In his first interview to the media since assuming office as director of the Mineral Resource Authority -- an Implementing Agency of the Government -- G.Altansukh answers wide ranging questions from G.Iderkhangai of the Mongolian Mining Journal.
As head of the MRA, you also lead the organising committee formed to celebrate the 90th anniversary of the mining sector of Mongolia. Are things going according to plan, and what lasting effect do you expect from the celebrations?
We have planned in a way and observance of the event has been going on successfully since the beginning of the year. A number of international conferences, discussions and practical seminars have been held, including “Discover Mongolia 2012” Investors’ Forum. Now we are preparing for “Metals Mongolia 2012” and a few other seminars and conferences.
Plans for the anniversary were ready before my appointment as head of the Authority. I reviewed them and found them good. So far all important events have been organised very competently. The celebration is running smoothly, with the active participation of mineral entities and their support.
90 years is not a very short time. Our mining sector has a rich history of success. One of our goals is to pave the way for scientists, experts and those working in the sector to exchange their experience in the field and their vision of future development, share their knowledge and skills and advertise their activities to the public.
I wish every participant in the anniversary programmes will contribute to this goal. I expect the final outcome of the event to be positive. I am sure many new ideas will be discussed -- on use of technology, good management practices, and beneficial investment -- and make a huge contribution to the development of mining in Mongolia. I also hope that the event will strengthen all stakeholders’ commitment to socially responsible mining, and implementation of best management practices.
How do you think proceedings at Discover Mongolia 2012 would help develop the Mongolian mining sector?
As always, the forum offered significant information and insights to investors so that major mining projects could be furthered. We have to remember that the scenario changes as the mining sector develops, with new issues coming up. Our priority concern a few years ago was to encourage investment in exploration and mining activities, whereas now our focus has shifted to adding value to minerals before exporting them, setting up industrial projects and building infrastructure. We still need investment in all this, but that is not all. We also need to enforce environmental rehabilitation standards and methods. Conferences such as Discover Mongolia are necessary to understand the impact of mineral sector development on urbanisation, the environment, and on wider social issues, and to find ways of resolving these issues.
You had a long stint at the General Intelligence Agency, and many were surprised when you were appointed head of the MRA. How did you take that?
Different people had different reactions about my appointment.
The MRA is a government organization, just as the GIA is. All government officials learn to follow and implement rules, to work according to law, and to conduct themselves ethically and responsibly. My experience of 20 years in State work, of which 10 were in a position of leadership, gave me sufficient qualification for the MRA job.
Beyond its obvious economic importance, the mineral sector is directly linked to national security. I guess one reason why I was selected for this post was the knowledge and experience I gained in working for the special services for many years.
The MRA established a working group to sort out complications regarding strategic deposits. What work has it done so far? Are any among the newly found deposits likely to be listed as strategic?
Yes, an 18-member working group was set up in 2011, as instructed by the Ministry of Mineral Resources and Energy. Its responsibility was to re-assess the whole strategic deposits issue and formulate suggestions to make it more realistic. The working group reviewed a total of 64 deposits under 10 criteria and recommended that 33 of them be listed as strategic, leaving out for now the 31 others as they are. I don’t have anything to add to the working group’s report. The final decision will be made by Parliament.
As for the newly established mines, exploration work for most of them was done with private funds. The Mineral Law says that if such a deposit is listed as strategically important, the State will own 34 per cent of the mine. The new deposits fall under this law.
The criteria to determine the percentage of State ownership of all strategically important mines need to be clear and fair. We shall follow the law strictly and scrupulously as we take our decisions on an individual basis.
The election manifesto of some parties including the Democratic Party favoured the Government to be in charge of granting licences. How will this affect the role of the Mineral Authority in this important responsibility?
The formal responsibilities of the Mineral Authority are spelt out in the Mineral Law. At present, the Authority issues licences according to the law. If there is a new law giving the Government charge of issuance of licences, the MRA will have no role in it.
The Ministry of Mineral Resources and Energy has placed restrictions on issuance of mining licences for 5 years. Is license issuance now completely banned in national reserve areas?
Yes. Last May, the Government issued a decree that declared all lands on which exploration and mining licences could be issued as Government reserve for five years. This was in accordance with the Mineral Law.
Let me mention some figures here. Currently there are 2,454 valid exploration licences and 1,199 valid mining licences. Together these cover 21.7 million hectares of land which is 13.9 per cent of the total territory of Mongolia. The Government reserve land is 12 million hectares or 7.7 per cent and no new licences there are being issued now.
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