Article 33 of this Law.

The substantiation of payment of the Territorial Canon and the penalty, if applicable, shall be made with the Consolidated Annual Declaration referred to in Article 42 of this Law.

Those mining concessionaires who, after having initiated the exploration stage, cease to produce according to the parameter established by Article 33 of this Law, shall pay in addition to the territorial canon, the penalty established in Article 36, unless the same is due to the provisions of numeral 13 of Article 23 of this Law, in which case they shall only continue to pay the territorial canon. CHAPTER II OF BENEFICIATION CONCESSIONS

From the year in which an application for a beneficiation concession is filed, the holder shall be obligated to pay the equivalent in national currency of the Beneficiation Canon, in an annual amount according to its installed capacity as follows: Up to 300 metric tons per day (TM/day) US$. 250.00 More than 300 metric tons per day and up to 500 metric tons per day (TM/day) US$. 500.00 More than 1,000 metric tons per day and up to 5,000 metric tons per day (TM/day) US$.2,500.00 More than 5,000 metric tons per day (TM/day) US$.5,000.00 CHAPTER III OF COMMON OBLIGATIONS

Every holder of mining rights is obligated to execute the operations pertaining to their activity, in accordance with systems, methods and techniques that tend toward the efficient development of the activity and in compliance with the rules of safety, hygiene and environmental standards applicable to the mining industry, according to internationally established standards. If in the course of such activities damage is caused to third parties, the holder of the concession remains obligated to indemnify them for the harm caused.

The holders of mining rights are obligated to facilitate at any time the free access of the mining authority or the entity that owes it, for the inspection of the establishments and constructions where mining and beneficiation activities are conducted, whose holders shall have the character of agents of the public authority for that purpose.

Every holder of mining rights is obligated to present annually within the first three months of the following year, before the mining authority, a technical, economic and environmental report of the mining operations developed in the immediately preceding year, under the denomination Consolidated Annual Declaration, whose content must be approved by the Mining Authority. The information contained in the Consolidated Annual Declaration shall be provided by the Mining Authority to other State agencies, ex officio or at their request, so that any information contained in the Consolidated Annual Declaration may only be provided by the Mining Authority.

When during the execution of the operations pertaining to its concession or accessory works and constructions, the holder enters into an area or concession belonging to another without authorization, it is obligated to halt such work as soon as it becomes aware of the fact and to return to the owner the value of the minerals extracted, without deducting any costs and to pay indemnification, furthermore if damage has been caused.

The State guarantees that mining procedures respond to principles of certainty, simplicity, publicity, uniformity and efficiency.

In the event that two or more petitioners for a mining concession request the same area, priority shall be granted to the one who first submitted their application, except as provided in Articles 13 through 16 of this Law.

While an application for a mining concession is pending and has not been finally resolved, no application shall be admitted for the same area, regardless of the petitioner, nor even conditioned to a denial resolution, except as provided in Articles 13 through 16 of this Law.

If upon submission for processing a mining application it is observed that it overlaps entirely with another previous one, the later petition shall be denied and its file shall be archived in the lower stage. If the overlap is partial, the Mining Authority shall require the new applicant to reduce the petition respecting the area of the previous application. CHAPTER II INELIGIBILITIES FOR ACQUIRING MINING RIGHTS

Any natural or juridical person constituted in the country or authorized to conduct commerce in Honduras shall have capacity for the purposes of ownership of mining concessions and benefit concessions, provided that in accordance with the provisions of the current National Legislation, they are legally capable and subjects of rights and obligations. The following are excepted:

• 1)

  The President of the Republic, Presidential Designees, Deputies to the National Congress, Magistrates and Judges, Secretaries and Sub-Secretaries of State, Attorney General and Sub-Attorney General of the Republic, Sub-Controller General of the Republic, Director and Sub-Director of Administrative Integrity, Public Ministry Prosecutors and General Directors. Relatives up to the fourth degree of consanguinity and second degree of affinity shall be disqualified;

• 2)

  Departmental Political Governors, Mayors and Councilpersons and members of the Armed Forces and Police in the territory where they exercise jurisdiction. Likewise, relatives up to the fourth degree of consanguinity and second degree of affinity shall be disqualified;

• 3)

  Public officials and employees who directly or indirectly intervene, issue opinions or make decisions in the matter. Disqualification shall extend for two (2) years after their functions have ended, and,

• 4)

  Insolvents with the State of Honduras regarding mining obligations or those related to these. Those persons cannot request, acquire or possess directly or indirectly mining rights while they exercise their functions or during their positions for which they are elected or appointed or while the situation that disqualifies them persists. The acquisition of rights by persons disqualified under this Law is null ipso jure and what is acquired shall be subject to the provisions established in Chapter VII of this title. Shareholders, partners, directors, managers, administrators, workers and contractors of holders of a mining concession cannot request for themselves concessions within a radius of ten kilometers from any point of the perimeter of the area where the concessions of the persons to whom they are linked are located, unless with express authorization from the holder. Persons registered with the right to appear in the respective request within 30 days following the publication referred to in Article 54. If the affected person does not exercise this right within the stated term, the impediment shall disappear. CHAPTER III CONCERNING THE GRANTING OF MINING CONCESSIONS

