Small-scale subsoil use: a new opportunity to start a business in the extractive sector under simplified conditions

The term “small-scale subsoil use” has recently appeared in Ukraine, but the possibility to obtain a special permit for subsoil use without an auction has long been used in European countries. 

Thus, “small-scale subsoil use” allows obtaining a special permit for subsoil use (hereinafter also referred to as a SP) without holding an auction.

We explain what requirements must be met to become a subsoil user and how to go through all the procedures.

As of today, new opportunities are opening up for small subsoil users in Ukraine. If you are the owner of a land plot and assume that it contains minerals of local importance and feel that you are ready to become a successful subsoil user, the new version of the Subsoil Code as of 28.03.2023 provides such an opportunity.

The current legislation allows for obtaining a SP without an auction for the purpose of geological exploration, including pilot commercial development of minerals of local importance with subsequent extraction of minerals (commercial development of deposits) of local importance, provided that the total area of the subsoil plot for which the subsoil use permit is granted does not exceed 25 hectares, and the applicant is the owner of the land plot (several adjacent land plots) within which such a subsoil plot is located.

What should be taken into account? 

• The SP is granted for a plot (plots) with an area not exceeding 25 hectares;
• The SP is granted for minerals of local importance (approved by the Cabinet of Ministers Resolution №1370). This list includes: raw materials for chemical soil ameliorants (limestone, gypsum, sapropel); raw materials for building lime and gypsum (gypsum, limestone, chalk); sand and gravel raw materials (sand); brick and tile raw materials (loam, sandy loam); other minerals not included in the List of Minerals of National Importance;
• Land plots must be privately owned by the subsoil user. Any other ownership options, such as lease agreements, easements, etc. are excluded.

What is required? 

In order to start operating in the extractive sector and obtain a SP without announcing an auction, you need to prepare the following: 

1. An explanatory note;
2. Situation plan of the territory;
3. Documents (a copy of the passport, registration number of the taxpayer’s account card);
4. Extract from the State Register of Real Property Rights;
5. Cadastral plans of the territory;
6. Additionally, the cadastral numbers of the land plots within which the subsoil plot for which the special permit for subsoil use is granted shall be submitted.

Documents for obtaining a SP for subsoil use are submitted through the electronic cabinet of the subsoil user.

The decision to grant or refuse to grant a SP is made within 25 working days from the date of receipt of the application together with all necessary documents.

The team of Geological Investment Group provides full support in the preparation and submission of documents for obtaining permits and reliable support for subsoil users throughout the entire period of activity.   

Learn more about how to obtain a special permit for subsoil use in Ukraine.