GILS Mining: Kyrgyzstan

Mining

Belarus

1. What is the nature and importance of the mining industry in your country? What are the target minerals? Which regions are most active?

The mining industry in Belarus accounts for approximately 1.2% to 1.4%  of the country’s total industrial output. Belarus produces oil (production in 2023 amounted to 1.87 million tons), potassium salts (3 deposits and 2 plots with reserves of more than 7.6 billion tons), rock salt (21.3 billion tons), brown coal (99.1 million tons), building stone (583.5 million m³), sand and gravel mixtures (696.2 million m³), cement raw materials (marl, chalk, clay), phosphorites, sapropel, iron ores (275.4 million tons), titanomagnetite ores (130 million tons), as well as promising deposits of rare earth elements. 

The mining industry is developing most actively in the Gomel region (68.6% of the total production volume), which is the center of oil production, deposits of potassium salts, phosphorites and sapropel have also been explored. Other active regions include the Brest region (15.0%), which is involved in the production of building stone, peat, glass sand, and the Minsk region (10.3%), where peat and construction materials are mined.

2. What are the principal laws that regulate the mining industry? What are the principal regulatory bodies that administer those laws? Were there any major amendments in the past year?

The legal framework governing the mining industry is primarily based on the Subsoil Code, as well as special legislation, including:

• Law of July 15, 2010 No. 169-Z "On objects exclusively owned by the state, and activities for which the state has the exclusive right";
• Resolution of the Ministry of Natural Resources and Environmental Protection and the Ministry of Emergency Situations of February 20, 2009, No. 6/8 "On design documentation for subsoil use";
• Resolution of the Ministry of Natural Resources and Environmental Protection of the Republic of Belarus of January 18, 2017, No. 6 "On approval of the Instruction on the content and form requirements of the project for justifying the boundaries of the mining allotment".

In Belarus, legislation in this area is adopted at the level of laws and acts of the President, the Government, and the Ministry of Natural Resources and Environmental Protection. The Ministry of Natural Resources and Environmental Protection, local executive committees, and the Administration of the China-Belarus Industrial Park "Great Stone" make individual decisions on issuing permits. 

Over the past 2 years, the legislation in the field of subsoil use and protection has clarified the requirements for the content of an application for mining allotments, defined the procedure for drafting and approving projects for the conservation and de-conservation of mining enterprises, workings and underground structures, and established rules for the liquidation of mining enterprises, mine workings and underground structures not related to the extraction of mineral products.

3. What classification system does the mining industry use for reporting mineral resources and mineral reserves? (How does this system compare to generally recognised international systems such as the CIM Standards (Canada), the JORC Code (Australia) and the SAMREC Code (South Africa)?

In Belarus, the national classification of mineral resources and reserves is based on the system developed by the State Commission for Mineral Reserves (RKZ/GKZ). Recently, Belarus has been working on the harmonisation of RKZ/GKZ system with the UN Framework Classification of Mineral products (UNFC). The rules of this system are set out in GeoNiP 17.02.02-005-2022 "Environmental Protection and Subsoil Use. Subsoil. Classification of Reserves and Probable Resources of Solid Fuel, Ore and Non-ferrous minerals". GeoNiP 17.02.02-005-2022 uses the same classification criteria as the UNFC: (1) the stage of geological knowledge, (2) the technical and economic feasibility of extraction, (3) the degree of economic efficiency.

Under the stage of geological knowledge, mineral reserves in Belarus are categorised as follows: A (fully explored reserves), B (well-explored reserves), C1 (preliminary explored reserves), and C2 (predicted reserves). The classification systems of CIM, JORC and SAMREC differ from the RCZ/GCZ system both in the criteria used and in the typology of reserves.

4. To what extent does the state control mining rights in your jurisdiction? Can those rights be granted to private parties and to what extent will they have title to minerals in the ground? Are there large areas where the mining rights are held privately or which belong to the owner of the surface rights? Is there a separate legal regime or process for third parties to obtain mining rights in those areas?

Subsoil is the exclusive property of the state. The Ministry of Natural Resources and Environmental Protection is the competent authority vested with supervisory and regulatory powers over subsoil use. This authority forms and maintains the State Geological Fund, as well as the State Subsoil Cadastre.

