Bureaucratic delays and opaque tenders are the main barriers to the development of domestic exploration in our time, Said Sultanov, one of the specialists of the new generation of the industry, believes.

NP continues the topic of the state of affairs in the geological industry of Kazakhstan, further development of Kazakhstan's subsoil and attracting investors to this area. In the previous issue, we noted that the geological database is outdated and contains information that was formed back in the USSR. Investors who are set up for serious investments would like to have updated data obtained using the latest technologies, such as aerial photography and 3D modeling.

But so far, despite the constant promises of the Committee of Geology for many years to create an accessible database, "who is still there" - it still does not exist. The head of the Kazakh exploration company Aurora Minerals Group LLP, Said Sultanov, told in an interview that today slows down the development of domestic exploration.

- There are several main barriers faced by companies and organizations in exploration at the present time in Kazakhstan. The first is the inefficient use of huge budgetary funds allocated for geological exploration of the subsurface. This is due to the lack of a clear strategy and cost planning. Without evaluating the effectiveness of the work, for which the same public money was spent, we will not get off the ground.

The state pays more attention to regional drilling operations, as well as exploration and evaluation work. In our opinion, it is enough for any investor to get up-to-date information on geophysical and geochemical research. And if necessary, they should be given the opportunity to conduct further exploration and additional exploration of both poorly studied territories and already evaluated sites. We are talking about attracting private investment within the framework of an exploration license.

- What prevents the government department from allowing investors to spend their money on exploration and additional exploration?

- The lack of a clear strategy and spending plan hinders, as I said above. It is important for us to stimulate private investment and actively cooperate with international partners. And what is the reality? Kazgeologia continues to participate in tenders for drilling operations and receive volumes without holding full-fledged tenders. There is a question about the transparency and fairness of the work distribution process, and as a result, we see that Kazgeologia, as a state-owned company, has advantages over others. This leads to a negative attitude from other market participants and potential investors.

- Then the specific question is: what should we do to change such uncompetitive conditions?

- Everything is simple and as old as the world: for fair competition and a favorable investment environment, basic control and competent regulation of the work distribution process are necessary. Against the background of plans and news about the merger of Kazgeologiya with Tau-Ken Samruk and the National Geological Survey, it is important to conduct an analysis in order to optimize the use of resources and guarantee efficiency for the industry.

- Just that?.. Will that be enough?

- No, of course not. Another serious obstacle is bureaucratic delays in obtaining permits and licenses, which directly affects companies and the desire of investors to invest in our economy. Judge for yourself: these procedures are characterized not only by difficulty, but also by exorbitant time costs, which significantly slows down and limits the work of companies. But the main commandment of business is "time is money." We must resolutely begin to simplify and accelerate the issuance of permits and licenses.

Bureaucracy arises where there is a shortage of qualified personnel. The Ministry must take urgent measures to create a staff of highly qualified specialists. The lack of such leads to a lack of competence and professionalism in solving important issues. Only competent and professional staff will be able to cope with processes of any complexity.

In addition, I would like to touch upon the topic of the introduction of new environmental standards. As you know, in 2021, a new Environmental Code was adopted, which provides for stricter standards when obtaining approvals and permits to start conducting exploration work. Of course, the introduction of environmental standards and strict regulations makes it possible to minimize the negative impact on nature and ensure sustainable use of resources while respecting environmental safety.

However, the procedure for obtaining permits has been extended for a long time and can take years. As a result, subsoil users lose time and money to obtain an environmental permit, which leads to a delay in the fulfillment of license obligations.

In recent years, Kazakhstan has adopted new versions of the Tax, Environmental and Subsoil Codes. But the lack of integration and constant changes in these codes create new difficulties for the work of subsurface users. Constant changes and additions require a revision of business strategies and adaptation to new conditions, which negatively affects the stability and predictability of doing business in the field of subsoil use. Without the integration of the adopted codes, without rules for monitoring and approving changes, there can be no question of an attractive investment climate in the field of subsurface use of the country.

- How to achieve the very integration and consistency that you are talking about?

- It would be good if the voice of business was heard by government agencies. We recognize and appreciate the active participation of the National Chamber of Entrepreneurs "Atameken" in supporting business in relations with government agencies. However, we are concerned that government agencies do not always make specific decisions after such meetings. They do not sign protocols and other documents containing the results of these meetings, which affects the effectiveness of the process and creates uncertainty for business. The removal of all the barriers I mentioned will help create a favorable investment and business environment in the geological industry of Kazakhstan and contribute to the development of exploration and the discovery of new deposits.

Kulpash Konyrova