Licensed area occupies 0.9 per cent of total territoryEconomy | Mining
Ulaanbaatar /MONTSAME/ By the end of 2016, mining licensed area occupies 0.9 per cent of the total territory of Mongolia with 1558 valid mining licenses. In addition, exploration licensed area makes up 7.7 per cent of the territory with its number of licenses of 2022.
There is tendency that exploration area has been shrinking year by year. For example, exploration was conducted covering 31.3 per cent of the territory in 2008. However a proposal is being forwarded on increasing the occupancy of exploration area to 20 per cent.
Dornogobi aimag has 294, the largest number of exploration licenses. This province has several fields, where product sharing agreements of oil have been made. Government of Mongolia established a product sharing agreement with "Smart Oil Investment of China" company at ‘Ergel-12’ field of Dornogobi aimag in 2016. The company agreed to conduct exploration work with investment of USD35 million in next 6 years.
‘Petrochina Daqin Tamsag” company conducts oil extraction at two fields in Dornod aimag and ‘Dongsheng Oil Mongolia’ company at one field. A company, which actively looking for investors abroad is ‘Petromatad’ Ltd registered on London stock exchange and the license holder at oil fields 4,5 and 20. 32.8 per cent of its mining licenses are for gold, 18.7 per cent for coal and 10.6 per cent for spar.