July 29, 2020
The Law of the Republic of Uzbekistan of 23.09.1994 No. 2018-XII “On Subsoil” (New Edition)
This legal act is adopted in Uzbek or Russian languages. The English lingual version is an unofficial translation. In case of any ambiguity (discrepancy), please refer to the text of the legal act in the state language.
This edition is adopted by the Law of the Republic of Uzbekistan of 13.12.2002 No. 444-II
The alterations are introduced in accordance with the Law of the Republic of Uzbekistan of 07.01.2020 No. LRU-601
I. GENERAL PROVISIONS
Article 1. Purpose and main objectives of this Law
The purpose of this Law is to regulate relations arising from the possession, exploitation and disposal of subsoil (mining relations).
The main objectives of this Law are ensuring rational, complex use of subsoil to meet the needs in mineral raw materials and other needs, protection of subsoil and environment, safety of conducting works when using the subsoil, as well as the protection of the rights of users of subsoil, protection of interests of personality, society and state.
Article 2. Basic concepts
The following basic concepts are applied in this Law:
protected geological objects – scientific and training grounds, geological sanctuaries, geological reserves, natural monuments, caves and other underground cavities of historical, scientific, artistic and other cultural value;
a subsoil – part of the earth’s crust located below the soil layer, and in its absence below the earth’s surface or the bottom of water bodies, extending to the depths available for geological study and development;
geological study of the subsoil – the complex of special research works on investigation of geological structure in the earth’s crust, including regional geological study of the territory of the Republic of Uzbekistan, search, evaluation and exploration of mineral deposits, determination of quantity and quality contained in these reserves, their technological properties and economic values, and other properties of the subsoil;
common minerals – minerals used in their natural state or with little processing and purification;
conditions – a set of requirements based on technical and economic calculations for calculating mineral reserves in the subsoil (with the exception of oil, gas and gas condensate), taking into account their technological properties, mining and other conditions of deposit development, market conditions for mineral raw materials and products of its processing, prices for energy resources;
mineral raw materials – extracted and processed minerals;
industrial groundwater – groundwater and underground brine containing dissolved minerals;
experimental-industrial mining – extraction operations conducted in the course of geological study of the subsoil with the purpose of developing or improving the technology of enrichment and processing of mineral resources, the rational choice of means and methods of industrial development of mineral deposits and processing of technogenic mineral formations;
technogenic mineral formations-waste from mining and processing industries containing useful components that are suitable for use;
a useful component – a component of a mineral that is technologically possible and economically feasible to extract for industrial use;
a mineral deposit – a subsoil area containing minerals that can be developed quantitatively and qualitatively;
mineral resources – natural mineral formations of inorganic and organic origin contained in the subsoil in a solid, liquid or gaseous state, including the industrial groundwater, brines and brine of salt lakes;
mining activity – a complex of works related to the extraction of minerals from the subsoil to the surface;
artisanal mining – non-industrial mining of precious metals in subsoil areas, including placer gold deposits, based on business risk
Article 3. Legislation on the subsoil
The legislation on the subsoil shall consist of this Law and other legislative acts.
Relations related to the use of the subsoil in the Republic of Karakalpakstan are also regulated by the legislation of the Republic of Karakalpakstan.
Relations related to the use and protection of land, water (except for the industrial groundwater), flora and fauna, and atmospheric air arising from the use of the subsoil are regulated by the relevant legislation.
If an international agreement of the Republic of Uzbekistan establishes other rules than those provided for by the legislation of the Republic of Uzbekistan on the subsoil, the rules of the international agreement shall apply.
Article 4. Ownership of the subsoil
The subsoil is the property of the Republic of Uzbekistan, subject to rational use and protected by the state.
Article 5. The state Fund of the subsoil
The state subsoil Fund consists of exploited and non-exploited subsoil areas, as well as the technogenic mineral formations.
Article 6. The right of ownership to extracted mineral resources, the technogenic mineral formations
Mineral resources extracted in accordance with the procedure established by law may be owned by the state, legal entities and individuals.
Ownership right for the technogenic mineral formations received in the process of the mining activity and mineral raw materials processing, is kept by the subsoil user for a period of subsoil rights.
II. STATE REGULATION OF MINING RELATIONS
Article 7. Public administration in the field of mining relations
State management in the field of mining relations is carried out by the Cabinet of Ministers of the Republic of Uzbekistan, local public authorities, as well as specially authorized public authorities.
Specially authorized public authorities in the field of mining relations are the State Committee of the Republic of Uzbekistan for ecology and environmental protection, the State Committee of the Republic of Uzbekistan for Geology and mineral resources, and the State Committee for industrial safety of the Republic of Uzbekistan.
