The RK Ministry of Investments and Development has approved a list of subsurface areas of solid minerals and groundwater subsurface use rights to which will be auctioned in Kazakhstan. The list includes 100 subsurface areas and deposits (27 for production and 73 for exploration), including:
- 46 subsurface areas and deposits for the exploration for and production of gold;
- 22 for the exploration for and production of nonferrous metals and complex ores;
- 3 for the exploration for ferrous metals;
- 10 for the exploration for and production of nonmetallic minerals;
- 10 for the exploration for and production of rare earth elements;
- 1 for the exploration for diamonds;
- 2 for the exploration for bauxite;
- 4 for the exploration for and production of groundwater; and
- 2 for the exploration for semiprecious stones.
The auction will be held on 3 December 2015 at 3:00 pm (Astana time). The deadline for filing applications to participate in the auction is 1 October 2015, 4:00 pm. Within 10 calendar days after this date, the RK Ministry of Investments and Development will notify each applicant admitted to the auction.
The auction is a simplified procedure where a participant offering the highest signature bonus, and whose bid is not exceeded after three announcements, becomes the winner. All other conditions will be fixed in the notice of auction and shall be the same for all participants.
This will be the first auction of subsurface use rights since the new simplified competitive procedure was introduced by legislation in January of this year.
A non-refundable fee of 40 times the monthly calculation index (KZT 79,280) is charged for participation in the auction.
An applicant admitted to the auction will receive (for a non-refundable fee), within one month following the application, but not later than 22 November 2015, geological information on the auctioned subsurface area.
The minimum amount of the signature bonus per each auctioned deposit varies from KZT 79,280 (for exploration of groundwater) to KZT 19,524,844 (for production of nickel and cobalt at Bugetkolskoe deposit). Other terms and conditions of the auction are specified in the notice of auction, which is available on the website of the RK Ministry of Investments and Development.