Mining Companies Given Notice of Termination of Licenses
According to the information received from the Mineral Resources Authority of Mongolia, there are 5234 mining licenses which are valid in Mongolia.
Over 100 companies are about to receive notice of the revocation or suspension of its exploration or mining licenses for failing to comply with the Mongolian law.
According to the law passed on the 9th of July, 2009 regarding prohibition of mineral prospecting, exploration and mining in water basins and forest areas in the territory of Mongolia, licenses issued around water basins and forests may be cancelled.
Due diligence on mining companies will include investigation of the fulfillment of all its legal obligations in relationship to its licenses, including geological, environmental plans and reports, annual environmental reports, land rights, safety measures, warranties and pledges.
This investigation is crucial since an investor can have its license revoked for many reasons such as: non-payment on time and in full of annual license fees, failure to protect the environment, failure to maintain safety measures, transfer of the license to another legal entity.
Due to the action the companies are demanded to send competency reports to the Mineral Resources Authority of Mongolia. If they don’t send the materials in time (May, 11th), their licenses will be annulled. Also they were warned that there is a possibility of terminating the special licenses of over 100 companies who had not paid the bill on time according to the law and who had not made their competency reports.
Over 100 companies are about to receive notice of the revocation or suspension of its exploration or mining licenses for failing to comply with the Mongolian law.
According to the law passed on the 9th of July, 2009 regarding prohibition of mineral prospecting, exploration and mining in water basins and forest areas in the territory of Mongolia, licenses issued around water basins and forests may be cancelled.
Due diligence on mining companies will include investigation of the fulfillment of all its legal obligations in relationship to its licenses, including geological, environmental plans and reports, annual environmental reports, land rights, safety measures, warranties and pledges.
This investigation is crucial since an investor can have its license revoked for many reasons such as: non-payment on time and in full of annual license fees, failure to protect the environment, failure to maintain safety measures, transfer of the license to another legal entity.
Due to the action the companies are demanded to send competency reports to the Mineral Resources Authority of Mongolia. If they don’t send the materials in time (May, 11th), their licenses will be annulled. Also they were warned that there is a possibility of terminating the special licenses of over 100 companies who had not paid the bill on time according to the law and who had not made their competency reports.
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