To do this, they need a reduction of the insurance burden, flexibility of the filling of the authorized capital and effective mediation in environmental matters

At a meeting of the committee of the mining and metallurgical industry of the National Chamber of Entrepreneurs "Atameken" were discussed the proposals for amendments to the existing legislation on mineral resources and the problematic issues in the field of insurance of workers against accidents at work, as well as the settlement of disputes on environmental payments.

Discussion of insurance had the greatest resonance among the participants of the meeting. In 2015, the law "On compulsory insurance of an employee against accidents while fulfilling job duties" was amended. Now indemnity associated with the loss of earnings of an employee in the case of the loss of employability from 5% to 29% degree is compensated by an employer, 30% to 100% - by the insurance company. Division of staff into categories has been excluded, such as administrative and managerial, production and support, that existed previously. There has been introduced a single tariff, depending on the class of professional risk (CPR).

As it was noted by the Deputy of the Executive Director of the Association of Mining and Metallurgical Enterprises (AMME) Bibigul Malgazhdarova, after these changes, the expenses of mining and metallurgical enterprises on insurance and payments have increased.

"Expenses of an employer have increased, as he makes payments to insurance companies, and, in addition, shall pay compensation for 90% of the suffered harm, that is, the employer has a dual responsibility", - said the speaker.

In this regard, we proposed to consider the reduction of the size of the insurance rate and to eliminate a single tariff for all categories of personnel in the calculation of insurance premiums. In addition, it is proposed to increase the lower threshold of the degree of disability, for which you need to compensate damage and to give an employer the right to compensate damage through an insurance company or directly to an employee. One solution - the creation of reserve funds under large enterprises, from the funds of which will be reimbursed damage to the victims", - said the expert of AMME.

Representatives of mining and metallurgical enterprises also lamented on the fact that the burden on enterprises in the industry after the changes in the law in 2015, has increased enormously. At the same time the company continues to bear the costs of social benefits, for example, acquires special machines for disabled, pays certain amounts to the victims. In general, the companies also supported the idea of ​​establishing a reserve fund.

"We will remain the owners of the money, and if the authorities wish to control, we be accountable for every tenge. Business is interested to maintain its reputation", - said the representative of the enterprises.

"We do not want to infringe upon the interests of the people, who have suffered at work. But many of them still come back to work, and if the insurance company does not pay for the damage, they see the problem in their company, - expressed his opinion the executive director of AMME Nikolai Radostovets. - It is necessary to take into account the moral and ethical side of the issue, think about the education of young people".

Advisor of the insurance company “Kompetenz” Nurzhan Almukhambetov supported employers' initiative to exclude payments for compensation of damage due to disability from 5 to 29%, leaving only payments for treatment, so as disability comes only at 30%, and with less damage the worker is able to restore health and to continue working. He cited the example of Russia, where the lower threshold begins not with 5%, but with 11%, and the Scandinavian countries, where the threshold is set from 17%.

"I also propose to divide the injuries and occupational diseases, - said the representative of the insurers. - Occupational diseases are covered by the insurance, although, in fact, they are not insurance cases, because it is not an accident, in this regard this system is not comfortable for everyone.

The second issue, which was considered by the committee was introduction of amendments to the existing law "On Subsoil and Subsoil Use". As you know, the consideration of the Subsoil Code of RK was postponed for the III quarter of 2017, but the miners feel that there are issues that require urgent solutions. Therefore, the committee of the mining and metallurgical industry NCE RK plans to propose amendments to the current legislation that will facilitate procedure for businesses to increase the authorized capital. Such rules have already been laid down in the draft of the new Code. But now, given the shortage of liquidity of Kazakhstani companies-subsoil users are not free to raise funds. This is a barrier that deters investment and does not allow investors to react quickly to the needs of enterprises.

"Our initiatives are based on the tasks that the state puts the subsoil users, - said Deputy Chairman of the Board of LLP "Eurasian Group" on legal issues Tatiana Makienko. - It is the preservation of jobs and the fulfillment of social obligations. No matter how hard it is during the crisis, we are not cutting jobs and continue to allocate money for the construction of roads and other projects".

A company spokesman referred to the acute shortage of liquidity in enterprises and put emphasis on the need to reduce administrative barriers. To encourage direct investment, subsoil users offer to expand the list of reasons that do not require permission of the competent authority, allowing the shareholders-investors to make freely deposits and to buy additional placed shares, if, ultimately, the shares remain in the same hands, or if the shareholders do not change.

In addition, it was proposed to exclude from the legislation the requirements on obtaininf  authorization of the competent authority to pledge the subsoil use rights and the objects associated with them, as well as about the intended use of the loan received under the mortgage.

"Another great tool in the new draft of the New Code – it is a status of deduction, - says Tatiana Makienko. - Now in the current law there is an alternative - conservation. If we describe more clearly the criteria by which you can ask for conservation, in fact before the introduction of the Code we allow subsoil users to obtain legally a permit for the conservation of those fields at which production is illiquid".

Also at the committee meeting, it was decided to propose the abolition of economic examination of draft contracts and amendments thereto and change the calculation base of R & D funding commitments, to count it not from the total, but from the taxable income.

"Business can’t wait for the introduction of the Code in 2018. The relevant changes to the law on mineral resources are required as soon as possible so that the necessary amendments are adopted in the current year and entered into force on 1^st of January 2017. The proposed changes and amendments to the law on mineral resources aimed at the smooth increase in the authorized capital of subsoil users and the creation of favorable conditions for business. These amendments will improve the investment climate, reduce administrative barriers and simplify the subsoil use "procedure”, - states the explanatory note of the committee’s meeting.

Also at the meeting discussed the topic of pre-trial review of the appeal mechanism for environmental penalties. According to NCE, in 2015 the percentage of disputed amounts for fines for environmental violations for enterprises in the pretrial order was only 0.04%, for the calculation of damages - 0.002%. Currently, mining companies in the event of disagreement with the act of an environmental audit can file a complaint to the Committee of ecological regulation and control of the Ministry of Energy and then to the court. This act shall take effect from the date of delivery and is mandatory for execution.

Managing Director, Director of the Department of basic industries of the National Chamber of entrepreneurs Evgeni Bolgert put forward proposals that the companies have the option to appeal the draft audot report or the final act. In the first case, the act could be checked in the service of the internal control of CERC, and then a final inspection report could be presented, which can be challenged in court, and the appeal commission at the Ministry of Energy, which would also include representatives of NCE. The effect of the act would be postponed for a period of consideration of the complaint, and the company would have the ability to prepare the necessary studies and documents to prove their case. It is expected that a final decision on the results of consideration of the complaint of a businessman at an inspection report would make the Department of Energy. Such a mechanism, according to NCE will not violate the principle of independence of the audits.

Maria UMAROVA