Articles

Mining

2006, July. Contributor to “Mining in 28 Jurisdictions worldwide” (published by Law Business Research Ltd)
                   Victor Kipiani, Partner, Irakli Mgaloblishvili, Partner, David Archvadze, Senior Lawyer, Mariam Antia Associate

Mining Industry

1.What is the nature and importanca of the mining industry?
It has to be noted that mining has been one of the leading spheres of industry in Georgia for decades, due to the existence of a wide range of high-quality mines. Georgia mainly produces manganum, as well as copper concentrate and gold dore. There is an important coal mine in Tkibuli in western Georgia.

Legal and regulatory structure

2. Is the legal system civil or common law-based?
The legal system in Georgia is civil law-based.

3.How is the mining industry regulated?
The mining industry regulated solely on state level and is mainly regulatede by primary and secondary legislation.

:

  • Registry of Rights on Immovable Property - recording information on creation, amendment and termination of ownership rights and various obligations, such as lease, rent, servitude and right to build;
  • Registry of Public Restrictions on Movables, Immovable Property and Intangible Assets – recording information on liens and other restrictions by courts and other administrative bodies;
  • Registry of Tax Pledge/Mortgage - recording information on creation, amendment and termination of statutory pledge/mortgage over movables, immovable property and intangible assets arising out of tax liabilities.

4. What are the principal laws that regulate the mining industry? What are the principal regulatory bodies that administer those blaws?
The following laws regulate the issues related to the mining industry in Georgia:
The Law of Georgia on the Subsurface -setting out the main principles of licensing the usage of minerals, the main rights and respectiv duties of the producer, as well as main regulatory bodies in the field of mining
The Law of Georgia on Environmental Permits - which sets out the principles for issuing environmental permits, including those for the mining industry
The Law of Georgia on Licence and Permit Fees - which establishes fees for certain permits and licences
The Law of Georgia on Safety of Hazardous Industrial Objects - establishing the status and safety requirements of hazardous industrial objects

5. What classification system does the mining industry use for reporting  mineral resources and mineral reserves?
According to the Law of Georgia on the Subsurface, article 4, mineral reseves are divided into two groups: minerals of state sognbficance and those of local significance. The list of state, as well as of local types of minerals, is approved by the minister of environmental protection and natural resources.

                                                              


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