Nicknamed as “long named law” – Law on Prohibition of exploration and mining operations in the areas of water and forest reserve has adopted quite long ago and it is waiting its law enforcement, urged by civil movements and reactions.
License holding companies expressed their readiness to halt their operation if the compensation regulation is approved. During the previous Cabinet Meeting, “Regulation on compensation for the mining and exploration license holders” was approved. As the result of this regulation numerous mining companies will shut their mine sites and end exploration operations.
The compensation budget will be stated in the state budget and will compensate one time. License holder shall submit his compensation application to the state administration in charge of geology and mining issues and the request will be resolved within two years of receipt of application.
Most of the canceled licenses are in Selenge, Bulgan, Tuv, Uvurkhangai, Darkhan-Uul, Arkhangai, Bayankhongor and Khentii aimags. The largest mines are in Bayangol, near the Tumurt, and in Narantolgoi near Gatsuurt in Selenge aimag. These areas have tin, iron and gold reserves.
Minister D.Zorigt stated that compensation claims for the government’s expropriation of these licenses will be assessed on the basis of taxes due and paid, expenses incurred, revenues received and environment reclamation obligations. Asked if “ninja” mining would be eliminated in these areas, Zorigt said artisanal mining is illegal, and local government administrations will have to enforce the law. He pointed out that some “ninja” mining may be permitted within established legal parameters.