The procedure for granting Mining Concessions is established through national jurisdiction in charge of the Mining Authority referred to in Title XII of this Law. For such purpose, the mining authority shall maintain a grid system of one hundred hectares each, dividing the national territory in accordance with Universal Transverse Mercator (UTM) coordinates and shall incorporate in said grids the applications that are formulated.

The interested party shall present the concession application before the Mining Authority, paying the territorial canon corresponding to the year in which it was formulated, and shall accompany the documents and comply with the requirements established in this Law and its Regulation. In the event that the application is formulated by two or more persons, they shall designate a common representative. The application shall indicate the Universal Transverse Mercator (UTM) coordinates of the grid or set of adjoining grids, at least on one side, for which the concession is requested, respecting pre-existing rights.

In the event that the existence of applications or mining concessions on the same grid or set of grids is evident, the mining authority shall deny the new application or shall order the reduction to the grid or set of free grids.

In the event of existence of mining concessions already granted or previously requested, in part of the same grid or set of free grids, the new application shall only comprise the free area covered by the grid or set of grids requested.

If applications are presented simultaneously for one or several grids, the area shall be auctioned among the petitioners. The Mining Authority, on the day and hour of the auction, shall adjudicate it to the postal presentation that made the highest bid. The adjudicatee of the auction shall pay the amount of their bid within the term of three (3) business days following the adjudication, under penalty of being considered abandoned and the concession being adjudicated to whoever made the next highest bid. If no bidders appear, the auction shall be declared void, and the area shall be published as open for claim.

Once the application is admitted, within fifteen (15) calendar days following its admission, the mining authority shall order the publication of an extract of its content, for one time only and at the expense of the petitioner, in the Official Gazette "La Gaceta" and another newspaper of wide circulation in the country, of an extract of the content of the application.

Within fifteen (15) calendar days counted from the publication, in the event that no opposition is filed as referred to in the previous Article, the application shall be evaluated from a technical and legal perspective; if opposition is filed, the evaluation of the application shall be carried out once the opposition procedure is exhausted, if it is denied. Once the technical and legal opinions are issued, the mining authority shall resolve by granting the concession title within a term not exceeding ten (10) days and shall proceed to register it in its registration entry, if the requirements ordered in this Law are met. The Executive Office for the Promotion of Mining (DEFOMIN) shall issue a resolution for the respective contract to be executed between the Secretary of State in the Office of Natural Resources and Environment and the Petitioner, within a term not exceeding ten (10) days. Once the contract is executed and signed, it shall be forwarded to the National Congress for its approval, and the corresponding Decree shall be published in the Official Gazette "La Gaceta" and shall proceed to its registration in the Public Registry of Mining Rights. As of the date of registration of the concession, the holder shall be in a position to exercise its rights.

Once the construction and installation of the plant is concluded, the interested party shall give notice to the mining authority so that it may proceed to order an inspection in order to verify that the work has been performed in accordance with the original project, insofar as it relates to mining safety and hygiene and environmental impact. The inspection proceeding shall be carried out within thirty (30) business days following the date on which it was requested. If the inspection report is favorable, the mining authority shall proceed to register it in the registration entry. In the event that the inspection report is unfavorable, the mining authority shall grant a reasonable term according to the work to make the necessary corrections, with a new inspection to be carried out for this purpose. If the report of this new inspection is unfavorable, the concession at issue shall be denied, but the applicant shall have the right to request, for one time only and with proper justifications, within a term not exceeding five (5) business days counted from the notification, an extraordinary term of one hundred eighty (180) days maximum, in order to correct the deficiencies to the satisfaction of the mining authority, otherwise the concession shall be denied. CHAPTER V CONCERNING OPPOSITION TO THE MINING OR BENEFIT CONCESSION

Opposition is an administrative procedure to challenge the validity of an application for a mining concession or benefit concession; a procedure that may be formulated by any natural or juridical person who considers themselves legitimately affected in their right. Opposition shall be filed before the Mining Authority, within the term of fifteen (15) days from the publication of the application for the granting of concession control, and shall be accompanied by all pertinent evidence in the first written statement. Once opposition is filed, the mining authority shall summon the parties to a hearing to be held no later than ten (10) days after notification to both parties. If the opponent does not appear at the hearing, a new hearing shall be scheduled within the term of six (6) days, counted from the notification, under penalty of continuing the proceeding in their absence. If the parties agree at the hearing, minutes shall be drawn up and the mining authority shall issue the appropriate resolution. In case of disagreement or absence, ex officio or at the request of a party, the Mining Authority shall order such evidence as it considers necessary, which shall be executed within the maximum term of thirty (30) days, after which the appropriate resolution shall be issued, in accordance with law.