Article 8. Powers of the Cabinet of Ministers of the Republic of Uzbekistan in the field of mining relations
The powers of the Cabinet of Ministers of the Republic of Uzbekistan include:
approval of long – term and medium-term state programs for the development and reproduction of the mineral resource base, protection of mineral resources and monitoring their implementation;
approval of the Regulations on the State Commission on mineral reserves under the State Committee of the Republic of Uzbekistan on Geology and mineral resources;
establishment of the procedure for granting subsoil plots for exploitation, monitoring of subsoil resources, as well as organization of state registration of subsoil plots granted for exploitation;
establishing the procedure for approving mineral reserves and maintaining the state balance of mineral reserves, the state cadastre of deposits, manifestations of minerals and the technogenic mineral formations;
establishment of the procedure for state control over the geological study, exploitation and protection of the subsoil;
approval of the procedure for the artisanal mining of precious metals.
Article 8-1. Powers of the State Committee of the Republic of Uzbekistan on Geology and mineral resources in the field of mining relations
The powers of the State Committee of the Republic of Uzbekistan on Geology and mineral resources include:
implementation of the unified state policy in the field of mining relations;
disposal of the state subsoil Fund;
approval and implementation of annual state programs for the development and reproduction of the mineral resource base;
approval of the list of common minerals;
establishing the procedure for using subsoil areas containing common minerals;
organization of state control over the geological study, exploitation and protection of the subsoil.
Article 9. Powers of local public authorities in the field of mining relations
The powers of local public authorities include:
participation in the development and implementation in the relevant territory of state programs of development and reproduction of mineral raw materials, protection of the subsoil and monitoring their implementation;
harmonization of conditions of subsoil exploitation in the extraction of common minerals;
the implementation of state control over exploitation and protection of the subsoil;
exercise other powers in accordance with the law.
Article 10. Restrictions on the exploitation of the subsoil
The exploitation of the subsoil in the territories of localities, suburban areas, industrial, transport and communication facilities may be restricted in cases where such exploitation may endanger the life and health of the population or cause damage to the environment.
Article 11. State registration of subsoil plots, provided for exploitation
Subsoil areas provided for exploitation for geological study, the mining activity, the artisanal mining of precious metals, construction and operation of underground structures that are not associated with the mining activity, for the formation of protected geological objects, as well as for the collection of samples of gemstone raw materials, paleontological remains and other geological collection materials, are subject to state registration.
The exercise of the right to exploit subsoil areas without its state registration is not allowed, except for works on the geological study of the subsoil, carried out in agreement with the state geological Fund.
Article 12. State registration of works on the geological study of the subsoil
Works on the geological study of the subsoil are subject to state registration.
State registration of works on geological study of the subsoil is the State Committee of Uzbekistan on Geology and mineral resources in the procedure established by the Cabinet of Ministers of the Republic of Uzbekistan.
Article 13. State register of deposits and location of the subsoil, prospective on identification of mineral deposits
State register of deposits and areas of subsoil prospective to identify mineral deposits (further – the state register), is undertaken to determine the prospects of development and further development of mineral raw materials base of the Republic of Uzbekistan.
For each field prepared for industrial development, the state register must contain information about the results of the geological and economic assessment and conditions of development of the field, the quantity and quality of extracted mineral raw materials and its cost, taking into account market conditions.
For each subsoil area that is prospective for the identification of the mineral deposit, the state register must contain information about the forecast resources (reserves) of minerals, their intended quality, possible methods of developing a potential deposit, as well as recommendations for further geological study of the subsoil area.
The information contained in the state register must be taken into account when preparing conditions for public auctions, as well as when granting the right to exploit subsoil plots on the basis of direct negotiations.
The procedure for maintaining the state register and the authorized public authority for its maintenance are determined by the Cabinet of Ministers of the Republic of Uzbekistan.
Article 14. State cadastre of deposits, manifestations of minerals and the technogenic mineral formations
The state cadastre of deposits, manifestations of minerals and the technogenic mineral formations must contain information on each deposit, describing the quantity and quality of reserves of the main and jointly occurring minerals, associated useful components, mining, mining engineering, technological, hydro geological and other conditions for the development of the deposit and its geological and economic assessment, as well as information on each manifestation of minerals.
For the technogenic mineral formations, the state cadastre of deposits, manifestations of minerals and the technogenic mineral formations must contain information for each stored object that characterizes the type or type of the technogenic mineral formations, their quantitative and qualitative indicators and mining conditions of storage.
The state cadastre of deposits, manifestations of minerals and the technogenic mineral formations is maintained by the State Committee of the Republic of Uzbekistan on Geology and mineral resources.
Article 15. State balance of mineral reserves
The state balance of mineral reserves must contain information about the quantity, quality and degree of study of reserves of each type of mineral deposits of industrial significance, their location, the degree of industrial development, production, losses and security of industry with proven mineral reserves.
The state balance of mineral reserves is maintained by the State Committee of the Republic of Uzbekistan on Geology and mineral resources.
Article 16. Approval of mineral reserves and state expertise of geological materials
Mineral deposits can be transferred to industrial development only after approval of their reserves in accordance with the procedure established by law.
