Mining Permits and Subsoil Use Licenses: Extraction of Natural Resources
Mining permits (specifically, Licenses for Use of Subsoil) constitute the legal basis for extracting mineral resources within the territory of Georgia. This covers everything from inert materials (sand, gravel) to useful minerals (ores, coal) and underground fresh or mineral waters. In Georgia, licenses are primarily issued through electronic auctions, ensuring transparency, but the process requires serious preliminary preparation. A license seeker must know not only the auction terms but also risks related to land ownership, environmental protection, and cultural heritage. Extracting minerals without a license is considered theft and leads to criminal liability, as well as heavy fines for environmental damage.
What Does This Service Cover?
Specialists on Legal.ge offer full legal support in the process of obtaining a subsoil use license:
- Preparation for Auction: Selecting a specific deposit or territory, gathering geological data, and preparing an application to the National Agency of Mines to announce an auction.
- Participation in Auction: Registering on the electronic auction (eauction.ge), preparing bank guarantees, and legal oversight of the bidding process.
- Resolving Land Issues: Obtaining a license does not mean automatic ownership of the land. A lawyer will help negotiate with private land owners or lease state land.
- Environmental Documentation: Preparing and approving the "Environmental Management Plan," which is a prerequisite for activating the license.
- Statistical Reporting: Preparing annual reports on extracted reserves and controlling settlements with the budget (regulatory fees).
- License Transfer: Legal processing of buying/selling or leasing an existing license.
Common Situations When You Need a Lawyer
Mining business is risky and often faces legal barriers:
- Landowner Opposition: You won the license, but the land owner does not allow you to enter the territory or operate machinery.
- Risk of License Revocation: You failed to fulfill license conditions (e.g., extraction plan), and the Agency threatens to revoke the license.
- Infrastructure Overlap: The license area overlaps with a gas pipeline, power transmission line, or protected area, restricting extraction.
- Accusation of Illegal Mining: You went outside the license coordinates and were fined for illegal use of subsoil.
- Water Well: You need to drill a well for an enterprise, which also requires a subsoil use license (if depth and volume exceed certain limits).
Georgian Legal Framework
The sector is regulated by the Law of Georgia on Subsoil and the Law on Licenses and Permits. Auction rules are defined by the Government Decree "On the Rule and Conditions for Issuing a License for Use of Subsoil". Environmental legislation is also important, as mining often requires an environmental decision. Regarding taxes, the Law on Fees for Use of Natural Resources applies.
Process: How Collaboration with a Specialist Works
The process includes:
- Research: Determining the coordinates of the desired territory and checking if it is in the free fund.
- Application: Submitting an application to the National Agency of Mines requesting an auction announcement.
- Auction: Participating in electronic bidding and paying the fee in case of winning.
- Agreements: Signing an agreement with the land owner (a mandatory step).
- Plan Approval: Agreeing on the technological scheme of subsoil processing and environmental plan with the Agency.
Why Choose Legal.ge?
Obtaining a mining license is just the beginning; the main challenge is maintaining it and operating legally. Legal.ge connects you with lawyers who have experience dealing with the National Agency of Mines and know how to avoid typical mistakes when defining coordinates or dealing with landowners. Start your mining business with solid legal guarantees.
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