The Duma Adopted a Law Introducing Special Requirements for Participants in Subsoil Auctions
The State Duma adopted in the third reading amendments to the law “On Subsoil”, which, in particular, introduce special requirements for participants in auctions for subsoil plots from January 1, 2024.
In accordance with government bill No. 222049-8, special requirements will be established by government decision on behalf of the president. The procedure for processing special requirements will be established by presidential decree.
In addition, changes to the law “On Subsoil” give the government the right to approve a list of scarce types of solid minerals and products with high added value from these types of raw materials. Thus, it is planned to stimulate deep processing of scarce raw materials and the creation of added value within the country.
Separately, as an incentive measure, it is possible to establish lower starting payments for scarce species according to individual instructions of the president.
Thus, from January 1, 2024, special requirements for auction participants for subsoil plots of federal and local significance (as well as for plots not included in the specified criteria), by decision of the government, the starting amount of payments will be determined: in the amount of at least 10% of the amount of the mineral extraction tax in the calculation on the average annual capacity of the mining organization; in the amount of at least 5% of the amount of the mineral extraction tax based on the average annual capacity of the producing organization for oil and (or) gas condensate – in relation to oil and gas condensate, respectively.
For hard-to-recover minerals (for the development of technologies for geological study, exploration and production), the starting payment will be equal to the amount of the auction participation fee.
In exceptional cases, the establishment of starting payments for the use of subsoil in relation to scarce types of solid minerals will be carried out by decision of the government in accordance with the instructions of the president. In this case, the minimum payment cannot be less than 10% of the amount of the mineral extraction tax based on the average annual capacity of the mining organization for the corresponding scarce raw materials.
The law also takes into account the holding of an auction for a subsoil plot of federal significance, where a deposit was discovered as a result of geological exploration by a legal entity with the participation of foreign investors (for which the government decided to refuse to grant a license). In this case, the starting payment is set as the amount of expenses of this person for searching and evaluating the deposit.
The law will come into force on the day of its official publication.
