On approval of a standard uranium mining contract
Order of the Chairman of the Atomic Energy Agency of the Republic of Kazakhstan dated March 31, 2026 No. 43-n/k. Registered with the Ministry of Justice of the Republic of Kazakhstan on April 1, 2026 No. 38270
In accordance with paragraph 1 of Article 36 of the Code of the Republic of Kazakhstan "On Subsoil and Subsoil Use", I ORDER:
1. To approve a standard uranium mining contract in accordance with the annex to this order.
2. The Department of Atomic Industry and Subsoil Use of the Agency of the Republic of Kazakhstan for Atomic Energy, in accordance with the procedure established by the legislation of the Republic of Kazakhstan, shall ensure:
1) the state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;
2) posting of this order on the Internet resource of the Agency of the Republic of Kazakhstan for Atomic Energy after its official publication;
3) within ten working days after the state registration of this order, submit to the Department of the Legal Service of the Agency of the Republic of Kazakhstan for Atomic Energy information on the implementation of measures provided for in subparagraphs 1) and 2) of this paragraph.
3. Control over the execution of this order is entrusted to the supervising Deputy Chairman of the Agency of the Republic of Kazakhstan for Atomic Energy.
4. This order shall enter into force upon the expiration of ten calendar days after the date of its first official publication and shall apply to legal relations that have arisen since December 9, 2025.
Chairman of the Atomic Energy Agency of the Republic of Kazakhstan
A. Satkaliev
"AGREED"
Minister of Finance
Republic of Kazakhstan
"AGREED"
Minister of National Economy
Republic of Kazakhstan
Appendix to the Order of the Chairman of the Agency of the Republic of Kazakhstan for Atomic Energy dated March 31, 2026 No. 43-n/k
A STANDARD URANIUM MINING CONTRACT
A uranium mining contract between the Republic of Kazakhstan, on whose behalf it acts ____________________________________________ as the Competent Authority (name of the government agency) and __________________________________________________________________ ( name of the legal entity. If two or more persons are subsurface users under the Contract, the name of each legal entity and the amount of the share in the right of subsurface use belonging to each of such persons are indicated)
(hereinafter referred to as the subsurface user), hereinafter collectively referred to as the Parties. This uranium mining contract has been signed by the Parties "____" ____________ 20___ of the year in accordance with ________________________________________________________________________________ ( by the decision of the Competent Authority on the conclusion of the contract for subsurface use with a national company in the field of uranium, which is the basis for concluding a contract)
Content
The preamble
Chapter 1. Subject of the Contract
Chapter 2. Term of the Contract
Chapter 3. Boundaries of the subsurface area
Chapter 4. Rights of the Competent Authority
Chapter 5. Duties of the Competent Authority
Chapter 6. The rights of the subsurface user
Chapter 7. Obligations of the subsurface user
Chapter 8. Conditions for conducting subsurface use operations
Paragraph 1. General Terms and Conditions
Paragraph 2. Protection of the subsoil and the environment, rational and integrated use of the subsoil
Paragraph 3. Taxation
Paragraph 4. Elimination of consequences of subsurface use and conservation of a subsurface area
Paragraph 5. Accounting and reporting
Paragraph 6. Transfer and encumbrance of the right of subsurface use and objects related to the right of subsurface use
Paragraph 7. Ownership of property and information
Paragraph 8. The subsoil plot and property upon termination of the right of subsurface use
Chapter 9. Monitoring of compliance by the subsurface user with the terms of the Contract
Chapter 10. Responsibility of the subsurface user
Chapter 11. The Irresistible Force
Chapter 12. Confidentiality
Chapter 13. Dispute resolution procedure
Chapter 14. Modification and termination of the Contract
Chapter 15. Final provisions
Appendices to the Uranium Mining Contract:
Appendix – Spatial boundaries of a subsurface area
The preamble
Considering that:
1) in accordance with the Constitution of the Republic of Kazakhstan, the subsoil belongs to the people of the Republic of Kazakhstan, and the state exercises ownership rights on behalf of the people.;
2) The Republic of Kazakhstan grants a subsoil plot for use on the grounds, conditions and within the limits stipulated by the Code of the Republic of Kazakhstan "On Subsoil and Subsoil Use" (hereinafter referred to as the Code);
3) the subsurface user has the intention, financial and technical capabilities to efficiently and efficiently mine uranium in the subsurface area;
4) The Government of the Republic of Kazakhstan has identified the Competent Authority and granted it the right to conclude and execute the Contract;
5) the use of subsurface resources is carried out in accordance with the legislation of the Republic of Kazakhstan on subsurface resources and subsoil use;
6) A subsurface use contract is a contract, the content, execution and termination of which are determined in accordance with the Code.;
7) The Republic of Kazakhstan, represented by the Competent Authority, and the subsurface user have agreed that the Contract will regulate their mutual rights and obligations in the extraction of uranium,
The Republic of Kazakhstan, represented by the Competent Authority, and the Subsurface User agree on the following:
Chapter 1. Subject of the Contract
1. The Republic of Kazakhstan, represented by the Competent Authority, grants the right of subsurface use to the subsurface user for the period established by the Contract, and the subsurface user undertakes, at his own expense and at his own risk, to carry out subsurface use in accordance with the terms of the Contract and the Code.