Approval of mineral reserves can be carried out at all stages of the geological study of the deposit on the basis of exploration conditions that determine the industrial value of the mineral deposit.
State examination of geological materials is carried out in the cases provided for by part one of article 29 of this Law, as well as on subsoil plots granted for exploitation for construction and (or) operation of underground facilities not related to the mining activity, storage, waste disposal.
Approval of exploration conditions, mineral reserves and state examination of geological materials are carried out by the State Commission on mineral reserves under the State Committee of the Republic of Uzbekistan on Geology and mineral resources.
Article 17. Write-off of mineral reserves
Extracted mineral resources, as well as mineral reserves that have lost their industrial value, lost in the course of production, not confirmed during subsequent geological exploration or development of the deposit, are subject to write-off from the balance of the subsoil user with the corresponding changes in the state balance of mineral reserves.
The state Commission on mineral reserves under the State Committee of the Republic of Uzbekistan on Geology and mineral resources shall write off mineral reserves that have lost their industrial value or have not been confirmed during subsequent exploration or development of the deposit.
Write-off from the user’s balance of mineral resources extracted and lost in the course of the mining activity is made by the user of mineral resources with the consent of the Inspection for control of mining and geological activities under the State Committee of the Republic of Uzbekistan on Geology and mineral resources.
Article 18. Monitoring of the subsoil
Subsoil monitoring is a system of monitoring the state of the subsoil for timely detection of changes, their assessment, prevention and elimination of the consequences of negative processes.
The procedure for monitoring subsoil is established by the Cabinet of Ministers of the Republic of Uzbekistan.
III. EXPLOITATION OF THE SUBSOIL
Article 19. Types of subsoil exploitation
Types of subsoil exploitation are:
geological study of the subsoil;
the mining activity;
the artisanal mining;
exploitation of the technogenic mineral formations;
construction and operation of underground structures that are not associated with the mining activity, including for underground storage of oil, gas, gas condensate (hereinafter referred to as hydrocarbons), other substances and materials, storage and disposal of waste;
formation of protected geological objects;
collection of samples of gemstone raw materials, paleontological remains and other geological collection materials
Article 20. Subsoil users
Subsoil users can be legal entities and individuals.
Article 21. The fee for exploitation of the subsoil
The exploitation of the subsoil is paid, except in cases stipulated by law.
Subsoil users who have obtained licenses for the right to use subsoil areas for search, exploration and the mining activity, pay a subscription bonus and a commercial discovery bonus. The bonus is a one-time payment made by the subsoil user.
Bonuses are not paid by state administration authorities.
A subscription bonus is a one-time fixed payment of the subsoil user for the right to carry out activities for the search and exploration of minerals on the basis of a corresponding license.
The minimum size of the subscription bonus is set depending on the type of mineral in the following amounts:
the right to search and explore for hydrocarbon deposits – five thousand times the amount of the base calculated value;
the right to search and explore for gold – a thousand times the amount of the base calculated value;
the right to search and explore deposits of precious (except gold), rare and precious metals – five hundred times the amount of the base calculated value;
the right to search and explore deposits of ore mineral resources (with the exception of the right to search and explore deposits of gold, precious, rare and precious metals) – two hundred and fifty times the amount of the base calculated value;
the right to search and explore deposits of non-metallic mineral resources is fifty times the amount of the base calculated value.
The subscription bonus is paid by the subsoil user to the tax authorities at the place of tax registration no later than thirty days from the date of receipt of the license.
The commercial discovery bonus is a payment paid for each commercial discovery of mineral deposits in the subsoil area specified in the relevant license, including for the discovery of minerals in the course of additional field exploration that leads to an increase in the initially established recoverable reserves. The commercial discovery bonus is also paid by subsoil users when obtaining the right for the mining activity, if the commercial discovery bonus was not paid earlier for this deposit.
The commercial discovery bonus is not paid when conducting an exploration of mineral deposits that does not provide for their subsequent production.
The object for calculating the commercial discovery bonus is the volume of recoverable mineral reserves in the field, approved by the authorized public authority.
The basis for calculating the commercial discovery bonus is the value of the volume of recoverable mineral reserves. The value of the volume of recoverable mineral reserves is calculated as follows:
for users of the subsoil included in the State register of economic entities that occupy a dominant position in commodity markets – at the declared price approved for this type of mineral;
to other users of the subsoil at the exchange price determined on the international stock exchange, in the manner prescribed by law, and in the absence of prices on the world market, the value of the extracted minerals – on the basis of production cost of production specified in the feasibility study for the industrial development of the relevant field agreed upon in the established order, increased by 20 percent.
The commercial discovery bonus when issuing a license for the right to extract hydrocarbons, precious and rare metals, ore and non-metallic minerals is set at 0.1 percent of the value of the volume of extracted minerals
The procedure for determining the value of the volume of recoverable mineral reserves and paying the commercial discovery bonus is established by law.
