A total of 28 mineral licenses were revoked in October, according to the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), of which 12 licenses were expired and 16 were dismissed due to the license payment. This follows revocation of 39 licenses in the prior month. In 2019, the government is pursuing a strict policy on mineral licenses. Economists raise concerns over a mass anti-mining act by the Government of Mongolia, saying it may carry potential risk for the foreign investment environment. In August alone, 25 licenses, including Soumber Licenses of SouthGobi Resources Ltd. (SRG), have been withdrawn due to environmental destruction. Specifically, Soumber Licenses have been terminated pursuant to Clause 56.1.5 of Article 56 of the Minerals Law, Clauses 4.2.1 and 4.2.5 of Article 4 and Clause 28.1.1 of Article 28 of the General Administrative Law and a decision order of a working group established under an order of the Minister of Environment and Tourism of Mongolia. According to this decision order, the working group determined that SGS had violated its environmental reclamation obligations with respect to the Soumber Deposit. In 2017-2019, 254 lawsuits filed on revocation, extension, and exploration of license application, and cases regarding the termination of the mining license made more than half of them. As of October 2019, 63 companies have been selected, 58 exploration licenses were issued by the Mineral Resources and Petroleum Authority, and five licenses are in discussion. Also, 2020 State Budget for mineral license fees is estimated to be at MNT 36 billion.

Published Date:2019-11-21