2. The right of subsurface use in a subsurface area arises from the date of entry into force of the Contract.
3. Subject to compliance by the subsurface user with the provisions stipulated by the legislation of the Republic of Kazakhstan on subsoil and subsurface use and the Contract, the subsurface user has the right to mine uranium in the subsurface area.
Chapter 2. Term of the Contract
4. The term of the Contract specified in paragraph 5 of the Contract is determined by the period of pilot production and the period of production sequentially fixed in it, except in cases when, in accordance with the terms of granting the right of subsurface use and (or) the approved project document, pilot production is not required.
5. The contract is concluded for a period of ___ years and is valid until
"___" __________ _____ of the year.
Note: When concluding a Contract, the initial duration of the pilot production period is indicated on the basis of a notification from the Competent Authority on the conclusion of a subsurface use contract with a national uranium company.
If pilot production is not required, the Contract specifies the duration of the production period without allocating a pilot production period.
For subsequent extensions, clause 5 of the Contract specifies, in addition to the duration of the Contract, the duration of the production period.
The expiration date of the Contract is entered by the Competent Authority upon registration of the Contract (amendments to the Contract).
6. Before the end of the pilot production period, the subsurface user applies to the Competent Authority with an application for the consolidation of the production period or the return of the subsurface area. If the mining period is not fixed before the expiration of the Contract, the Contract is terminated.
7. The term of the Contract specified in clause 5 of the Contract may be extended by concluding additions to the Contract by the Parties in the cases, in accordance with the procedure and on the terms established by the Code as of the date of conclusion of the relevant addition to the Contract.:
1) in case of consolidation of the mining period;
2) in case of extension of the mining period.
8. The term of the Contract specified in clause 5 of the Contract may be extended by the Parties concluding an addendum to the Contract or redrafting it in the event of an extension of the mining period(s) for the subsurface area in accordance with the procedure and on the terms established by the Code on the date of such extension.
9. If the period of uranium production under the Contract is set for a period of at least twenty years, then upon extension of the production period, the terms of the Contract must be brought into line with the legislation of the Republic of Kazakhstan in force on the date of such extension.
10. The contract comes into force from the date of its registration with the Competent Authority.
11. The Contract extension period is calculated from the date of registration of the relevant addendum to the Contract, unless otherwise agreed by the parties.
Chapter 3. Boundaries of the subsurface area
12. The subsurface User performs uranium mining operations within the spatial boundaries of the subsurface area specified in the Annex to the Contract.
13. The transformation of a subsurface area is carried out in accordance with the procedure and on the grounds established by the Code, by concluding an addendum to the Contract.
14. The return of a part of the subsurface area is carried out in accordance with the procedure provided for by the Code, by concluding an addendum to the Contract.
Chapter 4. Rights of the Competent Authority
15. The competent authority has the right:
1) early termination of the Contract in the cases and in accordance with the procedure provided for in Article 163 of the Code;
2) require modification and (or) addition of the terms of the Contract in the cases and in accordance with the procedure provided for in Article 163 of the Code.;
3) to monitor the compliance of the subsurface user with the terms of the Contract in accordance with the procedure established in accordance with paragraph 1 of Article 66 of the Code.
16. Subject to compliance by the subsurface user with the provisions stipulated by the legislation of the Republic of Kazakhstan on subsurface and subsurface use and the Contract, the Competent Authority may, in the cases, in the manner and on the terms established by the legislation of the Republic of Kazakhstan on subsurface and subsurface use as of the date of conclusion of the relevant addendum to the Contract:
1) extend the term of the Contract in case the production period is fixed;
2) carry out the transformation of the subsurface area.
Chapter 5. Duties of the Competent Authority
17. The competent authority undertakes to:
1) ensure the protection and non-disclosure of confidential information (including geological, commercial and technological information) received from the subsurface user within the framework of the Contract, except in cases of transfer of such information to authorized state bodies in accordance with the procedure provided for by the legislation of the Republic of Kazakhstan;
2) not to interfere in the current operational and financial and economic activities of the subsurface user when conducting operations for the extraction of uranium, except in cases of state control (supervision), as well as situations related to the prevention of accidents, the elimination of threats to national security, life and health of the population or the environment.
