Gatsuurt mine proposed for the list of strategic mining deposits


A proposal to include Gatsuurt gold mine in the list of strategic mining deposits was discussed in the December 16 Parliamentary Standing Committee on Economy meeting, where the majority of members voted to have its draft bill discussed by Parliament.
Gatsuurt gold mine is owned by the Canadian mining company Centerra Gold Inc, which allegedly submitted the proposal to include the mine in the list, according to Minister of Mining R.Jigjid. However, the amount of state ownership in mine remains unsettled. The mine is estimated to have 50,000 tons of gold.
During the discussion, Member of Parliament L.Enkhamgalan noted, “The draft bill had been prepared incompetently. The amount of state ownership and involvement is not clarified. In addition, can mines be included in the list of strategic mining deposits upon the request of its owner? What is state policy on this issue? Furthermore, it could be suspected that the owner of the Gatsuurt mine is trying to find a means to use the mine by including it in the list, since the mine was rendered unusable because of its conflict with the Long Named Law. Please provide clarification on these issues.”
In response, the Minister of Mining commented, “The mine was rendered unusable under the Long Named Law. However, individual miners have been exploiting gold at the mine, and as a result, the environment has been severely damaged. From this, stemmed the necessity to restore the environmental damages, which could best be done through allowing the owner of the mine to use the mine and carry out environmental restoration afterwards. On the other hand, utilizing the mine is beneficial in this time of economic crisis.”
Opposing the proposal, a Parliament member remarked, “There can hardly be an investor so foolish as to plead for inclusion of a mine in the list of strategic deposits just to use its remaining 50 [sic] tons of gold. Therefore, the owner might have made the proposal because of some external pressure. Including this mine on the list might ultimately result in pushing away investors instead of attracting them.”

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Posted by on Dec 17 2014. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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