BAKU, Azerbaijan, Dec. 24
By Nargiz Sadikhova - Trend:
Kazakhstan has successfully held the first ever online auction for subsoil use rights, Trend reports citing Kazakhstan’s Ministry of Energy.
The right for subsoil use on seven plots was gained as result of the auction. The overall starting price on the plots was 263 million tenge ($626,190), which amounted to 61 billion tenge ($145.2 million) following making of bids, thus increasing 230 times. At the same time, the end price on one of the plots exceeded the initial price by 1,000 times.
The longest auction was held on Zaburunye and Saraishyk plots, the subsoil use right for which was in the end purchased for 16.3 billion tenge ($3.8 million) and 43 billion tenge ($102.3 million) respectively.
Only the right to subsoil use is granted through the auction, not land ownership. This right is regulated by the Code "On Subsoil and Subsoil Use", any technological processes at the sites will be considered by the Central Commission for Exploration and Development under the Ministry of Energy of Kazakhstan.
Having received the right to subsoil use, the investor signs a land lease agreement with the local executive body. Before developing a project document, each subsoil user is obliged to hold public hearings with the participation of the local population.
Since the auctions are conducted online and anonymously, the participants do not see each other. This information is also not available for specialists of the Ministry of Energy, who oversee the conduct of these auctions.
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