Draft Revised Minerals Law
31 December 2012
The Office of the President of Mongolia published a draft revised Minerals Law ("Draft Law") on its website on Friday 7 December 2012.
The Draft Law is comprehensive, and runs to over 100 pages and a total of 145 articles, in comparison with the existing law of 66 articles. Mongolia last revised its Minerals Law in 2006, replacing the Minerals Law adopted in 1997 which had provided a very liberal mining regime. Although only adopted in 2006, a revision of the existing Minerals Law had been pending for the last few years and a moratorium on the issuance of new exploration licences had been in place since 17 June 2010. Such moratorium was due to expire today, 31 December 2012, but was extended by a plenary session of Parliament held on 28 December 2012. The extension will be in place until such time as the new Minerals Law enters into force.
It appears that the President's Office intends to hold a public consultation on the Draft Law in the coming weeks, however at this stage it is not certain what format this will take. We expect that the Draft Law will undergo at least some amendment prior to adoption. We understand that the current draft has not yet been submitted to Parliament for approval.
The Draft Law deviates from the existing Minerals Law in many areas and seeks to introduce a new regulatory regime with new legal concepts.
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