The calculation of the commercial discovery bonus is submitted by the subsoil users to the tax authorities at the place of tax registration no later than twenty-five days from the date of obtaining a license for the right to exploit subsoil for the mining activity.
Payment of the commercial discovery bonus is made no later than ninety days from the date of receipt of the license for the right to exploit the subsoil for the mining activity.
The state tax Committee of the Republic of Uzbekistan provides installments for the payment of the commercial discovery bonus for up to three years if the amount of the commercial discovery bonus exceeds the annual amount of tax for the exploitation of subsoil.
The state Committee of the Republic of Uzbekistan on Geology and mineral resources submits quarterly information to the State tax Committee of the Republic of Uzbekistan on subsoil users who have been issued licenses for the right to exploit the subsoil for the mining activity.
The amount of the subscription bonus and commercial discovery bonus is credited to the Republican budget of the Republic of Uzbekistan.
Article 22. Terms of subsoil exploitation
The subsoil may be provided in fixed-term (temporary) and permanent exploitation.
The terms of exploitation of the subsoil are calculated from the date of granting the right to exploit.
Article 23. Urgent exploitation of subsoil areas
Subsoil areas are provided for urgent exploitation for:
the geological study for up to five years;
the mining activity and exploitation of the technogenic mineral formations for a period of development of the mineral deposit or the technogenic mineral formations;
the artisanal mining-for a period of three years;
collection of samples of gemstone raw materials, paleontological remains and other geological collection materials for a period of up to two years.
The term of subsoil exploitation may be extended at the request of the subsoil user sent to the authority that issued the license for the right to exploit the subsoil area (hereinafter – license), no later than six months before the expiry of the subsoil exploitation, when a user of the subsoil laid down in the license conditions and the need for completion of works on geological study of the subsoil and development of mineral deposits, use of the technogenic mineral formations or carry out works on the liquidation or conservation of enterprises for the mining activity of minerals and underground constructions not related to the mining activity.
The decision to extend or refuse to extend the term of exploitation of subsoil resources is made by the body that issued the license within thirty days from the date of receipt of the application of the subsoil user.
Article 24. Indefinite exploitation of the subsoil
Subsoil plots for construction and exploitation of underground structures not connected with the mining activity, and formation of protected geological objects may be provided in indefinite exploitation.
Article 25. Grounds for the right to exploit subsoil areas for geological study at the expense of funds of State budget and organizations ‘ own funds within the framework of state programs of development and reproduction of mineral raw materials base
The basis of the right of exploitation of the subsoil for geological study at the expense of the State budget and own funds of organizations in the framework of the state program of development and reproduction of mineral raw materials base is the project documentation for geological study of the subsoil, approved in the prescribed manner.
The expertise of design and estimate documentation for exploration work envisaged in the state programme for the development and reproduction of mineral raw materials base, the State Committee of Uzbekistan for Geology and mineral resources.
The basis for the beginning of works on geological study of the subsoil at the expense of the State budget and own funds of organizations in the framework of the state program of development and reproduction of mineral raw materials base are
state registration of geological exploration of subsoil;
positive conclusion of state ecological expertise;
decision of local public authorities to grant a land plot or a contract for the urgent exploitation of a land plot.
The list of works on the geological study of the subsoil that do not require state environmental expertise is approved by the State Committee of the Republic of Uzbekistan for ecology and environmental protection.
Article 26. License for the right to exploit the subsoil
The basis for the right to exploit subsoil areas for geological study on the terms of business risk, the mining activity, exploitation of the technogenic mineral formations and other purposes not related to the mining activity is a license.
The license is issued in the presence of a decision of the relevant public authority that guarantees the provision of land for the conduct of works related to the exploitation of subsoil.
The license certifies the right of its owner to exploit a subsoil area within specific boundaries for a specified period and determines the conditions for exploitation of subsoil areas.
Licenses may be issued simultaneously for several types of subsoil use.
The license must contain:
information about the license owner;
name of the subsoil plot;
purpose of works related to exploitation of subsoil;
preliminary parameters of the subsoil area to be provided for exploitation;
terms of subsoil exploitation;
terms of exploitation of the subsoil plot.
Legal and physical persons, financing of works on geological study of the subsoil within one year from the date of approval in the prescribed manner of mineral reserves in the revealed deposit have exclusive right to license for the mining activity on their explored deposit. After the expiration of the term for granting the exclusive right, they retain the pre-emptive right in public auctions to obtain a license for the mining activity from the deposit they have explored.
Obtaining a license is not required in the cases provided for in article 31 of this Law, as well as when clearing riverbeds, channels and reservoirs that are not related to the mining activity.
Article 27. Issuing licenses
A license is issued to a legal entity or individual by a body authorized to issue licenses.
Licenses are issued based on the results of public auctions or direct negotiations between legal entities and individuals with the bodies authorized to issue licenses within thirty days.
If the right to exploit a subsoil plot is granted to an Association of legal entities that does not have the status of a legal entity, a license is issued to one of the participants of such an Association, indicating in it that this participant acts on behalf of this Association, as well as indicating all other participants of the Association.
