Aduunchuluun on the verge of stopping coal mine due to overlapped license

Economy | Mining
2018-05-08 12:52:57
Ulaanbaatar/MONTSAME/ During his rural trip to eastern aimags on May 4-6, Minister of Mining and Heavy Industry D.Sumiyabazar worked at Aduunchuluun coal mine in Dornod aimag, which supplies Eastern Energy System with energy coal for 63 years constantly.

Minister D.Sumiyabazar was told about present license disputes around Aduunchuluun coal mine, privatized in 1999. Specifically, 134 hectare area of 400 hectare licensed No:029A owned by Aduunchuluun Company was issued  overlappingly to MAK LLC in 2009 and 74 ha to Naingi company in 1998. 

"Due to license disputes, Aduunchuluun Company is unable to run extractions on the overlapped area whose coal resource was estimated to be around 40-50 million tons. If the problem is settled, the company will be possible to conduct the mining activity there for 30-40 years. The problem leads to difficulties that there will be no mining areas  for Aduunchuluun company as the company has mined about 300 ha already and supply coal to Dornod Power Plant and citizens," said the mine authority, requesting to solve the problem promptly.

After hearing the matter, the Minister assigned the company's authority to provide necessary documents and requests regarding the license.

Since it began operating, Aduunchuluun company has been conducting surface and underground mining, made overburden removals on 28.4 million cubic meter area and extracted 14.9 million tons of coal. As of 2017, it accumulated MNT 1 billion 157 million to the state budget.