At the same time, individuals and legal entities have the right to obtain the right to a subsoil plot for the development of deposits and extraction of mineral products. In Belarus, this right is usually obtained by Belarusian legal entities. The major subsoil users include RUE PA “Belorusneft”, OJSC “Belaruskali”, OJSC “Belarusian Cement Plant”, and OJSC “Dolomit”.

Local executive committees make decisions on the provision of geological and mining allotments. For mineral extraction and the use of geothermal resources of the subsoil, the right to subsoil use is granted to subjects for a period determined by the project for justifying the boundaries of the mining allotment, but not more than 50 years. To use subsoil, a subsoil user is required to obtain (1) an act certifying a geological or mining allotment; (2) a certificate of state registration for geological exploration works; (3) a decision on provision of a land plot and/or a land lease agreement.

In Belarus, there is no practice of granting subsoil use rights over extensive territories. The right to subsoil use is granted exclusively within the boundaries of a specific mineral deposit established as a result of geological exploration. The legislation does not provide for the formation of extensive mining clusters and other procedures for granting rights within their boundaries based on the results of the generally established one. 

5. What information and data are publicly available to private parties that wish to engage in exploration and other mining activities?

Belarus has introduced an Investor Roadmap, which allows monitoring state proposals for obtaining the right to develop a deposit and extract mineral products based on investment and concession agreements. A potential investor can choose the proposals for the mining industry, the form of participation (public-private partnership, creation of a new enterprise or other), the amount of investment, and the location.

6. What mining rights may private parties acquire? How are these acquired (eg, first come, first considered; first come, first served; discretionary or competitive bidding)? What obligations does the rights holder have? If exploration or reconnaissance licences are granted, does such tenure give the holder an automatic or preferential right to acquire a mining licence or more senior tenure? What are the requirements to convert to a mining Licence?

In the area of subsoil use and protection, individuals and legal entities may acquire (1) the right to use subsoil for exploration and extraction of minerals products, (2) the right of ownership of extracted minerals products, (3) the right to geological exploration of subsoil and (4) other rights aimed at protecting the acquired geological rights. Such subjects have the right to obtain a land plot necessary for exploring and extracting mineral products based on temporary use or through a lease agreement.

Subsoil users have the right to obtain subsoil use based on the documents specified in the response to Question 4. This act, certificate and document certifying the right to a land plot are issued to the first applicant whose documentation complies with legislative requirements. When concluding an investment or concession agreement, the procedure is regulated by the agreement itself. 

If two or more legal entities apply for rights to the same subsoil plot, the competent authority shall grant the mining allotment only following a public tender procedure. A protocol is drawn up based on the outcome of the tender, after which the relevant local executive committee or the Administration of the China-Belarus Industrial Park "Great Stone" is obliged to issue a decision on the granting of the mining allotment. This tender requirement does not apply where an investment or concession agreement has been concluded. 

Subsoil users are obliged to (1) ensure safe conduct of work under the requirements of the Ministry of Emergency Situations, (2) to report immediately any emergencies to the competent authorities, (3) follow for the mining development plans, (4) maintain geological documentation, (5) implement an annual action plan, etc.

The legislation does not provide for a separate licence for mining operations. However, if the extraction of mineral products is carried out through blasting operations, the subsoil user is obliged to obtain a licence in the field of industrial safety from the Department for Supervision of Safe Conduct of Work in Industry of the Ministry of Emergency Situations. The time limit for obtaining a licence shall not exceed 25 working days. This authority examines compliance with pre-licensing requirements and, if the result is positive, issues a licence for an indefinite period.

7. What is the regime for the renewal and transfer of mineral licences? (Describe the renewal and transfer rights with respect to exploration, reconnaissance, exploitation and mining licences and the level of government discretion. Is government consent required to transfer a licence or with respect to change of control of the licence holder or its parent? What notices, filings or approvals are required in relation to the transfer of mineral rights or mining businesses?)

As outlined in our response to Question 6, no licence is required for the mining activities. In the case of a licence in the field of industrial safety, its modification is permissible in the event of changes to the company name, registered address, types of licensed work of the subsoil user, as well as in the event of its reorganisation.

Such changes are also required in the documents certifying the right to subsoil use and the land plot on which the deposit is located. Subject to compliance with the requirements of the legislation, the competent authority will issue an updated licence, an act certifying geological or mining discharge, or another document with current information. If there is a discrepancy with the legislation, the authority may refuse to change the relevant document.

