On 3 February 2024, a new edition of the Law “On Subsoil” entered into force in Uzbekistan, introducing significant changes in the regulation of relations arising from ownership and disposal in the sphere of subsoil exploitation. The New Law aims not only to regulate activities related to the exploitation of mineral resources in Uzbekistan, but also to build a solid legislative base for attracting investment in this sector.
Key amendments are as follows:

• The establishment of a centralised body for subsoil management – ‘Subsoil Use Center’ under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan, which operates on a ‘one-stop-room’ basis for the issuing of permits and keeping records of cadastral squares.
• The principle of ‘rational use of subsurface resources’ is replaced in favour of the principles of sustainable development and economic feasibility for investors.
• Change in the legal status of permits for geological exploration and mining – possibility of free transfer and sale of permits to third parties (with the exception of permits obtained through auction within two years from the date of issuance).
• The possibility of granting geological and mining rights as collateral and attracting investment.
• Introduction of the ‘first come, first served’ principle for obtaining permits for the right to use subsoil areas along with simplified procedures for obtaining such permits.
• More stringent ecological requirements, including mandatory environmental impact assessment (EIA) for all projects related to subsoil exploitation.
• Introduction of obligations for subsoil users on social responsibility such as employment of local population, infrastructure development and labour training.
• Regulation of post-mining land reclamation.
• Harmonisation of legislation with international standards such as the JORC Code.
• Creation of a state geological information system (GIS) for data visualisation and exchange. 

Conclusion and recommendations
The New Law may lead to additional costs in subsoil use, in particular due to stricter environmental requirements, but also could increase investment attractiveness. For detailed information and further discussion of how these changes may affect your business in Uzbekistan, please contact us.

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Yana Daloglu
Saidaziz Alimov