Chapter 6. The rights of the subsurface user
18. Subject to compliance with the provisions stipulated by the legislation of the Republic of Kazakhstan on subsoil and subsurface use and the Contract, the subsurface user has the right:
1) to use the subsurface resources within the allocated subsurface area for business purposes on a paid basis;
2) to construct on the territory of the subsurface area, and if necessary on other land plots provided to the subsurface user in accordance with the established procedure, industrial and social facilities necessary for carrying out work, as well as on the basis of contracts to use public facilities and communications both on the territory of the subsurface area and outside its limits;
3) appoint a Contract operator;
4) terminate subsurface use operations by returning the entire territory and a section of subsurface in accordance with the procedure and conditions established by the Code.;
5) during the period of pilot production, carry out the development, approval and conduct of examinations of the deposit development project provided for by the Code, as well as pilot production of uranium at the subsurface site in accordance with the approved by the subsurface user and the positive conclusions of the examinations provided for by the Code and other laws of the Republic of Kazakhstan of the project of pilot production;
6) during the mining period, carry out uranium mining, as well as carry out additional exploration of the mining site in order to clarify the geological structure and reserves of the uranium deposit in accordance with the project for the development of the deposit approved by the subsurface user and having received positive conclusions provided for by the Code and other laws of the Republic of Kazakhstan.;
7) submit applications for the consolidation of the mining period;
8) apply for an extension of the mining period;
9) submit applications for the transformation of a subsurface area;
10) to extract uranium and other associated minerals from productive solutions containing a useful component raised to the surface within a subsurface area without obtaining a permit for special water use in accordance with the water legislation of the Republic of Kazakhstan, subject to compliance with the requirements of the environmental legislation of the Republic of Kazakhstan. At the same time, productive solutions raised to the surface during the underground leaching process associated with operations for the extraction of mineral raw materials do not relate to the extraction of groundwater if these solutions, after extracting uranium and other associated minerals from them, are pumped into the subsurface in the same volume.;
11) conclude an agreement on stimulating entrepreneurship in the field of uranium mining on a voluntary basis, aimed at supporting local producers in accordance with Article 28-1 of the Code.
19. The subsurface User has the right to disagree with the legality of early termination of the Contract by the Competent Authority in court within two months from the date of receipt of the relevant notification.
Chapter 7. Obligations of the subsurface user
20. The subsurface user is obliged to use the subsurface area only for the purposes stipulated in the Contract.
21. Upon the expiration of the Contract period specified in clause 5 of the Contract, the subsurface user is obliged to terminate any subsurface use operations, with the exception of operations related to the conservation or liquidation of technological facilities and the consequences of subsurface use.
22. In case of discovery of geological, geomorphological and hydrogeological objects representing, in accordance with the legislation of the Republic of Kazakhstan in the field of specially protected natural territories, special ecological, scientific, historical, cultural and recreational value, the subsurface user is obliged to immediately stop work on the subsurface area and notify the authorized body for the study of subsurface and the authorized body in the field of environmental protection in writing. Wednesday.
23. During the production period, starting from the second year, the subsurface user must annually:
1) to carry out in accordance with the procedure approved in accordance with subparagraph 1) paragraph 1 of Article 178 of the Code, financing the training of Kazakhstani personnel in the amount of one percent of the mining costs incurred by the subsurface user during the period of uranium mining following the results of the previous year;
2) to carry out in the manner determined in accordance with subparagraph 2) paragraph 1 of Article 178 of the Code financing of scientific research, scientific, technical and (or) development work, and (or) digitalization projects in the field of uranium mining, in the amount of one percent of the mining costs incurred by the subsurface user during the period of uranium mining following the results of the previous year;
3) to finance the socio-economic development of the region and the development of its infrastructure in the amount of one percent of the investments under the Contract during the period of uranium mining based on the results of the previous year in accordance with subparagraph 3) paragraph 1 of Article 178 of the Code.
Financing of expenses for the socio-economic development of the region and the development of its infrastructure includes the expenses of the subsurface user for the development and maintenance of social infrastructure facilities in the region, as well as funds transferred to the state budget for these purposes.
24. The purchase of goods, works and services used in uranium mining operations is carried out by the subsurface user and his contractors (with the exception of subsurface users who purchase goods, works and services in accordance with the legislation of the Republic of Kazakhstan on public procurement, as well as legal entities with the right to subsurface use, fifty percent or more of voting shares (participation interests) which are owned directly or indirectly by the national managing holding) in accordance with paragraph 1 of Article 179 of the Code.
25. The subsurface user is obliged to submit to the authorized body in the field of uranium mining annual (for one financial year) and medium-term (for five financial years) procurement programs for goods, works and services in accordance with the forms and in accordance with the procedure established in accordance with paragraph 6 of Article 179 of the Code.
26. The subsurface User is obliged to provide the reports stipulated by the Code and clause 51 of the Contract.
27. When conducting uranium mining operations, the subsurface user is obliged to give preference to Kazakhstani personnel. The minimum share of in-country value in personnel should be __% for managers and their deputies, __% for heads of structural divisions, __% for specialists and __% for skilled workers.