Licenses for geological study, the mining activity, the artisanal mining, exploitation of the technogenic mineral formations, construction and operation of underground structures not related to the mining activity, formation of protected geological objects and collection of samples of gemstone-and-gemstone raw materials, paleontological remains and other geological collection materials, with the exception of licenses specified in part five of this article, are issued by the State Committee of the Republic of Uzbekistan on Geology and mineral resources.
Licenses for the construction and operation of underground structures for waste storage and disposal are issued by the State Committee of the Republic of Uzbekistan for ecology and environmental protection based on the results of direct negotiations.
Article 28. Mining allotment
In accordance with the license for the mining activity, the exploitation of the technogenic mineral formations, construction and operation of underground structures that are not associated with the mining activity, the formation of protected geological objects, the subsoil is provided for exploitation in the form of subsoil areas limited in area and depth (hereinafter-mining allotment).
Economic and other activities within the boundaries of a mining allotment may be carried out only with the consent of the subsoil user to whom it is granted.
Mining allotment for development of mineral deposits are coordinated with the State Committee of industrial safety of the Republic of Uzbekistan in terms of ensuring industrial safety and provided by the Inspection for control over mining and geological activities of the State Committee of the Republic of Uzbekistan on Geology and mineral resources.
A mining allotment is not required for the exploitation of subsoil areas provided under a license for the experimental-industrial mining activity (with the exception of the experimental-industrial mining activities of hydrocarbons).
At the locations of mineral deposits, allotment of land plots is allocated in accordance with the mining allotment.
The procedure for granting mining allotments is determined by the Cabinet of Ministers of the Republic of Uzbekistan.
Article 29. Changing the terms of exploitation of a subsoil plot
If data on the availability of new types of mineral resources or associated useful components, as well as on new properties or qualities of mineral resources in the explored deposit are unknown at the time of issuing the license, users of the subsoil are required to send geological materials to the State Commission on mineral reserves under the State Committee of the Republic of Uzbekistan on Geology and mineral resources for re-approval of mineral reserves.
Based on the decision of the State Commission on mineral reserves under the State Committee of the Republic of Uzbekistan on Geology and mineral resources, the body that issued the license may make changes to the terms of exploitation of the subsoil plot.
Article 30. Assignment of the right of exploitation of the subsoil
The owner of a license for the mining activity, the exploitation of the technogenic mineral formations, in agreement with the body that issued the license, may assign the right to exploit the subsoil plot (in whole or in part) to another person in accordance with the procedure established by law, if this person assumes obligations to fulfill the conditions established by the license.
Article 31. Exploitation of the subsoil for economic and household needs
Landlords and land users have the right, without obtaining a license, to extract common minerals within the land plots granted to them, the reserves of which are not included in the state balance of mineral reserves, and to construct underground structures for their own economic and household needs without using blasting operations under the conditions established by law.
In cases of violation by landlords and land users of the legislation, the extraction of common minerals and the construction of underground structures may be prohibited in accordance with the established procedure.
Article 32. Rights of subsoil users
Subsoil users have the right to:
exploit the results of their activities, including obtained geological and other information about the subsoil, as well as extracted mineral resources or their share, which under the terms of the license is at their disposal;
exploit the technogenic mineral formations obtained in the course of the mining activity and processing of mineral raw materials, unless otherwise specified in the license;
make decisions on the technology of work related to the exploitation of subsoil areas;
make changes in accordance with the established procedure to technical projects, plans for the development of mining operations, as well as projects for the development and settlement of hydrocarbon deposits;
apply operating conditions during the processing of mineral deposits;
conduct geological study of the subsoil within the boundaries of the mining allotment granted in accordance with the license without additional permits;
construct within the boundaries of the mining allotment and within the land plots provided in accordance with the established procedure, industrial and social facilities necessary for the implementation of works, as well as to exploit public facilities and communications on a contractual basis;
involve on a contractual basis performers of certain types or complex of works related to the exploitation of a subsoil plot;
apply for a revision of the terms of subsoil rights in connection with change of conditions on mineral raw materials and products of its processing at which the mining activity is economically inexpedient, and if circumstances arise that are significantly different from those under which the license was issued.
Subsoil users may also have other rights in accordance with the law.
