Mongolia Revokes Mining Licenses

Nov. 20 -The Mongolian government dropped a bombshell on the international mining industry by suspending 254 gold mining licenses on Friday.

The Ministry of Minerals and Energy revoked the licenses citing “environmental concerns,” and hinted that others licenses may also follow. The government is providing compensation to investors affected.

The licenses are being revoked under a 2009 law which protects Mongolia’s forests and river basins. Mongolians consider the ground sacred and are reluctant to dig, fearing it may upset the balance of nature. Living close to nature also, as many Mongolians do, means they have an in-built awareness of the environment and are highly sensitive to damaging or polluting the land. Proposed golf courses for example, a lucrative form of investment in nearby China are banned in Mongolia due to concerns over the use of fertilizers and weed killers.

The license issue may have serious repercussions if it spreads beyond gold. Several international mining companies have recently established operations in Mongolia and have gone on to IPOs in Hong Kong and Canada. The government says it will release a full list of companies affected early next week. Analysts warn of the dangers of investing too much in emerging countries such as Mongolia due to the dangers of government U-turns over investment policies.

This is not the first time the government has banned mining companies. Following a deal in which a five year, 100 percent tax break was agreed with one of the large international mining companies for the extraction of coal, the Mongolian government were not amused when a project expected to last for 20 years and produce tax revenues for 15 of them was fully completed in less than five years, leaving the government with an empty mine and no income. International mining companies have not always behaved well in Mongolia, and this, coupled with an emerging regulatory environment, has lead to stresses



Post a Comment

Facebook page

Powered by Blogger.


Advertising in Mongolia An Asian Development Bank Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia Adventure Mongolia agriculture Mongolia analysis Mongolia and Armenia Mongolia and Asian Development Bank Mongolia and Australia Mongolia and Azerbaijan Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and Czech Mongolia and donors Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and IMF Mongolia and India Mongolia and Indonesia Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Israel Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Kyrgyzstan Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Qatar Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and Thailand Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and US Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia blind Mongolia civic society Mongolia Corruption Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia environment Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia investment Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Nuclear Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia slums Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia trade Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian and Cuba Mongolian Archeology Mongolian Climate Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Kazakh Mongolian Meat Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Sumo Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive