Law of Ukraine

"On Ratification of the Nationwide Mineral Resources Base Development Program of Ukraine for the Period until the Year 2030"

Date of entry into force:
May 25, 2011

The Law adopts the Nationwide Mineral Resources Base Development Program of Ukraine for the Period until the Year 2030 (hereinafter referred to as "Program").

Chapter I of the Program establishes that the mineral resources base of Ukraine is considerably substantial on the world scale. Almost 20 thousand deposits and presence of 117 types of mineral resources are present in the bowels of our country.

The mineral reserves industry provides for a significant part of the gross national product.

Today, Ukraine extracts considerable amounts of black coal (1.7 percent of the total world extraction volume), commercial iron ores (4.5 percent) and manganese ores (9 percent), uranium, titanium, zirconium and graphite (4 percent), kaolin (18 percent), bromine, ochre, non-metallic metallurgic raw materials (native sulfur, rock salt and potassium salt), capstone (granites, gabbros and labradorites), glassmaking sand, etc.

The purpose of the Program is satisfying the mineral resource needs of the national economy through domestic extraction, reducing Ukraine's dependence on mineral resource import and increasing the export potential of the country through domestic extraction of mineral resources that are in high demand on the world market (Chapter II of the Program).

According to Chapter III of the Program, the main task of the Program is sustainable prioritized satisfaction of the growing mineral resource needs of the national economy.

Chapter IV of the Program envisages that implementing the Program requires improving normative-legal acts, in particularly, preparing a new edition of the Code of Ukraine on Bowels, improving the method for calculating the beginning sale price of special permits for the use of the bowels, the criteria for determining winners of competitions (auctions) for the right to use the bowels and for the right to conclude production sharing agreements, the responsibility of the bowel users to fulfill investment agreements, project documentation for deposit development, liquidation of the consequences of the bowels use, carrying out secondary operations related to purchase and sale of rights to use the bowels, according to the practices of the developed world countries.

The following will be provided for to ensure implementation of the Program:
  • scientific support of geological exploration works from predictive estimate of oil- and gas-bearing areas to search and exploration of hydrocarbon resource deposits;
  • scientific and methodological research aimed at improving the efficiency of geological exploration works related to metallic and non-metallic mineral resources, coal and coalbed methane;
  • developing new and improving the existing sets of methods on regional exploration of the bowels;
  • preparing scientific researches and methodical recommendations on comprehensive exploration of the bowels;
  • developing innovative methods for technological ore enrichment, improving technical equipment for core holes and deep extension wells.

International cooperation in the issues of geological exploration and the use of the bowels will contribute to harmonization of the national legislation with the European Union legislation.

The expected results of the Program implementation are:
  • opening and exploring new deposits of fuel and energy resources;
  • creating a domestic production of the necessary kinds of mineral resources which are being imported from other countries and which are necessary for the work of the active metallurgical and some other enterprises (chrome and nickel-chrome ores, fluorite, phosphate raw materials, forsterite refractories);
  • developing the domestic mineral resource base of the most important strategic mineral resources (gold and other precious metals, scandium, lithium, rare earths, etc.);
  • preparing new deposits for profitable future exploitation using the domestic capacities of Ukraine and foreign investments;
  • conducting various types of geological exploration works (including exploration and exploitation) in third world countries, using the capacities of specialized state enterprises;
  • comprehensive geological, hydrogeological, geotechnical and ecogeological estimates, mapping and charting of the territory of Ukraine.

According to Chapter V of the Program, it is envisaged that the total amount of financing of the Program will be 189,053.99 million.
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