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Resolution of the President of the Republic of Uzbekistan dated 26.11.2018 N PP-4030
Resolution of the President of the Republic of Uzbekistan dated 26.11.2018 N PP-4030
Resolution
President of the Republic of Uzbekistan
On measures to create conditions for the implementation of activities in the artisanal mining of precious metals
The country pays special attention to improving the well-being of the population by creating new jobs and favorable conditions for the development of private entrepreneurship.
Despite the measures taken, in some regions of the country there is an increase in social tension and a worsening crime situation, associated, among other things, with the ongoing unauthorized mining of precious metals.
The main reason for this is the lack of opportunity to legally engage in non-industrial extraction of precious metals in subsoil areas that, in quantitative and qualitative terms, are not objects of industrial development.
Unauthorized mining of precious metals has become systemic in the territories of Navoi, Samarkand and Bukhara regions, which leads to the shadow turnover of precious metals and their illegal export abroad. There are injuries and fatalities in illegal gold mining.
In order to create conditions for the development of prospecting as a type of entrepreneurship in the extraction of precious metals, ensuring employment of the population, effective development of subsoil areas, and increasing the production of gold and jewelry:
1. Agree with the proposals of the Prosecutor General's Office, the Ministry of Economy, the Ministry of Finance, the State Committee for Geology and Mineral Resources, the State Committee of the Republic of Uzbekistan for Ecology and Environmental Protection, and the State Institution "Sanoatgeokontekhnazorat" on the introduction of artisanal mining of precious metals based on entrepreneurial risk from March 1, 2019.
See
previous
edition.
2. Establish a procedure according to which:
the activity of artisanal mining of precious metals is a separate type of subsoil use and is carried out on subsoil sites;
for the implementation of activities in the artisanal extraction of precious metals, subsoil areas are provided, including placer gold deposits of up to 5 hectares in size;
to carry out activities in the artisanal mining of precious metals, a permit is issued for the right to use subsoil plots, while the total area of subsoil plots provided to one applicant for one year on the basis of a permit must not exceed 20 hectares;
Only residents of the Republic of Uzbekistan, in particular, individuals who are citizens of the Republic of Uzbekistan, who have the status of an individual entrepreneur, and legal entities in whose authorized capital (fund) the share of an individual who is a citizen of the Republic of Uzbekistan is 70 percent or more, may apply for permits for the right to use subsoil areas for carrying out activities in the artisanal extraction of precious metals;
70 percent of employees of a legal entity applying for a permit for the right to use subsoil areas for carrying out activities in the artisanal extraction of precious metals must be citizens of the Republic of Uzbekistan;
See
previous
edition.
a permit for the right to use subsoil areas for carrying out activities on artisanal mining of precious metals is issued by the State Committee of the Republic of Uzbekistan on Geology and Mineral Resources for a period of 3 years based on the results of an electronic auction on the electronic trading platform "E-AUKSION" in the established manner through the information system "License";
(paragraph seven of clause 2 as amended by
the Decree
of the President of the Republic of Uzbekistan dated April 19, 2024 No. UP-67 - National Database of Legislation, April 27, 2024, No. 06/24/67/0307)
See
previous
edition.
(paragraph eight of clause 2 was excluded
by the Decree
of the President of the Republic of Uzbekistan dated April 19, 2024 No. UP-67 - National Database of Legislation, April 27, 2024, No. 06/24/67/0307)
the starting price for putting up for auction the right to use subsoil plots for carrying out activities on artisanal mining of precious metals for each hectare is set at 35 times the basic calculation value established in the territory of the Republic of Uzbekistan. In this case, the starting price of an incomplete hectare is determined by multiplying the price set for 1 hectare by the size of the land plot;
the list of subsoil areas where the implementation of activities for the artisanal extraction of precious metals is permitted is approved annually by the State Committee of the Republic of Uzbekistan for Geology and Mineral Resources;
the transfer (assignment) of a permit or the right to use a subsoil plot (in whole or in part) to third parties, as well as the issuance of a permit for the right to use one subsoil plot to several persons, is not permitted;
the maintenance of the register of persons engaged in artisanal mining of precious metals, as well as state control over the subsoil areas allocated to them, is ensured by the State Committee of the Republic of Uzbekistan on Geology and Mineral Resources;
the sale of precious metals extracted through artisanal mining is carried out at a contract price to legal entities that have licenses for the right to carry out refining activities, including the joint-stock companies Almalyk Mining and Metallurgical Plant and Navoi Mining and Metallurgical Plant, as well as legal entities and individual entrepreneurs who have the right to produce jewelry and other products made of precious metals and precious stones;
concealment of extracted precious metal, including its failure to sell within 6 months, as well as violation of requirements for the safe conduct of work during artisanal mining of precious metals, resulting in serious bodily harm or death of people, are grounds for the cancellation of the permit and a ban on engaging in this activity for one year;
After the termination of the right to use subsoil areas provided for the implementation of activities for the artisanal extraction of precious metals, subsoil users are obliged to reclaim the subsoil areas and bring them to a condition suitable for further use.
