1. MONGOLIAN MINING SECTOR
ENKHBOLD.D
Executive director
Mongolian National Mining Association
2016

2. MINING IN COUNTRY’S ECONOMY (2003-2015 )
Source: Mineral resource authority

3. MINING SECTOR INVESTMENT & PRODUCTION /1997 - 2015/
Source: Mineral resource authority

4. FDI

5. MINERAL RESOURCE RESERVE№
Mineral type
2ОО
Increased in 2О1О-2О12
Extracted resource in 2О1О-2О12
Registered resource
/2О15.О1.О1/ 1
Major gold and placer deposits/ton/
2 089,9
7,4
MGD-557,425 thousand. Ton
PD- 36, kg 2
Silver / ton /
22 175,2
5 743,3
27 918,5 3
Copper /mill.ton/
55,4
28,6
0,45 4
Molybdenum /thousand.ton/
637,71
348,53
13,8
661 5
Zinc /thousand.ton /
3 152,53
33 903,56
479,61 6
Iron /mill. Ton/
827,7
29,4 7
Wolfram /thousand.ton /
267,78
65,6
0,254
342966 8
Tin /thousand.ton /
41,35
9,68
0,105 9
Lead /thousand.ton /
1581,2
453,51
4,88
244856 10
Coal /mill. Ton/
8 524,8
12 265,0 11
Fluorite/mill.ton /
7,8
1,4
14729
Source: Mineral resource authority

6. PRODUCTION OF MINING SECTOR (2010-2015)
Product types
2010
2011
2012
2013
2014
2015
Coal /thousand. Ton/
24449
Oil /thousand. barrel/
Copper concentrate /metal, thousand. Ton/
522.0
513.7
517.9
803.0
Copper concentrate /35%, thousand. Ton/
357.1
347.4
347.6
533.3
712.0
890.7
Molybdenum concentrate/metal, ton/
Molybdenum concentrate/47%, ton/
4254.0
5441.0
Gold /kg/
Iron ore /thousand. Ton/
6173.4
Fluoride concentrate /thousand. Ton/
140.7
116.4
157.2
76.4
374.9
230.8
Zinc concentrate/thousand. Ton/
112.6
104.7
119.1
104.1
93.2
89.6
Crushed stone /thousand .m3/
101.1
94.1
232.5
230.4
Source: Mineral resource authority

7. LAWS OF MINERAL SECTOR Constitution 1992
Subsoil law (Amendments in 1994)
Mineral Law (Amendments in )
Business Licensing Law, 2001
Law of Nuclear Energy, 2009
Law on Prohibiting Mineral Exploration and Extraction Near Water Sources, Protected Areas and Forests (“Long named” law) 2009
Banning of new exploration licenses ( )
Common Mineral Resource Law, 2014

8. REFORMS IN LEGAL ENVIRONMENT
State policy on mineral resources –
Mining policy from 2014 to 2024
The mining sector development will be based on the private sector
Sustainable & Responsible mining principles
Multi-stakeholders’ engagement
Mineral resource law – amendment
Abolished the law on prohibiting the granting of new exploration licenses
Establishment of Mineral resource policy council (PPP)
Investment law – 2014
Registration system /no permitting procedure/
Tax stability regime
No discrimination of foreign and domestic investors
Amendment on law on prohibiting exploration and mining near water and forest area (long named law)

9. SPECIAL PERMITS FOR EXPLORATION
Special permits for exploration are issued on the “first come – first served” basis for new applicants
In case exploration special permits applications are filed for returned and revoked fields, special permits are issued on the basis of a tender

10. OWNERSHIP OF THE MINERALS RESOURCES
Development of mineral deposits of strategic importance
State participation
up to 50% - if reserves of the deposits were determined by state funded exploration
up to 34% - if the reserves were determined by privately funded exploration.
Trading of not less than 10% of shares on the Mongolian Stock Exchange

11. CLASSIFICATION OF MINERAL DEPOSITS
Deposits of strategic significance
Deposits of common minerals
Deposits of conventional minerals

12. LEGAL PERSONS ELIGIBLE FOR SPECIAL PERMITS
Exploration
A legal person duly formed and operating under the laws of Mongolia and paying taxes in Mongolia
Mining

13. SIZE OF THE LICENSED AREA, TERM OF THE LICENSE: AT EXPLORATION STAGE
Size of licensed area
hectares
Initial license term
3 years
Extension term
By 3 years 3 times

14. SIZE OF THE LICENSED AREA, TERM OF THE LICENSE: AT MINING STAGE
Minimum allowed size of the area
25 hectares
Initial term
30 years
Extension term
By 20 years two times depending on the reserve’s volume of the deposit

15. LICENSE FEES AND MINIMUM EXPLORATION EXPENDITURES
Exploration license
1st year MNT ₮/hectare
2nd year MNT ₮/hectare
3rd year MNT ₮/hectare
4th-6th years MNT ₮/hectare
7th-9th years MNT ₮/hectare
10th-12th years MNT ₮/hectare
Mining license
2175 MNT ₮/hectare
(for coal and other common mineral resources 7250 MNT ₮/hectare )
Minimum expl. expenditures
2nd-3rd years 0.5 US$/hectare
4th-6th years 1.0 US$/hectare
7th-9th years 1.5 US$/hectare
10th-12th years 10 US$/hectare

16. PROGRESSIVE ROYALTY RATES FOR MINERAL PRODUCTS, PERCENT OF SALES
Type of products
Basic Rate
Prices of product
Ore
Concentrate
Final products
Copper 5%
Up to 30%
Up to 15%
Up to 5%
Other minerals
Coal for export 3%
2.50%
Coal for domestic
2.5%
Gold

17. TAX RATE Corporate Income Tax 10% 25% VAT 10% Customs duties 5%
10% %
(up to 3 billion MNT) (above 3 billion MNT)
VAT
10%
Customs duties 5%

18. CHALLENGES
Environmental protection and rehabilitation
Community relations
Informal mining
Resource nationalism
Infrastructure
Bureaucracy

19. COOPERATION POSSIBILITIES
Joint geological exploration in the borders areas
II. Establishment of economic cooperation of
border zones
III. Cooperation in the transportation & logistics

20. THANK YOU FOR YOUR ATTENTION
Suit 6, “Sky Plaza” center, Olympic street, Sukhbaatar district, Ulaanbaatar, Mongolia.
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