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Usukh Asm In Mongolia

Usukh Asm In Mongolia






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    Usukh Asm In Mongolia Usukh Asm In Mongolia Presentation Transcript

    • Assessment of Mineral Policy Development –with a Focus on ASM in Mongolia CASM Conference, Brasilia Batsaikhan Usukh Coordinator, Sustainable Mining Project MRPAM and SDC Mongolia
    • Framework for the Presentation
      • Introduction to the SAM
      • Observation on Mineral Policy Reform and Development
      • ASM Policy Reforms and Development
      • Assessment on ASM Policy
    • Introduction to SAM
      • Goal
      • Contribution to the responsible ASM
      • Objectives
      • Support to legalisation of ASM
      • Support to Institutional development
      • Improvement of economic profitability of ASM
      • Environmental Improvement
    • Observation on Mineral Policy Reform and Development
      • The government accepted that the mining sector is the key to the country’s development
      • Gold program was passed in 1992
      • First mining law was approved in 1994, and revised several times (1997) and three times in 2006 – regulates large scale mining activities
      • Tax on minerals (10%) with various fees – use of minerals, land and water
    • Observation on Mineral Policy Reform and Development
      • Policies that stimulate foreign investment
      • – Gold program 1992
      • - Better tax environment (no tax for first 5 years) in investment agreement
      • Ensuring a reasonable return to the national economy (1 ounce >500 US$) while supporting investors with lower tax (stable socio-economic-political situation)
      • - Windfall tax in 2006
      • - Government of Mongolia > 51% and investor 49% for strategic deposits
    • Observation on Mineral Policy Reform and Development
      • How policies that simulated foreign investment were made in the 1990’s
      • - dominated with communist mentalities
        • - No need to debate all over the country
        • Government set the goalsand developed the policy
        • People were not interested in participating because of ownership issues
    • Observation on Mineral Policy Reform and Development
      • Ensuring a reasonable return to the National Economy
      • After around ten years of transition (by 2000) the mentality of people has changed - so how is policy being made nowadays?
        • - learning lessons
        • - Media, (TV / newspapers) and civil movements express voices of the people
        • - Government starts to understand
        • - More focus on strategic deposits
    • Policy Development Process Policy Makers / Government Media Civil Movement NGOs People Citizens Less Debate Missing Part What is needed: donors voice strong NGOs
    • ASM Policy Reforms and Development
      • The sub-sector emerged in the mid 1990’s / no attention given to the sub-sector
      • Because of damage in protected areas, the government started to intervene in ASM activity from 2004 (Res #87, to eliminate)
      • Due to the risk of mercury use without control, one more provision was added into the criminal law (crime against the nature and human wellbeing).
    • ASM Policy Reforms and Development
      • The first law was drafted in 2003 and 2006
      • No approval of the law
      • Resolution 28 on Regulating ASM (Jan 2008)
      • Sub program on the development of ASM – 2015 (Feb 2008)
      • Temporary regulation on ASM (Feb 2008)
    • ASM Policy Reforms and Development (Draft Laws)
      • The following steps have been taken:
      • Study tour to China and South American countries
      • Extensive field trips to ASM sites
      • Law was drafted and debated throughout the country (workshops, stakeholder meetings, field trips with policy makers
      • Necessary studies were conducted
      • SAM project facilitated communication between different stakeholders
    • ASM Policy Reforms and Development Temporary Regulation (TR)
      • Copy of already draft law (good)
      • However the TR was:
      • Not well planned in advance, urgently made in response to problems
      • Very short time given to policy makers
        • Therefore no debate conducted
      • No multi-stakeholder participation
      • But luckily copy of already drafted law
    • Assessment on ASM Policies (Advantages)
      • Defined long term program for ASM in Mongolia (accepting ASM as an activity)
        • Organising informal miners into miner-user groups
        • Legalising ASM sub-sector
        • Reduction of unemployment and poverty
        • General shape of the documents is good
    • Assessment on ASM Policies (criticisms)
      • Centralized experimental plants of hard rock –gold ore processing (questions – who owns it, how big should it be – trials)
      • ASM-ers must be organised into unregistered partnerships (these are not flexible, limiting alternative forms of legal entities)
      • Land allocation: classifying them as secondary miners
    • Assessment on ASM Policies (Criticisms)
      • Economic activity rather than mining activity (no mining rights)
      • Human rights issue (pregnant women and mothers with younger kids are not allowed to work at mining sites,
      • ASM exploit only what is infeasible to other mining activities
    • Assessment on ASM Policy
      • Temporary regulation (TR) is effective until the new law is approved
      • Feedback on the TR must be reflected in the new law (advantage).
      • Assessment of TR must be completed by the end of this year
      • Inputs of international and national experts as well as feedback from the field are needed
      • Thank you very much for your attention