Amendment minerals law 2017.11.10

Unofficial translation
LAW OF MONGOLIA
Date: 10 November 2017 Ulaanbaatar city
MINERALS LAW
Article 1. Purpose of the law
1.1. The purpose of this law is to regulate relations within the territory of Mongolia with respect
to prospecting, exploration, and mining of minerals and protection of exploration area and
mining claim environment.
/This section was amended by the legislation enacted on the 8th
of January 2009/
Article 2. Legislation on minerals
2.1. The Mineral Law consists of the Constitution of Mongolia, the Subsoil Law, the Land Law,
the Environmental Protection Law, the National Security Law, the Investment Law, this Law and
other legislative documents enacted in conformity therewith.
/This section was added by the legislation enacted on the 17th
of May 2012/
/This section was added by the legislation enacted on the 3rd
of October 2013/
2.2. If an international treaty to which Mongolia is a party provides otherwise, the provisions of
the international treaty shall prevail.
Article 3. Scope of this law
3.1 This law shall regulate relations with respect to prospecting, exploration and mining of all
types of mineral resources except water, petroleum, natural gas, radioactive and common
minerals.
of July 2009/
of January 2014/
3.2 Relations regarding exploitation of minerals from micro mines shall be regulated procedures
and such procedures shall be approved by the Government.
/This section was amended by the legislation enacted on the 1st
of July 2010/
3.3.Relations regarding exploration and mining of common minerals shall be regulated by
specific law.
/This section was added by the legislation enacted on the 1st
of July 2014/

Article 4. Definition of terms
4.1 In this law the following terms shall have the following meaning:
4.1.1 “mineral” means any usable, naturally occurring mineral concentration that formed
on the surface or in the subsoil as the result of geological evolutionary processes;
4.1.2. “radioactive minerals” means mineral concentration that consists of uranium and
thorium-type radioisotopes
/This provision was added by the legislation enacted on the 16th
of July 2009/
4.1.3 “reconnaissance” means an investigation identifying mineral concentrations without
disturbing the subsoil through rock sampling, airborne surveys, and reviewing related geological
and minerals information;
/Numbering of this provision was amended by the legislation enacted on the 16th
of July 2009/
4.1.4 “geological survey to be conducted at expenses of State fund” means geological
mapping, thematic survey, geological prospecting and exploration of minerals to be conducted
by the State fund;
of July 2009/
4.1.5 “mineral prospecting” means a geological survey the purpose of which is to identify
the existence of mineral concentration in prospective areas of mineral resources;
of July 2009/
4.1.6 “mineral exploration” means geological and exploration survey conducted on and
under the earth's surface for the purpose of identifying the location and quantity of mineral
concentration in detail and determining the technical and commercial feasibility of mining such
mineral concentration;
of July 2009/
4.1.7 “mineral mining” means the entire range of activities that include separating and
extracting minerals from land surface and subsoil, ore stockpile, waste or tailings, increasing and
enriching the concentration of its usable contents, producing products, marketing those products
and other activities related therewith;
of July 2009/
/This provision was added by the legislation enacted on the 1st
of July 2014/
4.1.8 “minimum cost of exploration” means an obligatory minimum expenditure to be
spent for exploration work in each year;
of July 2009/

4.1.9 “mineral deposit” means mineral concentration that has formed on the surface or in
the subsoil resulting from geological evolutionary processes, where the quality and quantified
reserves are economically feasible to mine by industrial means;
of July 2009/
4.1.10 “hard rock mineral deposit” means any mineral concentration that has formed as a
result of geological evolutionary process and exists in the same space with its host rock;
of July 2009/
4.1.11 “placer mineral deposit” means any mineral concentration that has been separated
from its first host rock due to erosion and mechanic processes and that has formed layers after
reformation
of July 2009/
4.1.12.“The Minerals Deposit of strategic importance” means a deposit of a size that may
have impact on national security, economic, or social development of the country, or that is
producing or has a potential of producing more than five percent of total gross domestic product
of Mongolia in a year.
of July 2009/
/This provision was amended by the legislation enacted on the 1st
of July 2014/
4.1.13 “special purpose land” means land that is taken by competent authority pursuant to
Articles 17, 18, and 20 of Land Law for local or national special needs where prospecting,
exploration and mining activities are restricted or prohibited;
of July 2009/
4.1.14 “reserve area” means an area that was previously allocated under exploration or
mining license which is now taken under the State control by a decision of competent authority
ceasing any prospecting, exploration or mining activity;
of July 2009/
4.1.15 “exploration license” means a document granting the right to prospect or explore
as set forth in this law;
/Numbering of this provision was amended by the legislation enacted on the 16th of July 2009/
4.1.16 “mining license” means a document granting the right to conduct mining as set
forth in this law;
4.1.17 “exploration area” means the area that is allocated under a license as set forth in
Clause 4.1.15 of this Law;

/This provision and numbering of this provision was amended by the legislation enacted on the
16th of July 2009/
4.1.18 “mining area” means the area that is allocated under a license as set forth in Clause
4.1.16 of this Law;
/This provision and numbering of this provision was amended by the legislation enacted on the
16th of July 2009/
4.1.19 “mining claim” means part of a geological formation overlapping with a mining
area where exploitation of minerals is to be conducted;
4.1.20 “license fee” means the payment that a license holder makes as set forth in this law
in order to maintain the license effective;
4.1.21 “license holder” means a legal entity which is obtained the right to prospect,
explore or mine minerals or received by transfer such right in accordance with conditions and
procedures as set forth in this law;
4.1.22 “legal entity” means a company or a partnership as set forth in Article 33.1 of the
Civil Code of Mongolia.
4.1.23.“Micro mining” means activities of citizens organized, in forms of unregistered
partnership stipulated in Article 481.1 of the Civil Code, partnership stipulated in Article 35 and
cooperative stipulated in Article 36.4 of the Civil Code, for the purpose of exploiting minerals in
the areas of economically non-profitable deposit for industrial operation and derivative deposit
formed by operational and technological wastes.
of July 2010/
/This provision was re-edited by the legislation enacted on the 1st
of July 2014/
of November
2016/
4.1.24. “mineral wealth” means a mineral concentration which its amount, type, content,
mineral concentration and economic significance are not estimated in detail through
geographical mapping, thematic survey and prospecting and exploration activities;
of July 2014/
4.1.25. “reserve of minerals deposit” means a part of the mineral wealth which its
amount, type, content, mineral composition are determined in detail through exploration

