Uzbek President signed a decree on the legalization of prospecting

President Shavkat Mirziyoyev signed a decree “On measures to create conditions for the realization of prospecting precious metals.”

According to the document, there is an increased social tensions and worsening of criminal situation in some regions of the country, including ongoing unauthorized mining of precious metals.

Lack of the opportunity to legally engage in non-industrial mining of precious metals in areas of the mineral resources is one of the main reasons. There are no quantitative and qualitative industrial development facilities.

It should be noted that unauthorized mining of precious metals has become a systemic issue in the territories of Navoi, Samarkand and Bukhara regions. It misleads to the turnover of precious metals and results in their illegal export abroad. In addition, there are injuries and deaths among illegal gold miners.

In order to create conditions for the development of prospecting as a type of business, starting from March 1, 2019, mining of precious metals will be introduced based on business risk.

From the same term, an order is established in accordance with the below:

•  prospecting of precious metals is a separate type of subsoil use and is carried out in subsoil areas;

•  subsoil plots are provided for the implementation of prospecting activities, including placer gold deposits in the size of not more than 1 hectare;

•  a license is issued for the right to use subsoil plots. No separate license is required for the right to mine rare-earth metals and precious stones;

•  individuals and legal entities may apply for licenses for the use of subsoil plots for the exploration of precious metals;

•  a license to use subsoil plots for prospecting of precious metals is issued by the State Committee on Geology and Mineral Resources for a period of 3 years following the results of an electronic auction;

•  the entire time period for conducting an electronic auction and issuing a license, as an exception, should not exceed 10 days, including all procedures;

•  the starting price of having the right to use subsoil plots for the prospecting of precious metals is 7.5 million sums;

•  the list of subsoil plots, on which mining of precious metals is permitted, is annually approved by the Cabinet of Ministers on the basis of proposals from the State Committee on Geology and Mineral Resources;

•  it is not allowed to transfer a license or the right to use a subsoil area (in whole or partly) to the third parties, as well as to issue a license for the right to use one subsoil land by several persons.

Prospectors can sell mined precious metals to mining-metallurgical plants, as well as legal entities and individual entrepreneurs licensed to manufacture jewelry.

Concealment of the mined precious metal, including its non-realization for 6 months, as well as violation of the requirements for health and safety in the process of mining of precious metals, such as resulting in serious bodily injury or death, are grounds for revoking the license and prohibiting activities for one year.