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Mongolia: Issuance of Mining Licenses Temporarily Suspended Pending Adoption of New Law

(May 18, 2010) It was reported on May 10, 2010, that Mongolia's National Security Council had the previous week partially amended President Ts. Elbegdorj's April 20, 2010, order temporarily suspending all transactions involving mining licenses. Although new licenses still cannot be issued, the NSC order of amendment allows licenses to be transferred from one owner to another. N. Algaa, Executive Director of the Mongolian National Mining Association, who had criticized the presidential order “for harming the legitimate business interests of many companies,” deemed the revision “a partial rectification of a wrong.” (Order Amended to Allow Transfer of Mining Licenses, MONGOLIA-WEB, May 10, 2010, available at
[Source: ZUUNII MEDEE newspaper].)

The President had suspended the license issuance as part of a plan by the President's Office to develop the legal environment for mining licenses. The first draft of a new law on the subject is expected to be discussed by the Civil Council in June; license issuance has been suspended until after the law is adopted. (Mongolia Will Have Law on Mineral License, BUSINESS MONGOLIA, Apr. 28, 2010, available at

The current Minerals Law of Mongolia, which originally entered in force on July 1, 1997, covers such matters as requirements for obtaining a mining license, steps in the application process, and the rights and obligations of licensees. (The Minerals Law of Mongolia (Amended Law [of July 8, 2006]), Official Translation in English, Oct. 30, 2006, available at; Mongolian Mining: A Golden Opportunity?, ENERGY LAW 360, July 18, 2007, available at
.) The website of the Mongolian National Mining Association also provides a list of documents needed to apply for a mining license in Mongolia. (To Get Mining License…, May 5, 2010, available at Mongolian National Mining Association website,