Geological and mining industries are important and priority for Kazakhstan. This sector ranks second in the structure of the country's economy after the oil and gas industry. It should be noted that Kazakhstan has a leading position in the world in terms of the main mineral resources.

The industry is famous for its copper, uranium, titanium, ferroalloy and polymetals in the world market and has a significant impact on the iron, coal and aluminum markets in the region. Rapidly developing scientific and technical progress constantly makes adjustments to market demand. For example, the demand for lithium, tungsten, molybdenum and other rare metals used in electric car engines and smartphones has dramatically increased.

"According to the current conditions, as a result of the Code on Subsoil and Subsoil Use, which was adopted in December 2017 and entered into force on June 29, 2018, Kazakhstan has carried out extensive reforms in the field of subsoil use in accordance with international methods. The best international practice in ensuring open methods of state regulation of the industry, access to geological information, harmonization of national standards with world standards has been introduced into the new Code," said Timur Toktabaev, who spoke at the forum.

Conditions for granting the right to use the subsoil within the framework of the Code were reduced from 24 months to a few days by introducing the principle of the first application; access to geological information; The international system for calculating mineral reserves through the CRIRSCO system was introduced with a 5-year transitional period.

The main thing is that the risks of corruption are minimized, because the requirements of subsoil users in the implementation of subsoil operations are very clear and fair. This is a new tool for the implementation of state policy in the field of subsoil use, which provides investors with general information about the directions of development of the relevant industry in the medium term.

Starting from September 15 of this year, applications for exploration will be accepted under the above-mentioned program, therefore, the license will begin to be issued from October 15, 2018.

In the transitional period until 2024, the license for the production of solid minerals according to this Code will be carried out by holding an auction.

This is The next step in the development of the industry is the introduction of National Bank data. This makes it possible to transfer the relationship between state bodies and subsoil users to an electronic format.

For example, not only the electronic transfer of the right to use the subsoil within a few days, but also access to geological information, reporting of subsoil users, monitoring of license execution and contractual obligations, etc. will be provided.

In the code, the state examination of minerals was given to competent persons to prepare reports according to CRIRSCO standards, after which the state commission on reserves was abolished from 2024.

CRIRSCO standards are used in all developed countries. This will allow domestic subsoil companies to enter global stock markets and stock exchanges in order to attract foreign and domestic investments due to the transparency and predictability of the subsoil sector. Following the example of Australia, Canada, Sweden and the Republic of South Africa, it is proposed to collect tax on extracted minerals, regardless of the final volumes and reserves.

Royalty eliminates all disadvantages and contradictions. This method encourages fair and mineral recycling according to the principle "the higher the level of recycling, the faster" (Australian model).

Source : https://www.gov.kz/memleket/entities/mps/press/news/details/23259?lang=kk