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Uzbekistan 20/09/2024 Law enhances the regulation of subsoil resource management

Law enhances the regulation of subsoil resource management

Tashkent, Uzbekistan (UzDaily.com) — During the fifty-seventh plenary session of the Senate, the Law "On Subsoil" was reviewed and discussed.

This law, which was the focus of substantial debate, regulates relations concerning the ownership, management, use, and protection of subsoil resources.

Key terms used in the law are expanded, and the classification of mineral resources is clarified, distinguishing between major and non-metallic minerals, as well as their composition.

In line with the administrative reforms taking place in the republic, the law refines the powers of state bodies in the area of subsoil use and protection. The responsibilities of the Ministry of Mining and Geology, the Ministry of Ecology, the Ministry of Energy, the Inspection for Control in the Mining Industry and Geology, the State Institution "Subsoil Use Center," and local executive authorities are clearly defined.

The law introduces a "one-stop shop" principle for issuing permits for subsoil use, receiving reports, and providing state services in other related areas.

To significantly enhance the investment appeal of this sector, the law implements a mechanism allowing licensees to manage (sell, pledge, or transfer to other entities) their subsoil use rights under the supervision of a state body.

The law also highlights provisions regarding reconnaissance (the initial stage of geological exploration) for junior companies and improves regulations on the ownership, exchange, and sale of geological information by investors.

It streamlines the cadastral system of the state subsoil fund, introducing terms like "hydrocarbon cadastre" and "cadastral square."

The law strengthens regulations related to hydrocarbons, establishing procedures for preliminary studies to accelerate major investments in hydrocarbon exploration, geological surveys, and development. A separate, streamlined mechanism for issuing permits for reconnaissance work is introduced.

Additional specific requirements are established concerning radiation safety during uranium extraction and related processes, in line with the standards of the International Atomic Energy Agency (IAEA).

Furthermore, the law enhances regulations on the exploration and development of non-metallic mineral deposits.

Clear procedures are set for obtaining permits for geological surveys and the extraction of non-metallic minerals. The rights and obligations of subsoil users are outlined, along with annual minimum expenditures for submitting periodic and final reports, geological surveys, and resource extraction.

The law also establishes rules to ensure environmental safety in subsoil use, including requirements and mechanisms for mitigating the environmental impact of subsoil exploitation, to guarantee the preservation of the environment for future generations.

The adoption of this law ensures efficient and systematic geological exploration, responsible use, and protection of subsoil resources in the republic, based on modern standards.

After active discussions, the Senate approved the law.

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