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New code “On Subsoil” is a revolutionary – Zhenis Kassymbek

New code “On Subsoil” is a revolutionary – Zhenis Kassymbek

“The new Kazakhstan code “on subsoil”, which entered into force on June 29 this year, is quite revolutionary in the entire post-Soviet space” - said today during the government briefing “Using opportunities in metallurgy and mining” Minister for investment and development Zhenis Kassymbek.

“These system changes will make a significant contribution to the development of the industry, creating the conditions for improving its efficiency. In general, we would like to simplify the procedures and make them liberal and transparent through this law. I think the bill is quite revolutionary in the entire post-Soviet space. The world practice shows that we must move in this direction. And I think we made the right choice. Time, of course, will show, but today we see great interest from investors to work on the new rules of the new law” – said Kassymbek.

He reminded that the Code was developed taking into account the high reserves of subsoil of Kazakhstan. It introduced the best international practices in ensuring transparent and understandable methods of state regulation of the industry, access to geological information, harmonization of national standards with the world. This document is aimed at attracting foreign investors, including junior enterprises, which, as world practice shows, open more than 60% of new fields.

The main innovations of the Code of the Republic of Kazakhstan on subsoil are:

1. Obtaining subsoil use rights on the principle of the first application (best world practice). That is, the one who first applies for a subsoil plot will receive a subsoil use license for this site for 10 days.

2. Open access to geological information online through the information system.

3.  Transition to international standards for stock assessment to CRIRSCO (SPE-PRMS) standards. As early as July, reports on proven reserves in the new format will be accepted under subsoil use licenses.

4. State subsoil management will be carried out systematically within the framework of the new tool – “subsoil management Program”, which provides open territory for subsoil use.

The implementation of new approaches of the Code will contribute to the inflow of investments in subsoil use.

“We believe that these system changes will make a significant contribution to the development of the industry, creating conditions for improving its efficiency, increasing investment, opening and developing new fields, concluding promising mutually beneficial contracts” – said the Minister.

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