Appendix 2
"Approved"
Order of the State Agency for Geology and Mineral Resources
under the Government of the Kyrgyz Republic
No. ____ dated _____
Terms of the public auction to grant the right of soils using on the specified site of Sredniy Chanach gold placer
Organizer of the auction in accordance with the Decree of the Kyrgyz Republic Government #834 dated December 14, 2012: the State Agency for Geology and Mineral Resources of the Kyrgyz Republic, the authorized State Authority.
1.1. The auction subject: Right to use the soils in order to perform geological exploration on the site of Sredniy Chanach gold placer
Site of Sredniy Chanach gold placer
1.2. Form of the auction: open.
1.3. Geographical location of the subsoil object:
The site of works at Sredniy Chanach gold placer is administratively located in the territory of Chatkal district, Jalalabad region.
The absolute altitude of the site is 2,110-2,400 m.
1.4. The location of the object:
Within the limits of the site of Sredniy Chanach fold placer for geological exploration.
Nomenclature of the topographic map sheet К-42-83, with the scale 1:100000.
№ / X / Y1 / 4632638 / 12686199
2 / 4632733 / 12687152
3 / 4632005 / 12687481
4 / 46320025 / 12686494
S = 0,673 км2
The area of the licensed site for geological exploration is 67.3 hectares.
2. Geological characteristics of the licensed site area
The area is relatively developed in the economic aspect. A motor road is passing along the Chatkal river. The distance to the power transmission line is 5 km, till the populated location – 20 km, till the railway – 150 km (Taraz) or 270 km (Namangan).
The absolute altitude of the area is 2,110-2400 m.
The site spreads in the middle part of Chanach gold placer, the width of the Chanach river valley reaches 50-100 m. The rock-defended terraces are widespread there, with excess of 8-10 meters above the flood plain level. The gold placer is a scattered embedded deposit in form of individual streams dissociated in section.
The placer’s stoniness does not exceed 15%, being in average 9.3%. Wash ability of the sands is light and medium, the clay component does not exceed 5-7%. This placer refers to the valley type deposits, dissociated with the modern bed. The placer morphology has the moraine type of formation, as confirmed by the similarity of mineral complexes, i.e. the predominance of skarn rock-forming minerals in the placer fraction of alluvial deposits.
As to this placer, the source of ablation is a group of skarn type ore occurrences in the upper reaches of the stream. Another feature of Sredniy Chanach placer is the presence of an intermediate collector - gold-bearing conglomerates of the Neogene - Ancient Quarternary age, which is typical for most placers of Chatkal district. With these conglomerates destructed, the metal falls in a free state into the modern placer. The site is located in a favorable economic conditions and is year-round accessible by vehicles.
3. Basic requirements for the subsoil use object.
3.1. Basic requirements for subsoil use object are specified in accordance with the legislation of the Kyrgyz Republic related to the subsoil use and should be included in the subsoil license. Detailed requirements are specified at registration of license in the licensed attachment.
3.2. The main requirements for the use of the licensed area are:
- Conclusion of a licensed attachment for the drafting of work designed to mining of licensed area;
- During the design the adjustment on the licensed area with the entering of the reserves on the state balance;
- submission, within the time specified in the licensed attachment period, of the operations plan designed to mining of licensed area, passed examination in respect of industrial, environmental safety and subsoil protection, as well as Certificate for temporary use of plot for subsoil use;
- Submission of semiannual information on progress of conditions of the licensed attachment until July 15 of this year;
- Submission of annual report till January 31 of the new year, in the prescribed form, approved by the authorized state body for the implementation of the state policy on subsoil use and on electronic media;
- Submission of program (plan) for the development of mining work until January 31 of the new year;
- Performance of all required types of mining operations in strict accordance with the project, which has been examined in the industrial, environmental safety and protection of mineral resources;
- Development of the Action Plan to ensure the requirements of industrial safety at work, including the prevention of accidents and their consequences localization with required justifications and calculations as at the site and as a result of accidents at other facilities in the area of location of the object. In developing these measures should be considered hazards (landslides, avalanche danger, etc.), risk factors, conditions for the occurrence of accidents and their scenario, the number and placement of production staff;
- Provide a report on the results of exploration work with graphic materials and the results of laboratory research;
- Technical and biological reclamation of disturbed soils in accordance with the design decisions which are passed examination for industrial, environmental safety and subsoil protection, and according to legislation of the Kyrgyz Republic.
In case of default by the auction winner in the future the main requirements for the use of subsoil object, then to it will be penalized at a rate of 0.1% per day of the paid value of the object subsoil by the subsoil user for each day of delay in the fulfillment of the commitments.
