Such licensing is governed by the following Kazakh laws and regulations:

1. Kazakh Law On Licensing No. 2200 of 17 April 1995.
2. Kazakh Law On Architectural, City Planning and Construction Activities in Kazakhstan No. 242-II of 16 July 2001.
3. Kazakh Code On Taxes and Other Compulsory Payments to the Budget No. 209-II of 12 June 2001.
4. Kazakhstan Government's Resolution No. 1894 of 29 December 1995 On Implementing Kazakh President's Resolution No. 2201 of 17 April 1995.
5. Kazakhstan Government's Resolution No. 556 of 10 May 1999 On Approving Qualification Requirements to Industrial Activities Subject to Licensing .
6. Kazakhstan Government's Resolution No. 23 of 10 January 2002 Issues of Licensing Design, City Planning and Construction Activities.
7. Kazakhstan Government's Resolution No. 100 of 24 January 2002 On Approving License Fee Rates for the Right of Conducting Certain Types of Business.

1. General

According to Kazakh law, any design, construction and operation activities in the mining industry are subject to compulsory licensing.

The authorized agency for licensing design and construction activities in the mining industry is the Committee for Construction under the Kazakhstan Ministry of Industry and Trade.

The authorized agency for licensing mining operations is the Kazakh Ministry of Energy and Mineral Resources.

2. List of licensable activities/services in design, construction and operation of mining facilities

А. In the field of design of mining facilities: mining process design.

B. In the field of construction of mining facilities:

1. Rock tunnelling and special operations in tunnels.
2. Erection of structural units of assemblies, vessels and other processing facilities for the ore mining industry.

Ore companies and organizations in the market of mining operations and services may be licensed to exercise supervision over the quality of construction and assembly work.

C. In the field of operation of mining facilities:

1. Opening and development of coal, ore and non-metal deposits using open-cut and underground mining methods.
2. Activities related to the operation of surface and subsurface integrated process facilities in the mining industry.
3. Stone drivage, development, winning operations, shaft lining and furniture, and powered support setting.
4. Special mine working (drainage roads, exploration mine, air working, etc.).
5. Geological and underground survey services.
6. Ore and rock breaking, handling and conveying using excavators, self-propelled load-haul-dump machines, conveying plants, rail and motor transport.
7. Ventilation, mine air control.
8. Routing trenches, mined rock excavation, dumping at open cuts and industrial sites.
9. Operation, closing-down and conservation of coal-mining plants.
10. Opening and mining of coal deposits.
11. Well and blast-hole drilling, preparation and carrying out blasting operations; blasting mechanization.
12. Development, first working and stoping.
13. Mine pumping, drainage and airing; mined rock handling; electric power supply, lighting, communications and alarm systems.
14. Reclamation of land disturbed by mining operations.
15. Operations for preventing mine fires and flooding workings, and cleanup operations.
16. Coal winning by continuous machines; useful minerals excavation by single-bucket excavators, bulldozers and loading machines; rail haulage of rock, ore and coal.
17. Quarrying of break stone at ballast quarries.
18. Abandonment of unprofitable ore mines and pits: shaft backfilling, disassembly of mining equipment, bulkheading, dismantling of buildings and structures, dismantling of surface integrated facilities, land reclamation.
19. Drawing-up, review and approval of charts of roadway supports and drilling-and-blasting projects.

3.Qualification requirements for obtaining a license for design of mining facilities

A license for carrying out licensable activities is granted to a person/entity whose qualifications meet the requirements for the respective activity.

An applicant and a licensee shall meet the qualification requirements for design and engineering of mining facilities as follows:

1) By type of activity:

Legal entities shall employ engineers, technicians and executive officers who have an adequate higher education and at least three-years of work experience or an adequate specialized secondary education and at least five-years of work experience;

Individuals shall have an adequate higher education and at least three-years of work experience or an adequate specialized secondary education and at least five-years of work experience;

2) Availability of logistics and production facilities equipped according to the type of activity:

a quality control system for projects and parts thereof;

a package of national standards, reference book, technical and other relevant guidelines;

office equipment, electronics and software to make calculations, prepare and execute drawings;

3) Individuals/executive officers of a legal entity shall have a permit required for carrying out special design work, drawn up in accordance with the applicable Kazakh laws and regulations

4. Qualification requirements for obtaining a license for construction of mining facilities

An applicant and a licensee shall meet the qualification requirements for construction and assembly work in the mining industry as follows:

1) By type of activity:

Legal entities shall employ engineers, technicians and executive officers who have an adequate higher education and at least three-years of work experience or an adequate specialized secondary education and at least five-years of work experience;

Individuals shall have an adequate higher education and at least three-years of work experience or an adequate specialized secondary education and at least five-years of work experience;

2) Availability of logistics and production facilities equipped according to the type of activity:

the required package of equipment, carrying and lifting equipment, machinery and devices, fittings, tools, and accessories meeting the applicable standards andspecifications;

a process control system and laboratories accredited as established by law and in accordance with the applicable standards and specifications;

relevant instrumentation;

occupational safety and health services;

working and living conditions meeting the applicable standards;

a package of national standards, reference book, technical and other relevant guidelines;

3) Individuals/executive officers of a legal entity shall have a permit required for carrying out special design work, drawn up in accordance with the applicable Kazakh laws and regulations.