If the subsoil user has failed to fully extract the mineral reserves, they have the right to apply for an extension of the subsoil use period. However, this right may be extended for no more than the maximum periods mentioned in our response to Question 8. To do this, one must contact the local executive committee or the Administration of the China-Belarus Industrial Park "Great Stone" that issued the act certifying the mining allotment, no later than 2 months and no earlier than 5 months before the expiration of the subsoil use period. If the documents comply with the legislation, the competent authority will issue a new act in exchange for the original previously issued one. 

The transfer of the right to subsoil use to third parties without the involvement of state authorities is prohibited. The transfer is possible only by terminating the right to use subsoil from the original subsoil user and granting the corresponding right to the new entity, provided that the latter meets the requirements applicable to the initial award of subsoil use rights. Additionally, a transfer may take place in the event of a reorganisation of the subsoil user, resulting in the succession of rights to subsoil plots. In this case, the transfer is effected on the basis of a separate decision by the competent authority that originally granted the subsoil use rights. The cession of the right to subsoil use, as well as the transfer of debt associated with such a right, contradicts the current Belarusian legislation. In case of the only changes in the corporate structure of the subsoil user (for example, a change in the composition of the shareholders), notification of the authority issuing the permitting documents for the use of subsoil is not required.

8. What is the typical duration of mining rights? Is there a requirement to relinquish a portion of the mining rights to the government after a certain number of years? (Can mining rights be extended or renewed, and under which conditions? Can mining rights be revoked or cancelled anticipatively by the government, and on which grounds?)

The duration of subsoil use varies depending on the purpose: (1) for geological exploration of the subsoil (including that associated with the construction of boreholes) - up to 5 years, (2) for the extraction of minerals products - no more than 50 years (determined by the project justifying the boundaries of the mining allotment), (3) for the construction or operation of structures not related to the extraction of minerals - determined by the project of establishment of the boundaries of the mining allotment, (4) when concluding a concession or investment agreement - determined by the agreement itself, but no more than 99 years. 

The right to use the subsoil may be suspended and terminated early. The grounds for termination of this right are (1) a clear threat to life, health, property or the environment in connection with the use of subsoil, (2) seizure of a subsoil plot for state needs, (3) termination of the activities of the subsoil user, (4) systematic violations of the legislation that entailed risks to life, property of a person or the environment, (5) systematic failure to make payments for the use of subsoil, (6) failure to use or improper use of a subsoil plot.

The President of the Republic of Belarus, the local executive committee or the Administration of the China-Belarus Industrial Park "Great Stone" that has decided to grant geological or mining allocation, as well as the economic court, are entitled to adopt a decision on early termination of the right of use in the above-mentioned cases. 

The possibility of extending rights is discussed in our response to Question 7.

9. Is there any distinction in law or practice between the mining rights that may be acquired by domestic parties and those that may be acquired by foreign parties (eg, is the ownership of mining rights by foreign parties restricted or prohibited in any fashion? is it necessary or desirable for a foreign party to have a domestic partner)?

The legislation of Belarus regarding the use and protection of subsoil applies equally to both Belarusian citizens, legal entities and foreign ones. When concluding an investment or concession agreement, the principle of equality of investors applies, meaning that investors are equal before the law and enjoy their rights without any discrimination. 

In practice, foreign entities usually establish a separate legal entity in Belarus to carry out business activities in the mining sector. Existing mining organisations mostly operate in the form of business entities (JSC or LLC) or unitary enterprises (legal entities established by a single founder and based on their ownership rights). Due to recent changes in the legislation and the introduction of the possibility of opening branch offices of foreign legal entities in Belarus, mining activities can also be conducted through such a branch.

10. What are the principal business structures used by private parties carrying on mining activities (eg, branches, corporations, partnerships, joint ventures and trusts)?

In Belarus, around 60 enterprises in the mining industry are engaged in the development of deposits and the extraction of mineral products. 

The legislation stipulates that the right to engage in such activities is held by individual entrepreneurs and legal entities, including foreign organisations. Thus, foreign organisations can engage in the development and extraction of mineral products without the need to establish a Belarusian legal entity by opening a branch office instead.

In the case of concluding an investment or concession agreement, a foreign organisation must either establish a legal entity or join an already existing legal entity. If the foreign subject intends to establish a legal entity in Belarus, it may choose from the following legal forms: limited liability company (LLC), additional liability company (ALC), joint-stock company (JSC), or unitary enterprise (UE).

