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Press center / News /
17 March 2016

Government of the Republic of Buryatia to provide property tax benefits for Khiagda’s new production facilities


At the meeting of the Council on State Support of Investment Activity of the Head of the Republic of Buryatia, the investment agreement between the Government of the Republic of Buryatia and Khiagda was approved . It should be mentioned that earlier the possibility of providing state support to the enterprise in the form of tax benefits related to investment activities was approved at the visiting session of the Committee on Economic Policy, Natural Resources and Environmental Protection of the People's Khural of Buryatia.

The investment agreement is signed in accordance with the Law of the Republic of Buryatia "On State Support of Investment Activity" and provides for state support to Khiagda in the form of property tax exemption for five calendar years. The preferential tax regime will allow Khiagda to expand its investment opportunities for further development in order to increase production capacity to 1,000 tons of uranium per year.
During the meeting of the Council, the project was presented by the Minister of Natural Resources of Buryatia Yuri Safyanov. In particular, he noted: "The development of uranium deposits of Khiagdinskoe ore field is a priority of the Programme of Socio-economic Development of the Republic of Buryatia for the period up to 2020. In 2015, Khiagda accounted for 57% of all investments in the development of natural resources of the republic . The property tax exemption will cover only the production facilities put into service from 2016, and will not cause any loss of tax revenues for the republican budget. "

Making the decision, the Council members also noticed that Khiagdinskoe ore field, which is currently being developed, is a part of one of the six ore sites of Vitimsky ore uranium ore region. The total resource potential of the area is estimated at 350 thousand tons. Therefore, the existing resources suggest that there are no geological risks in terms of production for many decades to come. In 2015, Khiagda produced 493 tons of uranium; in 2016 the output of finished products will exceed 540 t.
 

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