STATE POLICY ON EXPLOITATION OF RADIOACTIVE MINERALS AND NUCLEAR ENERGY Mongolia August, 2010

Contents.  About Mongolia  Uranium resources deposit  State policy Technical and technology requirements Survey, exploitation, processing, export, import Exploitation of nuclear energy for peaceful purposes Nuclear and radiation safety Research and training human resources Legal environment Sector management organization and cooperation

About. Mongolia, located on the northern plateau of Central Asia, is a landlocked country, bounded on the north by Russia and on the east, south and west by China.

Cont. The country is slightly larger than the State of Alaska, or approximately the size of Western Europe, which makes it the seventh largest country in Asia and 18th largest in the world. The climate is harsh, with extremes of both heat and cold. The country is sparsely populated, with a little over 2.7 million ( ) inhabitants. Mongolia attaches exceptional attention toward the exploitation of radioactive minerals and the National Security Council has discussed the issue of the exploitation of radioactive minerals and nuclear energy twice, in 2007 and 2008 and adopted a recommendation addressed to the Government. The Parliament adopted a resolution #27 in 2007, on the inclusion of three deposits of radioactive minerals to strategically important deposits.

“Dornod” uranium deposit

Uranium resources Exploitation of radioactive mineral particularly, uranium and nuclear energy increases annually worldwide. Uranium deposits reach Mongolia looking forward to explore uranium in order to gain economic profit and to supply some portion of energy demand by nuclear energy. Mongolia stands in 15th by known uranium resource and might advance to 5th place if anticipatory predictions will be approved. Nuclear power plant will be a crucial component due to the need for energy diversification, security of supply, economic competitiveness and environmental impact, thus the Government of Mongolia pursues to bring in uranium deposits into business cycle. During this process it is crucial to maintain safety and security of the people and preserve pristine nature of Mongolia.

State policy Mongolia will pursue a complex policy aimed to study its radioactive minerals resources and its exploitation, processing and exporting for peaceful purposes and further the utilization of nuclear energy and production of electricity and power through the introduction of technology friendly to human health and environment; Exploitation of radioactive minerals and nuclear energy is an important factor to ensure sustainable development and national security of Mongolia and to improve living standard of its people.

Cont. State policy of Mongolia on exploitation of radioactive minerals and nuclear energy was approved by 45th resolution of parliament (the State Great Khural) of Mongolia on 25th of June Nuclear energy law was approved by parliament of Mongolia on 16th of July This policy will be a core for strategic goal and action program of Mongolia to increase its radio active minerals resources and its exploitation and processing and the utilization of nuclear energy:

Survey, exploitation, processing, export, import  - SURVEY EXPLORATION SURVEY AND EXPLORATION OF RADIOACTIVE MINERALS IN THE TERRITORY OF MONGOLIA WILL BE CONDUCTED UNDER THE SUPERVISION AND COORDINATION OF THE GOVERNMENT OF MONGOLIA. REGIONAL AND THEMATIC SURVEY OF RADIOACTIVE MINERALS WILL BE CONDUCTED BY STATE BUDGET AND EXPLORATION WORK WILL BE FINANCED THROUGH STATE AND PRIVATE ENTITY INVESTMENT AND OTHER SOURCES. THE INFORMATION WILL BE REGISTERED IN THE MONGOLIAN NATIONAL GEO INFORMATION DATABASE. DOMESTIC AND FOREIGN PRIVATE AS WELL AS STATE INCORPORATED ENTITIES WILL PARTICIPATE IN SURVEY, EXPLORATION ACTIVITIES IN ACCORDANCE TO RELEVANT LAWS.

Cont. NOTWITHSTANDING ITS SIZE, THE RADIOACTIVE MINERALS DEPOSITS WILL BE REGARDED AS STRATEGICALLY IMPORTANT DEPOSITS, CONSIDERING ITS STRATEGIC IMPORTANCE OF NATIONAL SECURITY AND ECONOMY OF MONGOLIA. TO DEVELOP COOPERATION WITH THE COUNTRIES OF MODERN HIGH TECHNOLOGY AS REGARD TO THE PREPARATION AND RETRAINING OF SPECIALIST, RENOVATION OF HIGH TECH AND LABORATORY EQUIPMENTS AND THE ESTABLISHMENT OF MONITORING LABORATORY IN THE FIELD OF SURVEY, EXPLORATION OF RADIOACTIVE MINERALS AND NUCLEAR STUDY.

