Subsoil use permits at auction: how Ukraine’s Geological Survey sells deposits

In Ukraine the subsoil belongs to the people, and it can be used — to extract minerals or explore a site — only with a special permit. The State Service of Geology and Subsoil of Ukraine sells such permits at open electronic auctions on Prozorro.Sale.

What is sold

A lot is a special permit to use a specific site or deposit: for mineral extraction or for geological exploration. In our database it is most often amber, as well as sand, clay, loam, limestone, groundwater, oil and gas. All lots are in the “Subsoil” catalogue; there are not many, but they are among the most expensive lots on Prozorro.Sale.

What the price consists of

• The starting price of the permit — bidding goes up from it.
• The cost of geological information — the winner separately pays for the package of geological information about the site. The amount is stated in the lot title and announcement.

On top of that there will later be subsoil rent, and costs for documentation, land and equipment. Work them out before the auction.

Who can take part

Companies and entrepreneurs who meet the requirements in the announcement can take part. Usually the application includes documents on the ownership structure and the ultimate beneficial owner; restrictions apply to persons connected with the aggressor state and persons under sanctions. The list of documents is in the announcement.

The winner’s obligations

A special permit is not just a right but also a set of duties. Together with the permit, an agreement on the terms of subsoil use is signed, with a work programme and deadlines. For extraction you will usually also need an environmental impact assessment, a land plot and a mining allotment — factor in the time and cost. If the terms are not met, the permit can be suspended or revoked.

How to check a site

• Check the location, area and mineral in the announcement and on the Geological Survey’s interactive maps.
• Assess access: roads, distance to customers, neighbouring land and settlements.
• Find out which reserves have been approved and how thoroughly the site has been explored — this determines further costs.
• For large projects, involve a geologist and a lawyer before applying.

How to take part

1. Register on one of the accredited Prozorro.Sale e-marketplaces.
2. Pay the registration fee and the guarantee deposit and submit an application with documents before the deadline shown on the lot page.
3. On auction day, raise the price online; whoever offers the most wins.
4. After winning — payment for the permit and the geological information, then receipt of the permit and the agreement within the deadlines in the announcement.

Subsoil sites currently accepting applications

New Geological Survey auctions take place several times a month. Save a filter — the radar will message you in Telegram as soon as a new site appears.

This is an overview for orientation, not legal advice. The binding terms of each auction are in its announcement and documents on prozorro.sale.