activities, having economical profit when exploiting by industrial means, and which it
enrichment technology and mining-technical conditions of exploitation are determined;
of July 2014/
4.1.26 “professional specialist, analyst” means a citizen who is authorized by a non-
governmental organization of geology and mining sector and has been nationally and
internationally is recognized;
of July 2014/
4.1.27 “derivative deposit” means an ore and mineral stockpiles which has certain
amount of accumulation created in the process of exploration, processing, and enrichment and
would have economically benefit when reprocessing;
/This provision was added by the legislation enacted on the 10 of November 2016/
4.1.28 “using derivative deposit” means operations conducted to distinguish mineral
resources from the ore and mineral stockpiles defined in the Clause 4.1.27 of this law, to process,
enrich, and to produce and sell value added products and any other related activities;
of November 2016/
Article 5. Ownership of minerals
5.1 Mineral resources naturally occurring on and under the earth's surface in Mongolia are the
property of the State.
5.2 The State, as the owner, shall have the right to grant prospecting, exploration and mining
license to other other persons in accordance with the conditions, requirements and procedures
provided by this law.
5.3. If the reserve of a mineral deposit is determined through a prospecting or exploration that is
funded by the State budget, the percentage of the state ownership in a mineral deposit shall be
determined by an agreement on exploration of the deposit. The percentage of the state ownership
can be replaced by the royalty payment for using the minerals deposits of strategic importance;
of February 2015/
5.4. If the reserve of a mineral deposit of strategic importance that was determined through the
State funded exploration is to be used jointly with a private legal entity, the rate of the state’s
participate may be up to 50 percent, and that rate shall be determined by agreement on
exploitation of the deposit considering the amount of investment made by the State. The
percentage of the State ownership can be replaced by the royalty payment for using the mineral
deposits of strategic importance.
of January 2009/
of February 2015/

5.5. . The State may own up to 34% of investment made by a license holder in a mineral deposit
of strategic importance where the reserves was determined through funding sources other than
the State fund. The percentage of the State ownership shall be determined by an agreement on
exploitation of the deposit considering the amount of investment to be made by the State. The
percentage of state ownership can be replaced by the royalty payment for using the mineral
deposits of strategic importance.
/This section was amended by the legislation enacted on the 8th of January 2009/
of February 2015/
5.6 A legal entity holding a mining license for a mineral deposit of strategic importance shall sell
no less than 10% of its shares through the Mongolian Stock Exchange.
Article 6. Classification of mineral deposits
6.1 Mineral deposits are classified as following:
6.1.1 mineral deposits of strategic importance;
6.1.2 common mineral deposits;
6.1.3 ordinary mineral deposits.
6.2 Mineral deposits set forth in Clause 6.1.1 of this law shall refer to the deposits which meet
the requirements of Clause 4.1.12 of this law.
of July 2009/
6.3 Abundant sediments and rock concentration that are available to be used as construction
materials are considered common mineral deposits.
6.4 All mineral concentrations except as set forth in Articles 6.2 and 6.3 of this law shall refer to
common mineral deposits.
Article 7. General requirements for license holders and for conducting mineral prospecting,
exploration and mining activities
7.1 Exploration and mining license shall be granted to a legal entity duly established and
operating under the laws of Mongolia and which is a taxpayer in Mongolia through selection
process unless otherwise provided by this Law.
7.2 A license holder shall meet the requirements set forth in Article 7.1 of this law for the entire
duration of a valid license.
7.3. It shall be prohibited to prospect, explore and mine mineral resources without a license
except for exploring mineral resources through micro mines. Prospecting and exploring natural
colored stone and gem stones shall be conducted based on a license similar to common minerals.
of July 2010/
/This subsection was re-edited by the legislation enacted on the 1st
of July 2014/

7.4 One license shall be granted to one legal entity only.
7.5 Landowners or land-possessors may use common minerals from their land for private and
noncommercial purposes. A list of common minerals that can be mined without a license shall be
approved by the Government.
/This section was considered as annulled by the legislation enacted on the 16th
of January 2014/
7.6.Цөмийн энергийн тухай хуулийн дагуу цацраг идэвхт ашигт малтмал эрэх, хайх,
ашиглах тусгай зөвшөөрөл олгох шалгаруулалт явуулахаар цөмийн энергийн асуудал
эрхэлсэн төрийн захиргааны байгууллагаас геологи, уул уурхайн асуудал эрхэлсэн төрийн
захиргааны байгууллагад мэдэгдэл ирүүлсэн бол тухайн талбай дээр уг асуудлыг
шийдвэрлэх хүртэлх хугацаанд ашигт малтмалын хайгуулын болон ашиглалтын тусгай
зөвшөөрөл олгохгүй.
/This section was added by the legislation enacted on the 16th of January 2014
/This section was considered as annulled by legislation enacted on the 13th
of February 2015/
7.7.If an exploration and mining license area overlaps with the areas allocated under the Law on
Oil, Nuclear Energy Law and Law on Common Mineral Resources and the persons holding the
right to carry out operations on these areas not able to mutually agree, then the State
administration organization in charge of geology and mining issues shall resolve this under the
regulation approved by the Cabinet through privatizing based on its social and economic
significance.
CHAPTER TWO
STATE REGULATION IN MINERALS SECTOR
Article 8. The full powers of State Ikh Khural
8.1 The full powers of State Ikh Khural with respect to mineral issues are as follows:
8.1.1 establish State policy with respect to development of the geology and mining
sectors;
8.1.2 exert control over work organized by the Government in relation to implementation
of legislation on minerals prospecting, exploration and mining activities;
8.1.3 resolve matters concerning mineral prospecting, exploration and mining activities in
state special protected area;
8.1.4 include or remove a mineral deposit from a list of mineral deposits of strategic
importance by submission of the Government or on its own initiative;
of July 2014/

8.1.5 restrict or prohibit mineral prospecting, exploration and mining activities on or
granting of exploration and mining licenses for certain territories by submission of the
Government or on its own initiative;
8.1.6 establish a special regulatory regime for mining, storage and transport of
radioactive minerals;
/This provision was considered as annulled by the legislation enacted on the 1st of July 2014/
8.1.7 determine the State’s ownership percentage of mineral deposits of strategic
importance as set forth in Articles 5.5 and 5.6 of this law or based on the size of the minerals
deposit registered in the State’s integrated registry by submission of the Government or by its
own initiative.
Article 9. The full powers of the Government
9.1 The full powers of the Government with respect to mineral issues are as follows:
9.1.1 ensure implementation of laws and legislations on mineral prospecting, exploration
and mining activities;
9.1.2 implement State policy regarding the development of geology and mining sectors;
9.1.3 resolve matters concerning mineral prospecting, exploration and mining in special
purpose land except state special protected area;
9.1.4 submit proposals to include or remove particular mineral deposit from a list of
mineral deposits of strategic importance to the State Ikh Khural;
of July 2014/
9.1.5 submit proposals to determine the percentage of the State ownership of a minerals
deposit of strategic importance to the State Ikh Khural;
9.1.6 resolve matters concerning source of investment to be made by Mongolia in a joint
venture to exploit a mineral deposit of strategic importance;
9.1.7 resolve issues or submit proposals to the State Ikh Khural with regard to setting
aside specific areas for reserve or special purpose land;
9.1.8 participate in mineral prospecting, exploration and mining activities through a legal
entity having state ownership.
9.1.9. establish National geological institution;
/This provision was added by the legislation enacted on the 1st of July 2014/
9.1.10. approve the contract template defined in Article 42.1 of this Law
of July 2014/

