The Government of the Republic of Kazakhstan, during the meeting chaired by the Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, reviewed the main conceptual directions of the draft Code “On Subsoil and Subsoil Use”.

First Vice Minister for Investments and Development Alik Aidarbayev reported that the task of adopting the draft code "On Subsoil and Subsoil Use" was raised this year by the Head of State in the Address to the People. The draft code is also being developed to implement the 74th and 75th steps of the Nation’s Plan, which envisage the introduction of an international system of reporting standards for mineral reserves CRIRSCO and a simplified method of concluding contracts for all minerals.

It was noted that at the present time most of the deposits that were discovered during the time of the USSR are under development. The pace of production in recent years has outpaced the pace of replenishment of the mineral and raw materials base. At the same time, Kazakhstan does not have enough investment in geological exploration, which constrains the discovery of new deposits.

In this regard, the main objectives of the draft code are to ensure the replenishment of the mineral resource base for sustainable economic development of the country, the creation of new projects, the emergence of additional jobs.

For the most favorable conditions, companies in the draft code envisage the availability of geological information, the transition to the licensing regime for subsoil use operations and the principle of the first application (obtaining subsoil use rights for several days and providing quick access to subsoil), simplification of regulation with transition from total state control on economic mechanisms that stimulate rapid reconnaissance.

At the same time, the draft Code provides strengthening of requirements for environmental and industrial safety, introduction of modern practice of liquidation of subsoil use consequences. For the development of small alluvial deposits of precious metals, the draft Code introduces the institution of prospecting. All this will help to create new jobs, products, increase tax revenues, and develop certain regions.

Also, the draft code retains requirements for local content, which are aligned with the terms of entry of Kazakhstan into the WTO.

In general, the Code "On Subsoil and Subsoil Use" should become a breakthrough legislative act aimed at the introduction of principles and approaches adopted in international practice, the provision of transparent and understandable methods of state regulation, and the reorientation of the state apparatus to support investment.

The implementation of new approaches will facilitate the inflow of new investors into the subsoil use sphere, which in the future will help to create additional jobs, develop individual regions, strengthen economic stability and enhance the country's competitiveness.