Mineral resource companies to be granted licenses on a “first come, first served” basis

February 20, 2014

ASTANA. Interfax-Kazakhstan

The Ministry of Industry and New Technologies has proposed 189 amendments to the subsoil legislation.

According to the amendments, the expertise requirements for license contracts will be reduced to 60%; the terms and conditions of the model contract optimized; the companies extracting solid mineral resources–excluding uranium–will now not have to get approval for changes in the production volumes, Vice Minister of Nurlan Sauranbayev said when presenting the amendments in the Majilis, the lower chamber of the Kazakh parliament.

The amendments also propose a new mechanism for awarding license contracts based on the “first come, first served” principle. In this case, the subsoil use fee will increase annually, he said.