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Source: Mongolian National Mining Association, Ardiin Erkh Date: 2 April, 2010
Altogether 454 delegates from 18 state organizations, 5 academic institutions, 11 NGOs, and 216 entities in the mineral sector, as well as scholars, local governors, and diplomats, attended a conference last week jointly organized by the Ministry for Minerals and Energy, and the Mongolian National Mining Association.
The meeting urged MPs and others associated with legislation and making policy: • to respect public opinion and ensure that it is reflected in the State policy on the minerals sector and, once it is adopted, to follow the policy consistently; • not to pass any laws related to the minerals sector until the proposed policy is adopted; • to amend, on practical considerations, the law prohibiting exploration and excavation near forests, water sources, and protected regions; and • to make a statutory practice of seeking the views of professionals, academic institutions and business entities before taking important decisions in the minerals sector.
The executive authorities were asked: • to formulate the mineral sectors policy in collaboration with professional associations and to reflect public opinion prior to submitting the policy to Parliament; • to review the contradictions between the existing laws in the minerals and submit to Parliament draft amendments to remove such anomalies; • to pay special attention to human resources issues in the minerals sector; and • to ensure that a percentage of mining production taxes goes to the local budget according to the Minerals Law. Member companies were enjoined: • to carry out appropriate restoration work in areas damaged by mining; • to show social responsibility and work closely with local communities and administrations; and • to abide by the principles of responsible mining and the recommendations of the extractive industry transparency initiative.
An appeal was made to local administrations to support companies working legally in their area and not to request them for any improper donation. During the deliberations, several mining representatives had complaints about recent legislation, especially about the law restricting mining near rivers and forests.
Implementation of the law would entail cancellation of 1,128 mining licenses. It would also mean MNT314 billion less in the State budget and about USD2 million to be paid as compensation. Taken together this may well set the economy back by years. A survey has also shown that more than 50,000 jobs are related to the licenses that stand to be canceled. Those who developed the law, such as MP B.Bat-Erdene, have however refused to budge, saying protecting the environment had more long-term value than immediate economic considerations. There was near unanimity that the 68 percent windfall tax had done no good and had held back development of mining, particularly that of gold. MP S.Oyun feared that more such bad laws will be proposed to meet the irresponsible election promises that would certainly be made in the 2012 Parliamentary election. She called for “a political consensus to reject short-term benefits at the cost of sustainable development”.
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