Source: Undesnii Shuudan                       Date: 21 September, 2010

A year after Parliament passed the law prohibiting minerals exploration and extraction near river sources, water basins, and forest areas, providing for compensation to be paid to those whose licenses were to be cancelled, it is now clear that implementing this long named law is not possible. The Government recently approved of guidelines to identify the exact boundaries of areas to fall under the prohibition, but could take no decision on how the compensation for expenses already incurred were to be paid. This is because an estimated 1,700 licenses, including for both exploration and mining, will have to be taken back, and a preliminary accounting reveals the amount of compensation will amount to USD5 billion. The Government just does not have that kind of money to be spent on such purpose.