9.1.11. define areas for granting exploration license or mining license in cases other than
as provided by Article 24.1 of this Law by coordinates based on the opinion from the State
central administrative body in charge of geological and mining affairs, and inform to the public;
9.1.12. define boundaries of deposit of strategic importance;
of July 2014/
9.1.13. when transferring licensed areas to the state ownership for purposes of ensuring
national security, implementing large-scale projects that will impact on national economic and
social development and taking the areas for special purpose, and resolving issues regarding
compensation, a license may be granted from areas with minerals concentration that have been
established during geological survey carried out with the government budget fund and 26.9 of
this Law based on agreement with the license holder.
of July 2014/
9.1.14. approve procedures concerning activities related to granting licenses for using
derivative mines
of November 2016/
9.1.15. approve requirements on use of derivative mines and procedures concerning
conducting activities related to using derivative mines;
of November 2016/
Article 10. Full powers of State central administrative body
10.1 The full powers of the State central administrative body in charge of geological and mining
affairs shall exercise the following powers in mineral affairs:
10.1.1 develop and ensure implementation of State policy with respect to the
development of the geology and mining sectors;
10.1.2 upon authorization by the Government, approve of the tender procedures set forth
in Article 19.1220.1, 24.2, 26.9 and 60.9 of this Law;
10.1.3 ensure enforcement of the legislation on minerals and resolutions of the
Government with regard to implementation of such legislations;
10.1.4 determine service fee rates for obtaining, extending or transferring a license,
handing over a licensed area wholly or partially, having boundary disputes resolved and
activities with respect to having exploration work plans, information and reports reviewed;
10.1.5.approve and clarify work plans, projects and budget of annual geological surveys
to be conducted by the State funds and make a decision regarding receipt of results report.
/This provision was re-edited by the legislation enacted on the 1st
of July, 2014/

10.1.6 approve procedures for financing, performing works for geological survey to be
conducted by the State fund and assessing results of such works;
10.1.7. approve procedures with respect to mineral prospecting, exploration and mining
activities, and to develop and have product standards approved;
10.1.8. exert control over activities related to the exploitation of mining deposits of
strategic importance;
10.1.9. establish a Mineral resources professional council that consists of qualified
specialists who has the duty to assess and make recommendations on work plan of geological
research conducted within the territories of Mongolia and feasibility study for mineral deposits
mining and enriching plants and approve its charter and computation methods for works fee of
specialists.
/This provision was re-edited by the legislation enacted on the 1st of July, 2014/
10.1.10. ensure the transparency of activities related to prospecting, exploring, mining,
and selling of minerals.
of January 2014/
10.1.11. approve procedures concerning the acceptance of mining, processing and
enrichment plants.
of July 2014/
10.1.12. approve requirements and procedures concerning the operations of an
enrichment plants.
of July 2014/
10.1.13. establish ad hoc council ensuring equality of representation of state
organizations, investers, professional unions, and non-governmental organizations with purposes
of making recommendation and supporting implementation of the State policy in mineral
resources sector and approve its members and working procedures.
/This provision was added by the legislation enacted on the 1st of July 2014/
10.1.14. approve procedures on reclamation and closure of mine, processing and
enrichment plants jointly with a State central administrative body in charge of the environment.
of July 2014/
10.1.15. approve procedures for activities of carrying out geology, mining and minerals
database.
of July 2014/

10.1.16. approve procedures for granting rights for professional specialists and analysts
of geology and mining sector by a professional non-governmental organization.
of July, 2014/
10.1.17. approve instruction and classification of mineral resources and deposit reserves
of July 2014/
10.1.18. approve procedures for open reporting to the public of minirel resources,
deposit reserves and exploration work results jointly with a non-governmental organiztion of
geology and mining sector which have been nationally and internationally recognized.
of July 2014/
Article 11. The obligations of State administrative body
11.1 The State administrative body in charge of geological and mining affairs (hereinafter
referred to as “the State administrative body) shall exercise the following functions:
11.1.1 to conduct regional geological, geochemical, hydro-geological cartographic and
geophysical surveys within the territory of Mongolia;
/This provision was considered as annulled by the legislation enacted on the 1st
of July 2014/
11.1.2 to research patterns of distribution and types of occurrences of mineral resources
within the territory of Mongolia and the evaluation of such resources;
of July 2014/
11.1.3 to provide geo-ecological research and evaluation recommendations with respect
to natural and human factors that may have an impact on the social and economic development
of Mongolia;
of July 2014/
11.1.4 to provide persons making a request with all available geological and mining
related information, including information provided by license holders as set forth in this law,
except for information classified as confidential;
of July 2014/
11.1.5 establish and develop database of geology and minerals;
11.1.6 exert control over plans, reports and minimum cost of exploration work of an
exploration license holder as provided in this Law.
11.1.7 receive, register and resolve applications regarding minerals reconnaissance;

11.1.8 provide evaluations and recommendations on technology and equipment used in
the mining industry and implement mining technology policy;
11.1.9 create a favorable investment environment for the mining sector and provide
evaluations with respect to the existing investment environment;
11.1.10 evaluate and conclude impact of the mining industry on the socioeconomic sector
of the country;
11.1.11 conduct research on prices of mining products and determine supply and demand
and the prospects;
11.1.12 develop and implement proposals regarding State policies on implementation of
particular projects of the mining industry;
11.1.13 organize tendering to grant a license for an area of mineral concentration
discovered by the State fund and make conclusion to allocate areas for purpose of micro mines
and common minerals;
of July, 2014/
11.1.14 exert unified control over activities related to exploration and mining licenses;
11.1.15 provide conditions to conduct activities, under public control, regarding newly
granting, reissuing, revoking, transferring and pledging exploration and mining license, returning
areas partially or wholly or transferring that area;
of July, 2009/
/This provision was amended by the legislation enacted on the 13th
of February, 2015/
11.1.16 receive, register and resolve applications requesting to participate in the selection
process for exploration and mining licenses;
/This provision was added by the legislation enacted on the 16th of July, 2009/
/This provision was amended by the legislation enacted on the 13th of February, 2015/
11.1.17 keep registration of licenses;
11.1.18 keep cartographic registration of licenses;
11.1.19 grant licenses for the exploration and mining of minerals other than common
minerals;
of July, 2009/
of January, 2014/
11.1.20 collect service fees and exploration and mining license payment other than
common minerals;

