Gov’t refutes claims of Chinese takeover in Navoiy mining sector

The Subsoil Use Center has denied reports that 31 mining sites in Navoiy were sold to Chinese entities. Officials clarified that the subsoil plots were auctioned in February through the 'E-auction' platform for 25.1 billion UZS, emphasizing that the sales complied with all relevant regulations.

According to Article 32 of the Law “On Subsoil,” permits for the right to use subsoil plots can only be granted to legal entities registered in Uzbekistan or Uzbek citizens.

Based on this requirement, 12 LLCs with legal status registered in Uzbekistan were declared winners in the electronic auctions. Some of these LLCs are fully owned by Uzbek citizens, while in others, approximately 70% of the founders are Uzbek citizens. Not a single LLC fully owned by foreign nationals, including Chinese citizens, won in the auction, the statement said.

For instance, among the winning business entities, the main founder of “Xinlong Mining Drilling” LLC holds 70% ownership, and the main founder of “Zhonghuitong Mining” LLC holds 97.6% ownership — both of whom are Uzbek citizens.

The permits granting the right to use subsoil plots are issued for a period of three years. These permits do not imply ownership of the land. Entrepreneurs are only allowed to extract minerals from the subsoil, rehabilitate the land damaged during the extraction process, and restore it to a usable condition for future purposes.

The permit holders are subject to several obligations imposed by the state. Specifically, the legal entities holding the permits must ensure that at least 70% of their workforce consists of Uzbek citizens.

Prospecting for precious metals is an entrepreneurial activity carried out at one’s own risk. Industrial-scale mining on these plots is not economically viable. Therefore, such land plots are sold to entrepreneurs in a transparent manner, allowing them to generate income. Local and foreign investors operating in the sold subsoil plots introduce new technologies and equipment into the industry and create new jobs.

Additionally, 49.5% of the revenue from the sale of extracted precious metals is allocated to the local budget of the region where the subsoil plot is located, contributing to the comprehensive development of those areas.

In today’s era of globalization, strengthening ties with China is considered a key driver in achieving economic progress, developing exports, modernizing the economy, expanding, and diversifying transit routes, the “Subsoil Use Center” concluded.

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