Contentious matters that do not have special procedures established in this Law shall be subject, as pertinent, to the procedure established in the preceding Article and as immediate supplementary provisions to the Law of Administrative Procedure. CHAPTER VI EXTINCTION OF CONCESSIONS AND THEIR DESTINY

Concessions are extinguished by cancellation, nullity and renunciation.

Failure to pay the territorial canon, the benefit canon or the penalty as the case may be on time, during two (2) consecutive years, is a ground for cancellation of mining concessions and benefit concessions.

Applications or concessions that are presumed to violate previously acquired rights shall be cancelled ex officio or at the request of a party.

Having been requested by an incapable person, in accordance with Article 48 of this Law, is a ground for nullity of concessions.

By resolution of the mining authority, the cancellation, annulment, and relinquishment of mining rights shall be declared, with the corresponding registration being made in the respective Registry.

The total or partial relinquishment of a mining right may only be made by its holder, before the mining authority.

The areas corresponding to cancelled, annulled, or relinquished applications or concessions may not be requested until they have been published as available for claim.

In the first quarter of each year, the Official Gazette "La Gaceta" shall publish, on two consecutive occasions and in a newspaper of wide circulation in the country, the areas of mining concessions that have been extinguished in the previous calendar year due to cancellation, annulment, and relinquishment, with an indication of the Universal Transverse Mercator (UTM) coordinates of their vertices. Such areas may be requested again, starting from the first business day of May of the year in which the publication referred to in the previous Article shall have been made.

By the new concession, its holder acquires, without any encumbrance, the mining benefits that had been operational in the area of the mining concession by the previous concessionaire. Likewise, the new concessionaire may:

• 1)

  Use the surface land adjacent to the concession that was used by the previous concessionaire;

• 2)

  Continue with the use of the land that may have been expropriated by the previous holder without cost; and,

• 3)

  Maintain the easements that may have been established for the economic purpose of the concession, in the same terms and conditions in which they were constituted.

The previous concessionaire shall have a period of six (6) months, from the date the free availability of the area of his extinguished concession has been published, to remove his accessory components that are located in the area thereof. If he does not do so within that period, the new concessionaire shall be authorized to remove them or dispose of them after a resolution by the Mining Authority.

Mining and metallurgical activities are subject exclusively to the following Tax Regime:

• 1)

  Income Tax. The determination of taxable income shall be subject to the rules of the Income Tax Law and the Special Rules of Article 73 of this Law;

• 2)

  Sales Tax, which is not applied to exports nor to transactions that are made internally for such purpose, including the transfer of mining products to a recipient with the purpose of exportation, and,

• 3)

  Municipal Tax that is created according to Article 105 of this Law and to the fees for administrative and public services provided to the municipality.

The following special rules shall be applied for the determination of Income Tax on mining and metallurgical activity:

• 1)

  The depreciation rate of fixed assets is twenty percent (20%) annually as a global rate;

• 2)

  Exploration expenses may be deducted in the fiscal year in which they are incurred or deferred to be amortized according to the estimated exploration period of the probable reserves of the mine, determined at the beginning of the exploration activity at the taxpayer's election;

• 3)

  The acquisition value of mining rights, on the part of private parties, is amortized in accordance with the second alternative contemplated in the preceding numeral;

• 4)

  Development and preparation expenses may be deducted entirely in the fiscal year in which they are incurred or through annual amortizations in subsequent periods;

• 5)

  Accumulated losses may fully offset with the profits that are generated from the first year in which they are produced and in the three (3) following years, and,

• 6)

  The tax on assets is not applicable to pre-operative companies and to those operating during the first five (5) years counted from the beginning of productive activities.

All equipment, machinery, spare parts, and materials necessary for the efficient and economical development of mining operations, with the exception of petroleum derivatives and vehicles of a productive nature in mining activity, shall have the right to a free market, exempt from the payment of import taxes and tariff duties, as long as the concession remains in force. For such purpose, the Regulations of this Law shall establish the exemption procedure.

Companies that initiate mining or metallurgical activities, with investments exceeding the national currency equivalent of TEN MILLION DOLLARS OF THE UNITED STATES OF AMERICA (US$10,000,000.00) or companies that, being in production, expand their mining-metallurgical activities with investments exceeding the national currency equivalent of TWENTY MILLION DOLLARS OF THE UNITED STATES OF AMERICA (US$20,000,000.00), shall enjoy the tax regime that is guaranteed through a contract executed with the State, for a period of ten (10) years from the year following that in which the execution of the investment is accredited. In new mining-metallurgical projects or in companies that, being in production, expand their mining-metallurgical activities with investment exceeding THIRTY MILLION DOLLARS (US$30,000,000.00), the period of tax stability shall be granted for a term of (5) years. The effect of the tax stability regime shall fall exclusively on the activity developed by the company in a mining concession or in a group of mining concessions determined according to the rule of Article 34 of this Law or in the activity developed through a benefit concession.

