Government Proposes to Invest in Regional Geological Exploration
They can also simplify the sale of licenses for subsoil, but only for Russian companies.
The Russian government has submitted to the State Duma amendments to the law of the Russian Federation “On Subsoil” of 1992. It is proposed to allow attraction of private investments in the regional stages of exploration. Today, the latter are held and funded by the state. These measures are aimed at stimulating the development of geological exploration, writes Interfax.
In addition, the sale of exploration licenses may be permitted without the need to confirm property or corporate ties between the investor and the subsoil user.
“Today, a license can be sold only through the sale of the company that owns it,” explained the head of the Ministry of Natural Resources of the Russian Federation Alexander Kozlov. “Because of this, large holdings are forced to acquire hundreds of legal entities for which the purchased licenses are issued.”
“In order to exclude possible speculations, the law provides for the requirement that there be no violations under the license within two years,” he continued. In addition, the investor will simultaneously receive the approved documentation for geological exploration for the entire subsoil area and all available geological information.
Given the importance of the work, only Russian companies want to allow them. To do this, they must have at least five years of experience in exploration work and have worked without interruption during the two years preceding the date of application. It is expected that a procedure will be approved that determines the joint conduct of regional exploration by Rosnedra institutions and private investors.
Thanks to these measures, the annual increase in the country’s regional knowledge can grow from an annual 0.7% to 1.5%. Now about 40 promising objects are opened a year. This figure can rise to 100.
