An Auction for Subsoil Use Rights to Be Held on 3 December 2015

On 3 December 2015, the first auction for subsoil use rights will be held in Kazakhstan. The list of subsoil areas subject to the auction was approved by the decree of the Ministry of Investments and Development of the RoK “On Approval of the List of Subsoil Areas Subject to Auction, Except for Subsoil Areas that Contain General Mineral Resources” dated 26 June 2015. According to the given list, 106 subsoil areas will be put on auction (namely, 47 areas of precious metals (gold and gold ore), 19 areas of copper and polymetal, 2 areas of nickel and cobalt, 1 area of titanic ore, 4 areas of black iron ore and iron stone, 12 areas of nonmetallic feed, 10 areas of REEs, 1 area of diamonds, 2 areas of bauxite ore, 6 areas of groundwater and 2 areas of raw gemstones).

The concept of granting subsoil use rights through an auction was introduced by means of modifications and amendments to the Law of the RoK “On Subsoil and Subsoil Use” (hereinafter – “The Law on subsoil”) in December 2014. Thus, according to the Law on subsoil, participation in the auction is open to any bidders who are registered as of the date of the auction. The winner of the auction purports to be the bidder who calls the highest amount of subscription bonus when after the three-time announcement of the called subscription bonus no proposal to increase it comes forth from the other bidders. The results of the auction are announced and documented on the day of the auction in a protocol that is signed by the members of the Auction Committee. The results of the auction can be subject to appeal in conformity with the legislation of the RoK.

The holding of an auction was announced on 29 August 2015, and, according to the Ministry of Investment and Development, the call for bids was closed on 1 October 2015, with a total of 190 bids admitted to the auction.