Mining industry

In every country, mining industry is one of the principal and strategically significant branches of economics. Its development influences both energy and metallurgy sectors, as well as chemical and automotive industries.

One of the principal legislative acts that govern mining industry is the Code of Ukraine on Subsoil dated 17 July 1994 (hereinafter referred to as the “Code on Subsoil”). The Code on Subsoil regulates mining industry with the aim to ensure reasonable and complex usage of subsoil in order to satisfy the demand in mineral raw materials and other needs of social production, subsoil protection, to guarantee safety for people, property and environment in the process of using subsoil, as well as to protect rights and legitimate interests of enterprises, institutions, organisations and citizens.

According to the Code on Subsoil, subsoil is a part of Earth crust, which is situated under the surface of dry land and water body bottom and reaches to the depths accessible for geological exploration and development. it should be noted that subsoil can be allocated only for permanent or non-permanent use.

Enterprises, institutions, organisations and citizens of Ukraine, as well as foreign individuals and legal entities are allowed make use of subsoil with the following purposes:

• geological exploration, including experimental-industrial development of mineral deposits that are of national importance;
• mining operations;
• construction and operation of underground structures, which are connected with the minerals extraction, including structures for subsurface storage of oil, gas and other substances and materials, burial of hazardous substances and production residue and sewage disposal;
• establishment of geological territories and objects that have important scientific, cultural, sanitary and health-improving significance (scientific grounds, geological reserves, preserves, natural monuments, patient care and health-improving institutions etc.);
• meeting of other requirements and demands.

The Code on Subsoil stipulates terms and procedures for the acquisition of various licences and permits for subsoil use and mining lease. This regulatory act also governs the issues related to subsoil use payments, geological exploration of subsoil, design, construction and commissioning of mining facilities, use of subsoil for mineral deposits development, state administration of the sphere etc.

Geological exploration, use and protection of subsoil are administered at the level of state by the Cabinet of Ministers of Ukraine, the Ministry of Environmental Protection of Ukraine, the State Committee of Ukraine for Geology and Subsoil Use, the State Committee of Ukraine for Occupational Safety Supervision, the Cabinet of Ministers of the AR Crimea, other state authorities, local councils of people’s deputies and local executive authorities according to the legislation of Ukraine.

Mining industry is also governed by the “Mining Law of Ukraine” dated 16 October 1999, which establishes legal and organisational basis for mining operations, emergency protection of delfts, mining establishments and organizations.

The abovementioned regulatory act covers legal relationship regarding delfts, which are engaged in exploration, development, production and processing of minerals, as well as mining operations, construction, liquidation or closedown of delfts, research engineering, accident elimination within the territory of Ukraine, its continental shelf and exclusive (sea) economic zone, regardless of their ownership and subordination, as well as enterprises, institutions, organisations and citizens of Ukraine, foreign individuals and legal entities and apatrides.

Mining Law of Ukraine regulates preparation activities for mining operations and minerals extraction, delfts operation, mining environmental safety, peculiarities of work in mining industry, cease of delfts activity etc.

Apart from the abovementioned legislative acts, the following laws of Ukraine govern mining industry: “On Environmental Protection”, “On Rescue Services”, “On Civil Defence in Ukraine”, “On Labour Protection”, “On Enterprises in Ukraine”, “On Fire Safety”, “On Ensuring of Sanitary and Epidemic Well-Being of the Population”, as well as inter-industrial and industrial safety regulations, operational regulations, separate safety regulations for shooting operations.