The office of the President of Mongolia, Public Relations & Communications Division

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2010-04-23

President Elbegdorj orders to temporarily suspend the allocation of mineral licenses and provides directives for actions

Founding upon certain provisions of the National Security policy documents and with the view to promptly regulate certain circumstances, emerged in the minerals sector, President of Mongolia, the Head of the National Security Council, ordered to temporarily suspent the issuance and transfer of mineral licenses.
Today President Elbegdorj convened some Members of the State Great Khural and the Cabinet, and some Government officials to additionally comment on his order.
“National Security Concepts of Mongolia, National Security Law, National Security Council Law and some other documents, ranked confidential, provide for certain acts, actions, duties and directions for the Head of the National Security Council. I have convened you today precisely within the confines of these duties. The order I have issued addresses and aims to resolve one of the critical issues that has been causing a great deal of concern.
National security, balanced economic development, development and protection of natural resources have always been under my concerted attention. I have been providing concrete orders and directions to pertinent organizations and officials. One of the subjects of these orders was the issue of minerals licenses. When I meet with citizens, when I hold meetings, while working in the rural areas, practically all soums, all local governments, all local people are talking about this very issue. Over the last 5 years we have talked about ensuring that our people become the true owners of our natural wealth, that our peoples right to be the owners are violated, yet nothing has changed, violations persist. The problems around the mineral licenses are not mere violations, they evolve as organized crimes, threatening and damaging our national security. The matter is truly serious, and this is being noted by certain officials too. I will cite just one example. Almost half of exploration license holders neglect their legal duty to provide their annual exploration reports. Ignorant of their main duty to explore for minerals, the license holders have turned mineral licenses into a money-making tool for foreign and national groups. It is possible that corruption and bribery are committed in those circles. According to a report by the authorized institution, as of April 2 this year there were 4706 valid mineral licenses of which 3610 are exploration and 1096 are mining licenses. Most of these titles are kept in violation with law.
This disorder leads to eventual deprivation of the Mongolian people of their property, and to situations whereby attempts are made to exert pressure on and influence our sovereign policies. Certain state institutions, certain officials are charged by law with a duty to halt such practices. And this lawful and legal duty must be practiced. At times we do lose time, we do not act promptly, and eventually we might fall victims of illegitimate pressures of others. The situation must be rectified.
Therefore, through the relevant organization I have ordered to suspend temporarily the issuance of new and revoked mineral licenses and transfer thereof as of 5 p.m. April 20, 2010. To prevent a similar situation emerged years ago around the Decree #20, when many lost trying to win preemptively. Such decisions should not be given lead time.
Please report to the National Security Council on the enforcement of my order within May, and in June, we should hold an open public discussion at the Citizens’ Hall.
I view that my order remains effective until a new law on Mineral Licenses is adopted. I order the Government to regularly report to me on the status of the implementation and the ways it resolves the issues. It is important to urgently develop the law on mineral licenses and have it publicly discussed. The time has come for us to discuss, exchange information and act”.
President Elbegdorj had spoken with the members of the National Security Council – Chairman of the State Great Khural Mr. D. Demberel, and Prime Minister Mr. S. Batbold about the order he was issuing. Implementation of the President’s order shall be monitored by the Office of the National Security Council, relevant organizations and the general public.