April 1, 2022

New regulation on the procedure for the implementation of activities for artisanal mining precious metals

On March 25, 2022, Resolution of the Cabinet of Ministers No. 133 “On measures to further improve the procedure for issuing permits for the right to use subsoil plots” was adopted.

According to Presidential Decree No. UP-6319, which was adopted on October 06, 2021 from January 1, 2022:

  • the procedure for putting up for auction the right to use a subsoil plot for geological exploration or extraction of hydrocarbons, precious, non-ferrous, rare and radioactive metals and other types of ore minerals on a previously explored subsoil plot has been established;
  • land plots allocated for geological exploration and (or) survey work are not subject to land taxation from legal entities;
  • introduced an annual license fee for the use of subsoil for geological exploration, calculated on the basis of the allotted area and types of minerals.

Part of the above Decree is the Regulation on the procedure for the implementation of activities for the artisanal mining of precious metals. According to the Decree, permits for the extraction of precious metals are issued for subsoil plots annually approved by the State Committee for Geology and Mineral Resources. At the same time, the subsoil area is alluvial gold deposits up to 5 hectares in size with reliable, clear contours and boundaries.

Subsoil plots are put up on the E-auksion portal , the starting price of one hectare of which will be determined at 35 BSU (1 BSU = 270 000 UZS). Permits are issued based on the results of the auction in the ” E-aucsion ” system only to residents of Uzbekistan for a period of 3 years.

Entrepreneurs who have received permission, before starting excavations, must notify in writing the local authorities, the committees for ecology and environmental protection and industrial safety, the Inspectorate for Control of Mining and Geological Activities.

The mined precious metals are sold to acceptance offices to entrepreneurs producing jewelry.