The Law of Ukraine

Mining Law of Ukraine

Date of Entry into Force:
November 11, 1999

The Mining Law of Ukraine (hereinafter referred to as “the Law”) defines legal and organizations grounds for carrying out mining works, and ensuring anti-accident protection for mining enterprises, institutions and organizations.

This Law shall apply to legal relations in activities of mining enterprises, institutions, organizations, and mining objects engaged in prospecting, developing, extracting and processing minerals, and carrying our mining works, constructing, liquidating or shutting down mining enterprises, scientific and research activities, and liquidation of accidents within the territory of Ukraine, its continental shelf and exclusive (marine) economic zone, regardless of their type of ownership and subordination, as well as enterprises, institutions, organizations, Ukrainian citizens, foreign legal entities and natural persons, stateless persons. Legal relations in activities of mining enterprises based upon the production sharing agreements shall be regulated by the Law of Ukraine “On Production Sharing Agreements” and such agreements. Activities under production sharing agreements shall be regulated by provisions of the present Law, unless otherwise is envisaged by the law and a specific production sharing agreement.

Objects of mining relations shall be:
- geological prospecting of minerals;
- design, construction, exploitation, liquidation, or conservation of mining enterprises;
- organization of anti-damage protection for mining enterprises;
- labor protection and care of safety and health of individuals working in especially dangerous environment.

Subjects of mining relations shall be legal entities and natural persons of Ukraine, foreign legal entities and natural persons, and stateless persons engaged in geological prospecting of mineral deposits, designing, constructing, exploiting, and liquidating accidents and liquidating or shutting down enterprises that carry out extraction and processing of minerals, as well as mining works.

Mining industry enterprises can be of various types of ownership, unless otherwise is envisaged by the laws of Ukraine. Privatization of mining industry enterprises shall be performed according to the legislation on privatization. The list of mining enterprises which are in state ownership and are not subject to privatization shall be approved by the Verkhovna Rada of Ukraine. In case of privatizing mining industry enterprises, the Cabinet of Ministers of Ukraine, upon a motion by the State Property Fund of Ukraine, shall adopt a decision to secure state ownership for a relevant stake of shares of joint stock companies established on the basis of mining industry enterprises. Property of state branch and regional mine-rescue services, as well as property of state scientific institutions for safety of mining works shall not be subject to privatization.

Chapter II of the Law is dedicated to government policy in the area of regulating mining relations, namely to principles of government policy on mining industry, supporting mining enterprises, supervising mining relations, and authorities of local bodies of executive power and bodies of local self-government in the area of mining relations.

Chapter III of the Law covers issues of preparing for mining works and mineral extraction, which include positioning and designing mining enterprises, preparing for their construction and for construction works, reconstruction and technical re-equipment, and launching into operation of mining enterprises.

Chapter IV of the Law is dedicated to key requirements, the procedure for carrying out mining works, mining equipment and materials, applying explosive materials in mining works, expertise of draft decisions on anti-damage protection, safety of mining works, constructing and exploiting mining enterprises, using and tracking waste mining tunnels, and documents providing the right to carry out mining works.

Chapter V of the Law sets norms for the system of anti-damage protection and safety of mining works, technical and organizational measures to prevent accidents and catastrophes, a plan for liquidating accidents, the system for notifying about accidents, forming emergency rescue services, duties of the head of a mining enterprise in liquidating accidents and rescuing people, cooperation among heads of mining enterprises and bodies of executive power, bodies of local self-government, enterprises, institutions, and organizations in liquidating accidents, ensuring safety of mining works and labor protection, protection of mining enterprises from harmful impact of dangerous productions and natural calamities.

Chapter VI of the Law is dedicated to key ecological requirements to mining works, preventing harmful impact of mining works, and measures to ensure ecological safety in mining works.

Chapter VII of the Law covers labor relations of employees of mining enterprises, duties of the owner (head) of a mining enterprise, requirements to labor discipline, professional training and qualification of employees of mining enterprises, duties of employees of mining enterprises, rights and social guarantees for employees of mining enterprises.

Chapter VIII of the Law determines forms for shutting down mining enterprises, the procedure for the liquidation or conservation of a mining enterprise, the procedure for allocating privileges and compensations to employees of a mining enterprise due to shutting down this enterprise, and social guarantees for employees of mining enterprises that are subject to liquidation or conservation.

Chapter IX of the Law sets out standards for responsibility for violating mining legislation, the procedure for compensating damages incurred as a result of violating mining legislation, and personal disciplinary responsibility of employees of mining enterprises.
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