False claims? Ministry denies sale of Navoi mines to China

Social media has circulated claims that 31 mines in the Navoi region were sold to Chinese entities. The Ministry of Subsoil Use has provided clarification on the matter.

According to the ministry, in February of this year, 31 subsoil plots for gold prospecting were sold in Uzbekistan through the E-auction trading platform for a total of 25.1 billion soums. The winners of these electronic auctions were 12 LLCs registered in Uzbekistan. Some of these companies are fully owned by Uzbek citizens, while others have an average of 70% Uzbek ownership. No company that is fully owned by foreign citizens, including Chinese nationals, won any of the auctions.

As evidence, the ministry cited the ownership structure of two winning entities: "Xinlong Mining Drilling" LLC (70% Uzbek ownership) and "Zhonghuitong Mining" LLC (97.6% Uzbek ownership).

The Center for Subsoil Use emphasized that gold prospecting is an activity conducted at entrepreneurial risk, and industrial-scale mining in these plots is not economically viable. To ensure transparency, such plots are sold to entrepreneurs, allowing them to generate income. Both local and foreign investors working in these subsoil areas introduce new technologies, and equipment, and create jobs. Additionally, 49.5% of the revenue from gold sales is allocated to the local budget for regional development.

The center categorically denied claims that the mines were sold to Chinese companies.

For reference, subsoil usage permits are only granted to legal entities or citizens of Uzbekistan who have undergone state registration in the country, as per Article 32 of the Law "On Subsoil." These permits, issued for three years, do not grant ownership of the land. Permit holders are only authorized to extract minerals and are required to restore the land after mining operations.