The tax stability regime referred to in the preceding Article of this Law shall guarantee the holder of mining activity the following: 1) Tax stability, by which the company shall be subject only to the tax regime in force on the date of approval of the investment program, and no tax created thereafter shall be applicable. Nor shall the changes that could be introduced in the regime of determination and payment of applicable taxes be applicable, when these imply an increase; and, 2) Free internal and external commercialization of its mineral products.

The holders of mining activity, included in the scope of Article 75 of this Law, in order to enjoy the benefits indicated in the preceding Article, shall present to the mining authority, under penalty of perjury, an investment program with an execution period. The program shall be approved within forty-five (45) business days. Once this period has elapsed and if there has been no pronouncement by the authority, it shall be deemed automatically approved on this last day. Compliance with the program shall be accredited with a sworn declaration endorsed by its external auditor.

The benefits established in this Title are of optional character and those that qualify for them shall be registered by the Mining Authority in the Registry, providing them with a certificate that accredits their condition. The models shall be prepared by the mining authority. Such certificates must incorporate all the guarantees established in this Title.

The holders of concessions that plan to begin exploitation or benefit activities shall present to the Mining Authority a schedule of proposed activities that defines in time the stages to be developed in the exploitation or benefit phase of minerals. The holders of concessions shall have a period of eighteen months counted from the completion of the feasibility stage to present to the Mining Authority an Environmental Impact Study (EIA) prepared by environmental professionals and approved by the Mining Authority, establishing in a clear, coherent, and feasible manner, the preventive and protective measures and utilization of the ecosystem affected by the exploitation or benefit of minerals. The concessionaire shall fully comply with environmental standards and those contained in the approved Environmental Impact Study. The environmental impact study shall contain at a minimum:

• 1)

  Executive Summary, which shall be the sum of the contents of the Environmental Impact Study (EIA);

• 2)

  Background, which shall be the summarized description of the legal aspects of the activity to be carried out;

• 3)

  Introduction, which shall contain the description of the project and estimated cost thereof;

• 4)

  Description of the Project Area;

• 5)

  Description of the activities to be carried out;

• 6)

  Foreseeable effects of the activity in relation to human health, flora and fauna, ecosystem, water resources, communication routes, and other aspects of the environment of the project area;

• 7)

  Control of the effects; and,

• 8)

  Environmental evaluation and control.

The holder of a mining concession that carries out exploitation work shall be obligated to comply with the prevention and mitigation measures established by the Mining Authority in conjunction with the General Office of Environmental Evaluation and Control.

The holder of a mining concession who executes exploitation activities shall be obligated to comply with the prevention and mitigation measures established in Executive Agreement No. 070-95 dated July 1, 1995, in relation to Executive Agreement No. 015-96 dated November 22, 1996. Until such time as the mining authority puts into effect the Manual of Mining Environmental Policy.

In case of violation of the preceding Article, the mining authority shall require in writing the holder of the mining right to comply with the environmental regulations imposed or, as the case may be, to cease the use of dangerous means or practices in the mining process, granting a reasonable time period to carry out the necessary changes; if he fails to do so, the authority may establish the corresponding sanction.

The mining authority shall establish for mining processes the factors it considers cause negative impacts on the environment, the provisions for preventing environmental pollution or degradation of natural resources, shall establish environmental standards in mining activity and the minimum contents of the Mining Environmental Impact Study, as part of the National Environmental Policy.

Any complaint against holders of mining rights for non-compliance with environmental standards shall require for its processing prior evaluation thereof by the mining authority. TITLE X ON LABOR WELFARE AND SAFETY CHAPTER I ON LABOR PREVENTION, HYGIENE AND SAFETY MEASURES

Companies may agree with their workers work schedules that imply the accumulation of several continuous days of work for several continuous days of rest. Likewise, they may establish systems of operation and hiring related to housing, educational services, health, social services, distinct from the traditional concept of mining camp.

Natural or juridical persons engaged in mining industry activities have the obligation to provide conditions of prevention, hygiene and safety in the workplace, coordinated by a competent professional.

Workers are obligated to strictly observe the preventive measures and provisions agreed upon by the competent authorities and those established by employers regarding safety.

Annually, employers shall submit to the Executive Directorate for Mining Promotion (DEFOMIN) the Annual Program of Prevention, Safety and Hygiene for the following year. Likewise, employers shall submit with the Consolidated Annual Statement referred to in the Article of this Law, a report of activities carried out in this field during the previous year.