Article 33. Responsibilities of subsoil users
Subsoil users must:
exploit the subsoil plot in accordance with the purpose for which it is provided;
comply with the rules and regulations on the technology of work related to the exploitation of the subsoil and processing of mineral raw materials;
comply with the requirements of technical projects and plans for the development of mining operations, as well as projects for the development and settlement of mineral deposits;
maintain geological, surveying and other documentation in the process of developing mineral deposits, exploiting the subsoil for other purposes not related to the mining activity, and ensure its safety;
keep records of the quantity and quality of extracted and left in the subsoil reserves of the main and jointly with them occurring minerals, associated components, as well as products of processing of mineral raw materials and the technogenic mineral formations;
preserve mined, but temporarily not exploited, by-product minerals and associated useful components;
ensure compliance with loss standards for mining activities and processing of mineral raw materials;
avoid selective mining of rich areas of mineral deposits;
submit data on the state and movement of reserves of main and jointly with them occurring minerals, associated useful components, as well as data for maintaining the state cadastre of deposits, manifestations of mineral resources and the technogenic mineral formations to the State Committee of the Republic of Uzbekistan on Geology and mineral resources;
submit data on the volume of extracted minerals in accordance with the procedure established by law;
ensure the safety of employees (personnel) and the population in the zone of influence of works related to the exploitation of subsoil areas;
ensure the safe conduct of operations related to the exploitation of subsoil, taking measures to prevent emergencies, developing plans for the elimination of accidents;
observe the established procedure for liquidation and conservation of mining enterprises and underground structures that are not associated with the mining activity;
provide for the planning or terracing of slopes of dumps and sides of quarries, as well as anti-erosion measures;
carry out measures to protect the environment, as well as to bring land plots and other natural objects that have been violated during the exploitation of subsoil into a condition suitable for their further exploitation.
Subsoil users may also have other responsibilities in accordance with the law.
Article 34. Grounds for restrictions and suspensions and termination of the right to exploit subsoil areas
The right to exploit the subsoil may be limited, suspended or early terminated in cases of:
the threat to the life or health of the population, the environment in the zone affected by works related to the subsoil;
if the subsoil user has not started using the subsoil area within one year;
systematic failure to make payments for the exploitation of subsoil;
violation of the main license terms by the subsoil user;
failure to comply with the provisions provided for in articles 36, 37, 39, 40 and 40-1 of this Law.
The right to exploit subsoil areas is terminated in the following cases:
expiration of the established period of exploitation of the subsoil plot;
refusal of the user from the right to exploit the subsoil plot;
liquidation of a legal entity or termination of the activities of an individual entrepreneur to whom a subsoil plot was granted for exploitation.
The procedure for limiting, suspending and terminating the right to exploit subsurface areas is established by the Cabinet of Ministers of the Republic of Uzbekistan.
IV. RATIONAL EXPLOITATION AND PROTECTION OF THE SUBSOIL
Article 35. Basic requirements for rational exploitation and protection of the subsoil
The main requirements for the rational exploitation and protection of the subsoil are:
ensuring the completeness of the geological study and integrated exploitation of the subsoil resources;
prevention of unauthorized mining activity and development of areas of their occurrence;
the implementation of the state inventory of mineral resources reserves;
approval of mineral resources reserves and state expertise of geological materials;
ensuring the most complete extraction from the subsoil of economically viable reserves of the main and jointly with them occurring minerals, associated useful components;
protection of mineral deposits from flooding, flooding, fires and other factors that reduce the quality of mineral resources and the industrial value of deposits or complicate their development;
ensuring the safety of mineral reserves preserved in the subsoil, mine workings, wells and underground structures when conducting works related to the exploitation of the subsoil;
prevention of subsoil contamination during underground storage of hydrocarbons and products of their processing, other substances and materials, storage and disposal of waste, waste water discharge;
conducting liquidation and conservation of mining activity enterprises and underground structures that are not related to the mining activity in accordance with the established procedure.
Article 36. Basic requirements for geological study of the subsoil
The main requirements for the geological study of the subsoil are:
completeness of the geological study of the subsoil, mining, hydro geological, geological-economic and other conditions for the development of explored mineral deposits, subsoil areas provided for exploitation for the construction and operation of underground structures not related to the mining activity, including for storage and disposal of waste;
determination of the quantity and quality of reserves of main and shared with them occurring mineral resources and associated components;
investigation of the properties of overburden and host rocks for exploitation in the production and reclamation of land, as well as radiation and hygienic assessment of mineral resources;
conducting works on the geological study of the subsoil by methods and means that exclude unjustified losses of mineral resources and reduce their quality;
selection of sites for placement of rocks and mineral resources extracted from the subsoil, excluding their harmful impact on the environment;
ensuring the safety of exploration workings and drilling wells that can be exploited in the development of mineral deposits and for other purposes, as well as the liquidation in accordance with the established procedure of mining workings and wells that are not subject to exploitation;
ensuring the safety of geological, surveying and other documentation, samples of rocks and ores, cores, duplicate samples of mineral resources that can be used in the further study of the subsoil, the development of mineral deposits, as well as when exploiting the subsoil for other purposes not related to the mining activity.
Article 37. Basic requirements for development of mineral deposits and processing of mineral raw materials
Development of mineral deposits and processing of mineral raw materials are carried out in accordance with approved technical projects and plans for the development of mining operations, projects for the development and development of hydrocarbon deposits, the rules of technical operation and protection of the subsoil.
During the development of mineral deposits, exploration conditions are applied. When changing geological and other conditions of development of deposits, market conditions for mineral raw materials and products of its processing, energy prices can be used operating conditions, approved in the procedure established by the Cabinet of Ministers of the Republic of Uzbekistan.
