THE LAW OF MONGOLIA

1 July, 2010                                                                                                                                            Government House Ulaanbaatar

AMENDMENTS TO THE MINIERALS LAW

Article 1. To add the clauses with the following contents to the Minerals Law:

1 / Clause 23 of sub-part 1 of Article 4:

“4.1.23. “Small Scale Mining” means an activities of an individual undertaken by unregistered partnerships established as stated in a sub-part 1 of article 481 of Civil Code for the purpose to extract minerals from the deposits of non-commercial and non-economic value and artificial deposits formed by the extraction and technological waste and areas of mineral occurrences, allocated for the purpose stated in the Article 16.1.11 of the Law on Land”

2 / Clause 23 of sub-part 1 of Article 11:

“11.1.23. Based on the requests made by the Governors of Soum and District as stated in 12.1.5 of this Law, to make an assessment whether the selected land is entirely or partially overlapped with the land, where prospecting, exploration and utilization of minerals are restricted or prohibited, or the land that is taken for special purpose and reserved areas, as well as the licensed areas and to determine a size and boundaries of land;”

3 / Clause 5 of sub-part 1 of Article 12:

“12.1.5. To submit the request to make an assessment stated in 11.1.23 of this Law regarding  the selected land for the purpose stated in the Article 16.1.11 of Law on Land to the State administrative organization  for its decision;”

4/ Clause 9 of sub-part 1 of Article 66:

“66.1.9. To impose a fine of MNT 100,000-300,000 to an individual, a find of 500,000-1,000,000 to an official, and a fine of MNT 1,000,000-2,000,000 to a legal entity, who violates the regulation on  relations with respect to extraction of minerals from  Small Scale Mining;”

Based on a statement of Article 7.4 of temporary regulation on ASM operations that was approved by the Government Resolution No: 72 (2008) and a proposal stated in an official letter No: 1/1449 dated on 20 May, 2008 from the Ministry of Industry and Trade, the Chair of Mineral Resource and Petroluem Authority of Mongolia issued an Order No: 253 that approves general rule and instructions on ASM occupational safety and health (to download: Resolution No: 253).

Based on statements of Articles 7.3 and 7.5 of temporary regulation on ASM operations that was approved by the Government Resolution No: 72 (2008), the Chair of Mineral Resource and Petroluem Authority of Mongolia issued an Order No: 149 in order to approve sample agreement for mineral extraction, methodology of allocation of land depending in mineral types extracting, cooperation agreement between artisanal miners, bylaws of ASM partnerships, application for contrac on mineral extraction, and tripartite agreement on allocation of land to ASM partnership from licensed area.  

Based on the statements of Articles 6:4 and 6:1:6 of the Mongolian Law on Chemicals and Toxics, Government Resolution No:95 (2007), and Resolution No: 3 (2008) of National Committee of Policy Coordination of Chemicals and Toxics Use, the Ministry of Nature, Environment and Tourism issued an Order No: 135 on Ban of Use of Mercury for Mining.  

Based on the statements of Article 6:2:1 of the Mongolian Law on Subsoil and Article 9:1:1 of the Mongolian Law on Minerals, the Government of Mongolia issued its Resolution No: 89 on 12 March, 2009 in order to regulate coal extraction operations in Nalaikh area (тогтоолыг татаж авах)

In order to regulate the relations related to the development and transformation of artisnal mining operations into small scale mining through having artisanal miners organized (e.g. into partnerships), providing them with formal employment opportunities, allocation of land for mineral extractions to partnerships under contracts, introduction of environmentally friendly advanced technologies and ensuring ASM occupational safety instructions, the Government of Mongolia approved:

- A sub-programme on Development of ASM until 2015 (to download its unofficial translation into English) and

- A temporary Regulation on ASM Operations in Mongolia (to download its unofficial translation into English).

- A temporary Regulation on ASM Opeartions in Mongolia (to download its unofficial translation into Spanish).  

Government Resolution No:28 on Regulation of Artisanal and Small Scale Mining operation in the country was issued. The resolution states that 3-4 gold hard rock ore processing plants shall be established in the the country.download its unofficial translation into English.