Canceling mining licenses will hit banks also, says movement leader
Mining companies have come together to oppose the Government’s decision to review and revoke licenses of explorers and extractors in river basins and forest areas. Altogether 254 licenses held by gold mining companies have already been identified for cancellation.
B.Agvaandondov, head of the movement and Director of Shar Narst, tells our journalist what they want.
Why are you against implementation of the law?
Implementation has begun almost a year after Parliament passed the law and not within five months as is mandatory.
So you want it repealed?
Yes. The law will lead only to economic loss.
What about protecting the environment?
It is necessary, but more crucial is the fact that many mining companies would go bankrupt if the law is implemented. Thousands will lose jobs and their families will suffer. The national economy will be the loser. The Government should not victimize the mining field. Many of our companies received foreign investment and have worked stably, paying taxes into the state budget. Some companies might not have worked in a satisfactory manner but a whole sector cannot be punished in such a way.
But MNT4 trillion would be paid to mining companies as compensation?
The compensation amount has not been included in the 2011 budget and where does the Government have the money? On the other hand, the total amount may look large but it would be divided among many companies, each getting only a little. Many companies have large bank loans to repay. If they fail to do so, the banking sector will be destabilized. Some banks might even go out of business. Loan defaulters may be sentenced to prison.
Mining companies have borrowed from banks at least MNT160 billion, it can also be MNT180 billion. The Government should support national companies. Foreign companies would go home after exploiting our mineral resources, but we shall stay here. Domestic companies already are pressured by laws and taxes. Government policies and Parliament’s activities appear to be against national companies.
But how can a law not be implemented? How shall we resolve the problem?
It can be reviewed and amended, if not repealed.
What do MPs who initiated the law say?
We have not met with them yet.
B.Agvaandondov, head of the movement and Director of Shar Narst, tells our journalist what they want.
Why are you against implementation of the law?
Implementation has begun almost a year after Parliament passed the law and not within five months as is mandatory.
So you want it repealed?
Yes. The law will lead only to economic loss.
What about protecting the environment?
It is necessary, but more crucial is the fact that many mining companies would go bankrupt if the law is implemented. Thousands will lose jobs and their families will suffer. The national economy will be the loser. The Government should not victimize the mining field. Many of our companies received foreign investment and have worked stably, paying taxes into the state budget. Some companies might not have worked in a satisfactory manner but a whole sector cannot be punished in such a way.
But MNT4 trillion would be paid to mining companies as compensation?
The compensation amount has not been included in the 2011 budget and where does the Government have the money? On the other hand, the total amount may look large but it would be divided among many companies, each getting only a little. Many companies have large bank loans to repay. If they fail to do so, the banking sector will be destabilized. Some banks might even go out of business. Loan defaulters may be sentenced to prison.
Mining companies have borrowed from banks at least MNT160 billion, it can also be MNT180 billion. The Government should support national companies. Foreign companies would go home after exploiting our mineral resources, but we shall stay here. Domestic companies already are pressured by laws and taxes. Government policies and Parliament’s activities appear to be against national companies.
But how can a law not be implemented? How shall we resolve the problem?
It can be reviewed and amended, if not repealed.
What do MPs who initiated the law say?
We have not met with them yet.
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