The new Code on Subsoil and Subsoil Use is under discussion in Kazakhstan
The new Code on Subsoil and Subsoil Use is under discussion in Kazakhstan. The draft law will simplify the procedures for investors as much as possible. This conclusion was made by experts during the discussion of the bill. Kazakhstan will facilitate the procedure for providing the mineral deposits for use and introduce licenses. According to the developers, during the development of the new Code the best practices of the developed countries was taken into account, in particular Australia’s experience. The main attraction for investors is that in comparison with existing 540-day long procedure of granting rights for subsoil use, Australia grants the permission in 25 days, reducing the duration of the procedure by 18 times.
Nikolay RADOSTOVETS, EXECUTIVE DIRECTOR, REPUBLICAN ASSOCIATION OF MINING AND METALLURGICAL ENTERPRISES:
There are many progressive norms regarding exploration. The method that is applied in the world is as follows – if a company discovers a new deposit, then they receive the right to explore it. This facilitates the work of the industry enterprises. There is no need to coordinate the work program, no need to pay commercial bonuses and to report to different ministries, to wait for their approvals.
In addition, state control over procurement of goods, works and services by subsoil users will be abolished, and the requirements for local content, based on the requirements of the World Trade Organization will be cancelled. The changes will affect taxation. According to the developers, in the summer of 2017, the draft Code will be submitted to the Kazakh Parliament. In the meantime, the experts will discuss the document thoroughly.