/This provision was added by the legislation enacted on the 09th of January, 2014/
11.1.21 review and resolve boundary disputes between the license holders;
11.1.22 provide interested persons with possibility to the review registration of
cartography, inform relevant organizations and notify to the public of changes to such
registration;
11.1.23. make conclusion whether selected land is restricted or prohibited to prospect,
explore or mine minerals, or taken for special purpose or into reserves, and wholly or partially
overlapped with valid licensed area by receiving a request from soum or district Governor as
provided in Clause 12.1.5 of this Law and determine volume and boundary of the land;
of July, 2010/
11.1.24. keep registration of information regarding exploration and mining license
holders who issued shares on the stock exchange;
of July, 2014/
11.1.25. determine selection area by coordinates which is available for granting minerals
exploration or mining license under this Law;
/This provision was added by the legislation enacted on the 1st of July, 2014/
11.2 The State administrative body unit in charge of geological affairs shall be responsible for
issues set forth in Clauses 11.1.1-11.1.7, unit in charge of mining affairs shall be responsible for
issues set forth in Clauses 11.1.8-11.1.12, and unit in charge of cadastral affairs shall be
responsible for issues set forth in Clauses 11.1.13-11.1.23 of this Article.
of July, 2010/
11.3 A professional inspection agency shall perform the State control for implementation of
legislation on minerals and prospecting, exploration and mining activities.
of March, 2015/
Article 11’. The functions of the National geological institution
11’.1. The National Office of Geology shall execute following functions:
11’.1.1. conduct geological, geophysical, geochemical, hydro-geological, and geo-
ecological mapping, surveys and analysis within the territory if Mongolia;

11’1.2. conduct research on distribution patterns of mineral resources and mineragenic
research, and evaluate prospects of mineral resources within the territory of Mongolia;
11’.1.3. establish and develop a national geological minerals resources database and
provide persons with information other than those that are classified as confidential upon
request;
11’1.4. keep state unified registration of minerals, and register the movement of reserves.
/The above Article was added by the legislation enacted on the 1st
of July, 2014/
Article 12. Full powers of local administrative and self-governing bodies
12.1 Local administrative and self-governing bodies shall exercise the following powers with
regard to mineral affairs:
12.1.1 organize implementation of decision made by Government concerning the
legislation on minerals and its implementation within respective territory;
12.1.2 permit exploitation of the licensed area for the purposes within its relevant
territory and terminate it in case of any violation;
12.1.3. exert control over how license holders are fulfilling their duties to protect and
rehabilitate the environment, to ensure the health protection of population, and to contribute to
the local budget;
12.1.4. make decisions on taking particular land for local special purpose in accordance
with grounds and procedures as provided by the Land Law.
12.1.5. request and have resolved by the Central administrative body to have made
conclusion as set forth Clause 11.1.23 of this Law regarding the selected land to be allocatedd for
the purpose as provided in Clause 16.1.11 of the Land Law.
of July, 2010/
Article 13. Taking areas into reserves
13.1 Areas allocated by mining and exploration licenses may be taken into reserves based on the
Government’s decision for the following purposes:
13.1.1 organize the registration of licenses;
13.1.2 resolve boundary disputes among license holders;
13.1.3 conduct geological studies, mineral prospecting and exploration activities with the
State fund;
13.2 If an area is taken into reserves in accordance with Article 13.1 of this Law, relevant
decision shall be informed to the public along with the following information:
13.2.1 the name of the province and soum where the reserve area is located;

13.2.2 the coordinates of the reserve area;
13.2.3 the purpose for reserving the area;
13.2.4 the time period the area shall be reserved.
13.3 The State administrative body shall record the reserve area in the licensing and cartographic
registration as set forth in Article 13.1 of this law.
13.4 A reserve area shall be released for the following reasons:
13.4.1 a decision by the Government to release the reserve area prior to expiration of the
term;
13.4.2 the term for which the reserve area is reserved expires;
13.4.3 after settlement of the circumstances set forth in Articles 13.1.1-13.1.3 of this
Law.
13.5 If the reserved area is released on the grounds set forth in Article 13.4 of this Law, a person
who previously held the mining and exploration licenses shall have the preemptive right to
continue hold such area.
Article 14. Special purpose territory with restrictions and prohibitions on mineral prospecting,
exploration and mining activities
14.1 In the event that a competent authority makes decision to take particular land for special
purpose, the following information shall be delivered to the State administrative body within ten
(10) business days after making decisions:
14.1.1. the names of the province and soum where the territory is located;
14.1.2. the coordinates of the land taken for special purpose;
14.1.3. the purpose for which the land was taken for special purpose;
14.1.4. the time period of the land for special purpose.
14.2 Time period of particular land for special purpose shall not be less than 5 years.
14.3 The State administrative body shall record the coordinates of the land for special purpose in
the license and cartographic registration.
14.4 If a license holder is unable to prospect, explore or mine minerals because the area that was
granted through the exploration or mining license is partially or wholly taken for a special
purpose, the organization that made the decision shall pay compensation to the license holder
within 1 year.
/This section was amended by the legislation enacted on the 1st of July, 2014/
14.5 The organization that made decision to take land for special purpose and the license holder
shall make an agreement regarding the amount of compensation and payment term as defined in

Article 14.4 of this Law. If the parties fail to reach an agreement, the amount of compensation
and the payment term shall be determined by the State administrative body based on conclusion
of an authorized independent person.
14.6 The license holder shall have the right to resume its activities if the compensation is not
paid within the time set forth in Article 14.5 of this Law.
14.7 Disputes related to the compensation specified in Article 14.5 of this Law shall be resolved
by a court.
14.8 If the time period of the land for special purpose expires, the State administrative body shall
notify the public of this. If a person who previously held a mining or exploration licenses,
submits application within 1 month of such notice, the license holder shall have the preemptive
right to obtain license.
14.9 When the person, who previously held the area based on exploration and mining licenses,
continues to hold the released area as specified in Articles 13.5 and 14.8 of this Law, license
term shall be extended by a period for which the area was taken for special purpose or into
reserves.
of July 2014/
CHAPTER THREE
Mineral prospecting and exploration
Article 15. Reconnaissance
15.1 A legal entity may conduct reconnaissance within the territory of Mongolia without license,
provided that the legal entity notifies the State and local administrative bodies in advance,
registers area and location of the reconnaissance and its own name and address.
of January 2009/
of July 2014/
15.2 Disturbing the subsoil while conducting reconnaissance is prohibited and any person
proposing to conduct reconnaissance shall obtain permission to enter the land from the
landowners, land users or land-users.
Article 16. Geological survey and research work to be conducted by State fund
16.1 State funded geological survey and research work shall be conducted without a license.
16.2 Geological surveys the purpose of which is to identify geological pattern, mineral
distribution, and prospective areas of mineral concentration shall be conducted using scientific
methods and methodologies according to a certain schedule.
16.3 Conducting prospecting of minerals shall be executed in comprehensive manner with State
budget funding.

