The legal regime of mining permits
Mining activity permits in Georgia are regulated by special sectoral legislation. A mineral extraction license is in general issued through the ordinary auction-based track, yet the law provides an exception — direct issuance, which serves environmental and water-supply purposes. An applicant for a mining permit therefore needs to know both routes: the auction procedure and its starting price on the one hand, and the conditions of direct issuance together with the subsequent reporting obligations on the other, because holding a license does not mean exemption from control.
Direct issuance of a mineral extraction license
The licensing authority may issue a mineral extraction license directly only with the consent of the Government of Georgia and only for defined purposes. Two cases exist: first, to a person holding a water-supply license provided for by the law, for the extraction of underground fresh water in order to supply consumers with drinking water; second, for tourism and recreation purposes, for the extraction of underground mineral waters for therapeutic mud or external use such as therapeutic baths. In addition, direct issuance is possible on a land plot in private ownership for the extraction of underground fresh water for entrepreneurial purposes, with the right to extract no more than 5 000 cubic meters per year. If the water-supply license is cancelled, that becomes a ground for cancelling the extraction license as well.
An applicant seeking direct issuance submits a written application to the licensing authority, which must contain information about the volume, the location and the purpose of the mineral to be extracted. The application is accompanied by an extract from the register of entrepreneurs and non-commercial legal entities, by copies of identification documents for a natural person, or by founding documents for a public-law legal entity; in the water-supply case, by a document confirming possession of that license; in the private-land case, by a document confirming ownership of the plot; and also by proof of payment of the license fee, whose amount is determined by the law on license and permit fees. The authority establishes the requirements for the use of the specific object and additional license conditions, while the general issuance procedure is set by the Government.
Starting price, environmental decision and duration
The rule for determining the starting price of a use license and for settlement is established by the licensing authority in compliance with the principles laid down by law. Where the issuance of a use license requires an environmental decision under the Environmental Assessment Code, extraction of minerals is possible only after that decision has been issued. Where a decision refusing the activity has been adopted, or the environmental decision establishes conditions that materially change the license conditions, the final or proposed amount recorded at the auction is returned to the license holder upon request. When determining the duration, the properties of the object and the technological character of its use are taken into account, and issuance for an indefinite term is impermissible. Extension of the term is possible only with the consent of the Government.