At the same time, the number of managers, managers and specialists working in the territory of the Republic of Kazakhstan as part of an internal transfer in accordance with the legislation of the Republic of Kazakhstan on employment and migration of the population should be no more than fifty percent of the total number of managers, managers and specialists in each relevant category. The calculation of the share of in-country value in personnel is carried out in accordance with the methodology for calculating the share of in-country value in personnel, approved in accordance with paragraph 1 of Article 28 of the Code.
28. The subsurface user is obliged to ensure equal working conditions, including remuneration for Kazakhstani personnel in relation to the foreign personnel involved.
The subsurface user is obliged to ensure annual salary indexation for Kazakhstani personnel not lower than the inflation rate published by the authorized organization.
29. The share of domestic value in works and services purchased for conducting subsurface use operations must be at least ____ percent of the total volume of purchased goods during the calendar year.
The share of domestic value in goods purchased for subsurface use operations must be at least ___ percent of the total volume of purchased goods during the calendar year.
The calculation of the share of domestic value in goods, works and services is carried out in accordance with the unified methodology for calculating domestic value in the procurement of goods, works and services, approved in accordance with paragraph 2 of Article 28 of the Code.
30. The subsurface user is obliged to notify the Competent Authority of a change in the composition of persons and (or) organizations directly or indirectly controlling the activities of the subsurface user within thirty calendar days from the date of such change.
31. The subsurface user is obliged, at his own expense, to eliminate the consequences of subsurface use operations in the subsurface area in the cases and in accordance with the procedure established in accordance with paragraph 1 of Article 177 of the Code and paragraph 4 of Chapter 8 of the Contract. Termination of the Contract does not entail termination of the obligations of the subsurface user to eliminate the consequences of subsurface use.
32. The subsurface user is obliged to provide security for the fulfillment of its liquidation obligations. The fulfillment of the obligation to eliminate the consequences of uranium mining is secured by a bank deposit, in accordance with the procedure and on the terms established by the Code. The provision of such collateral does not release from the fulfillment of the obligation to eliminate the consequences of subsurface use.
33. The subsurface user annually replenishes the bank deposit to the amount ensuring the fulfillment of obligations to eliminate the consequences of mining, calculated according to the formula specified in clause 34 of the Contract.
34. The annual calculation of the amount ensuring the fulfillment of obligations to eliminate the consequences of mining is carried out according to the formula (1):
where:
T ☐ is the amount of funds that ensures the fulfillment of obligations to eliminate the consequences of mining for the current year.;
n is the current year.;
k₁ is the cost of work on the liquidation of a geotechnological landfill, calculated using the formula (2);
k₂ – the cost of work on the liquidation of the processing complex, auxiliary industries and administrative and household complexes according to the Plan/The liquidation project;
R☐ is the planned volume of uranium production in tons for the remaining term of the Subsoil Use Contract (starting from year n) according to the pilot production project or the field development project.
K₁ = (Cpl/ Vpl) x Vₙ₋₁
(2),
where:
Cpl is the estimated cost of the liquidation of the constructed facilities of the geotechnological landfill in accordance with the Plan./The liquidation project;
Vpl is the amount of uranium reserves in tons repaid on the date of calculation of the estimated cost according to the Plan./The liquidation project;
V ☐₋₁ is the total amount of uranium reserves in tons repaid at the end of the year n-1.
35. If, for reasons beyond the control of the subsurface user, the security provided by him has ceased to comply with the requirements of the Code or has ceased, the subsurface user is obliged to replace such security within sixty calendar days. If such a replacement is not carried out by the subsurface user within the specified period, the latter is obliged to immediately suspend subsurface use operations. The resumption of subsurface use operations is allowed only after the restoration or replacement of collateral.
36. In cases stipulated by the Code, the subsurface user is obliged to carry out the conservation of the subsurface area within the time limits set in the conservation project.
Chapter 8. Conditions for conducting subsurface use operations
Paragraph 1. General Terms and Conditions
37. Subsurface use operations must comply with the requirements of the legislation of the Republic of Kazakhstan, including in the field of industrial safety, the use of atomic energy and environmental protection.
38. Uranium mining operations must be carried out in accordance with a pilot production project and (or) a field development project approved by the subsurface user and which has received positive conclusions from the examinations provided for in the Code.
39. The types, composition and requirements for the content of project documents required for conducting relevant subsurface use operations are determined in accordance with paragraph 4 of Article 182-1, paragraph 1 of Article 183 and paragraph 3 of Article 184 of the Code.
40. The State has a priority right over any persons and organizations, including persons and organizations that have preferential rights on the basis of the laws of the Republic of Kazakhstan or an agreement, to acquire the alienated right of subsurface use (shares in the right of subsurface use) for a strategic subsurface area, objects related to the right of subsurface use for a strategic subsurface area, as well as those put into circulation for an organized securities market for stocks and other securities that are objects related to the right of subsurface use in a strategic subsurface area.
41. In cases stipulated by the Code, the authorized body for the study of subsurface resources has the right to disclose geological information contained in geological reports and other documentation received by government agencies in accordance with the Code by publishing it or making it publicly available.
