Canada's Centerra given go-ahead to mine Mongolian gold deposit

Feb 4 Canada's Centerra Gold Inc has been given the go-ahead from Mongolia's lawmakers to mine the Gatsuurt Gold deposit after a five-year delay, as the resource-rich country looks to bolster its economic activity and gold reserves.
Mongolia's once-booming economy has taken a steep slide, with the Asian Development Bank estimating growth in 2015 at less than 3 percent compared with 17.5 percent in 2011. Mongolia hopes to rake in greater revenue this year and stimulate growth by green lighting projects such as Gatsuurt, despite a backlash from some citizens.
The parliament passed a bill granting the country 34 percent ownership of the mine with 1.6 million ounces of probable gold reserves, a government website says. Centerra, which also owns the Boroo mine in Mongolia, will hold the remaining 66 percent of equity.
With the parliament's approval, the government can now negotiate the final conditions for mining with Centerra.
Approval comes a year after legislators rejected the first deal proposed with a smaller stake holding for the government in return for larger royalty fees. It also follows an agreement signed last May to relaunch an expansion project at Mongolia's Oyu Tolgoi copper mine, owned by Rio Tinto with a price tag of $4-6 billion.
Centerra has been waiting since 2010 for a decision from the government on whether it could go ahead after a law banned mining at certain areas near forests and water sources, including the Gatsuurt deposit.
In December 2014, Gatsuurt was included in a list of strategic deposits that is exempt from the restrictions but requires government ownership.
The deposit has attracted opposition from environmentalists and conservationists concerned about sites where historical artefacts have been discovered at the Noyon Uul mountain, located seven km away from where Centerra plans to mine.
The government led by Prime Minister Chimed Saikhanbileg ramped up efforts to reach a deal when artisanal miners began mining the area for themselves illegally.
The legislation establishes special protected areas that includes Noyon Uul where mining will not be permitted. A spokesperson from the mining ministry could not confirm that the specially protected areas did not include Gatsuurt, but said that would be the likely result. 


Post a Comment

Facebook page

Powered by Blogger.


Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs 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