16.4 Information regarding state-funded geological surveys is the main components of the State
information database and it shall be accessible to the public.
16.5 State funded research work and geological survey may be conducted in special purpose
territory and no fee shall be paid.
16.6 The State administrative central agency in charge of geological and mining affairs shall
approve procedures for financing, implementing, monitoring, and receiving results of State
funded geological survey as set forth in this law.
Article 17. Allotment of a selection area for granting exploration license
17.1. The state administrative organization when determining the area coordinates as provided by
Article 11.1.25 of this Law shall notify in writing Governors of relevant aimags or the Capital
City and shall attach the area map to the notifications.
17.2. Within fourty five (45) days of receiving the notice set forth in Article 17.1 the Governor of
the aimag or the Capital City shall obtain conclusion of the Citizens Representatives Hural of the
soum or district or the Presidium of Citizens Representatives Hural of the aimag or the Capital
City and shall respond to the state administrative organization. Failure to respond within the
timeframe shall be deemed as consent.
17.3. The coordinates of the area for granting exploration license shall be approved by the
Cabinet based on consenting conclusion obtained as provided by Article 17.2 of this Law and the
conclusion of the state central administrative organization in charge of geology and mining.
17.4. The state administrative organization shall allot the area for granting exploration license
within the coordinates approved by the Cabinet under Article 17.3 of this Law and shall
announce to the public the date for receiving requests to participate in the selection process
through daily newspapers, no less than 30 days prior organizing the selection.
17.5. The area allotted as provided by Article 17.4 of this Law shall meet following
requirements:
17.5.1 It shall be quadrangle in shape and it shall be bordered by straight lines
overlapping with directions along longitude and latitude;

17.5.2 No part of the requested exploration area shall overlap with a special purpose
territory or an area where mining and exploration activities are prohibited, or with an area
appropriated for reserve;
17.5.3 No part of the requested exploration area shall overlap with an area where an
effective license is issued.
17.6. In order to avoid overlapping of licensed areas as set forth in Clauses 17.5.2 and 17.5.3 of
this Law, the sections of the requested area bordering with following territory and area may not
be straight lines:
17.6.1 national borders;
17.6.2 a reserved area;
17.6.3 a special purpose territory or an area where mining and exploitation activities are
prohibited;
17.6.4 a license is granted before this Law became effective and the area has a shape and
position other than as provided under this Law;
17.6.5 lakes, ponds, and other natural formations that are impossible to include in the
exploration area.
17.7. The size of an exploration area to be granted per one (1) license shall not be less than
twenty-five (25) hectares and be more than one hundred fifty thousand (150 000) hectares.
Article 18. Rules regarding submission of request to participate in selection for granting
exploration license and registration of such submissions.
18.1. Legal entity provided by Article 7.1 of this Law shall submit request to participate in
selection for granting exploration license to the state administrative organization under the rules
described in Article 10.1.2 of this Law and shall attach following documents:
18.1.1 the applicant’s name, postal address, phone and fax numbers and e-mail address;
18.1.2 a certified copy of the applicant’s State registration certificate /the authorized
organization receiving this certified copy shall make an assessment of the authenticity of the
copy by comparing it to the original one free of charge/, if it is mailed, it must be verified by a
notary;

18.1.3 a document showing that the service fee set forth in Clause 10.1.4 of this Law has
been paid;
18.1.4 information that it has sufficient professional staff, equipment and machinery,
technical proposal that consolidates type, scope, time period and cost of exploration works to be
performed on the allotted site, projected cost and budget to be spent for environment protection
and other documents;
18.1.5 sealed financial proposal written according to the form appoved by the state
administrative organization;
18.1.6 certification from the tax authority that the entity is registered as taxpayer in
Mongolia;
18.1.7 other required documents as provided by the rules described in Article 10.1.2 of
this Law;
18.2. Upon receipt of the request provided by Article 18.1 of this Law the state administrative
organization shall carry out following actions:
18.2.1 to register request in the registration ledger, to make notes on each page of the
attached documents that shows year, month, day, hour and minute and registration number, and
to issue a certification regarding such registration to the entity who has submitted the request;
18.2.2 there shall be special note made to the first and last request submitted on the same
day;
Article 20. Organization of selection to grant exploration license and issuance of license
20.1. The state administrative organization shall organize the selection to grant exploration
license according to the rules provided by Article 10.1.2 of this Law and shall carry out any one
of the following actions:
20.1.1 according to the rules provided by Article 10.1.2 of this Law, to evaluate technical
and financial proposal of the legal entity who has submitted the request and to inform the
participant who has the highest score that it is possible to issue the license;
20.1.2 if 2 or more participants had equal scores, then to inform the participant who has
submitted first its request that it is possible to issue the license;

20.1.3 in case when the request and attached documents do not meet the requirements
provided by Article 18.1 of this Law, to inform in writing the legal entity that it is not possible
for the entity to participate in the selection and to state relevant reasons and grounds and to
return the attached documents to the request.
20.2. If a selection has been announced as provided by Article 20.1 of this Law and no request is
submitted, then the selection may be announced again.
20.3. The legal entity that has been selected through the selection process shall be notified in
writing regarding the possibility to issue exploration license as provided by Articles 20.1.1 and
20.1.2 together with notice that the first year license fee shall be paid within the time period
provided by Article 34.1 of this Law.
20.4. If within the time period provided by Article 34.1 of this Law commencing from the date of
delivering the notice described in Article 20.3 of this Law, a notification has been made that the
license is not possible to be obtained or the first year payment has not been paid, then the state
administrative organization shall invalidate the notices provided by Articles 20.1.1 and 20.1.2 of
this Law and shall notify in writing the legal entity that has submitted the request.
20.5. If the legal entity that has been selected through the selection process has paid the first year
payment within the time period provided by Article 34.1 of this Law, the state administrative
organization shall issue, within 3 business days, the exploration license for the period of 3 years
and shall register license and allotted area in the registry of licenses and related cartography.
20.6. There shall be notifications made in the license regarding year, month and day of the
issuing the license, name of the license holder and corner point coordinates of the allotted area
and license shall have an attachment for making notice regarding changes related to the license.
20.7. Upon issuing the exploration license the state administrative organization shall notify the
state central administrative organization in charge of environmental matters, Governors of the
aimags, soums and districts where the area is located and the professional inspection agency.
Article 21. Rights of exploration license holder
21.1 An exploration license holder shall have the following rights:

21.1.1 to conduct prospecting and exploration of minerals within the boundaries of the
exploration area as set forth in this law;
of July 2009/
of February 2015/
21.1.2.хайгуулын талбайн хилийн дотор цацраг идэвхт ашигт малтмалыг цөмийн
энергийн асуудал эрхэлсэн төрийн захиргааны байгууллагаас олгосон тусгай зөвшөөрлийн
үндсэн дээр эрэх, хайх;
of July 2009/
/This provision was considered as annulled by the legislation enacted on the 13th
of February,
2015/
21.1.3 to obtain a mining license under its exclusive right for any part of the exploration
area upon fulfilling the terms and conditions of this law;
/This provision was added and numbering was changed by the legislation enacted on the 16th
of
July 2009/
of February 2015/
21.1.4 to transfer the exploration license, or return all or part of the exploration area with
permission of and under supervision of an authorized organization upon fulfilling the terms and
conditions of this law;
of
July 2009/
of February 2015/
21.1.5 to extend the term of the exploration license for minerals other than radioactive
minerals three times for three years each upon fulfilling the terms and conditions of this law
of
July 2009/
/This provision was amended by the legislation enacted on the 01St
of July 2014/
21.1.6 to access the exploration area to conduct exploration work and construct necessary
temporary structures
of
July 2009/
21.1.7 to pass through the land surrounding the exploration area for the purpose of
entering the exploration area;
of
July 2009/