In each work center a Committee of Prevention, Safety and Hygiene shall be organized in which workers shall be represented.

Employees are obligated to receive Education and Training Programs for work in the different areas of mining activity.

Non-compliance with the obligations incumbent upon companies engaged in mining activity in the aspects of prevention, safety, hygiene and environment shall be sanctioned according to the gravity of the fault, with warning, fine or suspension of activities according to the criteria that shall be established in the Regulation of this Law without prejudice to remedying the fault or repairing the damage. TITLE XI ON MINING AUTHORITY CHAPTER I ON THE CREATION OF THE MINING AUTHORITY

The Executive Directorate for Mining Promotion is hereby created, to be identified with the acronym (DEFOMIN); as a deconcentrated entity of the Secretariat of State in the Office of Natural Resources and Environment, with respect to which it shall function with absolute technical, administrative, budgetary and management independence. The Executive Directorate for Mining Promotion (DEFOMIN) constitutes the mining authority with national jurisdiction to know and proceed in the administrative channel all matters designated in the present Law. Consequently, functions in mining matters, including those currently exercised by other authorities in the rest of the country, constitute the exclusive competence of the Executive Directorate for Mining Promotion (DEFOMIN). Excepted is the approval of the country's mining policy, which is the responsibility of the President of the Republic through the Secretariat of State in the Office of Natural Resources and Environment.

The powers and duties of the Executive Directorate for Mining Promotion (DEFOMIN) are:

• 1)

  To direct, coordinate, supervise and execute the national mining policy;

• 2)

  To grant, modify and extinguish mining and benefit concessions and other mining rights and obligations in accordance with this Law;

• 3)

  To consolidate in a grid system the area covered by mining concessions, general exploration permits and special mining extraction permits of quarries granted under the regime of Decree No. 143 dated October 26, 1968;

• 4)

  To supervise, in coordination with the competent Bodies of the Secretariat of State in the Office of Labor and Social Security, and Health, the compliance with safety and hygiene standards by companies engaged in mining activities;

• 5)

  To supervise, in coordination with the competent Bodies of the Secretariat of State in the Office of Natural Resources and Environment, the compliance with standards for protection, restoration and sustainable management of the environment by mining-metallurgical companies;

• 6)

  To consolidate, systematize, disclose and keep available in a permanent and updated data bank information on the mineral resources of the country, through a publication plan, open library and availability of magnetic files;

• 7)

  To prepare and execute the Manual of Mining Environmental Policy; and,

• 8)

  The other functions conferred upon it by Law and its Regulation. CHAPTER II ON THE ORGANIZATIONAL STRUCTURE OF THE EXECUTIVE DIRECTORATE

The minimum organic structure of the Executive Directorate for Mining Promotion (DEFOMIN) shall be the following:

• 1)

  A Higher Management Body comprising the Executive Directorate with the assistance of a Sub-Director;

• 2)

  A Public Registry of Mining Rights; and,

• 3)

  The Departments and other dependencies that the Regulation of the present Law shall establish.

The Superior Direction of the Executive Directorate for Mining Promotion (DEFOMIN) shall be in charge of an Executive Director, who shall be subject to free removal or appointment by the Executive Branch through the Secretariat of State in the Office of Natural Resources and Environment. He must be a university professional with experience and managerial competence.

The Executive Director shall have the following powers and duties:

• 1)

  To exercise the legal representation of the Executive Directorate for the Promotion of Mining (DEFOMIN);

• 2)

  To direct and execute the powers that this Law confers upon the Directorate and to assume its technical, administrative and financial management;

• 3)

  To appoint and remove personnel under his or her supervision;

• 4)

  To formulate, approve and implement the National Mining Plan;

• 5)

  To approve and implement the different Operational Manuals of the Directorate;

• 6)

  To exercise and assume the administrative responsibilities that correspond to him or her in relation to the formulation, execution and control of the budget in his or her charge;

• 7)

  To propose through the Secretary of State in the Ministry of Natural Resources and Environment the issuance of Decrees, Executive Agreements and other administrative regulations concerning mining;

• 8)

  To propose for approval to the President of the Republic through the Secretary of Natural Resources and Environment the Manual of Mining Environmental Policy;

• 9)

  To prepare the Regulation that governs the system of nomenclature, classification and remuneration of positions, disciplinary provisions and administrative contracting; and,

• 10)

  Any other powers designated by laws and regulations. CHAPTER III OF THE SUB-DIRECTORATE

There shall be a Sub-Director who shall be the legal substitute for the Executive Director and shall exercise, by delegation or in case of temporary absence or impediment of the Executive Director, the functions that correspond to the latter; he or she shall be appointed and removed in the same manner as the Executive Director and must meet the same conditions of suitability for the position. CHAPTER IV OF THE REGISTRY OF MINING RIGHTS

Attached to the Executive Directorate for the Promotion of Mining (DEFOMIN), the Public Registry of Mining Rights shall function, which has exclusive jurisdiction for the registration of titles or documents subject to this requirement, with the purpose that the rights, actions and contracts contained in resolutions, titles and documents that have the purpose of creating, modifying or extinguishing mining rights and obligations shall be recorded publicly. Resolutions, titles and public documents which, in accordance with the Law and its Regulation, must be registered in the Public Registry of Mining Rights, shall only have effect with respect to third parties as of the date of their registration in the Registry.

