RESOLUTION OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF UZBEKISTAN, MINISTRY OF ECONOMICS OF THE REPUBLIC OF UZBEKISTAN

of February 26, 2015 No. No. 18, 91

About approval of the Regulations on procedure for financing from the Government budget of the Republic of Uzbekistan of annual programs of exploration works

According to the Resolution of the President of the Republic of Uzbekistan of August 27, 2010 "About measures for further increase in system effectiveness of the organization and conducting exploration works" the Ministry of Finance and the Ministry of Economics of the Republic of Uzbekistan decide No. PP-1396:

1. Approve Regulations on procedure for financing from the Government budget of the Republic of Uzbekistan of annual programs of exploration works according to appendix.

2. Declare invalid the resolution of the Ministry of Finance and Ministry of Economics of the Republic of Uzbekistan of September 5, 2011 No. No. 59 and 10 "About approval of the Regulations on procedure for financing from the Government budget of annual programs of exploration works" (reg. No. 2278 of October 18, 2011) (Collection of the legislation of the Republic of Uzbekistan, 2011, No. 42, the Art. 457).

3. This resolution becomes effective from the date of its official publication.

Appendix

to the Resolution of the Ministry of Finance, Ministry of Economics of the Republic of Uzbekistan of February 26, 2015 No. No. 18, 91

Regulations on procedure for financing from the Government budget of the Republic of Uzbekistan of annual programs of exploration works

This Provision according to the resolution of the President of the Republic of Uzbekistan of August 27, 2010 No. PP-1396 "About measures for further increase in system effectiveness of the organization and conducting exploration works" determines procedure for financing from the Government budget of the Republic of Uzbekistan (further - the Government budget) the program of exploration works (further - GRR) realized by the State committee of the Republic of Uzbekistan on geology and mineral resources and its subordinated organizations, the State company "Navoiy Mining and Smelting Plant" and Almalyk Mining and Smelting Plant Joint-stock company.

Chapter 1. General provisions

1. In this Provision the following concepts are used:

the GRR program - the GRR program for year approved according to the procedure, established by the resolution of the Cabinet of Ministers of the Republic of Uzbekistan and other acts of the legislation;

receiver of budgetary funds for carrying out GRR - The state committee of the Republic of Uzbekistan on geology and mineral resources, the State company "Navoiy Mining and Smelting Plant" and Almalyk Mining and Smelting Plant Joint-stock company to which budgetary appropriations in the form of subsidies for carrying out GRR within parameters of the Government budget are allocated;

payment for results of accomplishment of the GRR program - money in the amount of 10 interests from the total amount of budgetary appropriations on GRR in year paid till February 1 of the next year by results of accomplishment of the forecast (task) of stock gain of minerals and the actual amounts of GRR according to Item 8 of the resolution of the President of the Republic of Uzbekistan of August 27, 2010 No. PP-1396 "About measures for further increase in system effectiveness of the organization and conducting exploration works".

2. Those amounts of GRR and expenses accompanying them which are included in the GRR program are financed by budgetary appropriations only or are in addition determined to financing at the expense of budgetary funds according to decisions of the President of the Republic of Uzbekistan and/or the Government of the Republic of Uzbekistan.

Budgetary appropriations in the form of subsidies are target revenues to accomplishment of the GRR program which are not considered as the income for the purpose of the taxation.

3. The following types of GRR and expenses accompanying them are financed by budgetary appropriations:

a) regional geological, geophysical, geochemical, hydrogeological, geoecological and other types of shootings, the specialized advancing search works on gold and uranium;

b) search and estimative works on precious, non-ferrous, radioactive, ferrous, rare and rare-earth metals, hydromineral resources and solid nonmetallic minerals;

c) investigation (additional exploration - on again revealed objects) mineral deposits, processing of materials, thematic and experienced and methodical works;

d) developmental works on development of the prospecting equipment, work of special purpose, protection of subsoil and rational use of material raw material resources;

e) actions for protection of underground waters from depletion and pollution;

e) research and normative and research works;

g) training of workers of geological industry and students for geological industry, holding industry conferences and seminars;

h) construction of temporary buildings and constructions and arrangement of field bases, acquisition of fixed assets;

i) payment of remunerations for discovery of the fields;

j) holding the international conferences.

4. Action of this provision does not extend on:

GRR on oil and natural gas;

GRR connected with designing and construction of the mining organizations, and also additional studying of mining-and-geological, hydrogeological and mining conditions of driving of capital excavations and boreholes;

GRR which are carried out by the organizations on the operated fields within mountain branches and also on flanks of these fields;

all types of geological researches within operational blocks and pits on the mineral deposits which are carried out for the purpose of refining of contours of bedding of minerals and their material structure and also for refining of the direction of preparatory and clearing work.

Chapter 2. Determination of parameters of financing of the GRR program

5. Amounts of the budgetary appropriations allocated from the Government budget for implementation of GRR for every year by types and objects of works are specified in the GRR program with binding to physical amounts of works which shall be executed within the GRR program within the corresponding budgetary appropriations and other sources of financing, and also to target indicators of stock gain (forecast resources) of minerals.

6. After approval of the GRR program Ministry of Finance of the Republic of Uzbekistan informs receivers of budgetary funds for carrying out GRR amounts of the budgetary appropriations provided for them intended for execution of the GRR program.

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