21.1.8 to enter or pass through the land owned or possessed by the other person with the
landowner’s or land possessor’s permission in order to exercise the rights provided by this law.
of
July 2009/
Article 22. Extension of the term of an exploration license
22.1 One (1) month prior to the expiration of an exploration license, the license holder may apply
for an extension of the license by submitting an application to the State administrative body
along with the following documents attached to the application:
22.1.1 a certified copy of the exploration license /the authorized organization receiving
this certified copy shall make an assessment of the authenticity of the copy by comparing it to
the original one free of charge/, if it is mailed, it must be verified by a notary;
/This provision was re-edited by the legislation enacted on the 10th
of February 2011/
22.1.2 receipts for payments of annual license fees and service fees and a document
proving that the exploration work conducted is no less than the minimum cost of exploration;
22.1.3 document proving the environmental protection plan was approved re-newly as set
forth in the Article 40 of this law;
of May 2012/
22.1.4 a report on completion of the current stage of exploration work and a document on
its acceptance.
22.2 Within ten (10) business days of receiving the application for extension set forth in the
Article 22.1 of this law, the State administrative body shall review the license holder’s
compliance with the conditions and requirements of Articles 7.2 and 31. If there are no
violations, the license term shall be extended for the period set forth in the Clause 21.1.5 of this
law and be recorded in the license registration book.
of July 2009/
22.3 Immediately following the extension of an exploration license, the State administrative
body shall notify the agency for specialized inspection and publish about it in a daily newspaper.
22.4 The State administrative body shall refuse the extension of a license if the license holder
fails to meet the requirements of Articles 7.2 and 31 of this law, notify the applicant in writing,
and record it in the license registration book.
Article 23. Pre-mining operation

23.1 Pre-mining operation is the period after exploration is completed and the mineral deposit
reserve is registered with State registration office where the design package, feasibility study,
mine development and commencement of production occurs.
23.2 The commencement period for the mining of the mineral deposit or mine development
period shall be no more than 3 years after expiration of the exploration license.
23.3 Pre-mining operations shall be regulated by a pre-mining agreement concluded between the
exploration license holder and the State administrative agency.
23.4 The license holder shall pay exploration license fees for the seventh to ninth years of the
term as set forth in Article 32.2 of this law and within the period set forth in Article 23.2 of this
law.
/This provision was considered as revoked by the legislation enacted on the 01st
of July 2014/
CHAPTER FOUR
MINERALS MINING
Article 24. Requirements for obtaining a mining license
24.1 Only the holder of an exploration license is entitled to apply for a mining license for the
area subject to the exploration license.
24.2. In case other than as provided by Article 24.1 of this Law, the rules provided by Articles 18
and 20.1 of this Law shall be equally applied when mining license is to be issued.
24.3 The application for a mining license set forth in the Articles 24.1 shall contain a
standardized map issued by the state administrative body with the location and coordinates of the
area to be explored marked on it. The coordinates shall specify the degrees, minutes, and seconds
of the location.
24.4 The requested mining area shall meet the following requirements:
24.4.1 shall have the shape of a polygon with borders that are straight lines and are not less than
500 meters in length;
24.4.2 shall not overlap with a reserve area, special purpose territory, an area under existing valid
license, or an area where mining and exploration activities are prohibited or restricted;
of July 2009/
24.4.3 in the case of salt and common mineral deposits, each side of the area shall be not less
than 100 meters.
of July 2009/

24.5 In order to avoid overlapping of licensed areas as set forth in Clause 24.4.2 of this law, the
borders of the mine area may deviate from straight lines if the area borders with the following::
24.5.1 national border;
24.5.2 reserve area;
24.5.3 special purpose territory, an area where mining and exploitation activities are
prohibited;
of July 2009/
24.5.4 an exploration or mining license area granted before this law became effective or
an area that has a shape and position other than as provided under this law;
24.5.5 lakes, ponds, and other natural formations that are impossible to include in the
exploration area.
Article 25. Procedure for submitting application requesting mining license
25.1. An application for a mining license defined in the Articles 24.1 of this Law shall be
submitted to the State administrative in accordance with the authorized template along with the
following documents:
25.1.1. the applicant’s name, mailing and e-mail addresses, phone and fax numbers, and a
reference containing the name of its officer authorized to make decisions;
of July 2014/
25.1.2. a document certifying that the applicant meets the requirements of the Article 7.1
of this law;
25.1.3. area map prepared that complies with the requirements of the Article 24.3 of this
law and the names of the province, soum, and district where the mining area is located;
25.1.4. a document showing that the applicant has paid the service fee set forth in the
Clause 10.1.4;
25.1.5. the Mineral resources council’s notes and a decision of the State administrative
body on acceptance of the exploration work results;
25.1.6. a document verifying its performance of the duties under environment
management plan during the exploration work;
of May 2012/
25.1.7. an evaluation of the effect on the environment;
25.1.8. a decision by the officer or organization that conducted the tender as set forth in
the Article 24.2 of this law for the areas explored with State fund.
Article 26. Registering and processing the application

26.1. Upon receiving the application set forth in the Article 25.1 of this law the State
administrative body shall carry out the following:
26.1.1 register the application in the application registration, record the registration
number, date, hour and minute of registration on each page of the attached documents and issue a
receipt to the applicant acknowledging the registration of the application;
26.1.2 immediately following the registration, it shall be conducted by preliminary
screening whether the application and the attached documents meet the requirements set forth in
the Articles 24.3, 24.4 and 25.1 of this law.
26.2 Following the preliminary screening set forth in the Clause 26.1.2 of this law, the State
administrative body shall clarify the following:
26.2.1. if a holder of an exploration license applies for a mining license, whether the
mining area requested by the holder of the exploration license is within the boundaries of its
exploration licensed area.
26.2.2 whether the requested mining area overlaps with any reserve area, special purpose
territory, an area where mining and exploration activities are prohibited, or an area already
subject to a valid license;
of July 2009/
26.2.3. whether an amount and evaluation of the mineral deposit determined by
exploration is sufficient to rehabilitate the environmental damages that may result from
extraction activities.
26.3. Within twenty (20) business days and following the registration of an application, the State
administrative body shall make one of the following decisions after completing the actions set
forth in the Articles 26.1 and 26.2 and notify the applicant:
26.3.1. refuse the request and give written notice containing the grounds of such decision
to the applicant if the application and attached documents fail to meet the requirements of the
Articles 24.3, 24.4 and 25.1 of this law and record it in the application registration book.
26.3.2 grant the mining license according to the exclusive rights of the applicant who
holds an exploration license and ensure that the first year’s license fee set forth in the Article
34.1 of this law is paid;
26.3.3 grant the mining license if the requested area does not overlap with any part of an
area with restrictions or prohibitions on prospecting, exploration or mining activities, a reserve
area, special purpose territory, or any area subject to a valid license and ensure that the first
year’s license fee set forth in the Article 34.1 of this law is paid;
26.3.4 if the requested area overlaps with any part of the area set forth in the Clause
26.3.3 of this law, the application for the mining license shall be refused and written notice

