Ts.Damiran: Not Only State But Mongolian Citizens Could Own 51 Percent

Mar 13 • Economy, Government, Mining, News • 470 Views • No Comments on Ts.Damiran: Not Only State But Mongolian Citizens Could Own 51 Percent

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We had some details from MP Ts.Damiran on a draft of Minerals Law. He is one of MPRP members, representing the party in the task group to formulate the draft law.

What is the primary concept of the draft law?

Over 10 articles of the Law have been amended in draft. The task group, comprising of DP and MPRP, jointly developed the general concept of the daft.

What are the amendments?

We made the term strategic deposit, which was vague in meaning in the law, clear. Also we defined the location, resource and efficiency of strategic deposit. Moreover, it is stated in the draft to grant minerals licenses in 3 levels. Issuance of mining license shall be discussed and decided by the Government. Ministry of Industry and Commerce shall grant ordinary licenses. In addition, participation of foreign companies should not exceed 49 percent and Mongolian part must own more than 521 percent, according to the draft.

Some MPs stated in the amendment to the Minerals Law that the state is to own not less than 51 percent of deposits, of which exploration was executed by state fund and not less than 34 percent of those, of which exploration was executed by private company fund. What is the opinion of the task group on it?

This provision has been deleted and annulled, because it doesn’t matter whether the exploration was executed by state or private money. What is most important here is that not only state but also Mongols will receive not less than 51 percent if there is a participation of a foreign company. If people want to sell the ownership percent to a foreign company, it must be decided by the Government of Mongolia. In order to maintain its transparency, there will be a National Council, comprising of civil society, as an inspector.

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