When developing mineral deposits, the following must be provided:
application of rational, environmentally friendly technologies for the mining activity;
prevention of damage to developed and adjacent mineral deposits and other subsoil areas as a result of mining operations, preservation of mineral reserves preserved in the subsoil;
conducting instrumental observations of the stability of ledges and sides of quarries, processes of rock movement, deformations of the earth’s surface, buildings and structures.
When processing mineral raw materials, the following must be provided:
compliance with technological processing schemes that ensure rational, comprehensive extraction of the useful components;
accounting and control of the distribution of the useful components at various stages of processing and the degree of their extraction from mineral raw materials;
study of technological properties and composition of mineral raw materials, conducting experimental-industrial tests in order to improve the technology of its processing;
the most complete exploitation of processed products and waste, as well as waste water;
storage, accounting and storage of temporarily unused products and production waste containing the useful components.
Article 38. Special conditions for the development of small indigenous deposits of precious metals
In accordance with the procedure established by the Cabinet of Ministers of the Republic of Uzbekistan, it is allowed to combine the development of small indigenous deposits of precious metals with their underground development.
Article 38-1. Implementation of the artisanal mining of precious metals
Subsoil plots are provided to legal entities and individuals for the purpose of the artisanal mining of precious metals on the basis of business risk.
For carrying out activities for the artisanal mining of precious metals, subsoil areas, including placer gold deposits, the size of which does not exceed 1 hectare, are provided to a safe (permissible) depth without sinking underground mine workings and without the exploitation of explosives.
In the course of operations, subsoil users have the right to exploit exclusively ore grinding and gravity extraction of precious metals.
It is forbidden to utilize technology for extracting precious metals using chemical reagents.
Article 39. Basic requirements for the exploitation of the subsoil for construction and operation of underground structure not related to the mining activity
The exploitation of the subsoil for the construction and operation of underground structures that are not related to the mining activity is carried out in accordance with the technical projects approved in accordance with the established procedure.
When operating underground structures that are not related to the mining activity, waste and waste water must be neutralized or localized within certain boundaries, and measures must be taken to prevent their penetration into mine workings, on the earth’s surface, in the air and water bodies.
Article 40. Basic security requirements of safe conduct of work related to exploitation of the subsoil
The main requirements for ensuring the safe conduct of operations related to the exploitation of the subsoil are:
admission to work of persons with special training and qualifications, and to the management of mining operations of persons with appropriate special education;
providing persons engaged in mining, drilling and other work with special clothing, personal and collective protection equipment;
utilization of machinery, equipment, and materials that meet the requirements of safety regulations, health regulations, and environmental regulations;
compliance with the rules for the utilization of explosives and explosive devices, as well as their accounting, storage and expenditure;
carrying out a complex of geological, surveying, other works and observations necessary to ensure the normal technological cycle of work and the prediction of dangerous situations, timely completion of technical documentation and accident response plans with data specifying the boundaries of safe working zones;
systematic monitoring of the state of the mine atmosphere, its oxygen content, harmful and explosive gases and dusts.
It is prohibited to conduct works related to the exploitation of the subsoil, if their condition is dangerous to the human life and health.
The responsibility for ensuring safe working conditions related to the exploitation of the subsoil is taken by the heads of organizations that directly carry out these works.
Article 40-1. Basic requirements for mining of common minerals
When mining common minerals, conditions for the exploitation of subsoil must be provided, agreed with local government authorities, and measures must be taken to prevent harm to the state, the environment, and the occurrence of danger to human life and health.
Exploitation of the subsoil areas containing common minerals is carried out in accordance with the procedure established by the Cabinet of Ministers of the Republic of Uzbekistan.
Article 41. Mountain rescue units and services on prevention and elimination of open oil and gas fountains
Subsoil users conducting underground mining operations should be served by mountain rescue units, and drilling operations in the search, exploration and development of hydrocarbon deposits should be served by services for the prevention and elimination of open oil and gas fountains.
Regulations on mountain rescue units, as well as on services for the prevention and elimination of open oil and gas fountains are approved by the Cabinet of Ministers of the Republic of Uzbekistan.
Article 42. Conditions of building areas of mineral deposits
When selecting sites for the placement of settlements, industrial and other objects, the conclusion of the State Committee of the Republic of Uzbekistan on Geology and mineral resources on the absence of mineral resources in the subsoil under the site of the upcoming development is required.
Construction areas of occurrence of mineral deposits, submitted to industrial development (with the exception of deposits of commonly occurring minerals), as well as accommodation in places of their bedding of underground constructions not related to the mining activity is permitted in exceptional cases by agreement with the specially authorized public authorities in the field of mining relations based on the possibility of extraction of subsoil mineral resources.
