Section 3: Right to the Free Disposal of Natural Resources (Article 21) (REC. 25) 569- Generally, natural resources are considered to be of national interest, and the State ensures their protection and determines their management while taking into account the interests of the people. Such double dimension imbued guaranteeing the right to the free disposal of natural resources be they land resources (see development above under Article 14), or mining, forest or genetic resources. 570- With regard to mineral resources, the national surface area of mining resources stood at 17,650.829km2 in 2017 with exploration permits on 13,801.07km2 and concessions on 3,849.759km2. in 2017, some 9 exploration permits, 19 concessions were valid, 6 free areas while 23 research permits, 9 authorizations and 2 quarry exploration permits were withdrawn and the areas thereof transferred to State property. 571- In a bid to capitalise such potential, Law No. 2016/17 of 14 December 2016 instituting the Mining Code provides for the principle of transparency under the Chapter entitled “Governance and Transparency in the Mining Sector: International Governance Initiatives: Extractive Industries Transparency Initiative (EITI) and the Kimberly Process”. Pursuant to the said law, the right of neighbouring peoples and indigenous peoples to participate in the distribution and management of mining concessions, and the right to royalties accruing from the exploitation of mining resources found in their living area were guaranteed. 572- The right of access to geological and mining information, and the obligation to consult the communities as a prerequisite to the singing of agreements through especially an environmental and social impact assessment are enshrined in the law. The Code takes into account aspects of customary law such as culture, land, constructions and other developments be they of any kind whatsoever duly established and evaluated by the Committee of Inquiry into Land Issues. 573-The said law further provides for a sample mining agreement that includes the Local Content330. The provision of the Local Content (sections 164-169) stems from the determination of public authorities to maximise the social spinoffs of mining projects and encourage harmonious relations between promoters of mining projects and the neighbouring inhabitants of project sites and indigenous peoples. It is streamlined in the existing mechanism comprising the ad valorem tax, extraction tax and area-based royalty that have all been increased in comparison to the previous law (sections 170-176). Income accruing from such taxes and royalties are equitably distributed and for which the said law provides for the establishment of a special local capacity development account (sections 233 and 236). 574- In addition, deductions on capital gains tax made during transactions are significantly increased from 5% to 10% (section 105). Similarly, section 118 of the said law provides for the right of the population living around a small-scale or industrial mine to compensation, the amount of which is deducted from the ad valorem tax and those living around an industrial quarry to compensation, the amount of which is deducted from the quarry product extraction tax. 575- Furthermore, sections 116 and 117 of the said law provides for the right to compensation of land owners, land occupants, beneficiaries and usufructuaries whose land have been expropriated for public purpose. The compensation shall cover land, crops, constructions and any other developments duly ascertained and assessed. 576- Such concerns were already integrated within the framework of the Mbalam Iron Ore Project executed by CAM-IRON. The mining agreement provided among others, for the 330 Local content includes all activities geared towards local capacity development, use of local human and material resources, technology transfer, subcontracting local business, services and products, and creating measurable value added for the local economy. 95