Mining and geology regulations approved by Mongolian Government, Its Ministries, Authorities, and Agencies

д/д	Approved by	Approved Date	Name	Comment
1	Mineral Resources and Energy Minister	April 17, 2012	Approval of Instructions	Basic requirements to mineral resources scoping study, mineral deposit mining prefeasibility study, and mining project feasibility study, procedure for receiving feasibiliy study
2	Minister of Mineral Resources and Energy	April 13, 2009	Approval of Members and Rule	Members and Rule of Mineral  Resouces Council is approved
3	Head of Mineral Resources Authority of Mongolia	August 21, 2003	Approval of Procedure	Procedure for temporary and permanent mining operations closure
4	Government of Mongolia	April 4, 2007	Exchange approval	Approval of exchanges upon which minerals sale price will be accordinly determined for imposing tax royalty base
5	Government of Mongolia	February 17, 2010	Ammendments to the resolution	Changes to the names of exchanges upon which minerals sale price will be accordinly determined for imposing tax royalty base

New procedure for scoping study, prefeasibility study, and feasibility study

New procedure for basic requirements to mineral resources scoping study, mineral deposit mining prefeasibility study, and mining project feasibility study, procedure for receiving feasibiliy study is approved. This procedure was approved by the order Number 074 of Ministry of Mineral Resources and Energy from 17^th April 2012

Procedure contains 8 main parts and 18 pages.

Required Documents to Export Minerals from Mongolia

1              Certificate of origin from Chamber of Commerce of Mongolia

2              Export permit from Mongolian customs central laboratory

3              Export permit from Mongolian Quarantine Inspection Authorities

4              Certificate of conformity from Mongolian Agency for Standardization and Measurement in Umnugovi province

5              Notarized copy of Sales Contract with foreign company

6              Notarized copy of Sales Contract with Miner company

Conceptual, Pre-feasibility and Feasibility Study

 

The Pre-feasibility Study and Feasibility Study of Mining project in Mongolia must be prepared by an authorized organization holding the appropriate permits or by mining consulting engineer . If the Feasibility Study is prepared by a foreign organization it also must be translated by an authorized organization holding the appropriate permits or by mining consulting engineer.

According to the regulations, assessing the feasibility of a mining project has three different stages : 

Mining Royalties

The Minerals Law (Article 47) provides that the holder of a mining license must pay a standard royalty calculated on the basis of the total sales value of the minerals extracted.   The standard royalty rates are 2.5% for coal sold in Mongolia as well as for commonly occurring minerals sold in Mongolia, and 5.0 % for all other minerals i.e. coal sold abroad, commonly occurring minerals sold abroad and minerals that are not commonly occurring, either sold in Mongolia or abroad.

Procedure for Approval of Mining .

1        Licensing

Mongolia’s constitution states that its mineral resources are the property of the State. The State, as the owner, has the right to grant exploration and mining rights as set forth in the terms and conditions of minerals law. Conducting exploration or mining without a valid license is prohibited.

At the exploration license granting stage, the approval from the Governor of the aimag or the capital city is required.  If the Governor fails to respond within 30 days this shall be deemed as an approval.

Laws of Mongolia related to Mining and Exploration

LAW	Approved date	Date of come into force
CONSTITUTION	13-Jan-1992	1-Feb-1992
AUTO ROAD LAW	2-Jan-1998	1-Feb-1998
GASOLINE AND DIESEL FUEL TAX LAW	2-Jun-1995	6-Jun-1995
AUTO TRANSPORT	4-Jun-1999	4-Jun-1999
AIR POLLUTION PAYMENT LAW	24-Jun-2010	24-Jun-2010
AIR LAW	24-Jun-2010	24-Jun-2010
BUSINESS ENTITY  INCOME TAX LAW OF MONGOLIA	29-Jun-2006	1-Jan-2007