5. Qualification requirements for obtaining a license for operation of mining facilities

Qualification requirements for entities operating mining facilities include the availability of:

1. Process regulations and the detailed design that comply with regulatory requirements for subsoil use, safety and environmental protection;
2. Logistics and production facilities: specialized production buildings, engineering facilities (machinery, hardware, equipment, oil and gas products pipelines, boilers, vessels and process lines);
3. Specially equipped warehouses, rooms and tanks for storing finished product, explosive, fire risk and poisonous virulent substances and fire-fighting means;
4. Services providing: operation and maintenance of equipment, machinery, devices and accessories; supervision over labour safety and environment protection; metrological assurance; underground surveying operations;
5. Written confirmation from the mining, engineering and environmental supervision authorities on compliance of an applicant with labour safety and protection rules and environmental standards;
6. Duly approved safety rules for operation of facilities, and an emergency management plan;
7. Lcenses for special activities, such as subsoil use rights, employment of foreign labour (if applicable);
8. Technical directors who meet the adequate educational level and have practical work experience, and specialists certified that they have the necessary qualifications as required by operation and safety rules.

6. Terms and conditions for licensing

Licensing agencies assess working conditions that should ensure safety of the community, the environment, human life and health and assure quality of production, operations and services. Compliance of an applicant/ a licensee with the qualification level may be confirmed through an independent expert review by legal entities or individuals accredited as established by law.

Foreign legal entities and individuals are granted limited licenses for implementing specific construction projects in the mining industry in Kazakhstan.

Licenses are granted within a month (to small business within ten days) from the day of submitting the application together with all the required documents unless otherwise provided by law.

7. Documents required for obtaining a license

The following documents shall be submitted to obtain a licence:

1. a standard application (as established by the Kazakhstani Government);
2. documents certifying that a licensee meets the qualification requirements for the licensable activities;
3. a document confirming that the fee for the licence for conducting certain types of business was paid to the budget.
   The fee for obtaining a license for design, construction and operation of mining facilities amounts to ten times the monthly estimated index.
4. the taxpayer registration certificate;
5. for individuals: certificate of registration as an individual entrepreneur;
6. for legal entities:
• certificate of state registration of the legal entity; articles of association;
• statistical card of a legal entity.
7. written confirmation by mining, engineering and environmental supervision authorities on compliance of an applicant with labour safety and protection rules and environmental standards.

To obtain a license for design and construction of mining facilities, applicants shall pass technical audit and examination of documents confirming the compliance of the applicants with requirements and terms established by law.

8. Refusal of a license

A licensing agency may refuse to issue a license if an applicant has not observed the procedure and terms for submission of documents required for obtaining a license for certain activities, or invalid data have been revealed in the deliverables, or there is a court decision prohibiting to the applicant from carrying out this activity.

The applicant will receive a statement of grounds for such refusal within the period established for issuing a license.

Should the applicant disagree with the grounds for such refusal, the applicant may appeal to a court against such decision within a month.

9. Withdrawal, suspension and termination of a license

A licence may be withdrawn through legal proceedings if: 

• the licensee failed to fulfill the requirements specified in the licence;
• the licensee was interdicted from carrying out the licensed activity;
• the grounds which had caused suspension of the licence were not removed;
• the licensee delivered false facts for obtaining the licence.

The licensor may suspend the licence having stated the grounds for such suspension.

The licensee may appeal to a court against such decision.

Once the causes of suspension are removed, the license shall be resumed.

A license may only be terminated in the event of: 

• expiration of the licence;
• completion of all activities under the licence;
• withdrawal of the licence;
• discontinuation of business by a private entrepreneur; restructuring or liquidation of the legal entity, save for change in the form of incorporation, except that the licensing procedure and terms are defined in legislative acts of Kazakhstan.
• voluntary return of the licence to the licensor.

Any disputes arising in connection with termination of a licence shall be settled by the courts.

10. Re-registration of a license

In the event of loss of the licence, the licensee is entitled to receive a duplicate license. Upon receiving a written application from the licensee, the licensor shall issue the duplicate licence within ten days. When receiving the duplicate licence, the licensee shall pay a fee in the amount of 100% of the fee paid for the licence for conducting certain types of business.

If the licence holder has changed his/her name, he/she shall give the licensor written notice within a month with all necessary confirming documents attached thereto.

If a legal entity has changed its name (including the change of the form of incorporation except as otherwise provided by Kazakh law) or address (when stated in the licence), it shall submit a written application within a month for re-registration of the license and attach all necessary confirming documents.

The licensor shall re-register the licence within ten days after the receipt of the respective written application.

When re-registering the licence and receiving the above document, the licensee shall pay a fee in the amount of 10% of the fee for the license for conducting certain types of business but not more that four times the monthly estimated index.