News 2011
#1 (67) February 2011The government
The government of Kazakhstan has approved the new rules for granting the subsoil use rights. The new rules will come into force in ten calendar days from the date of its first official publication - from January 30, informs News-Kazakhstan Agency. It is marked in the rules that in accordance with the law on subsoil, the subsoil use right is granted by three ways: by holding tender; without holding tender on the basis of direct negotiations; and on the basis of a written permission of the authorized body, or the contract. The latter method was absent in the former rules. It is envisaged by the document that the subsoil use right is considered granted and valid from the date of coming the contract into force.
The procedure for defining the tender winner (if the subsoil use right is granted through tender) has been essentially changed. Under the new rules, the winner of tender is defined on the results of reviewing tender proposals in terms of the size of a subscription bonus and the amount of expenditures allocated on the region's social and economic development and development of infrastructure.
Earlier, the conditions were wider. The winner was defined on the results of reviewing tender proposals taking into account the following: the start and intensity of exploration or production and achievement of profitability of production and profitableness of the production project; the supposed sizes of initial and subsequent payments to the budget; the amount of investments, terms and conditions of the project's financing and capital investments into development of industrial and social infrastructure at the contract territories; observance of the legislation and legal acts on subsoil use and environmental protection; and a safe conduct of works.
According to the new rules, without holding a tender on the basis of direct negotiations the contracts are concluded for the conduct of production operations with the entity having an exclusive right to obtain the subsoil use right to production in connection with the commercial discovery based on the exploration contract; for the conduct of construction and maintenance of underground facilities not connected with exploration or production; for the conduct of exploration or production of the generally used minerals under construction (reconstruction, repair) of railroads, motorways and bridges of general purpose; and for the conduct of operations and production jointly with the national company.