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RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

of June 23, 2020 No. 403

About measures for further enhancement of procedure for issue of licenses for right to use by subsoil plots

According to resolutions of the President of the Republic of Uzbekistan of July 23, 2019 "About measures for further enhancement of geological studying of subsoil and implementation of the State program of development and reproduction of mineral resources for 2020-2021" and of November 18, 2019 No. PP-4522 "About measures for enhancement of system of the organization and conducting exploration works on oil and gas", for the purpose of enhancement of procedure for issue of licenses for right to use by the subsoil plots containing strategic types of minerals, the Cabinet of Ministers decides No. PP-4401:

1. Approve Regulations on procedure for issue of licenses for right to use by subsoil plots according to appendix No. 1, providing:

procedure for issue of licenses for right to use by subsoil plots to subjects of entrepreneurship on the basis of electronic online-biddings;

conditions and terms of use of the subsoil plots containing strategic types of minerals;

procedure for registration and issue of licenses for right to use by subsoil plots, and also implementation of state registration and state accounting of this right;

bases and procedure for restriction, suspension and termination of right to use by subsoil plots.

2. To provide to the state committee of the Republic of Uzbekistan on geology and mineral resources and the State committee of the Republic of Uzbekistan on ecology and environmental protection:

consideration of requests for receipt of the corresponding license types on right to use by subsoil plots strictly according to the Provision approved by this resolution;

broad informing the public on simplification of procedure for receipt of licenses for right to use by the subsoil plots containing strategic types of minerals.

3. Recognize invalid some acts of the Government of the Republic of Uzbekistan according to appendix No. 2.

4. To the state committee of the Republic of Uzbekistan on geology and mineral resources together with the interested ministries and departments to bring the regulatory legal acts adopted by them into accord with this resolution in a month.

5. To impose control of execution of this resolution on the deputy prime minister of the Republic of Uzbekistan on financial and economic questions and reducing poverty - the Minister of Economic Development and reducing poverty of D. A. Kuchkarov, the adviser to the Prime Minister of the Republic of Uzbekistan - the head of the department of questions of development of the industry and its key branches, and also cooperation communications and the chairman of the State committee of the Republic of Uzbekistan on geology and the mineral B.F resources. Islamova.

Prime Minister of the Republic of Uzbekistan

A. Aripov

Appendix № 1

to the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan of June 23, 2020 No. 403

Regulations on procedure for issue of licenses for right to use by subsoil plots

Chapter I. General provisions

1. This Provision determines procedure for issue of licenses for right to use by subsoil plots.

2. This Provision is applied by provision of subsoil plots in use, including based on free standing agreements if other is not stipulated by the legislation about production sharing agreements, concession.

Action of this provision does not extend to issue of licenses for right to use by the subsoil plots containing nonmetallic minerals and for prospecting production of precious metals.

3. In this Provision the following basic concepts are used:

the license for right to use by the subsoil plot containing strategic types of minerals for geological studying - the document certifying the right of its owner to carrying out search, assessment, investigation of mineral deposits on the terms of entrepreneurial risk (at the expense of own means of the subsoil user);

the license for right to use by the subsoil plot containing strategic types of minerals for mining - the document certifying the right of its owner to mining of minerals, 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, taking into account receipt of necessary allowing documents, stipulated by the legislation;

the license for right to use by the subsoil plot for use of technogenic mineral educations - the document certifying the right of its owner to perform conversion of waste mining and the processing industries containing useful components taking into account receipt of necessary allowing documents, stipulated by the legislation;

the license for right to use by the subsoil plot for construction and operation of the underground constructions which are not connected with mining - the document certifying the right of its owner to use of certain subsoil plot for construction and operation of underground constructions including for underground storage of hydrocarbons, storage and waste disposal;

the license for right to use by the subsoil plot for formation of the protected geological objects - the document certifying the right of its owner to the organization of scientific and training grounds, geological wildlife areas, allocation of the nature sanctuaries and other objects having scientific, historical, cultural, esthetic and other value, and also use in the scientific, medical and improving or tourist purposes of caves and other underground cavities;

the license for the right of collection of samples of kamnesamotsvetny raw materials, paleontologic remaining balance and other geological collection materials - the document certifying the right of its owner to extraction of single samples of kamnesamotsvetny raw materials, paleontologic remaining balance and other geological collection materials from natural exposures, natural underground emptiness (caves), the fulfilled pits, dumps of the mining companies (in coordination with the owner of mountain branch), and also collection is model in floodplains of the rivers without carrying out mountain and other types of special works (without violation of integrity of subsoil);

mountain branch - the geometrizovanny subsoil plot limited on the square and at depth, provided in use according to the license and for the purpose of, specified in the license for mineral right;

strategic types of minerals - gold, silver, copper, lead, zinc, tungsten, uranium, platinum and platinoids, rare metals and rare-earth elements, iron, manganese, hydrocarbons (oil, gas, condensate), coal, combustible slates;

the production sharing agreement, concessionary and other free investment standing agreements - the agreement according to which the Republic of Uzbekistan provides to the foreign investor on paid basis and for certain term exclusive rights on search, investigation of fields and mining on the subsoil plot specified in the agreement and on conducting the works connected with it and the investor shall perform carrying out the specified works at own expense and on the risk (further - free standing agreements);

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 right to use by subsoil plots 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 application for the organization of auction for realization of right to use by the subsoil plot submitted by the State committee of the Republic of Uzbekistan on geology and mineral resources (further - Goskomgeologiya) to the operator electronically;

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

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

the guaranteed deposit (further - deposit) - cash amount, brought by applicants for participation in auction in the amount of 5 percent from original cost of object of auction;

auction object - right to use by the subsoil plots offered for realization for auction;

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

technical failure on trading floor - the technical defects of electronic trading platform which are excluding possibility of participation in the procedure of electronic online-auction of one of participants or not providing technical capability of servicing of holding the auction.