42. Subject to the provisions provided for in Article 24 of the Code, when conducting subsurface use operations, the subsurface user undertakes not to prevent other persons from freely moving within the territory of the subsurface area, using public facilities and communications, unless this is associated with special safety conditions and such activities do not interfere with the conduct of subsurface use operations.
Paragraph 2. Protection of the subsoil and the environment, rational and integrated use of the subsoil
43. The mandatory conditions for uranium mining are:
1) ensuring the protection of the subsoil;
2) rational and economically efficient use of subsurface resources based on the application of the best, high technologies and good practices of subsurface use;
3) compliance with the requirements of industrial safety and environmental legislation of the Republic of Kazakhstan.
44. The subsurface user is obliged to ensure the organization of monitoring of the state of the subsurface and control over the development of the deposit.
Paragraph 3. Taxation
45. The calculation of tax liabilities for taxes and other mandatory payments to the budget for activities carried out under the Contract is carried out in accordance with the tax legislation in force at the time of the obligation to pay them. The fulfillment of tax obligations under activities carried out under the Contract does not exempt the subsurface user from fulfilling the tax obligation to carry out activities in the Republic of Kazakhstan that go beyond the scope of the Contract, in accordance with the tax legislation of the Republic of Kazakhstan in force on the date of the tax obligation.
46. The amount of the subscription bonus paid by the subsurface user prior to the conclusion of the Contract in accordance with the bank order no. _____ from
"__" ______ 20__ year, is _____ (specify the amount in tenge).
Paragraph 4. Elimination of consequences of subsurface use and conservation of a subsurface area
47. The consequences of subsurface use are eliminated:
1) in a subsurface area, the right of subsurface use for which has been terminated, with the exception of the cases provided for in subparagraphs 2) and 3) of paragraph 4 of Article 164 of the Code;
2) in a subsurface area (part of it), which the subsurface user intends to return to the state in accordance with the procedure provided for in Article 170 of the Code.
48. The fulfillment by the subsurface user of the obligation to eliminate the consequences of subsurface use is secured by a bank deposit.
49. The transfer of the right of subsurface use is an unconditional basis for the renewal (transfer) of the rights to the pledged bank deposit.
50. The conservation of a subsurface area is carried out in cases and in accordance with the procedure established by the Code.
Paragraph 5. Accounting and reporting
51. The subsurface user undertakes to keep records of ongoing subsurface use operations and provide the following reports:
1) Geological report;
2) the report of the Competent Person on reserves, prepared in accordance with the Kazakhstan Code of Public Reporting on Exploration Results, Mineral Resources and Mineral Reserves (KAZRC Code);
3) report on the fulfillment of contractual conditions;
4) a report on the operations carried out for pilot production of uranium and their costs;
5) a report on the uranium mining operations performed and their costs;
6) Report on the in-country value in personnel;
7) report on the costs of financing the training of Kazakhstani personnel;
8) a report on expenses for research, scientific, technical and development work;
9) Uranium mining report;
10) a report on the purchased goods, works and services, as well as the amount of in-country value in them;
11) a report on the composition of persons and (or) organizations directly or indirectly controlling the subsurface user.
The reports provided for in subparagraphs 1) and 2) of this paragraph of the Contract shall be submitted to the authorized body for the study of subsurface resources in accordance with Article 180 of the Code.
The reports provided for in subparagraphs 3) to 5) of this paragraph of the Contract shall be submitted to the Competent Authority in accordance with Article 180 of the Code.
The reports provided for in subparagraphs 6) – 11) of this paragraph of the Contract shall be submitted to the authorized body in the field of uranium mining in accordance with Article 180 of the Code.
52. The subsurface user undertakes to:
1) provide the necessary documents, information and ensure unhindered access to places of work for officials of the regulatory authorities of the Republic of Kazakhstan when performing their official duties in accordance with the legislation of the Republic of Kazakhstan;
2) upon a written request from the Competent Authority, submit for verification documentation confirming the work performed and expenses for subsurface use, no later than twenty working days from the date of receipt of such request.;
3) submit to the Competent Authority reports provided for by the Extractive Industries Transparency Initiative standard in the form and in accordance with the procedure approved in accordance with paragraph 3 of Article 76 of the Code, and confirmed by a person who is an auditor in accordance with the Law of the Republic of Kazakhstan "On Auditing".
Paragraph 6. Transfer and encumbrance of the right of subsurface use and objects related to the right of subsurface use
53. The right of subsurface use for extraction (a share in the right of subsurface use) granted to a national uranium company on the basis of direct negotiations may be transferred only to a legal entity in which more than seventy-five percent of the shares (participation interests) are owned directly or indirectly by the national uranium company.
54. In any subsequent transfer, such a legal entity has the right to transfer the obtained right of subsurface use (a share in the right of subsurface use) only to a legal entity in which the national uranium company directly or indirectly owns more than seventy-five percent of the shares (participation interests).
