Uzbekistan is taking significant steps to revamp its mining and geological sector, with the Minister of Mining and Geology, Bobir Islamov, announcing the development of a new law on subsoil during his address at the Verona Eurasian Economic Forum.
The minister emphasized the need to expedite geological exploration, an area that annually absorbs approximately $230mn in Uzbekistan. Geological exploration is crucial for shaping the raw material base of major enterprises like the Navoi Mining and Metallurgical Company (NMMC), Almalyk Mining and Metallurgical Combine (AGMK), and Uzmetkombinat.
To attract investors, Uzbekistan is actively working on establishing a transparent and stable legal framework in collaboration with the European Bank for Reconstruction and Development and international consultants from Boston Consulting Group. The new law on subsoil aims to provide clarity on investor opportunities, obligations, and operational procedures.
In addition to legal enhancements, Uzbekistan has adjusted tax rates to incentivize investment in geological exploration and mining. Tax rates for gold and copper have been reduced from 10% to 7%, tungsten from 10% to 2.7%, and uranium from 10% to 8%, attracting international companies to engage in these sectors.
Among the notable players in Uzbekistan's geological exploration and mining sector is the French company Orano Mining, which is conducting successful exploration activities. Moreover, Canadian juniors like B2Gold have also entered the Uzbek market.
Uzbekistan is also focusing on forming a raw material base for lithium, graphite, and ultra-pure aluminum deposits. Feasibility studies for these projects are expected by the year-end, aiming to leverage advanced processing technologies to extract essential metals for battery production.
Technological research into advanced copper processing is underway, with plans to produce ultra-thin copper foil, a vital component in battery manufacturing. The development of a copper cluster in Almalyk, spanning 138 hectares, is progressing, with the potential to host modern production facilities for processing strategic metals.
This initiative aligns with the Uzbek government's collaboration with the European Bank for Reconstruction and Development to promote investment in exploration and production while modernizing subsoil use regulations.
The efforts indicate Uzbekistan's commitment to fostering a robust mining and geological sector, attracting foreign investment, and expanding its role in the global mining industry.
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