The new Subsoil Code will attract investments
Ablay Myrzakhmetov presented the document at a meeting of the Government of the Republic of Kazakhstan
The draft Code on Subsoil and Subsoil Use contains two regulatory mechanisms: for hydrocarbon raw materials (HCRW) and for solid minerals (SM). It is based on the existing balance of interests of the state and the subsoil users themselves.
The draft Code on HCRW focuses on increasing the attractiveness of geological exploration and simplification of the procedures of work and protecting the rights of subsoil users.
«The right of subsoil use for the tender is provided, with simplification of the auction procedures, a subsoil use contract is signed with the winner of the tender without additional expertise, and guarantees of stability of subsoil use conditions. Also, a transition is proposed after 5 years to the international reporting standards for recoverable reserves, the exclusion of individual exploration contracts and the transition to contracts for combined exploration and production of hydrocarbons", - said the Chairman of the Board of NCE RK "Atameken" Ablay Myrzakhmetov.
As the speaker noted, the two codes ("On Subsoil and Subsoil Use" and the new Tax Code) are in parallel, the balance of interests is preserved.
"Regarding the regulation of solid minerals, the draft Code assumes a more revolutionary approach to improving legislation, based on the Australian method:" First-come-first-received", - explained Ablay Myrzakhmetov, saying that key changes are aimed at implementing the principle of the first application, excluding the central commission on exploration and development of minerals, the withdrawal from the state control in terms of rational use of mineral resources, the development of self-regulation in the field of subsoil use.
In addition, the creation of conditions for the development of a "green" corridor in the field of procurement of TRU has been taken into account. "There are issues that should be discussed: on mechanisms that prevent speculation in the subsoil areas, there are moments in the part of land legislation and issues of technogenic mineral formations", - Ablay Myrzakhmetov added. Summarizing, the Chairman of the Board of NCE RK "Atameken" noted that a lot of work has been done. These changes would facilitate the attraction of additional investment capital to the industry and the development of the stock market in Kazakhstan. Ablay Myrzakhmetov proposed to work out an environmental code, in order to create a push to the basic industries.
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