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About 17 billion tenge collected from winners of auction for subsoil use right

25.06.2018, 21:28 2909
The Ministry for Investments and Development of the Republic of Kazakhstan held an auction to present the sub-soil use right. In total 69 lands of subsoil assets were presented (64 lands for exploration works, and 5 for production). At the last auction, the lands were presented that needed geological and exploration works, press service of the Ministry for Investments and Development of Kazakhstan reports.

Applications for taking part in the action were received until May 23, 2018.

Following the consideration of applications, 57 companies for 34 lands were confirmed.

The main and the only criterion to define the winner was the largest amount of the bonus signed that was offered by participants.

Of 34 participants, the winners for 31 lands were defined. The total amount if the bonus signed was 16 942 650 000 tenge.

It should be noted that by holding an auction the right of sub-soil use for the land of sub-soil assets is presented. In accordance with the Law of the Republic of Kazakhstan "On Subsoil and Subsoil Use", the right for sub-soil use is firstly ownership and use of soils within the contracted territory, which is provided to hold such operations as state geological examination of soils, exploration, production, construction and (or) use of underground constructions that are not associated with exploration or production.

The winner will sign a contract. A sub-soil use contract, that is, there is legal form of the state’s will to present the right for subsoil use to the subject. The term of the contract at the stage of exploration is 6 years. The right for subsoil use is limited by the term of validity of the contract. The subsoil user is obliged to use contracted territory only within the aims provided by the contract.

The expected social and economic effects are the attraction of investment in the geological sector, the increase in the geological level of examination of the territory of Kazakhstan, taxes to the republican and local budget, the creation of new work places, the development of the local content, training and re-training of specialists among local residents, the creation of competitive production.

Source: BNews.kz

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