Source: The Mongolian Mining Journal    Date: April 30, 2010

Mr. D.Damba, President of the Mongolian National Mining Association, has said unwise laws harm the mineral sector which is the mainstay of the national economy. The mining sector in Mongolia has a history of 85 years, but the country is yet to not have a comprehensive mining law reflecting a long-term policy. “This will not do,” he has said, calling for “a clear, realistic and sustainable policy and a law that will both reflect and implement that policy in the mineral sector”.

The present situation where, “in the absence of an overall view” many laws are being passed that are “against the interests of the sector, leaving miners very frustrated”, is possible “only because the state neither has nor can give a clear sense of direction”. He singled out three recent laws that, “individually and together, are seriously damaging business”. Mr. Damba feels it is “imperative that the State formulates its policy on a priority basis, presents it to the public to allow all concerned, especially our member companies, to review its provisions and make practical suggestions, and then incorporate them on merit in the final draft that will become law”.
Stressing the need for the involvement of professionals in the drafting of laws on technical matters, Mr. Damba said, “With all due respect to them, a group of MPs sitting together and drafting a mining law cannot be the best way to do justice to issues technically complicated and with ramifications hidden from the amateur eye.” The result of this practice has been the law banning mining work in certain areas. “Some in the Government have understood its huge negative impact and are going slow. Can you imagine that we have a law that the Government is embarrassed to enforce?” he said.