Mongolia is revoking “106” licenses back to owners

Aug 26 • Laws, Mining, News • 3642 Views • No Comments on Mongolia is revoking “106” licenses back to owners

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“106” exploration licenses will be issued to its original owners.

Thanks to the approval of the amended Mineral Law of Mongolia, Ministry of Minerals informed that widely criticized “106” mining and exploration licenses can be issued in accordance with the adopted law.

Previously, three level courts of Mongolia (district, city/aimag court and Supreme Court) made conclusion that action of 106 license issuance without tender selection procedure was illegal. As result, former Chairman of the Mineral Resource Authority was sentenced. Therefore, the Government issued resolution #16 to approve “the regulation on announcement of tender bid of 106 mining and exploration licenses”, in order to compensate the previous owners.

It is said that the regulation covers all aspects of the tender bidding procedure, including evaluation process, providing of equal treatment, evaluation committee and so on.

Mr. B.Batkhuu, Director of the Policy Implementation Coordination Department of the Ministry of Minerals, said that “According to the regulation, bidders shall place 30% of the total bid in the corresponding account. If bidder is granted the license, it shall place the remaining 70% to the account. If the previous owner fails to be selected, it shall be compensated with the bidding payment and considered as to be compensated. If the previous owner wins the bid, it can continue its exploration works immediately.”

Previous owners shall confirm its expenditure based on their financial report and statement to the tax department and with the confirmed expenditure will become the bottom-line of the bid. The first tender bid on 14 exploration licenses with confirmed expense is ready to be announced. In the first tender bid lot, the previous owners shall not need to place tender security payment.

Brief information of the first lot (14 licenses):

These 14 licenses are located in 5 aimags’ territory with 163,565.05 hectares:

– in Bayankhongor aimag 6 licenses

– in Dornogobi aimag 3 licenses

– in Dundgobi aimag 1 license

– in Umnugobi aimag 1 license

– in between Dundgobi and Umnugobi aimags 1 license

– in Khovd aimag 1 license

– in Ulaanbaatar City 1 license

The smallest license has 94.49 hectare exploration area, and the biggest one has 56,098.52 hectare area.

License name Area /hectare/ Aimag


Dovtsog Khudag 56,098.52 Dornogobi


Khashaatyn Khundii 22,428.06 Bayankhongor


Tovtsog Khairkhan Uul 20,008.53 Bayankhongor


Nogoon Tal 13,664.08 Dornogobi


Amgalant 10,943.15 Umnugobi


Khukh Khoshuuny khudag 9,732.27 Dornogobi


Khar At Uul 4,283.93 Bayankhongor


Ulaan Ereg 9,546.52 Bayankhongor


Mogoit 4,501.65 Dundgobi/Umnugobi


Baga Khukh tsav 4,454.54 Dundgobi


Tsogt Khairkhan Uul 1,313.75 Bayankhongor


Choidog Khudag 1,130.96 Khovd


Khonkhor Ders 102.02 Bayankhongor


Khukhtolgoi 94.48 Ulaanbaatar


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