Investors

The license is granted for the period specified by the applicant, but not more than stated in the table below. The term of the license is calculated from the date of its registration, except provided otherwise.

TYPES AND VALIDITY OF THE LICENSES

Geological exploration of mineral deposits;

3 years

Geological exploration, including pilot development of mineral deposits of national importance;

5 years

Industrial mining;

20 years

Construction and operation of underground facilities not related to mining, including underground storage facilities for oil, gas and other substances and materials, disposal of hazardous substances and production waste, wastewater;

20 years - the construction and operation of underground facilities not related to mining; 50 years - the construction and operation of underground oil or gas;

Works (activities) under production-sharing agreement.

for the period of PSA execution

The licenses (special permits) are issued by the State Geological and Subsurface Survey of Ukraine.

REGIMES OF LICENSE ISSUANCE

Licensing

1. Via auction – the license is given to the bidder offering the highest price

2. Without auction:

  • if an investor already holds a special permit allowing exploration in a particular area and, having fulfilled its obligations under this permit, wishes to proceed to the development of the area (i.e., applies for the special permit for the production of minerals);
  • extension of up to 50%of a subsoil for exploration purposes (however such extension of the permit must not exceed 50% of the reserves of the original permit);
  • exploration and extraction of minerals of local importance;

Product Sharing

The Cabinet of Ministers of Ukraine may enter into a PSA with a foreign investor, the winner of a tender. Under the PSA a foreign investor carries out certain mining activities at its own expense, and is entitled to the reimbursement of its expenses and to a certain share of the relevant output. Investors also receive government support in order to perform the PSA, including obtaining the necessary permits and authorizations.