“A mining policy should remove all inconsistencies and give a clear picture to investors.”

B.Batkhuu, Head of the Mining and Heavy Industry Department at the Ministry of Mineral Resources and Energy, tells G.Iderkhangai what a new mining law can do for the sector.

Strong demands for a new mining law were repeatedly expressed at the recent mining conference. How will this help in the development of the sector? 

In fact, the demand is not new and has been around for quite some time. The present law deals  more with licensing and exploration of specific deposits than with the many other aspects of mining operations. That is why it is often called the law of bookkeeping or registration. There are references to mining operations but in general the process is ignored, and so procedures and regulations are not clearly defined. The recent conference was an opportunity to raise related concerns. Many noted how provisions in several laws, namely the Earth Law and the Minerals Law, are not compatible and in many cases contradict one another. This inconsistency poses problems for both the operator and the regulator, affecting the whole sector. Some time ago geologists and miners began working on the draft of a new mining law but nothing much was then heard of it. This has to be revived and updated, with all necessary elaboration.
 
What is the situation in other countries with large mineral resources? How can we be sure that our new law complies with international standards?

Different countries have different kinds of laws governing their mineral sector but most are focused on regulating the process of mining operations. Some countries do have laws like our Minerals Law. We have studied these and are ready to compare notes with research institutions. The mining sector has been very much in the news in the last few years. Of course, the first thing is to begin implementation of the Minerals Law and then observe the problems and challenges that arise as we go along, and devise solutions. This is our approach. There are so many issues that have to be kept in mind right from the beginning. For example, what happens when the resources are exhausted, how should the mine be handed over and what the closure procedure will be.  Besides environmental restoration, there has to be “social restoration”. What happens to those who worked at the mines who now find themselves without a job? Countries such as Canada and Australia have elaborate and very detailed guidelines on this. 

Are amendments to the Earth Law ready? 

That law was adopted several years ago, and does not meet today’s changed requirements. A working group set up by the Prime Minister has almost finished work on a new draft. It will be discussed at the Prime Minister’s Council. The main thing is to see that the Earth Law and the Minerals Law are consistent with each other.

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