4. The basis of emergence of right to use by subsoil plots for geological studying on the terms of entrepreneurial risk, mining, use of the technogenic mineral educations and other purposes which are not connected with mining, provided by this Provision is the license.

The basis of emergence of right to use by subsoil plots for geological studying by request of Goskomgeologiya within state programs of development and reproduction of mineral resources are the design estimates on geological studying of subsoil approved in accordance with the established procedure.

The license certifies the right of its owner to use of the subsoil plot in specific borders during fixed term and determines conditions of use of this site.

5. Authorized bodies on issue of licenses for right to use by subsoil plots (further - authorized body) are:

The state committee of the Republic of Uzbekistan on ecology and environmental protections (further - Goskomecologies) - for construction and operation of underground constructions for the purpose of storage and waste disposal;

Goskomgeologiya - for all other types of rights to use by subsoil plots.

Chapter II. Licenses for right to use by subsoil plots

6. Licenses for right to use by the subsoil plots containing strategic types of minerals (further - subsoil plots), are provided for:

geological studying;

mining;

uses of technogenic mineral educations;

construction and operation of the underground constructions which are not connected with mining;

formations of the protected geological objects;

collection of samples of kamnesamotsvetny raw materials, paleontologic remaining balance and other geological collection materials.

Licenses are, as a rule, granted separately on each type of use of natural resources determined by this Item.

7. Issue of licenses is performed by results of the electronic biddings or direct negotiations of legal entities with bodies, authorized to grant licenses, according to the procedure, established by this Provision.

8. Licenses for right to use by subsoil plots are granted:

for geological studying, mining, use of the technogenic mineral educations (which are not registered on balance of the subsoil user) - by results of auctions;

for construction and operation of the underground constructions which are not connected with mining, including for the purpose of storage and waste disposal, formation of the protected geological objects, collection of samples of kamnesamotsvetny raw materials, paleontologic remaining balance and other geological collection materials - by results of direct negotiations by consideration of requests by the principle of "the first submitted application".

9. The legal entities financing works on geological studying of subsoil have exclusive right to receipt of the license to use by the subsoil plot for mining on the field reconnoitered by them (further - exclusive right) within one year from approval date of inventories of strategic types of minerals on the revealed field the State Commission on Mineral Reserves in case of Goskomgeologiya (further - GKZ in case of Goskomgeologiya).

During effective period of exclusive right the license for right to use by the subsoil plot for mining on the field reconnoitered by it is issued to the legal entity by results of direct negotiations according to the procedure, established by Chapter VI of this provision.

After expiration of exclusive right of the legal entity the reconnoitered field passes into the state stock balance of minerals and the realization of right to use by such subsoil plot is enabled through the auction organized Goskomgeologiya. At the same time for the legal entity the privilege to receipt of the license for mining on the field reconnoitered by it in case of its participation in auction remains.

In case of refusal of the legal entity financing works on geological studying of subsoil of the right of mining on the field reconnoitered by it, it can be provided to other person according to the procedure, established by this Provision.

In cases, the specified in paragraphs three and the fourth this Item, to the legal entity the costs made by it, including the cost of geological and other information on subsoil, are not compensated.

10. Licenses for right to use by subsoil plots can be also granted by results of direct negotiations:

according to decisions of the President of the Republic of Uzbekistan and the Cabinet of Ministers, and also approved by them "road maps";

in case of recognition cancelled the auctions held on United electronic market place of "E-IJRO AUKSION" within one year;

in case of concession (fully or partially) exclusive right for mining on the reconnoitered field the legal entity financing works on geological studying of subsoil, other person in coordination with Goskomgeologiya;

on the separate objects on hydrocarbonic raw materials and other strategic types of minerals having essential business potential and also within free standing agreements - by selection of the best offers on the basis of the competitive biddings in interaction with State commission on development of conditions of use of natural resources, structure and provisions on which are approved by the resolution of the Cabinet of Ministers of the Republic of Uzbekistan of December 12, 2019 No. 989 "About measures for further enhancement of activities of state commission for development of conditions of use of natural resources".

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

12. The license for right to use by the subsoil plot for mining is granted for mining, inventories of minerals on which are approved by GKZ in case of Goskomgeologiya.

13. Licensing for right to use by the subsoil plot for mining on the certain site of the field is allowed provided that it will not worsen technical and economic indicators of mining in general and will not create obstacles for development of other parts of the field.

14. Issue of licenses for right to use by the subsoil plot to several subsoil users for development of one field is allowed.

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

16. The owner of the license for right to use by the subsoil plot for mining has the right to carry out within the mountain withdrawal of work on geological studying of subsoil provided to it without additional license, on condition of the state accounting of these works in Goskomgeologiya.

17. The property right to the technogenic mineral educations got in the course of mining and conversion of mineral raw materials during action of the license for right to use by the subsoil plot for mining remains for the owner of this license for the term of use of the subsoil plot specified in the license. At the same time receipt of the separate license for right to use by subsoil plots for use (conversion) of technogenic mineral educations is not required.

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