Exploitation, processing, export  POLICY FOR EXPLOITATION, PROCESSING, ENRICHING OF RADIOACTIVE MINERALS ORE AND ESTABLISHMENT OF NUCLEAR FUEL INDUSTRY WILL BE IMPLEMENTED IN PHASES.  PERCENTAGE OF STATE OWNERSHIP IN EXPLOITATION OF RADIOACTIVE MINERALS DEPOSITS OF DETERMINED RESERVES WILL BE FIXED AT THE SAME RATE AS THOSE OF STRATEGICALLY IMPORTANT DEPOSITS.  POLICY WILL BE PURSUED TO ENSURE COMPLEX EXPLOITATION OF RADIOACTIVE MINERALS DEPOSITS AND ITS BY-MINERALS.  TO EXTRACT RADIO ACTIVE SUBSTANCE FROM RADIOACTIVE MINERALS CONTAINING COAL, COAL ASHES AND PHOSPHATE AND OTHER MINERALS THROUGH THE UTILIZATION OF HIGH TECHNOLOGY.

Cont. POLICY WILL BE PURSUED TO BAN THE EXPORT OF RADIOACTIVE MINERALS ORE. EXPORT OF RADIOACTIVE MINERALS PRODUCTION WILL BE STRICTLY FOR PEACEFUL PURPOSE IN COMPLIANCE WITH MONGOLIAN AND INTERNATIONAL TREATIES. BUILDING OF STORAGE FOR RADIOACTIVE SUBSTANCES GENERATED BY THE EXPLOITATION OF RADIOACTIVE MINERALS AND THEIR DISPATCH AND ALL OTHER RELATED ACTIVITIES WILL BE CARRIED OUT UNDER PROFESSIONAL CONTROL OF INTERNATIONAL STANDARD. POLICY WILL BE MAINTAINED TO ENGAGE THOSE STRATEGIES INVESTORS IN THE EXPLOITATION OF RADIOACTIVE MINERALS, MEETING THE DEMANDS OF FOLLOWING CONDITIONS AND REQUIREMENTS AND TO CONCLUDE LONG TERM AGREEMENTS AND COOPERATE WITH THEM.

General conditions WITH POTENTIAL TO ATTRACT A COUNTRY, WHICH COULD RENDER POLITICAL AND GEOPOLITICAL SUPPORT TO MONGOLIA AT INTERNATIONAL LEVEL; WITH POTENTIAL OF SELLING THOSE RADIOACTIVE SUBSTANCES, EXPLOITED IN MONGOLIAN TERRITORY AT WORLD MARKET PRICE FOR PEACEFUL PURPOSE; TO HAVE PERMANENT AND STABLE POSITION IN WORLD RADIOACTIVE MINERALS MARKET; TO HAVE TRANSPARENT AND OPEN ACTIVITIES;

Technology requirements EXPERIENCE HISTORY IN THE FIELD OF EXPLOITATION AND PROCESSING OF RADIOACTIVE MINERALS; ADVANCED TECHNOLOGY IN FULL EXPLOITATION OF DEPOSIT RESERVE; LEADING POSITION IN THE SECTOR; ADVANTAGE OF POSSESSING HIGH ECONOMIC YIELD AND ECO - CLEAN ADVANCED TECHNOLOGY;

Cont. ENVIRONMENT, SAFETY: CONDUCTING RESPONSIBLE MINING AND GAINED EXPERIENCE IN THIS AREA; FOLLOWING STANDARD AND DEMANDS FOR MINING LABOR PROTECTION AND SAFETY; ENGAGED IN HUMAN HEALTH AND ENVIRONMENTALLY FRIENDLY ACTIVITIES IN EXPLOITATION AND PROCESSING OF RADIOACTIVE MINERALS, AND CONDUCTING HIGH QUALITY TECHNICAL AND BIOLOGICAL RECLAMATION; SOCIAL ISSUES: MOTIVATED PARTICIPATION IN THE SETTLEMENT OF SUCH URGENT SOCIAL ISSUES AS REGIONAL DEVELOPMENT, HEALTH AND EDUCATION; EXPERIENCE IN THE TRAINING OF EMPLOYEES; WITH PROFILE OF UNIVERSALLY ACCEPTED STANDART AS FOR COMPANY GOVERNANCE, AND COMPANY SOCIAL ACCOUNTABILITY AND ETHICS

