We will test the market reaction of subsoil users
Kazakhstan has developed a new Code "On Subsoil and Subsoil Use"
In Kazakhstan, private investors will be able to get right to the subsoil in just three days in an electronic format instead of half a year expectation. Such a prospect was announced today at the session of the Government by the Minister for Investment and Development of Kazakhstan Zhenis Kasymbek, introducing the draft outline of the Code "On Subsoil and Subsoil Use". The Minister noted that the main purpose of the draft law, developed jointly with the Ministry of Energy, the National Chamber of Entrepreneurs "Atameken", industry associations, is to create an attractive environment for private investors in exploration.
To achieve this goal, the Ministry offered to start with the reform of the current legislation. In addition, it is proposed to increase public funding of "an early stage of exploration works, which account for only 10% of the overall cost of exploration". "It is important to improve the quality of exploration using the most modern technologies. Today, those technologies that we use allows us to operate at depths not exceeding 300 meters", - said Zhenis Kasymbek.
The basic principle of the new Code for the development of exploration, proposed by the developers, is the Australian method. "This is a first come - first served. We have begun to implement this principle in a pilot mode around Stepnogorsk. And in a relatively small area of about 100 square kilometers, we already have 18 contracts", - said the Minister.
The plans of the authors of the Code is optimization of state regulation. "Here, too, today, according to our standards 18 months, required for granting the right of subsoil use is literally cut to three days in the electronic format", - said the Minister for Investment and Development. In addition, it is proposed to make free access to geological information, since this is "very difficult to get this information." In addition, the Ministry of Investment and Development rely on the creation of conditions for the junior market companies. These are small companies that offer almost 67% of new deposits annually.
"We believe that the adoption of the Code will increase the investment attractiveness rating of Kazakhstan", - summed Zhenis Kasymbek.
It is expected that the draft law will arrive for consideration to the Mazhilis of the Parliament in September 2017.
Zhanar Serdalina
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