On September 1, Russian authorities have adopted a new law that allows companies to sell geological exploration licenses and attract private investment for this purpose in the regions.
According to a report by RIA Novosti, previously miners could only sell an exploration license by selling their subsidiaries which owned said licence, forcing groups to acquire hundreds of legal entities that held licenses. Meanwhile, only state-owned Federal Agency on Mineral Resources (Rosnedra) and its structures were allowed to carry out exploration work in the regions.
Now, companies will be able to sell their geological exploration licenses without having to confirm the property or corporate ties between the investor and the subsoil user. In addition, private companies will be able to apply for participation in regional stages of exploration, but this only applies to Russian firms with at least five years of geological exploration experience.
In addition, the Russian Ministry of Natural Resources has outlined a procedure for granting licenses to private investors for regional exploration. Rosnedra will form and post on its website a list of locations available for early exploration. Companies may obtain a license after a decision made by a commission of the Ministry of Natural Resources, Rosnedra and regional authorities.
According to authorities, the new law will promote geological exploration of the territory of the Russian Federation and help increase the investment attractiveness of the geological industry, leading to an influx of extra-budgetary investments into exploration.
Theodor Lisovoy, Managing Editor, Rough&Polished