In case of several registrations relating to the same mining right or obligation, the first shall be preferred, and if they are of the same date, the hour of presentation of the title in the registry shall be considered. Except when it refers to obligations or rights of a provisional nature and this is stated in the respective public document, in which case all of them shall have the same force and there shall be no preference whatsoever.

In order to ensure the publicity of registrations, the Registry shall provide means for any person to access the information contained in the registry records or to obtain certified copies thereof.

The Registry shall be in charge of a Registrar, who must be a legal professional with competence and experience in mining and registry legislation. CHAPTER V OF THE ECONOMIC AND ADMINISTRATIVE REGIME OF THE DIRECTORATE

The resources of the Executive Directorate for the Promotion of Mining (DEFOMIN) shall be:

• 1)

  The amounts allocated in the General Budget of Income and Expenditures of the Republic for the fiscal year, to which effect the Secretary of State in the Ministry of Natural Resources and Environment shall incorporate in its budget the one formulated by the Directorate;

• 2)

  The fees and fines arising from the application of this Law;

• 3)

  Donations, legacies and other contributions from natural and legal persons, national or foreign, which in accordance with the Law are made to the Directorate;

• 4)

  Those arising as compensation for the services that the Directorate provides to private parties. The resources arising from compliance with payment of territorial canon, benefit canon and, where applicable, the penalty provided for in Articles 35 to 38 of this Law; and,

• 5)

  Any other that is assigned to it.

The following persons shall not be able to be officials of the Executive Directorate for the Promotion of Mining (DEFOMIN):

• 1)

  Those who have outstanding accounts with the State;

• 2)

  Those who are directly contractors in mining matters;

• 3)

  Those who hold paid public offices or positions;

• 4)

  Those who are partners or administrators of companies whose purpose is the provision of services to natural or legal persons engaged in mining.

Officials of the Directorate and employees thereof who improperly disclose any information about the matters that it handles or who take advantage of the same for personal purposes or to the detriment of the State entity or third parties, shall incur civil and criminal liability. TITLE XII FINAL PROVISIONS CHAPTER I OF THE MUNICIPAL TAX

A municipal tax applicable to mining activity is hereby established and which substitutes for said industry the tax on extraction or exploitation of resources. This tax is one percent (1%) of the total monthly value of sales or exports. A taxpayer of this municipal tax is one who conducts gross internal sales or exports of mineral products. This municipal tax must be paid within five (5) days of the following month at the Municipal Treasury through liquidations that shall be made from the 30th day of the previous month. It shall accrue when internal sale or export is carried out and is deductible as an expense for the determination of Income Tax. The collection of this municipal tax constitutes income of the municipality of the territorial jurisdiction where the mineral resources subject to the operations of internal sales or export were extracted. In case extraction comes from two or more municipalities, this municipal tax shall be distributed pro rata among them. The Regulation of this Law shall establish the complementary measures for the application of this municipal tax. Municipalities must verify sales and exports at any time, during business hours and days, and taxpayers must require all necessary documentation to establish the amount of the tax. Tax authorities are obligated to provide municipalities with all the cooperation they require for this purpose.

Mining rights that have been acquired or contracted prior to the effectiveness of this Law shall continue in force under this Law. Requests that are pending processing must be adjusted to the provisions of this Law.

The Executive Directorate for the Promotion of Mining (DEFOMIN) shall appoint inspectors in order to verify compliance with work programs, investment plans and production declarations formulated by the holders of special quarry exploitation permits and general exploration permits in accordance with the administrative files and the corresponding permits and contracts. In such sense and in the event that the reports rendered by the inspectors show that there has been non-compliance, the Executive Directorate for the Promotion of Mining (DEFOMIN) shall proceed without further proceeding to decree the cancellation of the permit in question, without prejudice to the corresponding civil or criminal liability. To verify compliance with obligations, inspectors may require the exhibition by permittees of books of accounts, which must be kept in accordance with the formalities of the Commercial Code when it comes to investment plans and exploitation declarations or sales vouchers when production reports are verified; when work programs or work executed in the permit area are inspected, on-site inspections may be carried out and the information that should be in the possession of the holders of the rights shall be verified.

