Mongolia Business and Mongolian Daily Business News

A working group established by the Security and Foreign Policy Standing Committee of SGK has concluded its examination on Mardai group deposits. MP Z.Enkhbold, Chairman of the Committee, held press conference.

Q: Was illegal issuance of licenses revealed during the examination?

MP Z.Enkhbold: Uranium deposits located in the territory of Bayandun, Gurvanzagal and Dashbalbar soums of Dornodn aimag were explored between 1971-1974 and “Uranium exploitation Agreement in the Mongolian territory” was made between the Government of Mongolia and Soviet Union in December 23 1981. It mined 510.6 thousand tons of ore between 1988 – 1995.

But MRA issued mining and exploration licenses to “Emeelt Mines”, “Western Prospector Mongolia”, “Adamas Mining” companies in the previously mined areas, breaching provision 2.3 of article 17 and provision 1.4 of article 19 of the Mineral Law of Mongolia. It is illegal to issue exploration license in the previously mined areas. After Agreement of Concession was annulled in late 1989 and early 1990, all uranium properties returned to Mongolia. I would like to quote two examples to give you how big scale of work were underwent in the above – mentioned areas; over 40 kilometers of railway to transport small carriers was laid and three horizontal shafts were built. After the Agreement with Russia was annulled, all reports, findings, locations of ore, electrical supply lines and over 130 kilometers long railway was transferred to the Mongolian side free. Over 14 licenses were issued to 4 companies in the previously mined areas. It is much similar to issue an exploration license in the mining area of Erdenet copper and molybdenum mine and then to raise fund at the Canadian Stock Exchange. Read the rest of this entry »

Ministry of Mineral Resources and Energy established a working group of developing proposal and solution in forming legal environment for certain issues and provisions of “Temporary regulation on artisan miners’ activities”, which causes difficulties in its implementation.

The working group focuses on legalizing the regulation on “Artisan mining activities” through amendment in the currently effective Mineral Law of Mongolia and other related laws. Also, the State Great Khural will discuss the draft law on “Micro mines”, proposed by certain MPs

MONGOLIAN LAW (Draft)

Date                                                                                     Ulaanbaatar

AMENDMENT TO THE THE MINERALS LAW OF MONGOLIA

1. With reference to Minerals Law of Mongolia, Article 5. Ownership of minerals, Clause 5.4, which states “The State may participate up to 50% jointly with a private legal person in the exploitation of a mineral deposit of strategic importance where State funded exploration was used to determine proven reserves. The percentage of the State share shall be determined by an agreement on exploitation of the deposit considering the amount of investment made by the State” to be amended as “Strategic mineral deposits where State funded exploration was used to determine proven reserves shall be deemed 100% property of the State. In the instance of a joint development of the strategic mineral deposit with a private legal person, the State may participate up to 50% jointly, and State will utilise transparent means to develop the mineral deposit. Read the rest of this entry »

MP D.Gankhuyag, B.Bat-Erdene, G.Bayarsaikhan, Ts.Davaasuren, Z.Enkhbold presented the drfat amednment to the Mineral Law of Mongolia to Mr D.Demberel, the Speaker of the State Great Khural.

Current effective Mineral Law of Mongolia has many advantages than its previous version which was adopted in 1997, but lawmakers think that its some provisions might conflict with the Constitution of Mongolia and other laws with its ownership issue of the mineral. Read the rest of this entry »

Today, Members of the Standing Committee on Economy and the working group of the Oyu Tolgoi draft agreement of the  State Great Khural held a meeting.  This is a closed session and they are discussing about the issues of Oyu Tolgoi draft agreement which will be continued to be discussed in tomorrow’s session of the Standing Committee on Economy. Read the rest of this entry »

The Government made resolution ingmoring the State Great Khural

Yesterday, MP G.Bayarsaihan and Ts.Sedvaanchig, members of “Green Group” at the State Great Khural made press conference. They said that the resolution No 86 of the Government, issued on April 1 2009, allowing exploration work on 26 areas in order to determine their reserve. This resolution to take these areas to the reserve, stated that “… according to the Article 9.1.7,13.1, 13.2 of the Mineral Law of Mongolia, organise selection procedure, under tender bidding according to the Article 19.12 of the Mineral Law of Mongolia, in order to determine potential of the certain areas …”. But area of 4 out of these 26 licenses were included in the State Special Protection and it was revealed by Green Group. There is no legal provision or statement that exploration work can be made in the area of National Park. If such necessity is required, the State Great Khural should discuss the issue. Read the rest of this entry »

MP KIh.Narankhuu has his opinion regarding the mining industry and its recent development.

Q: Information of the working group was heard to the Standing Committee on Economy. Being as the Minister in charge of the Mineral Resource, what is your position in this environment?
MP Kh.Narankhuu: The working group presented its conclusion in the time of establishment of Coalition Government and new environment of crisis.
The Mineral Law of year 2006 was good law that is suitable for the situation. We issued the law that is much free that can attract foreign investment when the copper price was 1560-1750 US$. But many angel investors that are not serious in developing project, but are serious in raising making money on the mining projects, poured into Mongolia. It was one of the main reasons of stirring such a mess. It created negative feeling in the society. Also those many investors disappeared when the commodity price feel. Read the rest of this entry »

Mr. Do.Ganbold, the President of the Mining Association of Mongolia has his views on the draft appendix on guidelines of the negotiation making on the investment agreement of Oyu Tolgoi and Tavan Tolgoi.

Q: Working group, led by MP Kh.Badamsuren, is about to present its draft resolution of instruction guideline in investment agreement. What is your position being as the President of the Mongolian Mining Association.

A: Looking at the resolution draft. It can be said that it has much more positive and progressive ideas than the voices at the State Great Khural. I understand that even it is already late, but it can show its effect immediately when I saw a provision on working within the current effective law framework. But when I have a look at there were some provisions that were in conflict. Read the rest of this entry »

The position is to grant the power to the Government to sign the investment agreement on Tavan Tolgoi and Oyu Tolgoi. MP Kh.Badamsuren, Head of the working group of drafting the amendment in the Mineral Law of Mongolia, has his view regarding the current development in mining legislation.

Q: Working group on drafting the amendment in the Mineral Law of Mongolia worked on it for quite long time. What is the result of your group’s work?
MP Kh.Badamsuren: According to the resolution of the Speaker of the State Great Khural, a working group was established and started its work. The working group is paying much attention on drafting the amendment. All in all, the working group presented its first draft to the party groups of the parliament. Basically, party groups principally supported it. But there were many comments during the discussion from MPs. Therefore, the working group will discuss these comments and insert them into the draft law. One thing need to emphasize here is MPs have visionary approach. Read the rest of this entry »

Yesterday, parliamentary group of MPRP and DemParty discussed the comments and conclusion of the working group of drafting amendment in the Mineral Law of Mongolia. The working group presented two draft alternatives. First alternative is to withdraw two drafts, because of the fact that the most of the lawmakers weren’t re-elected.  The second alternative is not to change the current Mineral Law of Mongolia and to sign in the investment agreement on Tavan Tolgoi and Oyu Tolgoi. Read the rest of this entry »