KAZAKHSTAN Law and Practice Contributed by: Timur Odilov, Mikhail Abdulov, Olzhas Abubakirov and Alnur Dauylbay, Haller Lomax LLP
Before 29 June 2018, the date of enactment of the SSU Code, mineral rights were granted through con - tracts. From 29 June 2018, mineral rights are granted by acts in the form of various types of licences: exploration licence, mining licence, aggregates mining licence, artisanal mining licence and licence for use of subsoil Mineral rights are protected by the general provisions of the Civil Code, by specific provisions of the SSU Code, by the Administrative Procedural and Process- Related Code of 29 June 2020 (APPC) and addition - ally by bilateral investment treaties (BITs) ratified by Kazakhstan and applicable to foreign investments. Regarding BITs, please refer to 5.3 International Trea- ties Related to Exploration and Mining . Exploration Licence An exploration licence has the following features: • A reclamation security instrument to be furnished before the licence grant. • Licence area is exclusive and formed of blocks (a part of a block can be included). • No limit on the number of licences per person/ company. Transferable, subject to national security review. • Entitles holder to explore any minerals. • Granted for six years plus potential extension for five years subject to fulfilment of all licence obliga - tions and mandatory surrender of blocks (if appli - cable). space (for disposal of mining waste). 1.7 Mining: Security of Tenure • If it includes ten or more blocks, 40% of blocks must be surrendered at the end of the initial licence term to allow further extension of the term. • Exclusive right to obtain a mining licence on a priority basis within the term of the licence (subject to the discovery of a deposit of solid minerals, with confirmed resources and reserves substantiated by a report assessing the resources and reserves of such solid minerals).
Regarding uranium exploration licences, please refer to 5.2 Foreign Investment Restrictions and Approv- als in the Exploration and Mining Sectors . Mining Licence A mining licence has the following features: • Granted for up to 25 years plus possible exten - sions for a period not exceeding the original term of the licence (for an unlimited number of times). • Licence area is exclusive and must be in the form of a rectangle or quadrangle where at least two opposite sides are parallel or, if impossible, a poly - gon with the least possible number of angles. No minimum or maximum size. • A security instrument for mine closure and recla - mation to be furnished before commencing mining activities. • Entitles holder to mine any minerals, except for uranium deposits. • No limit on the number of licences per person/ company. Transferable, subject to national security review. • Retention status for up to five years with potential extension for a further five years. After the issuance of a subsoil use licence, if the RoK legislation, which governs relations in the field of subsoil use, introduces additional conditions for such licences, these conditions shall not be applica - ble to licences issued prior to the legislative amend - ment (except for changes of the legislation concerning national security, defence capability, environmental safety, healthcare, taxation and customs regulation). The SSU Code delineates an exhaustive set of condi - tions under which a licence can be invalidated, spe - cifically: • knowingly providing the MIC with unreliable information that influenced its decision to issue a licence; • violations of the licence issuance procedure that led to an unjustified decision, as a result of a mali - cious agreement between an official of the MIC and the applicant;
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