Submission and consideration of applications for licenses for the extraction of solid minerals

Service provider

Individuals

Documents required for submission to service provider:

1. Application.
2. Copies of documents confirming information about the service recipient;
3. Documents containing information about the territory of the requested subsurface area: a cartogram of the site's location, made to a scale that provides visibility, an overview (situational) diagram, a topographic map of the surface;
4. A document confirming the authority of the person acting on behalf of the applicant when submitting the application, if such person is appointed by the service recipient;
5. The draft mining plan developed in accordance with Article 216 of the Code;
6. a draft liquidation plan developed in accordance with article 217 of the Code;
7. a report on the assessment of the resources and reserves of solid minerals of the subsurface area, which the service recipient requests for use, or a positive conclusion of the state examination of the subsurface, issued in accordance with paragraph 10 of Article 278 of the Code;
8. a report on the fulfillment of licensing obligations for the exploration area for the reporting period preceding the application date, if the application is submitted by the holder of an exploration license under the exclusive right and such a report has not been submitted to the competent authority by the time the application is submitted.;
9. a document confirming the payment of fees for the use of land (lease payments) for the current reporting period under an exploration license, if the application is submitted by the holder of an exploration license under the exclusive right;
10. documents confirming that the service recipient has the financial, professional and technical capabilities to carry out operations for the extraction of solid minerals, if the application is submitted in addition to the exclusive right;
11. consent of the subsurface user conducting operations for the extraction of hydrocarbons in the requested subsurface area (part thereof);
12. an agreement on socio-economic support for the local population, if the territory of the requested subsurface area fully or partially belongs to the lands of settlements and adjacent territories at a distance of one thousand meters;
13. a certificate from the tax authority stating that the service recipient has no tax arrears exceeding six times the monthly calculation index established for the relevant financial year by the law on the republican budget, issued no earlier than ten calendar days prior to the date of filing the application.
14. The application for a license for the extraction of solid minerals submitted in accordance with paragraph 5 of these Rules, in addition to the documents provided for in this paragraph, shall be accompanied by the conclusion of the authorized body in the field of state stimulation of industry, confirming that the applicant's production activity (technological process) is related to subsurface use.
15. The assessment report on the resources and reserves of solid minerals provided for in this paragraph is prepared by a competent person in accordance with the Kazakhstan Code of Public Reporting on Exploration Results, Mineral Resources and Mineral Reserves (KAZRC Code).
16. When applying for a license to extract solid minerals, service providers may submit to the service recipient a report on the calculation of reserves in accordance with paragraph 10 of Article 278 of the Code.

To confirm that the applicant has sufficient financial resources to carry out mining operations, one of the following documents is submitted:

1. an extract on the balance and movement of money in a bank account with a second-tier bank of the Republic of Kazakhstan or with the National Postal Operator, confirming the continued availability (balance) of money from the service recipient within a thirty-day period within six months preceding the date of submitting the license application, in an amount sufficient to cover the required minimum production costs in the first year of the requested license.

If, on any of the days of the declared thirty-day period, as a result of operations on the movement of funds, the balance of funds turns out to be less than required by subparagraph 1) in the first part of this paragraph, such an extract is not recognized as a document confirming the financial capabilities of the service recipient. If the service recipient has several accounts with a second-tier bank, for the purpose of confirming financial capabilities, information on the balance and cash flow of several accounts for which statements are presented is also taken into account.;

2. copies of the money loan agreement (preliminary loan agreement), the activity financing agreement, providing for the purpose of the loan to finance the activities of the service recipient for the extraction of solid minerals, as well as confirming the amount of the loan (financing) sufficient to cover the required minimum production costs in the first year of the requested license;
3. financial statements of the service recipient with an audit report prepared in accordance with the legislation of the Republic of Kazakhstan on auditing, prepared for six consecutive calendar months or the previous calendar year preceding the date of the license application, in which the applicant's net assets exceed his obligations by the amount of the minimum production costs in the first year of the requested license;
4. a letter from a rating agency recognized by the stock exchange operating in the Republic of Kazakhstan on awarding the applicant, during the year preceding the date of submission of the application, a rating rating not lower than the minimum rating rating determined by the service provider.

If a copy of the money loan agreement (preliminary loan agreement) or an activity financing agreement is provided as a document confirming that the service recipient has financial capabilities, the lender of which is a person who is not a financial organization, one of the documents confirming that this person has the financial capabilities provided for in the sub-paragraphs is additionally attached to the application. 1), 3) or 4) of the first part of this paragraph.

Any of the following documents shall be submitted to confirm that the service recipient has sufficient professional capabilities to carry out mining operations:

1.  a certificate of the availability of specialists in the staff or a copy of the service agreement with specialists in the following areas:

• Geology or geophysics;
• Mining engineering;
• geodesy or surveying;

1. copies of the service agreement with the contractor or the service agreement of the operator appointed by the service recipient in accordance with Chapter 6 of the Code, if the requested mining license is issued to the service recipient, staffed by the specialists listed in subparagraph 1) of part one of this paragraph.