All those special quarry exploitation permits, general quarry exploration permits acquired prior to this Law and that continue in force, after the procedure indicated in Article 107 of this Law, must be adjusted to it as follows:

• 1)

  Special quarry exploitation permits must achieve, at the latest by December 31, 1999, the minimum production required in Article 33 of this Law; otherwise, the mining authority shall proceed ex officio to decree their cancellation, without being able to demand any indemnification therefor. The area of existing rights shall not constitute precedence in title for purposes of the Grid System referred to in Article 11 of the Law;

• 2)

  Mining exploitation concessions must achieve at the latest by December 31, 2001, the minimum production required in Article 33 of this Law. Otherwise, the penalty established in Article 36 of this Law shall begin to apply; and,

• 3)

  All mining exploration permits must be adjusted to the rule established in Article 33 of this Law, for which they must commit their objectives for eight (8) years or what is the period from the date the original permit was granted, provided that compliance with the minimum required production is achieved, the penalty established in Article 36 of this Law shall begin to apply.

Cases not provided for in this Law shall be resolved by the mining authority through the application of Administrative Laws or, in their absence, by the rules of common law that are applicable.

The Directorate may place at the disposal of permittees and concessionaires indicative maps of the real territorial location of the area of their rights, and of the coordinates that allow their vertices to be Universal Transverse Mercator (UTM) coordinates and shall publish, once only, in the Official Gazette "La Gaceta," the list of such rights and the coordinates that it attributes to the vertices of each one of them. Within sixty (60) calendar days from the date on which the coordinates of the vertices of the mining rights have been published, permittees and concessionaires or those who are or consider themselves to have adjacent rights may obtain the coordinates by presenting at their own cost a surveyor's report from a licensed civil engineer or legally recognized analogous professional. The objection shall be recorded against the holder of the right whose coordinates have been questioned, who may accept or contest the report. If the right objected to shall be upheld, it must also attach an equally supported survey by a civil engineer or legally recognized analogous professional. Thereafter, the mining authority shall open the objection to proof by appointing a third expert, whose costs shall be divided pro rata among the parties involved, who shall conduct a field inspection to verify the information obtained in the permit or concession titles with the surveys conducted. With the proceedings conducted, the mining authority shall issue a resolution determining the final coordinates of the vertices of the concession, against which no recourse may be filed. In case no objections are lodged within sixty (60) days of the publication of the coordinates of the vertices of the permit or concession, these shall be considered final and uncontestable. Permits and concessions that are observed and whose title has been joined to the observation shall be immediately published determining the new coordinates that are attributed to the vertices and, if not again objected within thirty (30) calendar days following publication, the coordinates shall be considered final and binding. The holders of exploitation concessions or general exploration permits in force whose coordinates have not been published by the mining authority must permanently provide this organization with periodic reports from a licensed civil engineer or legally recognized analogous professional containing the calculation of Universal Transverse Mercator (UTM) coordinates of the vertices of the grid of the mining right. With this expertise, the Directorate shall publish the coordinates of the mining right, proceeding with the preceding regulations in case third parties obtain the coordinates or that they do not merit any objection.

The admission of applications for new mining and processing concessions is suspended, except for the processing of exploitation concessions that may derive from exploitation permits granted to date, in accordance with the provisions of Article 31 of the Mining Code of 1968. The provisions contained in this Article shall be effective for a period of sixty (60) months counted from the effective date of this Law and are therefore of a temporary nature.

By exception, the Directorate is authorized to, within a period not to exceed one (1) year counted from the effective date of this Law, convene an International Bidding for the adjudication of free mining areas under the Grid System. Exclusively mining companies or subsidiaries of mining companies whose annual sales in the five-year period preceding the bidding have been above FOUR HUNDRED MILLION DOLLARS OF THE UNITED STATES OF AMERICA (US$400,000,000.00) shall be invited to this bidding. The adjudication of the areas shall be made through public offerings by sealed bid per grid or free grids, through public bidding. Subsidiary companies are understood to be those juridical persons in which the companies that qualify for the bidding own not less than sixty percent (60%) of the corporate capital in the six (6) months preceding the bidding.

As long as the international bidding is not held, the suspension for the admission of mining concessions referred to in Article 11 of this Law shall remain in effect. Once the bidding is held and the grids corresponding to the favored bidders are adjudicated, the regime provided for in Article 69 of this Law shall enter into application.

The Environmental Mining Policy Manual and the Regulations corresponding to this Law shall be prepared by the Executive Directorate for the Promotion of Mining (DEFOMIN), within a period not to exceed thirty (30) business days from the effective date of this Law.

The property, financial and budgetary resources, and assets of the General Directorate of Mines and Hydrocarbons shall become part of the assets of the Executive Directorate for the Promotion of Mining (DEFOMIN), as of the effective date of this Law.