Exploitation of nuclear energy for peaceful purposes  TO MAKE ASSESSMENT OF THE ROLE OF NUCLEAR ENERGY OF MONGOLIA IN LINE WITH ITS ENERGY SUPPLY, BALANCE AND EXPORT POTENTIAL AND TO FORMULATE JUSTIFICATION FOR BUILDING NUCLEAR POWER PLANT, AIMING TO START ITS CONSTRUCTION WITHIN THE NEAR FUTURE OF 5 YEARS.  TO CREATE LEGAL ENVIRONMENT OF INTERNATIONAL STANDART, COVERING SUCH ISSUES AS TECHNICAL, SAFETY AND GUARANTEE, ACCOUNTABILITY AS WELL AS NUCLEAR EXPLOITATION OF NUCLEAR ENERGY FOR ECONOMIC PURPOSE.  TO TAKE MEASURES FOR THE DEVELOPMENT OF NECESSARY INFRASTRUCTURE FOR THE EXPLOITATION OF NUCLEAR ENERGY BY REFLECTING IN THE RELEVANT PROJECT OR THROUGH OTHER FINANCIAL SOURCES, KEEPING IN MIND THE INTEGRATED PROGRAMS OF INFRASTRUCTURE OF MONGOLIA.

Cont.  TO ENCOURAGE AND IMPLEMENT IN PHASES THE TRANSLATION OF ACHIEVEMENTS GAINED IN THE PROCESS OF THE INTRODUCTION OF NUCLEAR ENERGY AND NUCLEAR TECHNOLOGY INTO ENERGY INDUSTRY, MINING, FOOD, AGRICULTURE, HEALTH, RESEARCH AND OTHER SECTORS.  TO FACILITATE NECESSARY CONDITIONS TO IMPORT NUCLEAR FUEL, ITS TRANS-BORDER TRANSPORTATION AND STORAGE IN MONGOLIAN TERRITORY, REQUIRED FOR THE PEACEFUL USE OF NUCLEAR ENERGY.  TO UNDERTAKE THE INSTALLATION OF SAFETY SYSTEM IN ACCORDANCE TO PRE-ASSESSMENT INTERNATIONAL STANDART IN THE COURSE OF PROCESSING NUCLEAR SOURCES, RECYCLING NUCLEAR WASTE AND DEVELOPING SECURE STORAGE FACILITY, AND SECURITY FOR TRANSPORTATION AND CONSTRUCTION OF NUCLEAR FACILITIES AND INDUSTRY.  TO AIM TO CONDUCT SENSITIVE OPERATIONS OF PROCESSING NUCLEAR AND RADIOACTIVE WASTES, DEMANDING ACCURATE MONITORING AND HIGH TECHNOLOGY IN MONGOLIA THROUGH THE EXPLORATION OF EXPERIENCES OF FOREIGN COUNTRIES.

Nuclear and radiation safety  TO TAKE MEASURES TO DEVELOP NATIONAL INFRASTRUCTURE AND MONITORY SYSTEM FOR NUCLEAR AND RADIATION SAFETY, TO MEET INTERNATIONAL STANDARDS.  TO ENSURE SAFETY OF RADIATION ISOTOPE, WHICH ARE AT THE DISPOSAL OF PRODUCTION AND RESEARCH CENTERS.  TO ENSURE THE IMPLEMENTATION OF INTERNATIONAL TREATIES FOR THE NUCLEAR AND RADIATION SAFETY, TO WHICH MONGOLIA IS A PART, AND TO ESTABLISH NATIONAL INTEGRATED SYSTEM OF DATABASE AND REGISTRATION AND TO SUPPLY NECESSARY INFORMATION TO RELEVANT INTERNATIONAL ORGANIZATIONS IN TIME.  TO DEVELOP NATIONAL EMERGENCY PROGRAM ACCORDING TO INTERNATIONAL STANDARDS FOR POSSIBLE NUCLEAR AND RADIATION ACCIDENTS.

Research & training human resources  TO DEFINE PRIORITIES FOR RESEARCH AND DEVELOPMENT IN ORDER TO MEET THE NEEDS OF STUDY, RESEARCH, TECHNOLOGY DEVELOPMENT AND PRACTICAL DEMANDS OF NUCLEAR ENERGY AND RADIOACTIVE MINERALS.  TO ENSURE INTEGRATED ACTIVITIES OF RADIOACTIVE MINERALS AND NUCLEAR RESEARCH AND TECHNOLOGY SCIENTIFIC RESEARCH INSTITUTIONS, UNIVERSITIES AND BUSINESS SECTOR.  TO ESTABLISH NATIONAL NUCLEAR RESEARCH AND TECHNOLOGY INSTITUTE, AFFILIATED TO THE GOVERNMENT OF MONGOLIA, RESPONSIBLE FOR RADIOACTIVE MINERALS EXPLORATION, EXPLOITATION AND PROCESSING AND CONDUCT OF RESEARCH FOR NUCLEAR POWER PLANT, NUCLEAR HI-TECH AND CREATION OF INFORMATION DATA NETWORK AND TRAINING OF SPECIALISTS.  SCIENTIFIC RESEARCH INSTITUTIONS AND UNIVERSITIES WILL BE RESPONSIBLE IN CONDUCTING FUNDAMENTAL AND APPLIED STUDY AND DEVELOPMENT ACTIVITIES IN THE FIELD OF RADIOACTIVE MINERALS AND NUCLEAR PHYSICS, FINANCED BY SCIENCE AND TECHNOLOGY FUND.

