Ministry to oversee development of Asgat silver mine


During last week’s regular cabinet meeting, the Ministry of Mining was made responsible for the development of the Asgat silver mine.
Minister of Mining D.Gankhuyag was instructed to oversee the pre-feasibility studies at the mine and provide evaluations, professional and technical support, and make related contracts.
The State Property Committee instructed Mongolrostsvetmet Ltd, which operated the mine, to provide the evaluations and assessments of all previous studies and research at the mine.
According to a letter addressed to the Ministry of Mining from Mongolrostsetmet, Asgat mine doesn’t have enough cash reserves to put the mine back into circulation. The letter explained that in the second quarter of 2013, the mine stopped mining crystals as their main buyers in Russia stopped purchasing, China’s transportation costs and tax rates have increased, gold deposits at the mine were depleted, and some of the deposits were restricted under law as they are located in state protected areas.
Therefore the company said that it has no available financing for analysis of samples, and feasibility studies, and requested that a government group be appointed to oversee the matters.
In 2007, the Mongolian Parliament included Asgat silver mine as a strategically significant mines. Since the mine’s geological and exploration work was conducted through state funding, the state is entitled to up to 50 percent of the mine in accordance with the Law on Mineral Resource.
Related ministries and government organizations agreed at the meeting that the development of Asgat silver mine will “help Mongolia overcome its current difficult economic hardships” and provide a new export commodity type, which in turn will help improve Mongolia’s foreign currency reserve.


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Posted by on Apr 27 2014. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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