Mining Law
Procedure of obtaining special permissions for deposits usage
(Extract from the Order of the Cabinet of Ministers of Ukraine № 615 as of May 30, 2011)
2. The permissions are ussiued by the State Service of Geology and Mineral Resources of Ukraine to auction winners or without auctions in cases, provided in the paragraph 8 of this procedure.
3. Each type of deposit usage requires separate permission.
One claimant can be granted only one permission for extraction of one type of minerals.
4. The permission is issued after the expertise and analysis of minerals reserves is accomplished.
5. The permissions are ussied for the following types of deposit usage:
– geological study;
– mining;
– building and maintenance of underground constructions;
– creation of special geological areas and objects;
– other works provided in the agreement about production distribution.
6. The permission shall come into effect from the day of its registration.
7. The permission shall be issued for the period, denoted by the claimant. It may vary from 5 to 50 years (depends on the type of deposit usage).
8. The auction is not required for:
– mining operations, if the claimant according to results of geological study of mineral reserves had at his own expence accomplished an estimation of mineral resourses approved by the State Mineral Reserves Comission of Ukraine or had made an -approbation at the State Mineral Reserves Comission of Ukraine;
– extension of activity area in no more than 50 % compared to the previously issued permission;
– local geological study and mining operations;
– geological study of minerals reserves at the expense of the state budjet;
– other types of geological studies;
– building and maintenance of underground constructions;
– creation of special geological areas and objects;
– mining from deposits that contain small amount of resourses according to the State Mineral Reserves Comission of Ukraine
– implementation of the agreement about production distribution.
In order to obtain the permission without auction, the claimant shall file the claim with the documentation package, denoted in the Appendix 1 of this Order.
The decision about permission granting without auction is adopted within 60 days after receiving the full documentation package (for small coal pits – within 30 days).
9. The permission shall be approved by regional, city or local councils, Ministry of Natural Resources, State service of mining supervision and industrial safety (depends on the type of deposit usage).
10. The authority that grants permissions sets up special terms of deposit usage regarding:
– norms and standards of deposit usage;
– quality of production and work;
– technology of mining and minerals processing;
– procedure of mining;
– type, scope and terms of the work;
– termination of the work.
The inherent part of permission is the agreement about the terms of deposit usage.
12. The permission is issued to the deposit user, its copy and the correspondent documents are kept at the authority that grants permissions.
13. For the permission issued without auction the claimant shall within 45 days after the decision adoprtion pay the fee according to the Order of the Cabinet of Ministers of Ukraine № 1374 as of October 15, 2004.
14. The period of permission validity can be prolonged, if the terms of deposit usage were not violated or other was not presupposed by the law. In order to prolong it, the claimant shall file a claim no later than six months before its date of expiry (in case of mining), or no later than three months before its date of expiry (in case of geological study).
The documentation package include the same list of documents, as for permission obtaining, except for documents that confirm the agreement by local municipal bodies.
The decision about permission prolongation is adopted by the authority that grants permissions within 60 days after receiving the full documentation package.
The fee for the permission prolongation is paid according to the Appendix 2 of this Order.
17. In case of corporate restructuring, changes of personal data, of the depositarea, of the minerals resourses quality or other changes and mistakes in the actual version of the permission, the permission can be amended.
18. The authority that grants permissions issues the amended permission on a new blank form within 30 calendar days from the day of the claim for reissuance registration. The number, date, period of validity and terms of usage remain unchanged, the changes into the agreement about the terms of deposit usage shall be introduced.
19. In case of permission loss or damage the authority that grants permissions can issue a duplicate copy (in two working days).
22. The validity of the permission may be suspended or terminated by the authority that grants permissions.
23. The claimant can be deprived of the right to use mineral reserves according to the Code of Ukraine about mineral reserves and Law of Ukraine “About licensing system in economic activity”.
The list of documentation depends on the type of deposit usage (Appendix 1).
The foreign companies shall file additionally the document that confirms their registration in the country where the deposit is located, in particular an extract from the trade, bank or court register.
The information above has no legal force, is of informative value and may contain mistakes.
© Tema 2000 Ltd., February 2016