If, as a document confirming the availability of professional opportunities for the service recipient, copies of the service agreement with the contractor or the service agreement of the operator appointed by the service recipient in accordance with Chapter 6 of the Code are provided, the application shall additionally be accompanied by a certificate stating that the contractor (operator) has the staff of specialists specified in subparagraph 1) of Part one of this or copies of service agreements with relevant specialists.

Any of the following documents shall be a confirmation of the technical capabilities of the service recipient sufficient for carrying out mining operations:

1. a copy of the license for the operation of mining and chemical industries, issued to the applicant in accordance with the Law of the Republic of Kazakhstan "On Permits and Notifications";
2. copies of the agreement of intent, the preliminary or main service agreement with the contractor, the preliminary or main service agreement of the operator appointed by the service recipient in accordance with Chapter 6 of the Code, in case the applicant is granted the requested mining license, which is the holder of the license provided for in subparagraph 1) of the first part of this paragraph.

If copies of a letter of intent, a preliminary or basic service agreement with a contractor, or a preliminary or basic service agreement of an operator appointed by the service recipient in accordance with Chapter 6 of the Code are submitted as a document confirming the technical capabilities of the service recipient, a copy of the license provided for in subparagraph 1) of Part one of this the item.

When applying for a license to extract solid minerals, applicants may submit to the service provider a report on the calculation of reserves in accordance with paragraph 10 of Article 278 of the Code.

Service provider

Legal entities

Documents required for submission to service provider:

1. Application.
2. Copies of documents confirming information about the service recipient;
3. Documents containing information about the territory of the requested subsurface area: a cartogram of the site's location, made to a scale that provides visibility, an overview (situational) diagram, a topographic map of the surface;
4. A document confirming the authority of the person acting on behalf of the applicant when submitting the application, if such person is appointed by the service recipient;
5. The draft mining plan developed in accordance with Article 216 of the Code;
6. a draft liquidation plan developed in accordance with article 217 of the Code;
7. a report on the assessment of the resources and reserves of solid minerals of the subsurface area, which the service recipient requests for use, or a positive conclusion of the state examination of the subsurface, issued in accordance with paragraph 10 of Article 278 of the Code;
8. a report on the fulfillment of licensing obligations for the exploration area for the reporting period preceding the application date, if the application is submitted by the holder of an exploration license under the exclusive right and such a report has not been submitted to the competent authority by the time the application is submitted.;
9. a document confirming the payment of fees for the use of land (lease payments) for the current reporting period under an exploration license, if the application is submitted by the holder of an exploration license under the exclusive right;
10. documents confirming that the service recipient has the financial, professional and technical capabilities to carry out operations for the extraction of solid minerals, if the application is submitted in addition to the exclusive right;
11. consent of the subsurface user conducting operations for the extraction of hydrocarbons in the requested subsurface area (part thereof);
12. an agreement on socio-economic support for the local population, if the territory of the requested subsurface area fully or partially belongs to the lands of settlements and adjacent territories at a distance of one thousand meters;
13. a certificate from the tax authority stating that the service recipient has no tax arrears exceeding six times the monthly calculation index established for the relevant financial year by the law on the republican budget, issued no earlier than ten calendar days prior to the date of filing the application.
14. The application for a license for the extraction of solid minerals submitted in accordance with paragraph 5 of these Rules, in addition to the documents provided for in this paragraph, shall be accompanied by the conclusion of the authorized body in the field of state stimulation of industry, confirming that the applicant's production activity (technological process) is related to subsurface use.
15. The assessment report on the resources and reserves of solid minerals provided for in this paragraph is prepared by a competent person in accordance with the Kazakhstan Code of Public Reporting on Exploration Results, Mineral Resources and Mineral Reserves (KAZRC Code).
16. When applying for a license to extract solid minerals, service providers may submit to the service recipient a report on the calculation of reserves in accordance with paragraph 10 of Article 278 of the Code.

To confirm that the applicant has sufficient financial resources to carry out mining operations, one of the following documents is submitted:

1. an extract on the balance and movement of money in a bank account with a second-tier bank of the Republic of Kazakhstan or with the National Postal Operator, confirming the continued availability (balance) of money from the service recipient within a thirty-day period within six months preceding the date of submitting the license application, in an amount sufficient to cover the required minimum production costs in the first year of the requested license.

If, on any of the days of the declared thirty-day period, as a result of operations on the movement of funds, the balance of funds turns out to be less than required by subparagraph 1) in the first part of this paragraph, such an extract is not recognized as a document confirming the financial capabilities of the service recipient. If the service recipient has several accounts with a second-tier bank, for the purpose of confirming financial capabilities, information on the balance and cash flow of several accounts for which statements are presented is also taken into account.;

2. copies of the money loan agreement (preliminary loan agreement), the activity financing agreement, providing for the purpose of the loan to finance the activities of the service recipient for the extraction of solid minerals, as well as confirming the amount of the loan (financing) sufficient to cover the required minimum production costs in the first year of the requested license;
3. financial statements of the service recipient with an audit report prepared in accordance with the legislation of the Republic of Kazakhstan on auditing, prepared for six consecutive calendar months or the previous calendar year preceding the date of the license application, in which the applicant's net assets exceed his obligations by the amount of the minimum production costs in the first year of the requested license;
4. a letter from a rating agency recognized by the stock exchange operating in the Republic of Kazakhstan on awarding the applicant, during the year preceding the date of submission of the application, a rating rating not lower than the minimum rating rating determined by the service provider.

