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No new mineral licenses will be issued in Mongolia for five years

According to major Mongolian daily”Unuudur” on June 4,2012 Ministry of Mineral Resources and Energy of Mongolia has initiated and have resolved by cabinet meeting issue of including approximately 30 per cent of total territory of Mongolia into State Reserves for which no new exploration licenses will be issued.

Law on Minerals specifies that territories in State Reserves are for exploration by state budget.

Minister of Mineral Resources and Energy of Mongolia clarified to the newspaper

  • By taking those area into reserves no new mineral licenses will be issued in Mongolia completely for five years. In another worlds, issuance of licenses by just agency chairman decision is completely stopped
  • 44.5% of total territory under exploration licenses has been reduced to 14.2%
  • No exploration licenses will be issued and prohibited to do so on state reserves, only scientific geologic research will be done. If mineral occurrences will be found and exploration needed the area can be deducted from state reserves by special decision of Government. To do so it must be introduced to Parliament, reflected in Main Socio-Economic development directions and approved
  • It took two years for us to have this significant decision done

According to major Mongolian daily “ Zuuny Medee” on June 4,2012 the Minister also said

  • Total number of mineral licenses has been reduced from 7000 to 4000
  • Supervision will be improved and responsibility heightened for companies for which licenses have been issued
  • State will know itself what is under its land

According to major Mongolian news portal news.mn (http://economy.news.mn/content/109898.shtml)  the Minister also added that civil supervision over minerals sector will be strengthened, list of strategic deposits added,  start requiring 51 per cent stake in deposits for which exploration done by state budget and placing important on local community opinion in issuing exploration licenses.

Dale Choi | Chief Investment Strategist | Frontier Securities | #705, Blue Sky Tower, Peace Avenue 17, 1st khoroo, Sukhbaatar district, Ulaanbaatar, Mongolia| Office: +976 7011999 | Mobile: +976.99103371 | Email: This email address is being protected from spambots. You need JavaScript enabled to view it.">This email address is being protected from spambots. You need JavaScript enabled to view it.