introduction to the draft mining law
TRANSCRIPT
Introduction to the Draft Law on MiningDunnaran Baasankhuu
Partner
Amarjargal Batchuluun
Associate
31 March 2017
Contents
Overview of the current legislation in the mining sector
Summary of the Draft Mining Law (Draft Law)
Key changes introduced by the Draft Law
Overview of current
legislation
Overview of the current legislation in the mining sector
Minerals Law, (2006)
Common Minerals Law, (2004)
Nuclear Energy Law, (2009)
Subsoil Law, (1988)
Environmental Protection Law, (1995)
Environmental Impact Assessment Law, (2002)
The State Policy on Minerals Resources, (2014)
Action Program of the Government of Mongolia for 2016-2020,
(2016)
Minerals Law, (2006)
Regulates:
Ownership of minerals
Licensing for exploration and mining activities (except oil, gas,
radioactive minerals and common minerals)
Rights and obligations of licence holders
Conditions to maintain valid licenses
Licence fees and royalties
Environmental obligations of licence holders
Transfer, pledge and revocation of licenses
Dispute resolution
Common Minerals Law, (2004)
Regulations:
Licensing for exploration and mining of commonly occurring minerals
(e.g. sand, stone, construction rocks, etc.)
Powers of the State Authorities
Rights and obligations of licence holders
Conditions to maintain licenses
Environmental obligations of licence holders
Nuclear Energy Law, (2009)
Regulates:
Licensing for exploration and mining of radioactive minerals
Rights and obligations of licence holders
Expiration and suspension of licenses
Deposit development agreements and investment agreements
Regulates:
Permitted usage of subsoil including exploration, mining and
construction of underground facilities
Rights and obligations of subsoil users
Termination of rights to use subsoil
Subsoil Law, (1988)
Environmental Protection Law, (1995)
Sets out, among others, general obligations of exploration and
mining license holders and compensation for environmental damage
Environmental Impact Assessment Law, (2012)
Regulates environmental impact assessment for projects and
subsequent reporting obligation of license holders, and use of
natural resources with minimal environmental effect
Draft Mining Law
Stages of the Draft Law
Approval of the Government Action Plan for 2016-2020
Concept of the Draft Law approved in January 2017
Establishment of a working group in January 2017
Call for submissions
Background of the Draft Law
The Minerals Law left several issues open or incomplete:
classification and details of minerals prospecting and exploration
requirements for feasibility studies for mining works
requirements for mining drawings
preparation and commissioning of the mine
extraction processes
utilisation of derivative deposits and artisanal mines
mine rehabilitation processes
temporary or permanent closure of the mine
Background of the Draft Law (cont’d)
Key concerns of the Minerals Law:
vague provisions
open issues
unclear requirements
fails to address OH&S rules
inadequately addresses links to existing legislation
Purpose of the Draft Law
Regulate the open issues in the Minerals Law
Provide one clear approach to issues
Regulate the mining life cycle
Address current development trends
Improve transparency in the mining sector
Structure of the Draft Law
14 Chapters and 70 Articles
Chapters 1 to 2: General provisions, definitions, scope of law and
involvement of the State Authorities
Chapter 3: Geological surveys, prospecting and explorations works
Chapter 4: Requirement to complete mining feasibility studies and
design works for underground mines
Chapter 5: Preliminary works before operation of the mine (mineral
concentration and processing)
Structure of the Draft Law (cont’d)
Chapter 6: Requirements to conduct mining activities
Chapter 7: Requirements for the concentration and processing of
minerals
Chapter 8: OH&S regulations
Chapter 9: Environmental rehabilitation
Chapter 10: Sale of mining products
Chapter 11: Closure of the mine
Chapters 12 to 14: Transparency, management and structure of the
mining sector and dispute resolution
Changes required to other legislation
Draft Law on Implementing the Mining Law
Draft Amendment Law on the Law on Breaches
Draft Amendment Law on the Minerals Law
Draft Amendment Law on the Environmental Assessment Law
Draft Amendment Law on Licensing Law
Draft Amendment Law on State Stamp Duty Law
Draft Law to revoke the Common Minerals Law
Key changes introduced by
the Draft Law
Key changes introduced by the Draft Law
Additional licensing requirements
Classification of mines and mining plants
Mine and mining plant closure processes
Merger of licence areas
Additional licensing requirements
Feasibility study licence
Design licence
Retention licence
• Environmental protection unit
• Emergency unit
• Potential favourable conditions
State scope or large
• Environmental protection employee
• Emergency unit
Regional scope or medium
• Environmental protection employee
• Simplified mine closure obligations
Local scope or small
Classification of mines and mine plants
Mine and mining plant closure processes
A closure plan must be prepared and filed prior to commencement of
mining activities
Issue of a closure financial guarantee
Payment to the Mine Closure Risk Fund
Merger of licence areas
Licence holders may merge their adjacent licence areas
Upon a merger of licensed areas, the licence holders must conduct
new feasibility studies and prepare closure plans
The term of the merged licences will expire on the date of the
licence with the latest expiration
Issues with the Draft Law
Unclear drafting
Adopts or revises more than 20 rules and regulations
Additional requirement to obtain a licence for concentration and
procession’
Strict requirements prior to commissioning the mine and mining plant
Duplication of provisions in other laws
Thank you for listening