The Prospector's Golden Path: How to Legally Mine Precious Metals in Uzbekistan

Publication date: 11.08.2025

Mining precious metals by prospecting in Uzbekistan is not just the romantic image of old gold rushes — it is a modern, clearly regulated type of entrepreneurial activity. Today, any resident of the country — whether an individual entrepreneur or a legal entity — can obtain a subsoil plot through an electronic auction and start mining gold, provided they follow the established rules.

From Idea to Gold Flake: The Prospector's Path

The country has a transparent system for granting rights to mine precious metals through prospecting.

Everything begins with E-auksion — an electronic trading platform where the state offers subsoil plots. The starting price for the right of use is 35 base calculation units (BCU) per hectare.

Only residents of Uzbekistan can access the auction. For legal entities, at least 70% of the share capital must belong to citizens of the country. The total area of plots for one subsoil user cannot exceed 20 hectares per year.

Mining Conditions

The permit is issued for 3 years with the possibility of a one-time extension for the same period. However, work must comply with the rules:

Use only gravity processing methods with small washing plants.
Do not use explosives, underground workings, or chemical reagents.
Follow safety regulations, environmental protection, and industrial safety norms.
Ensure that at least 70% of employees are citizens of Uzbekistan.

Even the depth of work is regulated: in placer zones, excavation is allowed down to bedrock using safe benching methods; in hard rock, no deeper than 2 m vertically (or up to 6 m with benches).

What to Do With the Extracted Gold

Raw material containing precious metals must be delivered to receiving offices, refining plants, or licensed jewelry factories.
The price is calculated using a formula that takes into account the gold content, recovery rate, and London Metal Exchange quotations, converted at the Central Bank of Uzbekistan exchange rate.

Payment is made to the prospector within three working days.

Liability and Control

Violation of license conditions may result in suspension or revocation of the right to use the plot. Grounds may include:

Failure to start work within three months after receiving the right.
Threats to life, health, or the environment.
Concealment of extracted gold or failure to deliver it within three months.
Systematic safety violations.

If the right is revoked, the plot is re-auctioned, and the subsoil user must carry out land reclamation.

Reclamation: Restoring Nature

After mining is completed, the prospector must restore the site: remove and replace the fertile soil layer, level the terrain, and stabilize slopes. This must be completed within three months. Reclamation projects are developed by the Cadastral Agency ("Uzdaverloyiha").

Prospecting in Uzbekistan is a combination of tradition and modern technology. Legislation makes the process as transparent as possible, and strict ecological and technical requirements protect nature. For those ready to work honestly and competently, the golden path is open.

Requirements and Conditions for Obtaining a Permit

№	Category	Condition / Requirement	Notes
1	Who Can Participate	Residents of Uzbekistan: • Individuals — citizens of Uzbekistan (IE) • Legal entities — ≥ 70% of share capital owned by citizens of Uzbekistan	Non-residents and foreign-controlled companies cannot participate
2	Area Limitation	Total area of plots — no more than 20 ha per year	Per applicant
3	Prohibition of Transfer	The permit and right of use cannot be transferred or divided among several persons	No exceptions
4	Plot Definition	Quarterly list of plots is approved by the Subsoil Use Center; inclusion possible by initiative of authorities, applicants, or "Uzbekzargarsanoat"	Placer plot size — up to 5 ha
5	Obtaining the Right	Participation through E-auksion. Starting price — 35 BCU per hectare	Price for partial hectare calculated proportionally
6	Validity Period	3 years, extension — another 3 years if conditions are met	Extension — one-time
7	Technical Restrictions	Only gravity processing with small washing plants and pumps is allowed	Underground workings, explosions, chemicals, and capital construction are prohibited
8	Depth Limitation	• Placer zones — down to bedrock with benches • Hard rock — up to 2 m (vertical) or up to 6 m (with benches)	Bench height ≤ 2 m, width ≥ 0.5 m
9	Ecology and Safety	Comply with subsoil, environmental, fire, and industrial safety norms	Violations may result in permit revocation
10	Personnel Requirement	At least 70% of employees must be citizens of Uzbekistan	Controlled by authorized bodies
11	Reclamation	Restore the site within 3 months after work completion	According to "Uzdaverloyiha" project
12	Gold Delivery	Mandatory delivery to receiving offices, refining plants, or licensed jewelry organizations	Sale within 3 months is mandatory
13	Price Determination	Formula considers metal content, recovery rate, LME quotations, and CB exchange rate	Settlement within 3 working days
14	Grounds for Revocation	Delay in starting work, violations of conditions, threats to ecology and life, failure to deliver gold, systematic violations	After revocation, the plot is re-auctioned

Procedure for Obtaining a Prospecting Permit

Step №	Stage	Actions	Terms / Notes
1	Plot Selection	Review the list of available plots approved by the Subsoil Use Center. If necessary, submit a proposal to include a new plot.	List approved quarterly; proposals reviewed within 1 month
2	Compliance Check	Ensure the applicant is a resident of Uzbekistan (for legal entities — ≥ 70% share capital owned by citizens) and does not exceed 20 ha per year limit.	Mandatory condition for participation
3	Auction Participation	Register on E-auksion, submit application for selected plot, participate in bidding.	Starting price — 35 BCU/ha; partial hectare priced proportionally
4	Winning the Auction	After winning, execute the protocol and prepare documents to obtain the permit.	Payment of the right-to-use cost
5	Land Lease Agreement	The permit serves as the basis for concluding a land lease agreement.	No rental fee charged
6	Receiving the Permit	The Subsoil Use Center issues the permit indicating plot boundaries, mining conditions, and restrictions.	Validity — 3 years, extension — one-time for 3 more years
7	Work Preparation	Within 3 months, notify local authorities, the Ministry of Ecology, and the industrial safety inspection about the start of work.	Failure to comply risks revocation
8	Mining Operations	Conduct mining only by permitted methods, comply with safety rules, environmental standards, and staffing requirements.	At least 70% of employees — citizens of Uzbekistan
9	Gold Delivery	Deliver mined raw materials to receiving offices, refineries, or licensed jewelry companies.	Price calculated by formula; payment within 3 working days
10	Reporting	Annual gold reserve report (by Feb 15), quarterly report on delivered metal (by the 10th of the following month).	Submit to inspection and Central Bank
11	Land Reclamation	After completion, restore the site within 3 months according to the Cadastral Agency project.	Mandatory for all users