Article 21. Priority Right to Purchase Precious Metals and Precious Stones

The Republic of Uzbekistan, represented by its authorized state bodies, shall have a priority right to purchase precious metals and precious stones mined from subsoil plots.

Nuggets of precious metals and precious stones, which, in accordance with the procedure established by the Cabinet of Ministers of the Republic of Uzbekistan, are to be classified as unique, must be offered by the subjects of industrial and artisanal mining to the authorized state body for acquisition on a priority basis.

Subjects of industrial production and refineries, when selling refined precious metals, shall offer them for purchase on a priority basis to the Central Bank of the Republic of Uzbekistan in order to replenish its assets in precious metals, unless otherwise stipulated by the terms of the state order.

The Central Bank of the Republic of Uzbekistan shall inform the Cabinet of Ministers of the Republic of Uzbekistan about the facts of non-fulfillment by legal entities of contractual obligations for the sale of precious metals for state needs.

The Central Bank of the Republic of Uzbekistan shall have the right to refuse in writing the exercise of the priority right to purchase refined precious metals in order to replenish its assets in precious metals. In this case, industrial production entities and refineries shall have the right to sell refined precious metals through exchanges or under direct contracts.

Acquisition of refined precious metals within the framework of the state's priority right shall be carried out at prices calculated using prices prevailing on the international market, minus transportation costs, sales costs and a quality discount, which is applied in the event of the purchase of refined precious metal that does not meet international quality standards, applied by the London Bullion Market Association and designated in the documents of this association as the standard “London good delivery”.

Nuggets of precious metals that cannot be classified as unique, mineralogical collection samples of these nuggets can be sold at contractual prices by subjects of industrial mining and artisanal mining in accordance with the legislation.

Precious metals and precious stones that are not sold on a priority basis can be sold by industrial mining entities and artisanal mining entities, as well as used in their own production as a pledge or other financial obligation.