Mineral Resources Agency rejects UNM opposition party’s claims on mineral exploration licenses in Georgia’s south as a “lie”

The Agency on Tuesday responded to a statement released by the party that claimed the auction would cause "ecological disaster" as "hundreds of hectares of land are planned to be dug up" as part of the exploration of underground reserves. Photo: robburnettimages

Agenda.ge, 23 Aug 2022 - 19:02, Tbilisi,Georgia

The Georgian National Agency of Mineral Resources has rejected claims by the United National Movement political party over an auction announced for the license of mineral exploration in southern Georgian municipalities of Bolnisi and Marneuli as an “attempt to score political points and a lie”.

The Agency on Tuesday responded to a statement released by the party that claimed the auction would cause "ecological disaster" as "hundreds of hectares of land are planned to be dug up" as part of the exploration of underground reserves.

"We would like to explain to the public that the auction announced by the National Agency of Mineral Resources [...] involves a study of the reserves in specific territorial areas by the licensee, determination of the types and amount of minerals [therein] and presentation of a report to the state, with a five-year period defined for the work”, the state body noted. 

“Therefore, any “expert” expressing an opinion about plans for ‘hundreds of hectares of land to be dug up and an impending ecological disaster’ before these studies are even conducted, or before the report is prepared, is an attempt to score political points and a lie", the response also said.

The auction for the exploration was announced on March 30, with the starting price set at ₾3 million (about $1.08 mln). The license will be valid for 30 years, including the five years from the date it is issued for exploration of mineral resources and approval of the reserves, the Agency also explained.

"In addition, within five years from the entry into force of the license, in order to carry out exploration works, a total investment of at least $12 million equivalent in lari should be made, including an investment of at least ₾3 million for the exploration works, within 16 months from the date the license enters into force", the body noted.

The Agency also pointed out that the RMG Group company, mentioned as an "interested party" by the UNM party, was not among applicants for the auction.

The auction is scheduled to be closed on August 30, with information about participants kept confidential until the deadline.