containing grounds of such refusal shall be issued to the applicant. This shall be recorded in the
application registration book.
26.4 If the applicant that receives an approval for granting license as set forth in the Clauses
26.3.2 and 26.3.3 of this law fails to pay the first year's license fee within the period set forth in
the Article 34.1 of this law, the State administrative body shall remove the application from the
application registration, notify the applicant in writing and record it in the application registration
book.
26.5. Within 3 business days following the payment of the first year license fee is made by
applicant as set forth in Articles 26.3.2 and 26.3.3 of this law, the State administrative Body shall
issue a mining license to the applicant for a term of thirty (30) years and shall register the license
and mining area in the license and cartographic registries.
26.6. A mining license shall contain the date of issuance, license holder's name, address and the
coordinates of the corners of the mine area covered by the license and an attachment in which all
subsequent changes with respect to the license shall be recorded.
26.7. Within 7 business days following the issuance of a mining license or a license for using a
derivative deposit, the State administrative body shall notify the State administrative body in
charge of the environmental affairs, the State administrative body in charge of tax affairs, the
Governors of the province, soum and district where the licensed area is located, and agency for
specialized inspection and announce it in a daily newspaper.
of July 2016/
26.8. The State administrative body shall return the application and attached documents to the
applicant if the decisions set forth in the Clauses 26.3.1, 26.3.4 and 26.4 of this law are made.
26.9. If the reserve is determined through an exploration funded by the State, a mining license
for that area shall be granted through a tender.
26.10. If a holder of a mining license allows to use the derivative deposit by a third party, the
license holder and the third party shall enter into a contract regarding such use and notify the
State administrative body in charge of geological and mining affairs of the contract within 14
days of making it.
of November, 2016/
26.11. The State administrative body in charge of geological and mining affairs shall grant a
license for using derivative deposit for the period of three years on the basis of the Mineral
resources council’s conclusion and decision regarding the contract set forth in the Article 26.10
of this Law and the feasibility study for using derivative deposit.
of November, 2016/
Article 27. Rights and obligations of mining license holders
27.1 A mining license holder shall have the following rights and obligations:

27.1.1. use the minerals that exist within the mining claim in compliance with the
conditions and requirements set forth in this law
of July 2009/
of February 2015/
27.1.2..use the minerals other than the radioactive minerals that exist within the mining
claim in compliance with the requirements and regulations set forth in this law
of July 2009/
/This provision was considered as annulled by the legislation enacted on the 13th
of February,
2015/
27.1.3. to fulfill obligations set forth in Chapter 6 of this law;
of July 2009/
27.1.4. the legal entity that holds the mining license and the right to export shall sell the
minerals and other products it produces at the international market price;
of
July 2009/
of July 2014/
of February 2015/
27.1.5. to conduct exploration for minerals within the mining area;
of
July 2009/
of February 2015/
27.1.6. to transfer the mining license or return the mining area wholly or partly upon
fulfilling the conditions and requirements as set forth in this law;
of
July 2009/
of February 2015/
27.1.7 to extend the term of the mining license for minerals other than radioactive
minerals for a period of twenty (20) years each depending on the amount of the minerals;
of
July 2009/
27.1.8 to enter and pass through the mining area, construct and use the necessary
structures for the purpose of carrying out mining activities;
of July 2009/

27.1.9 to pass through the land surrounding of the mining area;
of July 2009/
27.1.10 to enter and pass through the land owned or possessed by other persons with the
permission of the owner or possessor of the land in order to exercise the rights provided by this
law;
of July 2009/
27.1.11 to use land and water in compliance with the relevant laws.
of July 2009/
27.1.12. to include detailed information regarding the transportation of mineral products,
the organization of the infrastructure, and the fund that is required for the rehabilitation and
closure of mines in the feasibility study set forth in the Clause 48.6.1 of this law;
of July 2014/
27.1.13. to hire an employee in charge of constantly report information related to the
environment, rehabilitation, and closure of mining to the State administrative body in charge of
geological and mining affairs;
of July 2014/
Article 28. Extension of the term of a mining license
28.1. Not less than 2 years prior to the expiration of a mining license, the license holder may
submit an application to extend the mining license on the form approved by the State
administrative body along with the following documents:
28.1.1. certified copy of the mining license /the authorized organization receiving this
certified copy shall make an assessment of the authenticity of the copy by comparing it to the
original one free of charge/, if it is mailed, it must be verified by a notary;
of February 2011/
28.1.2. receipts for payments of license and service fees;
28.1.3. document evidencing the inspection of the implementation of the environment
protection plan as set forth in the Article 39 of this law.
28.2. Within 15 business days of receiving the application set forth in the Article 28.1 of this
law, the State administrative body shall review whether the license holder is eligible to maintain
the license. If there are no violations, the license term shall be extended for the period set forth in
the Clause 27.1.7 of this law and the extension shall be recorded in the license registration book
and the applicant shall be notified.
of July 2009/

28.3. Within 7 business days following the decision to extend the mining license, the State
administrative body shall notify the organizations set forth in the Article 26.7 of this law and
announce it in a daily newspaper.
29 дүгээр зүйл. Хөрөнгө оруулалтын гэрээ
29.1.Үйл ажиллагааныхаа эхний 5 жилд Монгол Улсын нутаг дэвсгэрт 50 саяас
дээш америк доллартой тэнцэх хэмжээний хөрөнгө оруулалт хийх ашиглалтын тусгай
зөвшөөрөл эзэмшигч өөрөө хүсэлт гаргавал үйл ажиллагаа явуулах нөхцөлийг нь
тодорхой хугацаанд тогтвортой байлгах зорилгоор түүнтэй хөрөнгө оруулалтын гэрээ
байгуулж болох бөгөөд түүнд дараахь зүйлийг тусгана:
29.1.1.татварын орчинг тогтвортой байлгах;
29.1.2.тусгай зөвшөөрөл эзэмшигч үйлдвэрлэсэн бүтээгдэхүүнээ олон улсын
зах зээлийн үнээр борлуулах;
29.1.3.олсон орлогоо захиран зарцуулах эрхийг нь баталгаажуулах;
29.1.4.хөрөнгө оруулалтын хэмжээ, хугацаа;
29.1.5.ашигт малтмалыг хүн амын эрүүл мэнд, байгаль орчинд хохирол
багатай олборлох;
29.1.6.байгаль орчныг хамгаалах, нөхөн сэргээх;
29.1.7.бусад төрлийн үйлдвэрлэл, үйл ажиллагаанд сөрөг нөлөө үзүүлэхгүй
байх;
29.1.8.бүс нутгийг хөгжүүлэх, ажлын байр шинээр бий болгох;
29.1.9. учирсан хохирлыг нөхөн төлөх.
29.2. Энэ хуулийн 29.1-д заасан гэрээг Монгол Улсын Засгийн газрын эрх
олгосноор санхүү, геологи, уул уурхайн болон байгаль орчны асуудал эрхэлсэн Засгийн
газрын гишүүд хамтран хөрөнгө оруулагчтай байгуулна.
29.3.Эхний 5 жилийн хөрөнгө оруулалтын хэмжээ 50 саяас дээш америк доллартой
тэнцэх бол 10, 100 саяас дээш америк доллартой тэнцэх бол 15, 300 саяас дээш америк
доллартой тэнцэх бол 30 жилийн хугацаагаар энэ хуулийн 29.1-д заасан гэрээ байгуулна.
29.4.Хөрөнгө оруулалтын хэмжээ 50.0 сая америк доллароос 100.0 сая америк
доллар бол Засгийн газар, 100.0 сая америк доллароос дээш бол Улсын Их Хурал тус тус
хэлэлцэнэ.