Article 43. Protection of subsoil areas that represent historical, scientific, artistic, and other cultural value
Rare natural or artificial geological outcrops, mineralogical formations, paleontological objects and subsoil areas of historical, scientific, artistic and other cultural value may be declared as specially protected geological objects in accordance with the procedure established by law.
If the objects specified in the first part of this article are discovered while exploitation of the subsoil, the subsoil users are obliged to suspend work on the relevant section of the subsoil and notify the licensing authority and local government authorities about this.
Article 44. Liquidation and conservation of enterprises for mining and underground structures, not related to the mining activity
Mining activity enterprises and underground structures that not related to the mining activity are subject to liquidation or conservation in the following cases of:
expiration of the subsoil exploitation period;
termination of the right to exploit the subsoil plots;
full development of economically viable mineral reserves;
the threat of flooding or destruction of mine workings, underground structures that are not related to the mining activity, the prevention of which is technically impossible or economically impractical;
loss of the need to utilize underground structures that are not related to the mining activity.
Liquidation or conservation of enterprises for mining of minerals and underground structures not related to the mining activity is carried out in accordance with the approved in the established procedure the technical (technological) project.
When liquidating or conserving a mining enterprise or part of it, as well as underground structures that are not related to the mining activity, mine workings and wells must be brought into a condition that ensures the safety of life and health of the population and the environment. In the case of conservation of a mining activity enterprise or part of it, measures must also be taken to ensure the safety of the Deposit, mine workings and wells for the duration of conservation.
Subsoil users in the case of liquidation or conservation of enterprises for mining activity and underground structures not related to the mining activity are required to replenish geological, survey and other documentation at the time of completion of the work and send it in the prescribed manner for storage.
Until the completion of the process of liquidation or conservation of mining activity enterprises and underground structures that are not related to the mining activity, the user of the subsoil is responsible for the exploitation of the subsoil in accordance with the law.
Article 45. Geological and other information on the subsoil
Geological and other information on the subsoil received at the expense of own funds of subsoil users are their property. The owner of geological and other information on the subsoil determines the procedure and conditions for its exploitation. Ownership of geological and other information on the subsoil is protected for one year from the date of approval of mineral reserves for a newly identified field.
Geological and other information on the subsoil obtained at the expense of the State budget, as well as the own funds of users of the subsoil, is mandatory and free of charge submitted in the prescribed form to the State Committee of the Republic of Uzbekistan on Geology and mineral resources for accounting, storage and systematization. The state Committee of the Republic of Uzbekistan on Geology and mineral resources is obliged to ensure the confidentiality of incoming information.
The procedure and conditions for the implementation of geological and other information on the subsoil obtained at the expense of the State budget are determined by the Cabinet of Ministers of the Republic of Uzbekistan.
Article 46. Remuneration for identification of mineral deposits
Person who opened, explored a previously unknown the mineral deposit with industrial value, and also revealed additional inventories of mineral resources or new mineral resources and passing useful components in earlier known field, significantly increasing its industrial value, have the right to monetary compensation in the order established by the Cabinet of Ministers of the Republic of Uzbekistan.
Article 47. Guarantee of the rights of subsoil users
Interference of public authorities in the activities of subsoil users is not allowed.
Violated rights of subsoil users are subject to restoration in accordance with the procedure provided for by law. Losses incurred by users of subsurface resources due to unjustified restriction, suspension or termination of the right to exploit subsoil areas are subject to compensation, including lost profits, in accordance with the procedure established by law.
Article 48. Compensation for damage caused
Damage caused to the subsoil user by other persons is subject to compensation in accordance with the law.
The damage caused to the state by the activities of the subsoil user is guilty of selective exploitation of rich areas of mineral deposits, as well as other actions (omission) that led to the deterioration of the deposit or creation of conditions, partially or completely excluding the possibility of further exploitation of the subsoil, shall be reimbursed at the expense of the subsoil user in accordance with the law.
Damage caused to the state, as well as to the environment, human life and health as a result of the exploitation of the subsoil in violation of the established procedure for the mining of common minerals, is subject to compensation in accordance with the law.
V. FINAL PROVISIONS
Article 49. Authorities that carry out state control over the geological study, exploitation and subsoil protection
State control over the geological study, exploitation and protection of the subsoil is carried out by local public authorities, as well as by specially authorized public authorities in the field of mining relations in accordance with the procedure provided for by law.
Article 50. Production control for exploitation and protection of the subsoil
Production control over the exploitation and protection of the subsoil is carried out by the geological, surveying or technical services of subsoil users, and in the absence of these services by attracting appropriate specialists.
Model regulations on geological and surveying services are approved by the Cabinet of Ministers of the Republic of Uzbekistan.
Article 51. Dispute resolution
Disputes in the field of mining relations are resolved in accordance with the procedure established by law.
Article 52. Liability for violation of legislation on the subsoil
Persons guilty of violating the legislation on the subsoil are liable in accordance with the established procedure.
Narodnoye Slovo, January 23, 2003
“Collection of legislation of the Republic of Uzbekistan”, 2003, N 1-2, article 1