55. The transfer of the right of subsurface use (a share in the right of subsurface use) arising on the basis of a Contract, as well as the transfer of objects related to the right of subsurface use, is carried out with the permission of the Competent Authority in accordance with the procedure established by the Code.
56. The transfer of the right of subsurface use (a share in the right of subsurface use) is carried out by making changes to the Contract.
57. The transfer of the right of subsurface use to trust management is prohibited, except in cases where the requirement for transfer to trust management is established by the laws of the Republic of Kazakhstan.
58. Encumbrance of the right of subsurface use (shares in the right of subsurface use), as well as encumbrance of shares (shares in the authorized capital) of organizations directly or indirectly controlling the subsurface user, which are not prohibited by the Code, are carried out with the permission of the Competent Authority, issued in accordance with the procedure established by Article 45 of the Code.
Paragraph 7. Ownership of property and information
59. The uranium and other associated minerals extracted by the subsurface user during mining are the property of the subsurface user.
60. The property acquired by the subsurface user for conducting subsurface use operations is the property of the subsurface user.
61. The cases and procedure for the transfer of ownership of property upon termination of the right of subsurface use, as well as the rights and obligations to export property from the territory of a subsurface area are established by the Code.
62. The geological information obtained at the expense of the subsoil user's funds is privately owned (private geological information). Private geological information contained in geological reports and other documentation provided to government agencies in accordance with the procedure provided for by the Code is transferred to the State for indefinite possession and use.
Paragraph 8. Subsurface area and property upon termination of the right of subsurface use (Contract validity)
63. Upon termination of the Uranium Mining Contract, the Competent Authority notifies the subsurface user of one of the following decisions::
1) eliminate the consequences of subsurface use in such a subsurface area;
2) to carry out the conservation of the subsurface area;
3) transfer the subsurface area to the trust management of a national uranium company.
If the Competent Authority receives notification of the decision to eliminate the consequences of subsurface use in the subsurface area or to preserve the subsurface area for subsequent provision to another person, the subsurface user:
1) is obliged to terminate uranium mining operations in the subsurface area, with the exception of operations, the immediate termination of which is associated with the threat of emergency situations. Termination of such operations must be carried out within two months from the date of receipt of the notification.;
2) is obliged to immediately begin work on eliminating the consequences of subsurface use or conservation of a subsurface area in accordance with the requirements established by the Code immediately after approval and receipt of positive conclusions provided for by the Code of expertise of the liquidation or conservation project.;
3) has the right to remove the uranium extracted by him, as well as equipment and other property owned by him, within six months from the date of receipt of the notification. Equipment and other property not exported within the specified period are subject to liquidation or conservation in accordance with the requirements established by the Code.
64. In case of receiving a notification from the Competent Authority about the decision to transfer the subsoil plot to the trust management of the national uranium company, the subsoil user:
1) is obliged, within one month from the date of receipt of the notification, to transfer equipment and other property ensuring the continuity of the technological process and industrial safety in the subsurface area to the trust management of the national uranium company for a period until the transfer of property to a new subsurface user.
In the absence of the former subsurface user or his evasion from transferring property to the national uranium company, the Competent authority acts as his attorney in respect of such property and transfers it to the national uranium company in accordance with an act containing a list indicating the condition of the transferred property.;
2) has the right, within six months from the date of receipt of the notification, to export the uranium he has extracted, as well as equipment and other property that are his property, with the exception of the facilities specified in subparagraph 1) of this paragraph.
Chapter 9. Monitoring of compliance by the subsurface user with the terms of the Contract
65. Control over the compliance of the subsurface user with the conditions is carried out by the Competent Authority in accordance with the procedure established in accordance with paragraph 1 of Article 66 of the Code.
66. The monitoring of the fulfillment by the subsurface user of obligations under the Contract is carried out by the Competent Authority through the analysis of reports submitted by the subsurface user in accordance with the legislation of the Republic of Kazakhstan on subsurface and subsurface use, and information obtained from other sources in accordance with the legislation of the Republic of Kazakhstan.
Chapter 10. Responsibility of the subsurface user
67. Violation of the terms of conducting subsurface use operations provided for in Chapter 8 of the Contract in accordance with the Code, as well as other requirements of the legislation of the Republic of Kazakhstan, entails liability established by the laws of the Republic of Kazakhstan.
68. The following types of liability are provided for violation by a subsurface user of the obligations stipulated in Chapter 8 of the Contract:
1) a penalty in the amount corresponding to:
a certain number of monthly calculation index (MCI), established in accordance with the Law of the Republic of Kazakhstan "On the Republican Budget" on January 1 of the corresponding year;
as a percentage of the amount of outstanding obligations during the reporting period;
a percentage of the violation amount.
2) early termination of a Subsurface Use Contract by the Competent Authority unilaterally, carried out in the cases and in the manner provided for in Article 163 of the Code.
At the same time, payment of the penalty does not release the subsurface user from fulfilling the corresponding obligation.