11. What duties, royalties and taxes are payable by private parties carrying on mining activities? Are these revenue-based or profit-based?

Individuals and legal entities involved in the extraction of mineral products are required to pay a tax on the extraction (removal) of natural resources. This tax applies to resources such as sand, clay, water, oil, salt, gold, coal, and other minerals. The tax rates depend on the type of resource: (1) for most resources, the rate is set in Appendix 10 of the Tax Code per ton, m3, kilogram, or gram, (2) for oil, the rate is listed in Appendix 11, calculated per ton, (3) for potassium salts – both a fixed rate (2,35 euros per ton) and an ad valorem rate (12% of the weighted average price) apply. 

In Belarus, the tax on the extraction (removal) of natural resources does not apply to the extraction and (or) removal of: (1) associated petroleum gas, (2) minerals remaining in the overburden or host (diluting) rocks, (3) minerals extracted from the subsurface during the construction of underground parts of above-ground capital buildings, (4) water from mineral deposits, and others. 

When selling extracted minerals products, the subsoil user must pay value-added tax (VAT) and corporate profit tax. The amount of tax paid for the extraction (removal) of natural resources is included in the expenditure related to the production and sale of goods.

12. What is the environmental review and permitting process for a mining project? How long does it normally take to obtain the necessary permits?

The applicant interested in the extraction of mineral products in Belarus must follow the procedures outlined below:

(1) In the case of blasting operations during the development of mineral deposits and their extraction, it is necessary to obtain a licence for industrial safety activities from the Department for Supervision of Safe Conduct of Work in Industry of the Ministry of Emergency Situations. Information regarding the receipt of the licence is provided in the response to Question 6.

(2) State registration of geological studies of subsoil resources is carried out at the RUE "Belgosgeocenter". It is prohibited to conduct such works without registration. Upon consideration of the application, the RUE "Belgosgeocenter" issues a certificate of registration of geological studies within 5 calendar days from the date of submission of the application.

(3) At the same time as the previous step, the applicant must obtain an act certifying the geological allocation. To do this, they must submit a package of documents to the local executive committee or the Administration of the China-Belarus Industrial Park "Great Stone", depending on the location of the deposit. The term for issuing the act certifying the geological allocation is no more than 25 working days.

(4) After receiving the documents specified in steps 3 and 4, the applicant has the right to carry out geological-geophysical, geological exploration, engineering works, and specialised research. The duration of the work is determined according to the agreements, and as a result, geological information is prepared, justifying the characteristics of mineral reserves and geothermal resources, as well as their change and use during geological exploration and subsoil use. Such information undergoes state registration by the Republican Commission for Mineral Reserves. The examination period is no more than 2 months.

(5) Based on the data obtained by the applicant, design documentation is prepared for the development of mineral deposits, within the timeframes specified in the contracts with contractors. This documentation must undergo 3 types of expertise:

• Geological expertise is conducted at the expense of the subsoil user by RUE "Belgosgeocenter" based on the signed agreement. The term of the examination should not exceed 30 working days from the submission of the project documentation. During the examination, the validity of the design decisions, correctness of calculations, methodology, choice of water supply sources, and compliance with standards are evaluated. The conclusion issued may be positive or negative (with justification).
• Environmental expertise of the project documentation for subsoil use is conducted by the Republican Center for State Environmental Expertise, Training, Qualification Enhancement, and Retraining of Personnel of the Ministry of Natural Resources and Environmental Protection on a paid basis, by agreement. For conducting expertise on objects requiring the provision of mining allotments, the developer submits an application to the Center along with the section of the project documentation "Environmental Protection", the environmental passport of the project, and any amendments to the documentation (if applicable). The term of the examination is 1 month from the submission of documents. The conclusion may be positive (possibly with specific conditions) or negative.
• Industrial safety expertise is conducted by the Department for Supervision of Safe Conduct of Work in Industry of the Ministry of Emergency Situations or another organisation authorised by this Department to conduct such expertise. This authority has the expertise to check the compliance of the project documentation with industrial safety requirements. An expert or an expert commission is appointed to assess the compliance of the object with the legislation and to prepare an expert report. The duration of the expertise depends on the type of object and ranges from 3 months to 1 year. The validity of the conclusion on the project documentation is limited to the operational period of the object.