Cont.  TO STUDY THE POSSIBILITY OF OBTAINING NUCLEAR RESEARCH REACTOR IN ORDER TO CONDUCT NUCLEAR PHYSICS FUNDAMENTAL AND APPLIED RESEARCHES AND TO DEVELOP HI-TECH AND PREPARE EXPERTS.  TO TRAIN NATIONAL SPECIALISTS IN FOREIGN COUNTRIES IN THE FIELD OF RADIOACTIVE MINERALS, NUCLEAR ENERGY AND HIGH TECHNOLOGY, IN ACCORDANCE TO SPECIFIC NATIONAL PROGRAM.  TO CREATE NATIONAL SYSTEM FOR THE PREPARATION OF RADIOACTIVE MINERALS AND NUCLEAR ENERGY SPECIALISTS AND THEIR POST DOCTORIAL TRAINING.  TO INCREASE THE INVOLVEMENT OF NATIONAL SCIENTISTS AND EXPERTS IN THE INTERNATIONAL AND FOREIGN PROJECTS DESIGNED FOR RADIOACTIVE MINERALS AND NUCLEAR ENERGY.

Legal environment  TO CREATE LEGAL ENVIRONMENT OF INTERNATIONAL STANDARD FOR THE EXPLORATION, EXPLORATION, PROCESSING, ENRICHING OF RADIOACTIVE MINERALS AND FOR THE EXPLOITATION OF NUCLEAR ENERGY AND SAFETY OF RADIATION.  EXPLORATION AND EXPLOITATION OF RADIOACTIVE MINERALS AND ENGAGEMENT IN NUCLEAR ENERGY ACTIVITIES IN MONGOLIA WILL BE CARRIED OUT WITH THE SPECIAL PERMISSION, ISSUED BY THE STATE AUTHORITY OF MONGOLIA  TO CREATE LEGAL ENVIRONMENT FOR THE POSSIBLE RISKS IN THE PROCESS OF EXPLORATION, EXPLORATION OF RADIOACTIVE MINERALS AND NUCLEAR ENERGY EXPLOITATION IN MONGOLIANS ITS MANAGEMENT ACTIVITIES.

Sector management, organization, cooperation  TO SET UP INTEGRATED INDEPENDENT MANAGEMENT AND ORGANIZATION STRUCTURE, IN CHARGE OF POLICY, COORDINATION, CONTROL AND BUSINESS ACTIVITIES AS REGARD TO RADIOACTIVE MINERALS AND NUCLEAR ENERGY.  TO INTRODUCE STRUCTURAL AND ORGANIZATIONAL CHANGES, STRENGTHENING LEGAL STATUS OF NUSLEAR ENERGY COMMISSION BY THE INCLUSION OF THE AREA IN THE PRIME MINISTER’S AREA OF RESPONSIBILITY IN ORDER TO ENSURE EFFECTIVE IMPLEMENTATION AND FORMULATION OF COMPREHENSIVE POLICY AS REGARD TO THE EXPLOITATION OF NUCLEAR ENERGY IN MONGOLIA AND THE DEVELOPMENT OF NUCLEAR SCIENCE AND THE PREPARATION OF SPECIALISTS AND THE PROTECTION AND SAFETY OF RADIATION

Cont.  TO DEVELOP COOPERATION WITH OTHER COUNTRIES AND RELEVANT INTERNATIONAL ORGANIZATIONS IN THE FIELD OF THE EXPLOITATION OF NUCLEAR ENERGY AND RADIOACTIVE MINERALS DEPOSITS, RECLAMATION OF MINING AREA, ASSESSMENT OF ENVIRONMENTAL IMPACT, MONITORING, RESEARCH AND TRAINING.  TO STRENGTHEN COOPERATION OF STATE INSTITUTIONS AND CIVIC ORGANIZATIONS TO ENSURE SAFETY OR NUCLEAR AND RADIATION AND THE EXPLOITATION OF NUCLEAR ENERGY.  TO CARRY OUT EFFECTIVE AND ADEQUATE ACTIVITIES DESIGNED TO PROMOTE THE SIGNIFICANCE OF NUCLEAR ENERGY AMONG THE MASS.

THANK YOU NUCLEAR ENERGY AGENCY GOVERNMENT BUILDING 11 P.O. BOX 46/856