69. The competent authority shall notify the subsurface user in writing of the violation of the terms of the Contract, as well as of his obligation to pay the penalty and (or) eliminate such violation within the prescribed period in the following cases:
1) failure to submit or knowingly unreliable reports provided for in paragraph 51 of the Contract;
2) the fulfillment by the subsurface user of the financial obligations stipulated in the Contract by less than thirty percent for the reporting year;
3) conducting uranium mining operations related to violation of the integrity of the earth's surface, without forming the amount of collateral in accordance with the established schedule or in violation of the schedule for forming the amount of collateral;
4) in other cases of violation by the subsurface user of the obligations established by Chapter 7 of the Contract.
70. The deadline for eliminating the violation by the subsurface user of the terms of the Contract specified in subitems 1), 2) and 3) of clause 69 of the Contract is three months, and for other obligations stipulated in Chapter 7 of the Contract, one month from the date of receipt of the written notification.
71. The subsurface user is obliged to eliminate the violation within the time period specified in the notification and notify the Competent Authority in writing, accompanied by documents confirming the elimination.
72. The subsurface user has the right to send to the Competent Authority a proposal to extend the deadline for eliminating violations of obligations stipulated in the Contract, explaining the reasons for such extension. Based on the results of consideration of the proposal to extend the deadline for the elimination of violations, the Competent Authority, within ten working days from the date of its receipt, notifies the subsurface user of the consent to extend the deadline or provides a reasoned refusal to such extension.
73. If it is obviously impossible to eliminate the violation of obligations stipulated in the Contract within the time period specified in paragraph 70 of the Contract, the Competent Authority has the right to establish another time period during which it is possible to eliminate such violation.
74. The subsurface user is liable in the form of payment of a penalty for non-fulfillment, improper fulfillment of the following obligations assumed by him:
1) for non–fulfillment of obligations on domestic value in goods, works and services - in the amount of 10% of the amount of obligations not fulfilled during the reporting period for each quarter of non-fulfillment;
2) for non–fulfillment of obligations on the domestic value in personnel in any of the reporting quarters of the corresponding year - in the amount of 10,000 MCI, for each such quarter;
3) for non–fulfillment or improper fulfillment of financial obligations stipulated in the Contract - in the amount of 10% of the amount of the obligation not fulfilled during the reporting period;
4) for violation of the obligation by the subsurface user and (or) his contractors to comply with the procedure established by the Code for the purchase of goods, works and services during uranium mining operations – in the amount of 10% of the amount of purchased goods, works and services with a violation committed in the form of:
purchase of goods, works and services in ways not provided for by the procedure for the purchase of goods, works and services during uranium mining operations, as well as in violation of the requirements for choosing the purchase method;
preparation of tender documentation in violation of the requirements of the procedure for the purchase of goods, works and services during uranium mining operations;
establishing requirements for potential suppliers that are not provided for by the procedure for purchasing goods, works, and services during uranium mining operations;
unjustified rejection and/or unjustified admission of bids from potential suppliers;
conclusion of a contract in violation of the requirements of the procedure for the purchase of goods, works and services during uranium mining operations;
purchase of goods, works and services using a single source method in violation of the requirements of the procedure for the purchase of goods, works and services during uranium mining operations.
Note: when concluding a Contract with a legal entity with fifty or more percent of the shares (participation interests) owned directly or indirectly by the national managing holding, as well as for subsurface users purchasing goods, works and services in accordance with the legislation of the Republic of Kazakhstan on public procurement, this subparagraph does not apply.;
5) for non–provision or late provision of programs, information and reports in accordance with paragraphs 25 and 26 of the Contract - in the amount of 2,000 MCI for each reporting period according to the deadlines of programs, information and reports;
6) for non-sending or late sending of notifications in accordance with:
Clause 22 of the Contract – in the amount of 2,000 MCI;
Clause 30 of the Contract – in the amount of 5,000 MCI.
75. The competent authority has the right, on the grounds provided for by the Code, to terminate the Contract unilaterally ahead of schedule.
76. The competent authority has the right, on the grounds provided for in the Code, to request changes and (or) additions to the terms of the Contract.
77. For violation of the obligations of the Contract, the subsurface user may be held liable within the time limits provided for by the legislation of the Republic of Kazakhstan.
Chapter 11. The Irresistible Force
78. Neither Party will be liable for non-fulfillment or improper fulfillment of any obligations under the Contract if such non-fulfillment or improper fulfillment is caused by force majeure circumstances.
79. Force majeure circumstances include circumstances that are extraordinary and unavoidable under these conditions, such as military conflicts, natural disasters, natural disasters (fires, etc.). This list is not exhaustive.
80. In the event of force majeure circumstances, the Party affected by them shall immediately notify the other Party by handing over or mailing a written notice specifying the start date and description of the force majeure circumstances.
81. In the event of force majeure circumstances, the Parties shall immediately hold a meeting to find a solution to the current situation and use all means to minimize the consequences of such circumstances.