(6) Upon receiving positive conclusions from the expertise of the project documentation and geological information, the applicant has the right to apply to the local executive committee or the Administration of the China-Belarus Industrial Park "Great Stone" (depending on the location of the deposit) to obtain an act certifying the mining allotment. The term for obtaining the act is 30 working days. 

(7) The explored mineral deposit is granted to the subsoil user based on the decision of the commission for the transfer of the explored deposit to development, created from among subsoil users, the Ministry of Natural Resources and Environmental Protection, and the local executive committee (or the Administration of the China-Belarus Industrial Park "Great Stone"). The fact of the transfer of the deposit is confirmed by an act prepared by the commission.

Geological exploration of subsoil resources may take place on land owned by either the subsoil user or a third party. This response does not address the acquisition of a land plot as part of the permitting procedure. The grounds and procedure for the seizure and provision of a land plot for deposit development and extraction of mineral products are regulated by land legislation.

In the case of an investment or concession agreement, a tender is typically held to select the investor. Considering all stages of the tender process, the conclusion of the agreement may take up to 5 months. If the project involves entering into a public-private partnership agreement, and a tender is conducted to select the private partner, the entire process may take up to 1.5 years. This includes project evaluation, preparation of documentation, conducting the competition, and finalising the agreement.

13. What is the closure and remediation process for a mining project? What performance bonds, guarantees and other financial assurances are required?

Mine closure involves several mandatory procedures aimed at ensuring safety and protecting the environment. The provision of bonds, guarantees or other financial assurances for the conduct of mine closure is not required. The grounds for initiating closure include the termination of subsoil use rights, the exhaustion of mineral resources, or the lack of further development potential for the deposit. Mine closure is carried out under an approved mine closure plan, which must first be approved by the Ministry of Natural Resources and Environmental Protection. The plan must be reviewed within 20 calendar days, after which a decision is issued either approving or rejecting the plan, with the reasons for any rejection clearly stated.

During the closure process, the following activities are carried out: backfilling of excavations, erosion channels, shafts, and boreholes; reinforcement or isolation of hazardous workings; installation of barriers and drainage systems; and a risk assessment of subsidence and gas emissions, including the implementation of control measures. At the same time, actions are taken to prevent harm to human and animal life, disruption of natural processes, environmental pollution, damage to buildings and infrastructure, inrush of water and gases into neighbouring workings, and the activation of hazardous geomechanical processes.

Upon completion of the closure works, geological and mine surveying documentation is compiled and submitted to the relevant archival authority. Mine closure is formalised through the establishment of a closure commission and the execution of a closure report. The costs of closure are borne by the subsoil user, except where the subsoil area is withdrawn for public purposes, in which case the expenses are covered by the interested party.

14. What were the biggest mining news events over the past year in your jurisdiction, and what were the implications? What are the current trends and developments in your jurisdiction's mining industry (legislation, major cases, significant transactions)?

At present, the mining industry of the Republic of Belarus faces two key objectives: (1) the modernisation of mineral deposit development processes; and (2) cooperation with the Russian competent authorities in the field of subsoil use and environmental protection of mineral resources.

Shortly, the state authorities are expected to finalise the preparation of a strategic policy document in the field of subsoil use – the State Programme “Subsoil” for 2026-2030. In addition, the Belarusian side is implementing coordinated measures within the framework of the Roadmap of joint activities in the border regions of Russia and Belarus, concerning the protection and rational use of transboundary waters, as well as other related water management matters, through to 2030.

Among the most notable transactions involving Belarus in subsoil use are: (1) the transfer of rights to the Nezhinsky Mining and Processing Complex (GOK) from the foreign LLC "Slavkaliy" to OJSC "Nedra Nezhin" in 2023, following the former’s withdrawal from its obligations of the subsoil use; and (2) the participation of the Belarusian side in the construction of the Garlyk GOK in Turkmenistan during the 2010s.

In Belarus, it is common practice to carry out investment activities with the participation of representatives from state authorities. For instance, in September 2024, the Belarusian Investment Forum “Subsoil – 2024” was held, where investment projects in the field of natural resource use were presented – to attract investors for the development of identified deposits of gypsum, bauxite-dawsonite ores, among others – and a discussion took place on the potential of Belarus’s water resources for commercial initiatives.

Authors: Maxim Lashkevich (Partner), Anton Mozol (Junior Lawyer), Taisiya Pakhomskaya (Paralegal)