Baku, Azerbaijan, Nov. 8
By Nigar Guliyeva – Trend:
The Majilis of the Kazakh Parliament held the first reading on the draft Code on subsoil and subsoil use Nov.8.
The draft Code was developed with the participation of representatives of the industry association and business. The document is aimed at removing barriers in the work of subsoil users, improving the sectoral legal framework, attracting foreign direct investment into the industry, opening new fields and creating new jobs.
"The draft Code "On subsoil and subsoil use" will ensure greater transparency and predictability in the subsoil use through the implementation of the international reporting system for the solid mineral reserves CRIRSCO and hydrocarbon reserves. For all minerals, a simplified method of concluding contracts has been introduced, using the best world practice, "said Zhenis Kasymbek, Minister for Investment and Development, addressing the hearing.
To ensure a significant inflow of investments into exploration, the Code stipulates introduction of the principle of a "first application" with an annually increasing lease rate was chosen as a key innovation of the draft Code.
Granting of subsoil use right will be carried out on the areas of about 2 square km in one block. The maximum number of blocks for a potential subsoil user is 200, with special requirements for each block: the allocation of individual deposits and the provision of separate reports for each of them.
These measures will allow achieving a large-scale, high-quality and detailed geological survey of Kazakhstan.
Within the framework of the draft Code, a new type of subsoil use is being introduced - prospecting with an aim of regulating the extraction of precious metals and stones in placer deposits.
The Majilis adopted the draft Code in the first reading.