Source: Ardiin Erkh    Date: April 25, 2010

Most MPs taking part in a discussion of Boroo Gold’s request to continue operations at its mine at Zuun Kharaa felt the company’s performance deserved an “A” grade and favored granting the permission.  Excavation at the mine is expected to be over in about six months unless the company is allowed to extract gold from sand. It has succeeded in producing 1.2 tons of gold this way in an experiment using a different technology and estimates a further nine tons can be produced.
During a discussion on the issue at the Standing Committee on Environment and Agriculture, Mr. E.Bat-Uul said Canadian-invested Boroo Gold has never received a fair deal from Mongolian authorities. He favored grant of permission. Supporting him, Mr. Kh.Narankhuu said the Erdenet factory has been using this technology since 1996, and there is no reason to deny Boroo Gold permission.
Boroo Gold has worked to its full capacity since 2004 to extract 41.2 tons of gold until now. Its sales figures reached MNT880 billion at the end of 2009. It has paid MNT190 billion in taxes. It was exempted from paying the windfall profits tax, but it was charged MNT150 for one cubic meter of water instead of the standard MNT6.