Mining law in Georgia rests on the system of use licenses for state resources: from the extraction of minerals to the use of underground space, a use license is issued by auction, and the acquisition procedure is regulated in detail by the law on licenses and permits. If your activity concerns the resources of the subsoil, this page explains which license types exist, what documents you submit for the auction and how the issuance procedure runs.
Types of use licenses
The law distinguishes the following types of use license: a license for the extraction of useful minerals; a license for the use of underground space; a general license for the use of oil and gas resources — comprising special exploration and extraction licenses; a special license for a hunting economy; a fishing license; a license to use the radio frequency spectrum; and a license to use, for the purpose of export, fir cones together with the bulbs of snowdrops and the tubers of cyclamens included in the annexes to the convention on international trade in endangered species of wild flora and fauna. Two positions of the list have been abolished and can no longer be demanded. Choosing the right type is decisive: the application must state exactly which type of use license the seeker requests.
Documentation to submit
When a license is issued by auction, the seeker submits a written application indicating the desired license type. The application is accompanied by: for a private-law legal entity and an individual entrepreneur — extracts from the state registry; for a natural person — copies of identification documents; a public-law legal entity attaches certified copies of its founding documents. The application is also accompanied by proof of payment of the license fee; the amount of the fee and the rules of its payment and refund are determined by the law on license and permit fees.
Timing matters as well: an application for participation in an auction is accepted no less than fifteen days from the announcement of the auction, and the final deadline for accepting applications in each concrete case is set by the license issuer. If the seeker withdraws before the deadline expires, the paid fee is subject to return.
The auction procedure
A use license is issued by auction, save where the law provides otherwise. The proceeding may be opened both by the seeker's application and by the issuer's own decision; the decision to hold an auction is an administrative act. For the use of a specific state resource, requirements and additional license conditions are established; the additional conditions are determined by law. The issuer, taking into account state and public interests, may set quantitative, qualitative and time-limited norms and rules for use.
The auction winner is identified on the basis of assuming the obligation to satisfy the established norms and rules and presenting the highest price, and every seeker who satisfies the license conditions established by law has the right to participate. The quantity, volume and manner of use of the concrete object are determined by the license issuer. A practically important norm concerns integration: where the use of a specific resource and its conditions in substance cover an activity provided for by another license or permit, obtaining that license or permit for the use of this resource is not necessary — double licensing is excluded.
Publication, transparency and appeal
Transparency is secured by advance publication: information about an auction is published by the issuer on its own website no later than one month before it is held; where the auction is conducted through another website, the issuer must publish the relevant information — with the auction date and the address of that website — no later than three working days before the auction. For a license to extract useful minerals a special term applies: information is published on the electronic auction website no later than ten days before the auction. Other means of dissemination may also be used.
The published information must contain: the issuer's name; the specific object of the use license; the deadlines for accepting applications and holding the auction; the license conditions established by legislation; the requirements for use of the specific object; and the criteria for identifying the winner. A refusal to issue a business activity license may be appealed to a superior administrative body (official) or to court.
Frequently Asked Questions
Which types of use licenses exist?
Extraction of useful minerals; use of underground space; general use of oil and gas resources (with special exploration and extraction licenses); a hunting economy special license; fishing; use of the radio frequency spectrum; and export-oriented use of fir cones, snowdrop bulbs and cyclamen tubers.
How is the auction winner identified?
On the basis of presenting the highest price and assuming the obligation to satisfy the norms and rules established for the use; every seeker who satisfies the license conditions may participate.
When can the application be submitted?
No less than fifteen days from the announcement of the auction; the final deadline is set by the issuer in each case. Upon withdrawal before the deadline, the paid fee is returned.
Where is auction information published?
On the issuer's website no later than one month before the auction; for extraction of useful minerals — no later than ten days before, on the electronic auction website.
How is a refusal appealed?
To a superior administrative body (official) or to court.
How We Help on Legal.ge
The Legal.ge team assists those seeking to use minerals and other state resources at every stage of licensing: we assess which type of use license you need, check your position against the published requirements and the conditions of the auction, prepare the application and documentation, and — where issuance is refused — build the appeal position. Contact us on Legal.ge for a consultation.