If a copy of the money loan agreement (preliminary loan agreement) or an activity financing agreement is provided as a document confirming that the service recipient has financial capabilities, the lender of which is a person who is not a financial organization, one of the documents confirming that this person has the financial capabilities provided for in the sub-paragraphs is additionally attached to the application. 1), 3) or 4) of the first part of this paragraph.

Any of the following documents shall be submitted to confirm that the service recipient has sufficient professional capabilities to carry out mining operations:

1.  a certificate of the availability of specialists in the staff or a copy of the service agreement with specialists in the following areas:

• Geology or geophysics;
• Mining engineering;
• geodesy or surveying;

1. copies of the service agreement with the contractor or the service agreement of the operator appointed by the service recipient in accordance with Chapter 6 of the Code, if the requested mining license is issued to the service recipient, staffed by the specialists listed in subparagraph 1) of part one of this paragraph.

If, as a document confirming the availability of professional opportunities for the service recipient, copies of the service agreement with the contractor or the service agreement of the operator appointed by the service recipient in accordance with Chapter 6 of the Code are provided, the application shall additionally be accompanied by a certificate stating that the contractor (operator) has the staff of specialists specified in subparagraph 1) of Part one of this or copies of service agreements with relevant specialists.

Any of the following documents shall be a confirmation of the technical capabilities of the service recipient sufficient for carrying out mining operations:

1. a copy of the license for the operation of mining and chemical industries, issued to the applicant in accordance with the Law of the Republic of Kazakhstan "On Permits and Notifications";
2. copies of the agreement of intent, the preliminary or main service agreement with the contractor, the preliminary or main service agreement of the operator appointed by the service recipient in accordance with Chapter 6 of the Code, in case the applicant is granted the requested mining license, which is the holder of the license provided for in subparagraph 1) of the first part of this paragraph.

If copies of a letter of intent, a preliminary or basic service agreement with a contractor, or a preliminary or basic service agreement of an operator appointed by the service recipient in accordance with Chapter 6 of the Code are submitted as a document confirming the technical capabilities of the service recipient, a copy of the license provided for in subparagraph 1) of Part one of this the item.

When applying for a license to extract solid minerals, applicants may submit to the service provider a report on the calculation of reserves in accordance with paragraph 10 of Article 278 of the Code.

Grounds for refusal to provide the public service established by the laws of the Republic of Kazakhstan

The service provider rejects to issue a license if one of the following grounds exists:
1) the set of the inaccuracy of the documents submitted by the service recipient to receive the public service, and (or) data (information) contained therein;
2) the non-compliance of the service recipient and (or) submitted materials, objects, data and information necessary for the public service provision with the requirements established by the regulatory legal acts of the Republic of Kazakhstan;
3) the absence of consent of the service recipient provided in accordance with Article 8 of the Law of the Republic of Kazakhstan "On Personal Data and Their Protection", to access sensitive personal data which are required to provide the public service.
4) the application or the documents attached thereto do not meet the requirements stipulated by the Code;
5) the documents required by these Rules are not attached to the application;
6) within one year prior to filing the application, a license for exploration or a license for extraction of solid minerals that includes, in whole or in part, the requested subsoil plot had been revoked from the service recipient or person who directly or indirectly oversees the service recipient or is under his oversight;
7) the requested territory is in full ownership of the territory and (or) blocks specified in paragraph 6 of these Rules;
8) within one calendar year prior to filing the application, the requested subsoil plot or part thereof had been revoked by the service recipient or a person who directly or indirectly oversees the applicant or is under his oversight;
9) the issuance of a license would pose a threat to the national security of the country or concentration of the subsoil use rights;
10) the territory of the requested subsoil plot exceeds the size limit or does not meet the requirements established by these Rules;
11) during the five years preceding the date of filing the application, the service recipient or a person who directly or indirectly oversees the service recipient or is under his oversight had failed to fulfill or improperly fulfilled obligations to eliminate the consequences of the subsoil use operations in the subsoil areas that were in their use/exploitation;
12) the failure by the service recipient to comply with the deadline for fulfillment of obligations to eliminate the consequences of the solid minerals exploration operations in accordance with the requirements of the Code.

Grounds for institution of an administrative procedure

• appeal;
• initiative of an administrative body or official.

 General requirements for the appeal

The appeal submitted in hard copy or electronic form shall indicate:

• Full name, IIN, postal address of a natural person, BIN of a legal entity;
• name of administrative body, official to whom the appeal is submitted;
• the essence of an appeal;
• date of filing an appeal;
• signature of the applicant or his representative;
• other information provided for by legislation of the Republic of Kazakhstan.

If the administrative procedure is on a paid basis, the applicant must submit a document confirming the payment.

 

 

Source: Administrative Procedural Code of Republic of Kazakhstan,
The Law of the RK "On Public services"