March 24, 2022
Mining and trading with precious metals in Uzbekistan
Mining of precious metals by non-state legal entities and individuals
Trading with precious metals by non-state legal entities and individuals
By legal entities with a license for refining activities
By legal entities and individuals with a license to manufacture jewelry
By legal entities with a registration certificate
- Law No. ZRU-573 of 22.10.2019 “On Currency Regulation”
- Law No. ZRU-582 of 11.11.2019 “On the Central Bank of the Republic of Uzbekistan”
- Presidential Decree No. UP-5721 of 18.05.2019 “On measures to accelerate the development of the jewelry industry in the Republic of Uzbekistan”
- Presidential Resolution No. PP-4030 of 26.11.2018 “On measures to create conditions for the implementation of activities for the prospecting of precious metals”
- Resolution of the Cabinet of Ministers No. 86 of 17.02.2020 ” On measures to regulate the licensing of Refining (Affinage) Activities”
- Resolution of the Cabinet of Ministers No. 777 of 30.09.2017 ” On Approval of the Regulations on the Procedure for Licensing the Production of Jewelry and Other Products Made of Precious Metals and Precious Stones”
- Resolution of the Cabinet of Ministers No. 778 of 30.09.2017 ” On Approval of the Regulations on the Procedure for the Sale and Settlement of Payments for Precious Metals for the Production of Jewelry”
- Resolution of the Cabinet of Ministers No. 399 of 29.05.2018 ” On Approval of the Regulations on the Procedure for Issuing a Registration Certificate for Working with Precious Metals and Precious Stones”
- Resolution of the Cabinet of Ministers No. 851 of 07.10.2019 “On measures for the organization of modern jewelry trade and production centers”
- Resolution of the Cabinet of Ministers No. 186 of 01.03.2019: Regulation on the procedure for the sale of precious metals at exchange trades of JSC ” Uzbek Republican Commodity Exchange»
Precious metals are gold, silver, platinum and platinum group metals (palladium, iridium, rhodium, ruthenium and osmium) in any state, form, including in native and refined forms, as well as in raw materials, alloys, semi-finished products, industrial products, chemical compounds, jewelry and other products, coins, scrap, production and consumption waste.
Mining of precious metals by non-state legal entities and individuals
Artisanal mining
From March 1, 2019:
- the activity of prospecting for precious metals is a separate type of subsurface use and is carried out on subsurface areas;
- subsurface areas, including placer gold deposits, the size of which does not exceed 1 hectare, are provided for the implementation of activities for the prospecting extraction of precious metals;
- a license is issued for the right to use subsurface areas for the implementation of activities for the prospecting extraction of precious metals, while it is not required to obtain a separate license for the right to extract precious and rare earth metals, precious stones;
- applicants for licenses for the right to use subsurface areas for the implementation of activities for the prospecting extraction of precious metals can be individuals and legal entities;
- a license for the right to use subsurface areas for the implementation of activities for the prospecting of precious metals is issued by the State Committee of the Republic of Uzbekistan for Geology and Mineral Resources for a period of 3 years following the results of an electronic auction on the electronic trading platform ” E-IJRO AUKSION”;
- the total period for conducting an electronic auction and issuing a license in accordance with this resolution, as an exception, may not exceed 10 days, including all procedures carried out on the electronic trading platform “E-IJRO AUKSION”;
- the starting price for issuing the right to use subsurface areas for the implementation of activities for the prospecting extraction of precious metals is 7.5 million Uzbek Soums;
- the list of subsurface areas on which it is allowed to carry out activities for the prospecting of precious metals is approved annually by the Cabinet of Ministers on the basis of proposals of the State Committee of the Republic of Uzbekistan on Geology and Mineral Resources;
- it is not allowed to transfer (assign) a license or the right to use a subsurface area (in whole or in part) to third parties, as well as to issue a license for the right to use one subsurface area to several persons;
- state control, as well as maintenance of the register of persons engaged in the prospecting of precious metals, the subsurface areas allocated to them is provided by the State Committee of the Republic of Uzbekistan on Geology and Mineral Resources;
- after the termination of the right to use subsurface areas provided for the implementation of activities for the prospecting extraction of precious metals, subsurface users are obliged to recultivate subsurface areas and bring them into a condition suitable for further use.
Trading with precious metals by non-state legal entities and individuals
- the sale of precious metal extracted by prospecting is carried out at the contractual price of JSC “Almalyk Mining and Metallurgical Combine”, SE “Navoi Mining and Metallurgical Combine” , as well as legal entities and individual entrepreneurs who have a license for the production of jewelry;
- concealment of the extracted precious metal, including its non-realization within 6 months, as well as violation of the requirements for safe conduct of work in the prospecting of precious metals, which resulted in serious bodily injury or death of a person, are grounds for revocation of the license and a ban on engaging in this activity for one year.
By legal entities with a license for refining activities
Legal entities that have a license to carry out refining activities also have the right to:
- participate in exchange trading for the purchase and sale of precious metals;
- buy precious metals (including those extracted by prospecting), jewelry, scrap and waste from their production from the population;
- open points of purchase and sale of precious metals, including in the regions of the country.
By legal entities and individuals with a license to manufacture jewelry
Legal entities and individuals with a license for the production of jewelry have the right to:
- implement retail sales of own products and buying from the public, scrap precious metals, precious stones and products used for production purposes, at the address specified in the license, without the required registration certificate for the right of retail trade issued by the licensing authority;
- the acquisition of the subjects of artisanal mining of precious and semi-precious stones for industrial purposes;
- purchases of precious metals in the form of measuring plates, as well as pellets weighing 5 grams or more for the national currency from SE “Navoi MMC” and JSC “Almalyk MMC” ;
- sales of purchased precious metals to other jewelry manufacturers licensed to manufacture jewelry.
Scheme of sale of precious metal plates to jewelry manufacturers:
By legal entities with a registration certificate
Types of trade in jewelry and other products made of precious metals and precious stones, for which registration certificates are issued:
Retail trade
- Retail trade in jewelry and other products made of precious metals and precious stones, precious and semiprecious stones (including those imported from foreign countries for sale), commission trade in jewelry and other products made of precious metals and precious stones, purchase under contracts from manufacturers of jewelry made of precious metals and precious stones, precious and semiprecious stones.
- Purchase of precious metals, precious and semi-precious stones and products made of them.
- Purchase of scrap and waste of precious metals.
- Retail trade in jewelry and other products made of precious metals and precious stones using information and communication technologies (online stores).
- Rental (transfer for temporary use) of jewelry and other products made of precious metals and precious stones.
Wholesale trade
- Wholesale purchase and sale of jewelry and other products made of precious metals and precious stones, precious and semi-precious stones (including those imported from foreign countries for sale).
- Wholesale purchase and sale of substances (medicines, salts, reagents, chemical compounds, etc.) containing precious metals in their composition.
- Wholesale purchase and sale of diamond and drilling diamond tools made of natural diamonds.
- Wholesale purchase and sale of precious metals (for business entities that have a license to carry out refining activities, commercial banks, stock exchanges).
Commercial banks of the Republic of Uzbekistan have the right to:
- purchase precious metals (gold and silver) from SE “Navoi MMC” and JSC “Almalyk MMC” in the form of measuring plates, as well as pellets weighing 5 grams or more for the national currency based on the price of the morning fixing of the London Precious Metals Exchange (in terms of the net weight of precious metals);
- sell the purchased precious metals to other jewelry manufacturers.
It should also be noted that persons engaged in operations with precious metals in Uzbekistan are subject to Internal control on counteracting to legalization (laundering) of the proceeds of crime, terrorist financing.