4. Time and place of the bidding: Auction will be held on October 23, 2015 at 12:00 o’clock in the building of Chatkal regional administration in the Chatkal region, Djalal-Abad oblast.
Registration for the bidding starts from 11-00 to 11-50 hours. Start of the bidding in 12-00 hours.
5. Deadline: Bids would be submitted from September 4, 2015 to October 19, 2015 inclusively, daily on working days from 9-00 hours to 15-00 hours by Licensing Department of the State Agency for Geology and Mineral Resources under the Government of the Kyrgyz Republic, office No. 225.
6. Place and time for familiarization with the terms and conditions of the bidding:
Licensing Department of the State Agency for Geology and Mineral Resources under the Government of the Kyrgyz Republic, office No.217, every day from 9:00 to 18:00 hours.
7. To participate in the bidding the bidder personally or by the authorized representative is submitting bid to the auctioneer till 15-00 hours of October 19, 2015, inclusively, in duplicate, in the form prescribed by the auctioneer and posted on the official website of the auctioneer: www.geology.kg.
Filing by mail is not allowed.
Auction participation application for subsoil use of objects should be filled by a computer approach in state and/or official languages, printed by electronic printers.
Bid should be attached by the following documents:
- Copies of the founding documents and the certificate of incorporation;
- A copy of the certificate of state registration of the citizen as an individual entrepreneur;
- A copy of the appointment of the executive body of the organization;
- Power of attorney to the representative, executed in accordance with the legislation of the Kyrgyz Republic, where a person would act by his representative;
- document evidencing of payment of the guarantee fee;
- A document confirming payment for tender fee;
- A foreign entity additionally submits legalized extract from the state register or other certificate that it is a valid legal entity under the laws of their country;
- companies registered in the Kyrgyz Republic, including subsidiaries of foreign companies registered in the Kyrgyz Republic, additionally submits a certificate of tax service on the absence of overdue tax debts.
Bid submission is considered as consent of the bidder with all the terms of the bidding.
Certificates and documents executed by the bidder, signed by an authorized person and stamped by bidder.
Copies of the documents should be submitted duly certified.
Constituent and other documents submitted by the foreign entity should be apostilled and submitted their notarized translation into the state and/or official languages.
All the above mentioned documents should be delivered to the auctioneer along with the bid.
Application materials received after the bid submission deadline would not be registered and returned to the bidder.
8. The successful bidder, who signed the minutes of the bidding results, pays all established under legislation payments to the budget of the Kyrgyz Republic.
9. The tender fee in amount of 10 000 (ten thousand) soms paid by the bidder to the special account of the auctioneer:
State Agency for Geology and Mineral Resources under the Government of the Kyrgyz Republic
Recipient: Oktyabrsky Treasurer’s Regional Office in Bishkek
Bank: Oktyabrsky branch of JSC “RSK Bank”, Bishkek
BIC: 129053
Settlement account: 1290534132810077
Client account: 4402032100002327
Details of payment: The State Geology Agency; payment for participation or the guarantee fee.
The fee for participation in the Auction is not refundable, except cancellation of the Auction, or whether the applicant withdraws its application prior to the Auction, or will not be admitted for participation in the Auction. Whether the fee shall be refunded, it is payable to the applicant within 30 banking days.
10. Guarantee fee in the amount of 1000 (one thousand) dollars, paid by the bidder in the national currency at the exchange rate of the National Bank of the date of transfer or guarantee fee to the special account of the auctioneer specified in paragraph 9 of this document.
Guarantee fee is refunded to the bidder/participant within 30 banking days from the date of signing of the final minutes of the meeting of the tender committee.
A bidder, who refused to sign the minutes of the tender as a successful bidder, is eliminated from the number of bidders. Contributed by him guarantee fee is not refundable.
11. The starting price of the auction subject is 1645 (one thousand six hundred and forty six) U.S. dollars.
12. Bid increment is set at 164 (hundred sixty four) U.S. dollars, the maximum increment- 16 450 (sixteen thousand four hundred and fifty) U.S. dollars.
13. The bidding is acknowledged as void in following cases:
1) In the absence of bids or if only one bid is submitted;
2) To participate in the bidding admitted only one bidder or no one is admitted;
3) To participate in the bidding, only one registered bidder or nobody is registered;
4) Bidders offered a price not higher than the starting price.
14. The successful bidder is the bidder who offered the highest price for the lot. On the day of the bidding, the successful bidder signs the minutes. Refusal of the successful bidder to confirm its results the same day (i.e. refusal to sign the minutes) or non-payment of his proposed price for subsoil use within five banking days after the signing of the minutes on bidding is deemed to be a waiver of subsoil license of object, the guarantee fee is not refundable.