President Sadyr Japarov signed the Law on Amendments to Certain Legislative Acts of Kyrgyzstan (laws on subsoil and on production sharing agreements in subsoil use). Press service of the head of state reported.
The law was adopted by the Parliament on June 2, 2022. It is aimed at improving legislation in the field of regulating relations arising from the use of subsoil by the state with individuals and legal entities, investors.
«The state implements its policy in the field of subsoil use based on the desire to create conditions for safe work for people and the environment, protection and rational use of the country’s subsoil, regulation of relations related to subsoil use, on the basis of mutually beneficial cooperation. Subsoil assets are the exclusive property of Kyrgyzstan and are used as the basis of life and activity of the people of Kyrgyzstan and are under special protection of the state,» the statement says.
The law provides that a legal or natural person, including a foreign one, recognized as the winner of an auction or tender for granting the right to use large and medium-sized gold deposits, is obliged to create a company in Kyrgyzstan with a mandatory state participation of at least 30 percent in order to obtain a license for the right to subsoil use.
In accordance with the law, the right to use subsoil resources is granted by decision of the Cabinet only to economic entities and state enterprises that have at least two-thirds of the state’s participation in the authorized capital.
All types of subsoil use rights are subject to licensing, except for the right to use subsoil under a concession agreement and state registration. In addition, it was established that in case of production sharing, the state’s share in profit production should be at least 30 percent.
