ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of December 14, 2012 No. 834

About approval of regulatory legal acts in the field of subsurface use

For the purpose of enhancement of system of regulation of subsurface use, and also reduction of regulatory legal acts in compliance with the Law of the Kyrgyz Republic "About subsoil" the Government of the Kyrgyz Republic decides:

1. Approve:

- Regulations on procedure for licensing of subsurface use according to appendix 1;

- Regulations on procedure and conditions of carrying out tender on mineral right according to appendix 2;

- Regulations on procedure and conditions of holding the auction on mineral right according to appendix 3;

- the paragraph the fifth Item 1 ceased to be valid according to the Order of the Government of the Kyrgyz Republic of 06.11.2015 No. 760

2. Recognize invalid:

- The order of the Government of the Kyrgyz Republic "About modification and amendments in the order of the Government of the Kyrgyz Republic "About approval of the Regulations on procedure for licensing and regulation of subsurface use" of April 4, 2012 No. 228" of June 8, 2012 No. 425.

3. This Resolution becomes effective in 15 days from the date of official publication.

Appendix 1

Approved by the Order of the Government of the Kyrgyz Republic of December 14, 2012 No. 834

Regulations on procedure for licensing of subsurface use

I. General provisions

1. This Provision is developed according to the Law of the Kyrgyz Republic "About subsoil".

2. Organizational support of the state system of licensing of mineral rights performs the State Agency for Geology and Mineral Resources under the Government of the Kyrgyz Republic as authorized state body on realization of state policy on subsurface use.

The authorized state body on realization of state policy on subsurface use performs administration of licensing of mineral rights as licensed body - the licensor.

3. The mineral right arises based on the license. Use of natural resources without license is forbidden, except as specified, provided by the laws of the Kyrgyz Republic and this Provision.

4. All types of use of natural resources by all types of mineral raw materials, including fresh, mineral and thermal underground waters, except for provisions of mineral rights according to the concession treaty and under the production sharing agreement, and also works based on state registration are subject to licensing.

5. The legal entities and physical persons created according to the legislation of the Kyrgyz Republic and also the foreign legal entities who underwent state registration according to the legislation of the Kyrgyz Republic and the physical persons registered according to the legislation of the Kyrgyz Republic as individual entrepreneurs can be subsoil users.

6. If other is not stipulated by the legislation the Kyrgyz Republic and this Provision, foreign legal entities and physical persons obtain the license on the same conditions and in the same procedure as legal entities and physical persons of the Kyrgyz Republic.

II. Provision of mineral rights

7. The mineral right can be granted based on carrying out tenders, auctions and by carrying out direct negotiations.

8. Provision of mineral rights on objects of mineral deposits of nation-wide value is carried out following the results of tenders. The list of objects of mineral deposits of nation-wide value affirms the Government of the Kyrgyz Republic on representation of authorized state body on realization of state policy on subsurface use and is published in mass media. Competition on each object of mineral deposits of nation-wide value is held according to the decision of the Government of the Kyrgyz Republic by interdepartmental tender committee according to the Provision approved by the Government of the Kyrgyz Republic.

On the held competitions the license for mineral right is granted based on the protocol of tender committee.

9. Provision of mineral right based on holding auctions is made:

- on objects which list approves authorized state body on realization of state policy on subsurface use on the basis of recommendations of Scientific and technical council under this authorized body;

- on objects of nation-wide value on which the winners by results of two held competitions are not defined;

- on the objects which are not included in the list of the fields offered for auction, but on which two and more requests with appendix of the complete list of documents, stipulated in Item the 36th this provision arrived.

On the held auctions the license for mineral right is granted based on the protocol of the auction commission.

10. The procedure for carrying out tenders and auctions for provision of mineral rights is determined by the separate provisions approved by the Government of the Kyrgyz Republic.

11. Provision of mineral right by carrying out direct negotiations is made:

- on the objects of subsoil which are not entering the List of objects of nation-wide value and the List of the objects offered for auction;

- on objects of subsoil if on them cancelled two auctions are acknowledged;

- on the objects of subsoil which are not connected with geological studying and development of mineral deposits;

- on the objects of subsoil falling under licensing according to the procedure of realization of exclusive right of the subsoil user.

12. The decision on conducting direct negotiations with the applicant on receipt of mineral rights by direct negotiations is made by the Commission concerning licensing of subsurface use of authorized state body on realization of state policy on subsurface use.

Direct negotiations with the applicant are held by the head of authorized state body on realization of state policy on subsurface use which results are drawn up by the protocol signed by the parties. The protocol is the basis for licensing for mineral right.

12-1. Information on pro-licensed and free objects of subsurface use is posted on the official site of authorized state body on realization of state policy on subsurface use.

13. Licenses for mineral right are granted for terms:

- for geological and search works - up to 5 years, with the subsequent prolongation according to the engineering design;

- for exploration works - up to 10 years, with the subsequent prolongation according to the engineering design;

- on development of mineral deposits - up to 20 years, with the subsequent prolongation to stock depletion of minerals;

- on the objects which are not connected with geological studying of subsoil and development of mineral deposits - for the term provided by the engineering design with the subsequent prolongation for the term provided by the corrected engineering design.

14. The license for mineral right for carrying out geological and search works grants exclusive right on carrying out geological and search works on the declared types of minerals within the licensed area.

The licensee has exclusive right to transformation of the license for mineral right for carrying out geological and search works in the license for mineral right for conducting exploration works on mineral object.

15. On the pro-licensed square at certain types of searches of minerals the license for mineral right of other groups of minerals to other applicants can be granted.

16. The license for mineral right for conducting exploration works grants exclusive right on conducting exploration works on the declared types of minerals within the licensed area.

17. After stock accounting of minerals in the State stock balance of minerals of the Kyrgyz Republic, based on the conclusion of approbation of the State Commission on Mineral Reserves of the Kyrgyz Republic, the licensee has exclusive right to transformation of the license for mineral right for exploration works in the license for mineral right for development of the reconnoitered mineral deposit.

18. The license for mineral right for development of mineral deposits is granted on licensed objects which inventories are approved and considered by the State Commission on Mineral Reserves of the Kyrgyz Republic, and also the former competent departments of the USSR (The State Commission on Mineral Reserves of the USSR, the Territorial commission on inventories of minerals of the Kyrgyz SSR, the Central commission on inventories of minerals of the Ministry of geology of the USSR, etc.).

The license for mineral right for development of mineral deposits grants to the licensee exclusive right on:

- development of minerals within mountain branch with the right to carrying out all necessary preparatory work;

- conversion of minerals, including enrichment and metallurgy, use of technogenic educations, waste of metallurgical production;

- sale of minerals and products of their conversion, including export;

- geological studying of subsoil within mountain branch according to the engineering design with the corresponding positive expert opinions.

19. In case of emergency, for the purpose of prevention of emergency situations for shore protection works, when carrying out road-building works on the request of the Ministry of emergency situations of the Kyrgyz Republic, the Ministry of Transport and Communications of the Kyrgyz Republic, bodies of local public administration and local self-government development of inert materials without receipt of the license for mineral right on permission of authorized state body on realization of state policy on subsurface use with its notification on the carried-out works and amounts of production is allowed.

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