Legal entities and individuals can apply to the State Geological and Subsurface Survey of Ukraine (SGSSU) for auctioning out licenses for subsoil plots. In this case, the person also offers the corresponding program of work¹.

The decision on the plot for auction is taken up to 10 days. Further, the organizer (SGSSU) makes inquiries to the appropriate authorities for approval of the auction plots: Ministry of Ecology and Natural Resources of Ukraine - 30 days for consideration; district /city/ local Councils - 90 days. In case of no positive or negative response by these bodies, it is considered that the list of subsoil plots are agreed. In case of receiving approval the organizer of the auction (SGSSU) makes the list of plots with relevant programs of work and announces the auction. Information about the auction is posted on the official website of the SGSSU and published in the newspaper "Governmental Courier" no later than 90 days before the auction. In case of a negative response from the respective councils and / or the Ministry, preparation for the said auction for subsoil is terminated and documents are returned to the applicant.

Applications for the participation in the auction can be submitted within 75 days after the announcement of the auction. To participate in the auction applicant must also buy a package of auction documentation. The price of the auction documentation is 3.12 percent of the initial price of the license, but not less than 4,500 UAH and not more than 72,550 UAH.

The applicant also submits the following documents:

  • a statement of intent to participate in the auction with the name and location of the subsoil, the type of minerals, information about candidate;
  • document confirming the registration of a legal entity in the State of its location, including an extract from the trade, bank or court register (for foreign companies);
  • information about associated with the applicant persons. The term "associated person" is used as defined in the Tax Code of Ukraine;
  • the ownership structure of the applicant up to the final beneficial owner (controller) for legal entities;
  • letter of inquiry, which confirms that the applicant has sufficient number of qualified professionals and technical resources for the implementation of the work program;
  • documents confirming the payment for the package of auction documentation, guarantee fee.

The auction for each subsoil plot is conducted provided that at least two applicants were registered for the acquisition of licenses. The auction is held openly. The winner is the buyer who agreed to pay the highest price for the license.

The winner has 30 days to pay to the State Budget the difference between the guarantee fee and the sale price of the license. However, under the written request of the winner for the extension of the term of payment it may be extended but for no longer than 30 days.