Overview of the New Law of Uzbekistan “On Subsoil”

Publication date: 03.08.2025

On October 31, 2024, the new Law of the Republic of Uzbekistan “On Subsoil” (Law No. ZRU-987) was adopted, comprehensively regulating issues of ownership, use, and protection of subsoil. The law represents an important step in modernizing legislation, as it integrates international standards, principles of sustainable development, and modern approaches to the management of mineral resources.

The law governs relations arising from the ownership, use, and protection of subsoil. It does not apply to the regulation of land, water (except for industrial groundwater), forest, and air resources. Its main objective is to provide a legal framework for the sustainable development of mineral resources with the involvement of investment and the use of modern methods of regulating geological information.

Terminology and Key Concepts

For the first time, a comprehensive glossary has been systematically introduced into legislation:

Term	Definition
Subsoil	The part of the earth’s crust located below the soil layer, or in its absence — below the earth’s surface, the bottom of water bodies and watercourses, extending to depths accessible for geological study and development.
Subsoil Use	Types of activities related to geological study, exploration, and extraction of mineral resources, as well as the use of underground space for storage, disposal, construction, and other purposes.
Mineral Resources	Natural mineral formations of organic and inorganic origin in the subsoil, suitable for industrial use.
Subsoil User	A natural or legal person who has obtained authorization to use the subsoil in accordance with the established procedure.
Geological Study of Subsoil	A set of works aimed at identifying, assessing, and studying mineral deposits and other subsoil objects.
Extraction of Mineral Resources	The removal of mineral raw materials from the subsoil for processing or use.
Underground Space	A volume of subsoil used for placing structures, storage facilities, communications, and other objects without extracting minerals.
Subsoil Protection	A system of measures to prevent depletion, pollution, and destruction of subsoil, ensuring its rational use.
Permit for Subsoil Use	A document issued by an authorized body granting the right to conduct certain works in the subsoil under specified conditions.

Principles of Subsoil Use

The law enshrines the following principles: legality and stability, rationality, environmental safety, transparency, fairness, and good faith. These provisions reflect an orientation toward international standards and sustainable development.

Classification of Mineral Resources

Mineral resources are divided into basic (ore, radioactive, energy, hydrocarbons) and non-ore (mineral raw materials for chemical industry, construction materials, precious and semiprecious stones).

Ownership Rights

Subsoil and its wealth are the exclusive property of the state, which may grant them for use but they cannot be bought, sold, or inherited. At the same time, minerals extracted in accordance with the law belong to the subsoil users. Special attention is paid to the status of man-made mineral formations.

The state performs strategic management functions: from encouraging investment and organizing geological exploration to ensuring legality, environmental safety, and transparency.

Powers of Government Bodies

The law details the functions of each body — from approving subsoil protection rules and conducting environmental reviews to maintaining cadastres and reserving subsoil plots.

Authority	Key Powers
Cabinet of Ministers of the Republic of Uzbekistan	• Implementation of a unified state policy in subsoil use and protection. • Establishment of restrictions and prohibitions on subsoil use for national security and environmental protection. • Approval of state programs for development and reproduction of the mineral resource base. • Establishment of procedures for granting subsoil plots and maintaining the cadastre. • Approval of subsoil protection rules and procedures for artisanal mining. • Determination of rewards for deposit discoveries.
Ministry of Mining Industry and Geology	• Together with the Ministry of Energy and the Ministry of Ecology, implements state policy in subsoil use. • Coordination of industry development with other agencies. • Formation and implementation of annual state programs on the mineral resource base. • State control over geological study and rational extraction. • Development and approval of methodological documents. • Organization of the State Commission on Mineral Reserves. • Maintenance of the state balance of reserves.
Ministry of Energy	• Development and implementation of policy in the fuel and energy sector. • Regulation of extraction, processing, transportation, and use of hydrocarbons. • Participation in the development of terms for the use of hydrocarbon subsoil plots. • Coordination of conditions and participation in programs for resource base development.
Ministry of Ecology, Environmental Protection and Climate Change	• Participation in policy implementation in the field of subsoil use regarding environmental issues. • State environmental review of projects. • Issuance and revocation of permits for underground storage. • Development of environmental standards for subsoil use. • Environmental control and suspension of works in case of violations.
Inspectorate for Control in the Field of Mining and Geology	• State control of industrial safety in subsoil use. • Conducting inspections and audits. • Imposing sanctions, restricting, or suspending works. • Coordinating projects for compliance with industrial safety standards.
State Institution “Center for Subsoil Use”	• Maintenance of the state subsoil fund and cadastre. • Expertise of project documentation. • Issuance, extension, suspension, or termination of permits. • Maintenance of the cadastral square information database. • Coordination of reporting by subsoil users. • Development of an electronic map of subsoil plots.
Local Executive Authorities	• Participation in development and implementation of state and territorial programs for subsoil protection. • State control over subsoil use and protection at the local level.

Subsoil Cadastre System and Data Management

Chapter 3 of the Law defines the structure, principles of operation, and functions of the subsoil cadastre system, as well as the distribution of powers among state bodies. The main operator is the State Institution “Center for Subsoil Use,” acting within the state policy of development and reproduction of the mineral resource base.

The system consists of two key elements:

State Subsoil Fund Cadastre – a database of all subsoil plots, their boundaries, status, rights of use, and characteristics.
Register of Primary Geological Information – data obtained from geological exploration, including exploration results, reserve assessments, and technological parameters.

The cadastre is financed from the republican budget within the framework of annual state programs, and its operation is regulated by by-laws, allowing adaptation to modern technological standards.

Procedure for Obtaining Subsoil Use Rights

According to Chapter 4 of Law No. ZRU-987, subsoil can only be used with a permit issued by the authorized state body – the Center for Subsoil Use.

Key Stages:

Stage	Action	Responsible	Key Conditions/Requirements
1. Basis for Obtaining	Submission of an application for participation in a tender or auction (or, in exceptional cases, without bidding)	Applicant (legal or natural person)	Availability of technical and financial capacity, experience, and compliance with environmental norms
2. Review of Application	Verification of documents and compliance	Center for Subsoil Use	Analysis of compliance, assessment of planned works and environmental impact
3. Issuance of Permit	Decision to grant subsoil use rights	Center for Subsoil Use	Determination of type of permit (exploration or extraction), terms, and conditions
4. Use of Subsoil	Carrying out works within the permit	Subsoil User	Compliance with boundaries, safety, reporting, and payments
5. Extension	Submission of request for extension	Subsoil User	Proper fulfillment of obligations, absence of violations
6. Transfer of Rights	Transfer of permit to another person	Subsoil User & Successor	Only with consent of the Center; successor assumes all obligations
7. Suspension	Temporary termination	Center for Subsoil Use	Serious violations, threat to environment/safety, failure to report
8. Annulment	Termination of rights	Center for Subsoil Use	Systematic violations, failure to comply with orders, false data at issuance