MINEX Forum

Tag: subsoil rights

  • Regulatory Framework for Mining in Kazakhstan: An Overview

    Regulatory Framework for Mining in Kazakhstan: An Overview

    Kazakhstan’s mining sector is governed by a comprehensive legal framework that ensures state ownership of minerals while facilitating foreign investment. The Republic of Kazakhstan (ROK) retains ownership of subsoil resources, granting licenses for exploration and mining to legal entities. The Code on Subsoil Use 2017 (SSU Code) categorizes mineral resources into solid minerals, hydrocarbons, and uranium, with the Ministry of Industry and Infrastructural Development (MIID) overseeing solid minerals, while the Ministry of Energy (MOE) manages uranium and hydrocarbons due to their significance for energy security.

    The SSU Code is modelled on Australian and Canadian practices and outlines various types of licenses for subsoil rights, including exclusive exploration and mining licenses. Foreign investors can hold mining rights without restrictions, provided they comply with the SSU Code. The licensing process has been digitized to prevent overlaps in mining licenses, and applications can be submitted online. Exploration licenses are essential for obtaining mining licenses, with holders having exclusive rights to apply for mining licenses within their exploration area.

    Kazakhstan’s regulatory environment also includes provisions for environmental protection, requiring permits for activities with potential environmental impacts. The Environmental Code mandates environmental impact assessments (EIA) and public consultations before permits are granted. Furthermore, the ROK has pre-emptive rights over strategic subsoil plots, ensuring that the government retains control over critical resources.

    Foreign lending is generally unrestricted, although lenders must navigate specific regulations related to subsoil rights. Tax legislation in Kazakhstan is subject to frequent changes, impacting corporate income tax, VAT, and other fees associated with mining operations. However, tax incentives may be available for investors engaging in significant development projects.

    Overall, Kazakhstan’s mining sector offers a structured and transparent regulatory framework aimed at attracting foreign investment while safeguarding national interests and environmental standards.

  • Chinese Mining Firm Jinxin Secures Kazakhstan Gold Deposit Near Chinese Border After Auction Winner Defaults on Payment

    Chinese Mining Firm Jinxin Secures Kazakhstan Gold Deposit Near Chinese Border After Auction Winner Defaults on Payment

    Chinese company Jinxin Mining has been awarded the rights to develop the Ketmen alluvial gold deposit in Kazakhstan’s Almaty Region, after the original auction winner apparently failed to complete payment — handing the licence to the Chinese firm in circumstances that have drawn public scrutiny.

    The deposit, also known as Predgorny Ketmen, is located close to the Chinese border in the Uygur and Raimbeksky districts of Almaty Region, near the Ketmen and Shalkudysu rivers. Total forecast alluvial gold resources at the site were estimated in 2015 at 7.1 tonnes. According to earlier reporting from 2018, the deposit remained underexplored at that time, with its reserves not fully calculated, a gold-bearing placer extending 15 to 16 kilometres in length, and gold content ranging between 400 and 1,200 milligrams per cubic metre.

    The Ministry of Industry put the deposit up for auction in 2024. According to auction records, the winning bid was submitted by Kazakh firm Korgold at 600 million tenge, with Jinxin Mining placing second at 546 million tenge — just over $1 million. It appears Korgold was subsequently unable to meet its full payment obligation, and the subsoil use rights were transferred to Jinxin Mining, which confirmed its auction commitment. The company received formal notification of its winning status from Kazakhstan’s Ministry of Industry in November 2024.

    Jinxin Mining’s founders are listed as Liu Yanling, Chen Haiyan and the limited liability company Jinxin Mining 1, the beneficial owner of which is Tursunbek Omurzakov, a former member of parliament representing the Communist People’s Party.

    A publicly released site closure and remediation plan filed by the company provides detailed technical parameters for the operation. Mining will be conducted using open-pit methods within the riverbed and terraces of the Ketmen River, using excavator and bulldozer equipment. The quarry will cover an area of 2.2 hectares, extend approximately 1,100 metres along its axis, and reach a depth of up to 8 metres. The average gold grade at the deposit is stated at 0.27 grams per tonne. The document specifies that no long-term conservation of mining infrastructure is planned; upon completion, all structures will be dismantled and the land progressively rehabilitated, with terrain restoration and biological remediation carried out in stages as individual blocks are worked out.

    The deposit had previously been subject to exploration rights held by Tau Ketmen LLP, a company linked to the state mining holding Tau-Ken Samruk.

  • Uzbekistan and Tamam International Discuss New Investment Prospects in Mining Sector

    Uzbekistan and Tamam International Discuss New Investment Prospects in Mining Sector

    First Deputy Minister of Mining Industry and Geology of Uzbekistan, O. Nasritdinhodjaev, held a meeting with a delegation led by the General Director of Tamam International. The talks focused on potential investment opportunities in the country’s geology and mining sector.

    The Uzbek side highlighted the favorable conditions created for both local and foreign investors, including ongoing reforms aimed at enhancing transparency, streamlining procedures, and ensuring alignment with global best practices.

    During the meeting, Tamam International was briefed on Uzbekistan’s investment legislation and fiscal policies, which are designed to attract responsible investors. Special attention was given to transparent mechanisms for granting subsoil use rights, including competitive open-access auctions for geological sites.

    The meeting underscored Uzbekistan’s commitment to fostering international partnerships and further developing its mineral resource base through sustainable and investor-friendly policies.