82. The term of the Contract is extended by the Competent Authority for the duration of force majeure circumstances, if the subsurface user provides evidence of such circumstances in accordance with the legislation of the Republic of Kazakhstan.
Chapter 12. Confidentiality
83. Information received or acquired by the Parties during the performance of the Contract is confidential and is subject to protection in accordance with the civil legislation of the Republic of Kazakhstan, except in cases established by the Code. The Parties may use confidential information to compile the necessary reports provided for by the legislation of the Republic of Kazakhstan.
84. The Parties have no right to transfer confidential information to third parties without the consent of the other Party, except in the following cases::
1) if such information is used in the course of conducting court proceedings;
2) when information is provided to third parties providing services to a subsurface user, provided that such third party undertakes to treat such information as confidential and use it only for purposes established by the Parties and for a period determined by the Parties;
3) when information is provided to a bank or other financial institution from which the subsurface user receives financial resources, provided that such bank or other financial institution undertakes to treat such information as confidential and use it only for the specified purposes;
4) when information is provided to officials of the regulatory authorities of the Republic of Kazakhstan in the performance of their official duties;
5) other cases stipulated by the legislation of the Republic of Kazakhstan.
85. The confidentiality provisions provided for in this Chapter are valid for the period specified in clause 5 of the Contract, unless otherwise provided by the Code or the agreement of the Parties.
86. Information on the fulfillment of contractual obligations in terms of domestic value, on the planning and conduct by the subsurface user of purchases of goods, works and services, on the costs of training Kazakhstani specialists and on the amount of expenses for research, scientific, technical and development work in the territory of the Republic of Kazakhstan, as well as on the socio-economic development of the region and The development of its infrastructure is not considered confidential.
Chapter 13. Dispute resolution procedure
87. Disputes related to the exercise, modification or termination of the right of subsurface use are resolved through negotiations (pre-trial dispute settlement).
88. Notifications sent by the Competent Authority in accordance with the Code and the Contract are recognized as pre-trial dispute resolution.
89. If disputes related to the implementation, modification or termination of the Contract cannot be resolved within six months through negotiations, such disputes are subject to resolution in accordance with the legislation of the Republic of Kazakhstan.
Chapter 14. Modification and termination of the Contract
90. Amendments and additions to the Contract are formalized by an addendum to the Contract, concluded in the cases, in the manner and on the terms established by Article 37 of the Code.
Such an addition is an integral part of the Contract. Additions to the Contract are subject to registration with the Competent Authority.
91. The Subsurface Use Contract is terminated in the cases and in the manner prescribed by the legislation of the Republic of Kazakhstan on subsurface and subsurface use as of the date of conclusion of the Contract, with the exception of the provisions provided for in paragraphs 32, 36, 65 of the Contract, which remain in effect until the Parties fully fulfill their obligations.
92. The competent authority has the right to terminate the Subsoil Use Contract prematurely on the grounds provided for in the Code.
93. From the date of termination of the Contract, the right of subsurface use is terminated, and the subsoil plot, fixed in accordance with the form specified in the Annex to the Contract, is returned to the state.
Chapter 15. Final provisions
94. The applicable law under the Contract is the law of the Republic of Kazakhstan.
95. The law of the Republic of Kazakhstan applies to transactions on the transfer of the right of subsurface use.
96. Russian Russian version of the contract is drawn up in the state and Russian languages, with one copy in the state and Russian languages for each of the parties. All the instances are identical.
97. By agreement of the Parties, the text of the Contract may also be translated into another language.
98. The Parties agree that the state and/or Russian languages will be used as the languages of communication.
99. Technical documentation and information on conducting subsurface use operations under the Contract are drawn up in the state and (or) Russian languages.
100. The Parties are notified through written notices and/or publications in periodicals distributed throughout the territory of the Republic of Kazakhstan, as well as through posting on the Internet resource of the relevant government agency.
101. In case of a change in the postal address under the Contract, each of the Parties is obliged to provide a written notification to the other Party within seven days. A Party that has not fulfilled the requirement provided for in this paragraph shall lose the right to refer to the failure to receive notifications from the other Party.
102. All appendices to the Contract are considered as its integral parts. If there are any discrepancies between the provisions of the annexes and the Contract itself, the provisions of the Contract shall prevail.
103. The definitions and terms used in the Contract have the meanings defined for them in the Code and (or) in the relevant regulatory legal acts of the Republic of Kazakhstan.
104. The relations of the Parties, their rights and obligations, which are not regulated by the Contract, are regulated by the legislation of the Republic of Kazakhstan in force on the date of their occurrence.
105. This Contract is concluded ________ (day), _______ ( month) 20___ of the year in ___________ ( Republic of Kazakhstan), authorized representatives of the Parties.
106. Legal addresses and signatures of the Parties:
Appendix to the Standard Uranium Mining Contract
Form
Spatial boundaries of the subsurface area
Name of the region.
The name of the deposit.
The angular coordinates of the subsurface area.
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