100 new subsoil use sites in Kazakhstan could be auctioned in June 2016

An auction of legal rights to subsoil use on 100 sites in Kazakhstan could take place in June 2016, Albert Rau, Vice Minister of Investments and Developments has told KazTAG.

“This year we are planning to sell off another 100 sites [as part of an English style open auction for subsoil use – KazTAG]. We are currently preparing the packages as we speak,” said Albert Rau at a press conference on Friday. According to Rau, the auction is expected to take place at the Astana Mining & Metallurgy 2016 (АММ) congress.

“In any case that’s our intention. As you may know, we have held six mining and metallurgy congresses and this year will be our seventh and will take place on 15-16 June. We would like the auction to take place at AMM because 40 countries participate in the congress. We would like everyone who is a potential participant come to the auction and participate. But, as you know, it is not just people off the street, we have a procedure and these are the right people,” confirmed the Vice Minister.

According to Rau, 39 sites were sold at the first English style open auction for subsoil use, which took place on 3 December 2015.

“We sold 39 out of the 45 we put forward. However, this was the first time so we think [the results were – KazTAG] pretty good. […] The total reserve price was 139 million [tenge – KazTAG] and we finished with 1.415 billion [tenge – KazTAG], and there were a few lots that we did not put up for auction because two bidders registered but only one came, and then we removed a couple of others. So we actually put forward 50, but sold 39, and roughly half of those sold were for gold [gold deposits – KazTAG],” noted Rau.

According to the press office of the Ministry of Investments and Developments of the Republic of Kazakhstan, of the 49 sites put forward 38 were proven deposits and the overall reserve price was T190 million. The sites were for mining gold, other non-ferrous and rare metal and semi-precious stones.

106 bidders from 92 companies registered for the auction. Sales went to the highest bidder. Of the lots put forward 10 were for mineral resources and 28 were for prospecting. The auction made a total summ of T1.415 billion.