Ulaanbaatar
Minister R.Jigjid: “License granted to Gutain Davaa is legal”
PoliticsUlaanbaatar /MONTSAME/ Minister of Mining R.Jigjid called December 23 a press conference to make clarifications, in regard to the political sit-in strike by "Delkhiin Mongol Green Union" NGO protesting the issuance of mining license at Khentii aimag’s Batshireet and Binder soums. The strike has been on for three days.
The mining exploitation permit was issued August 13 of 2015 to Gutain Davaa, a Mongolian mining company with Canadian investment. The company has been possessing exploration license since 2003, and had registered 3,174 tons of gold reserve of Gutai deposit to the Professional Council on Minerals. In 2012, the “Long-Named Law” (Law on Prohibiting Mineral Exploration and Extraction Near Water Sources, Protected Areas and Forests) made the deposit and surrounding it area unavailable for mining operations, as they were intersected with forest reserve.
Last February, with the adoption of the law on implementation measures for the “Long-Named Law”, the area was not anymore intersecting with any protected areas. Therefore, the license was issued legally, said the Minister.
Mongolian side holds 51 percent ownership of Gutain Davaa Co. The professional council approved the feasibility study on Gutai deposit last month, he added. Accordingly, the company is to extract 1.3 tons of gold within 5 years of operation, providing 205 jobs, paying 22.5 billion MNT of taxes and making a profit of 30 billion MNT.
Environmental impact assesment is being conducted by Delgerekh-Ach company. Should the assessment results indicate that the mining operations will harm the ecosystem, the license will be cancelled. “For these reasons, I responsibly state that the mining permits have not been illegally issued to Gutain Davaa”, said R.Jigjid.