The personnel of said directorate may be part of the Executive Directorate for the Promotion of Mining (DEFOMIN), if they meet the requirements that are established, retaining the rights acquired in accordance with Law.

While the Executive Directorate for the Promotion of Mining (DEFOMIN) is being created, which regulates prospecting until its operationalization of products, everything concerning Hydrocarbons that corresponds to the General Directorate of Mines and Hydrocarbons shall transfer in favor of the Executive Directorate for the Promotion of Mining (DEFOMIN), the property, financial and budgetary resources of the General Directorate of Mines and Hydrocarbons. The Secretariat of State in the Office of Natural Resources and Environment is equally authorized to transfer to the Executive Directorate for the Promotion of Mining (DEFOMIN), the property, financial and budgetary resources of the General Directorate of Mines and Hydrocarbons.

Articles 84 paragraph b); 86 second paragraph, insofar as it concerns the General Directorate of Mines and Hydrocarbons, and 87 Numeral 2) of Executive Decree No. PCM008-97 dated June 24, 1997, are hereby repealed.

Decree No. 143A dated October 26, 1968, which contains the Mining Law and all its amendments, as well as all other provisions that are contrary to this Law, are hereby repealed.

This Law shall enter into effect as of its publication in the Official Gazette, La Gaceta. Given in the city of Tegucigalpa, Municipality of the Central District, in the Session Hall of the National Congress, on the thirtieth day of the month of November of nineteen hundred ninety-eight. RAFAEL PINEDA PONCE President JOSE ALFONSO HERNANDEZ CORDOVA Secretary JOSE ANGEL SAAVEDRA POSADAS Secretary To the Executive Branch, Therefore: Let it be executed. Tegucigalpa, M.D.C., December 24, 1998. CARLOS ROBERTO FLORES FACUSSE Constitutional President of the Republic The Secretary of State in the Office of Natural Resources and Environment. ELVIN ERNESTO SANTOS LOZANO NOTICES CERTIFICATION The undersigned, Secretary General CERTIFIES: Resolution No. 08-99. SECRETARIAT OF STATE IN THE OFFICE OF INDUSTRY AND COMMERCE. TEGUCIGALPA, MUNICIPALITY OF THE CENTRAL DISTRICT, JANUARY 7, 1999. CONSIDERING: To resolve Request No. 480-98 presented before this Secretariat of State by Licenciado SILVA ORELLANA MERCADO DE LOZANO, in his indicated capacity, requesting that his represented company be granted a Non-Exclusive Distributor license, for a defined period of two years until July 31, 2000, with jurisdiction throughout the entire territory of the Republic of Honduras, to distribute the products: Pharmaceutical specialties distinguished under the brands ANCALMO and HESSEL, which are detailed below in Annex No. 1. ANCALMO, ANTIGRIPAL INJECTABLE X 2ML., ENTERO GUANIL ADULTS BOX X 152 TAB., ENTERO GUANIL CHILDREN BAG X 200 TAB., ZORRIONE SYRUP X 120 ML., ZORRIONE SQUARES X 12 BARS, ZORRIONE JAR X 500 UDS., ZORRÍTONE CANDY BAG X 100 UDS., ORAN C X 30 TAB., UPERORAL VITAMINIZED, SUPER IRON SYRUP X 240 ML., SUPER IRON CAPSULES, THIAMINE 300 X 100; HESSEL, ALBENTANAL SUSPENSION, ANSIOVIT TABLETS, ACICLOVIRAX BOX X 50 CAPS., ACICLOVIRAX GEL TUBE, ASTEMINA BOX X 50 CAPS., ASTEMINA BOX X 10 TABLETS, ASTEMINA D SUSP. BOTTLE X 60 ML., ASTEMINA D BOX X 10 CAPS., BESS 25 CAPSULES, DOLOSINSTINA X 2 ML., FERRUM 18 CAPSULES, FERRUM 16 SYRUP X 120 ML., FERRUM 16 SYRUP X 240 ML., MOTRIDOL X 50 CAPSULES, SORASSEL BOX X 4 SACHETS, SUBSTAN 10,000 X 2ML., THORFINA SYRUP X 120 ML., VENTAMOL SYRUP X 120 ML., VENTAMOL EXPECTORANT X 120 ML., VENTAMOL 4 X 20 TABLETS, from the granting company ESTABLECIMIENTO ANCALMO, S.A. DE C.V., domiciled at Boulevard Walter Deininger, former Cuscatlán, Republic of El Salvador. CONSIDERING: That having met the formal requirements demanded by the Law of Representatives, Distributors and Agents of National and Foreign Companies and its Regulation, the Secretary General submitted these proceedings to the General Directorate of Productive Sectors for the continuation of its processing. CONSIDERING: That the General Directorate of Productive Sectors, based on the legal opinion issued by the Department of Legal Services, determined that the granting company complies with the requirement demanded by the Law of