RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

of July 1, 2019 No. 546

About measures for further enhancement of procedure for issue of licenses for right to use by the subsoil plots containing nonmetallic minerals

For the purpose of ensuring transparency in the course of issue of licenses for right to use by the subsoil plots containing nonmetallic minerals, the Cabinet of Ministers decides:

1. Take into consideration that:

a) according to the resolution of the President of the Republic of Uzbekistan of December 26, 2018 No. PP-4078 "About additional measures for increase in efficiency of use of the subsoil plots containing nonmetallic minerals" issue of licenses for right to use by subsoil plots, containing nonmetallic minerals is performed by the State committee of the Republic of Uzbekistan on geology and mineral resources in 20-day time based on results of electronic auction on E-IJRO AUKSION electronic trading platform:

since July 1, 2019 - on the fields of nonmetallic minerals revealed at the expense of means of the Government budget of the Republic of Uzbekistan;

since January 1, 2020 - on all subsoil plots containing nonmetallic minerals;

b) by the resolution of the President of the Republic of Uzbekistan of September 25, 2017 No. PP-3286 "About measures for further enhancement of system of protection of water objects" it is determined that production of nonmetallic minerals in beds of the rivers is performed strictly according to the license for right to use by the subsoil plots containing nonmetallic minerals obtained in accordance with the established procedure on condition of availability of the approved inventories and exception of negative impact on the water mode.

2. Approve Regulations on procedure for running an electronic auction on E-IJRO AUKSION electronic trading platform on receipt of right to use by the subsoil plots containing nonmetallic minerals, and also issues of licenses for right to use by these sites according to appendix.

3. Consider No. 443 which voided since January 1, 2020 the resolution of the Cabinet of Ministers of the Republic of Uzbekistan of June 12, 2018 "About enhancement of procedure for issue of licenses for right to use by the subsoil plots containing nonmetallic minerals".

4. To impose control of execution of this resolution on the chairman of the State committee of the Republic of Uzbekistan on geology and the mineral B.F resources. Islamova and the Secretariat concerning development of fuel and energy industry and key branches of the industry of the Cabinet of Ministers.

Appendix

to the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan of July 1, 2019 No. 546

Regulations on procedure for running an electronic auction on E-IJRO AUKSION electronic trading platform for receipt of right to use by the subsoil plots containing nonmetallic minerals, and also issues of licenses for right to use by these sites

Chapter 1. General provisions

1. This Provision determines procedure for running an electronic auction on E-IJRO AUKSION electronic trading platform on right to use by the subsoil plots containing nonmetallic minerals, and also issues of licenses for right to use by these sites.

2. In this Provision the following basic concepts are applied:

nonmetallic minerals - the nonmetallic minerals used in the industry and construction both in natural type and as raw materials;

the subsoil plots containing nonmetallic minerals - the area of subsoil containing nonmetallic minerals with certain geometrizovanny borders;

United electronic market place of "E-IJRO AUKSION" (further - trading floor) - the information system providing possibility of input, storage and the information processing necessary for the organization and holding electronic online auctions and also direct access for interested persons to processes of auctions through the web portal of the operator;

operator - the State unitary enterprise "Center for the Organization of Electronic Online Auctions" under Agency on management of the state assets of the Republic of Uzbekistan;

electronic online auction (further - auction) - method of electronic trading in the form of auction for realization of the subsoil plots containing nonmetallic minerals on United electronic market place of "E-IJRO AUKSION" on the Internet with provision of equal opportunities to potential buyers;

the electronic request (further - the request) - the electronic request about the organization of auction for realization of right to use by the subsoil plot containing nonmetallic minerals submitted by the State committee of the Republic of Uzbekistan on geology and mineral resources (further - Goskomgeologiya) to the operator;

the participant of auction - the legal entity who submitted the application and allowed for participation in auction;

auction number - number assigned to the participant for participation in auction in the presence of the electronic statement for participation in the biddings;

auction object - right to use by the subsoil plots exposed on realization by results of auction;

the guaranteed pledge (further - pledge) - the cash amount in the amount of 5 percent from original cost of object of auction granted by applicants for participation in the electronic biddings;

lot - the right to use by the certain subsoil plot containing nonmetallic minerals exercised at auction;

technical failure on United electronic market place of "E-IJRO AUKSION" - the technical defects on electronic trading platform which are not allowing participation to one of participants or not providing technical capability of servicing of holding the auction to the employee of operator.

3. Right to use by the subsoil plots containing nonmetallic minerals is provided based on the license for:

geological studying;

production;

uses of technogenic mineral educations.

4. Licenses are granted separately on each type of use of natural resources, stipulated in Item 3 this provision.

5. Licenses are granted Goskomgeologiya.

Chapter 2. Licenses for right to use by the subsoil plots containing nonmetallic minerals

§ 1. Licenses for right to use by subsoil plots for geological studying

6. The license for right to use by subsoil plots for geological studying confirms the right to carrying out search, assessment and investigation of fields of nonmetallic minerals (at the expense of own means of subsoil users) on the basis of entrepreneurial risk.

The basis of emergence of right to use by subsoil plots for geological studying at the expense of means of the Government budget of the Republic of Uzbekistan and own means of the organizations within state programs of development and reproduction of mineral resources are the design estimates approved in accordance with the established procedure on geological studying of subsoil.

Receipt of the license for right to use by subsoil plots for carrying out at stage of geological studying of pilot (trial) and trial production of nonmetallic minerals in the amounts proved by the design estimates and sufficient for stock counting and assessment of their quality is not required.

§ 2. The license for right to use by subsoil plots for production of nonmetallic minerals

7. The license for right to use by subsoil plots for production of nonmetallic minerals grants to its owner the right to mining, conversion of the extracted mineral raw materials, including use (conversion) of the technogenic mineral educations got in the course of production if other is not provided by license conditions.

The license for right to use by the subsoil plot for production of nonmetallic minerals is granted for mining, inventories of nonmetallic minerals on which are approved in the procedure established by the legislation.

8. Licensing for right to use by subsoil plots for production of nonmetallic minerals on the certain site of the field is allowed provided that it does not worsen technical and economic indicators of mining in general and does not create obstacles for development of other parts (sites) of the field.

9. Issue of licenses for right to use by subsoil plots for development of one field to several subsoil users is allowed. At the same time mining shall be performed on and the State committee of the Republic of Uzbekistan on the ecology and environmental protection approved in accordance with the established procedure with Inspectorate for control of mining-and-geological activities in case of Goskomgeologiya (further - Goskomecologies) system of the development providing rational use of subsoil and environmental protection.

10. Simultaneous issue of several licenses for right to use by subsoil plots to one subsoil user, including for development of nearby fields of nonmetallic minerals is allowed if according to the executed technical and economic calculations only their joint development by one subsoil user is profitable.

11. At the same time several licenses for right to use by the subsoil plot can be granted to one subsoil user for development of fields of different types of nonmetallic minerals which mineral raw materials are necessary component for production of separate types of construction and other materials and products.

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