Legal Alert: On Minerals Legal Environment Reform and Policy Framework
The Minerals law entered into force on 8 July 2006, comprising 11 chapters and 66 articles, for the purpose of regulating relations with respect to prospecting, exploration, and mining of minerals, and protection of exploration fields and mining areas in use in the territory of Mongolia.
As the growth of Mongolia’s mining industry and the intensification of sector activities give rise to new types of relationships that become difficult to regulate under the Law on Minerals enacted in 2006, a draft law on amendments to the Law on Minerals has been developed within the following scope, to fulfill the objectives of the Governments of Mongolia’s Action Plan for 2024-2028 implementing the Constitution of Mongolia and other legislation, and of creating conditions for growing the Sovereign Wealth Fund by increasing the sales of mining products:
- Intensifying exploration activities through the issuance of exploration licenses;
- Developing and implementing policies and strategies on critical minerals;
- Regulating mineral processing activities;
- Optimizing local community participation in the geology and mining sector;
- Increasing revenues directed to the Local Integrated Development Fund from mineral resource use fees.
In connection with this draft law, draft amendment laws for 11 different laws related to the Law on Minerals have also been prepared and submitted as accompanying legislation.