Establish that the requirements provided for in paragraphs four, five and six of this clause shall apply to permits for the right to carry out activities in the artisanal mining of precious metals issued starting from May 1, 2021.
(clause 2 as amended by
the Resolution
of the President of the Republic of Uzbekistan dated April 21, 2021 No. PP-5083 - National Legislation Database, 04/22/2021, No. 07/21/5083/0371)
See
previous
edition.
3. Determine that the funds from the sale of the right to use subsoil areas for the implementation of activities for the artisanal extraction of precious metals on the electronic trading platform "E-AUKSION" and the amount of the retained deposit, minus the amounts of payment for the services of organizing the auction, are credited in equal shares to special treasury accounts:
(paragraph three of clause 3 as amended by
the Decree
of the President of the Republic of Uzbekistan dated April 19, 2024 No. UP-67 - National Database of Legislation, April 27, 2024, No. 06/24/67/0307)
the relevant local budgets of the districts (cities) in whose territories the activities of artisanal mining of precious metals are carried out, as their additional sources;
The State Committee of the Republic of Uzbekistan on Geology and Mineral Resources with the targeted direction of implementing annual state programs for the development and reproduction of the mineral resource base in the territory of the Republic of Uzbekistan.
See
previous
edition.
(paragraph 4 shall cease to be effective from July 1, 2022
by the Decree
of the President of the Republic of Uzbekistan dated April 8, 2022 No. UP-101 - National Legislation Database, 04/09/2022, No. 06/22/101/0288)
5. The Cabinet of Ministers shall, within one month, submit to the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan a draft law on amendments and additions to the legislation on subsoil resources, providing for the procedure for regulating activities in the artisanal mining of precious metals.
6. The State Committee for Geology and Mineral Resources, together with the State Institution “Sanoatgeokontekhnazorat”, the State Committee for Ecology and Environmental Protection, the Ministry of Finance, the State Tax Committee and other interested departments shall submit for approval to the Cabinet of Ministers of the Republic of Uzbekistan by February 1, 2019:
a) Regulations on the procedure for carrying out activities in the artisanal mining of precious metals (hereinafter referred to as the Regulations), which provide, among other things:
the procedure for issuing licenses for the right to use subsoil areas, including the regulations for holding an electronic auction on the electronic trading platform "E-IJRO AUKSION";
conditions for the use of subsoil areas, including permitted methods and means of artisanal mining of precious metals, as well as requirements for the equipment and technology used;
the procedure for pricing, acquisition, accounting, storage and sale of precious metals obtained through artisanal mining;
requirements for compliance with the rules and regulations for conducting work, as well as the responsibility of subsoil users for violation of the law;
a mechanism for the reclamation of depleted lands and their return to the reserve fund of local government bodies;
b) A list of subsoil areas provided for artisanal mining of precious metals (hereinafter referred to as the List), indicating their reliable, precise contours and boundaries.
7. Recommend that JSC Almalyk Mining and Metallurgical Plant and State Enterprise Navoi Mining and Metallurgical Plant open specialized cash desks in the regions of the country by March 1, 2019 and establish a transparent mechanism for purchasing precious metals mined through artisanal mining.
8. State authorities and administration bodies shall provide comprehensive assistance to persons engaged in artisanal mining of precious metals, including by providing methodological, practical and legal advice.
9. The Prosecutor General’s Office, together with the Ministry of Internal Affairs, the Ministry of Emergency Situations, the State Committee of the Republic of Uzbekistan for Geology and Mineral Resources, and the khokimiyats of the relevant regions, shall, within three months, approve joint measures to prevent instances of unauthorized mining of precious metals.
10. To the State Committee of the Republic of Uzbekistan on Geology and Mineral Resources:
ensure free access to the Regulation and the List by posting them on its official website on the Internet with subsequent systematic updating;
together with the State Committee of the Republic of Uzbekistan for Ecology and Environmental Protection, establish strict control over compliance with the norms and rules for conducting work on artisanal mining of precious metals, as well as the requirements of environmental legislation in the established manner;
together with the Ministry of Justice and other interested departments, within two months, submit to the Cabinet of Ministers of the Republic of Uzbekistan proposals on amendments and additions to legislation arising from this resolution.
11. Control over the implementation of this resolution shall be assigned to the Prime Minister of the Republic of Uzbekistan A.N. Aripov, the Head of the Administration of the President of the Republic of Uzbekistan Z.Sh. Nizomiddinov, the Prosecutor General of the Republic of Uzbekistan O.B. Murodov and the First Deputy Advisor to the President of the Republic of Uzbekistan B.M. Mavlonov.
President of the Republic of Uzbekistan Sh. MIRZIYOYEV
Tashkent city,
November 26, 2018
№ PP-4030
(National Legislation Database, 27.11.2018, No. 07/18/4030/2224; 22.04.2021, No. 07/21/5083/0371, 09.04.2022, No. 06/22/101/0288;
27.04.2024, No. 06/24/67/0307
)