/This provision was considered as annulled by the legislation enacted on the 03rd
of October
2013/
30 дугаар зүйл. Хөрөнгө оруулагчтай гэрээ байгуулах
30.1.Хөрөнгө оруулагч нь энэ хуулийн 29.1-д заасан гэрээ байгуулах тухай
хүсэлт, гэрээний төслийг энэ хуулийн 29.2-т дурдсан төрийн захиргааны төв
байгууллагуудад ирүүлэх бөгөөд түүнд дараахь баримт бичгийг хавсаргана:
30.1.1.эхний 5 жилд оруулах хөрөнгийн хэмжээ, хугацаа, үйлдвэрийн
хүчин чадал, бүтээгдэхүүний нэр төрөл, орд ашиглах арга, технологийн талаархи
мэдээлэл, техник, эдийн засгийн үндэслэл;
30.1.2.тухайн ордын нөөцийг улсын нөөцийн нэгдсэн бүртгэлд бүртгэсэн
тухай Эрдэс баялгийн мэргэжлийн зөвлөлийн тэмдэглэл.
30.2.Энэ хуулийн 30.1-д заасан төрийн захиргааны төв байгууллагууд нь хөрөнгө
оруулагчийн хүсэлт, гэрээний төсөл, хавсаргасан баримт бичиг нь энэ хуулийн 29.3, 30.1-д
заасан шаардлага хангасан эсэхийг хянаж ажлын 10 өдөрт багтаан хүсэлт гаргасан
этгээдэд мэдэгдэнэ.
30.3.Энэ хуулийн 30.1-д заасан төрийн захиргааны төв байгууллагууд хөрөнгө
оруулагчийн хүсэлт, гэрээний төсөл, хавсаргасан баримт бичгийг хүлээн авснаас хойш 3
сарын дотор хянах бөгөөд шаардлагатай тохиолдолд зохих байгууллага, мэргэжилтний
санал, дүгнэлтийг үндэслэн дахин 3 сар хүртэлх хугацаагаар нэмэлт тодруулга
хийсний үндсэн дээр энэ хуулийн 29.1-д заасны дагуу хөрөнгө оруулагчтай гэрээ
байгуулна.
30.4.Энэ хуулийн 30.3-т заасны дагуу хөрөнгө оруулалтын гэрээнд гарын үсэг
зурсны дараа уг гэрээний нөхцөлийн тухай мэдэгдлийг Монголбанк болон холбогдох
бусад байгууллагад хүргүүлнэ.
/This provision was considered as annulled by the legislation enacted on the 03rd
of October
2013/
CHAPTER FIVE
CONDITIONS FOR MAINTAINING ELIGIBILITY TO HOLD A LICENSE
Article 31. Maintaining the eligibility to hold a license
31.1. A license holder is obliged to comply with the conditions and requirements set forth in the
Articles 32 and 33 of this law and failure to comply shall result in revocation of the license
pursuant to the Article 56 of this law.
Article 32. License fees
32.1. The license holder shall pay license fees annually in accordance with this law.

32.2. The exploration license fee shall be 145 tugrugs per hectare of exploration area for the first
year, 290 tugrugs for the second year, 435 tugrugs for the third year, 1,450 tugrugs for each of
the fourth to sixth years, 2175 tugrugs for each of the seventh to ninths years, and 7250 tugrugs
for each of the tenth to twelfth years.
of July, 2014/
/This section was amended by the legislation enacted on the 23rd
of January, 2015/
32.3. 32.3. The fee for a mining license shall be 21,750 tugrugs per hectare of the mining area,
and the fee for mining limestone, coal, and minerals intended for national industrial purpose shall
be 7,250 tugrugs per hectare.
/This section was re-edited by the legislation enacted on the 09th
of January, 2014/
/This section was amended by the legislation enacted on the 23rd
of January, 2015/
Article 33. The minimum cost of exploration and its verification
33.1. The holder of an exploration license shall conduct annual exploration activities on each
hectare of the exploration area that cost no less than the following:
33.1.1. US$ 0.5 for each of the second and third years of the license term;
33.1.2. US$ 1.00 for each of the fourth to sixth years of the license term;
33.1.3. US$ 1.50 for each of the seventh to ninth years of the license term;
33.1.4. US$ 10 for each of the tenth to twelfth years of the license term.
of July, 2014/
33.2. The State administrative body shall verify the exploration license holder’s exploration
expenditure on the basis of the license holder’s annual report on the exploration work and the
financial balance sheet.
33.3. If necessary, the State administrative body shall conduct worksite inspections to verify
actual exploration expenditures.
Article 34. Payment of license fees
34.1. A holder of the exploration and mining license shall pay the license fees for the first year
within 10 business days after the receiving of the notices set forth in the Clauses 20.3, 26.3.2 and
26.3.3 of this law.
34.2. License fees for the subsequent years shall be paid annually in advance of the anniversary
date of the issuance of the license.
34.3. The amount of the license fee shall be calculated on the basis of the measurements of the
license area registered in the license registration at the time of making such license fee, and the
amount of the fee shall not change for that year.

34.4. The date of the license fee payment shall be deemed the date of the bank transaction, and
the payment shall be deemed complete once the State administrative body receives the relevant
receipt.
34.5. Mongolbank’s official rate for that day shall be applied to the payment of the expenses
made in US dollars.
/This section was re-edited by the legislation enacted on the 23rd
of January, 2015/
34.6. If the payment is not paid within the timeframe indicated in the Article 34.2 of this law, a
penalty fee of 0.3 percent of that year’s fee of such delay shall be imposed.
of July, 2014/
34.7. The period for delay indicated in the Article 34.6 of this law may be exceeded by not more
than 30 days, and if it exceeds by more than that, the license shall be revoked pursuant to the
Article 56 of this law.
of July, 2014/
CHAPTER SIX
OBLIGATIONS OF A LICENSE HOLDER
Article 35. General obligations of a license holder
35.1. While conducting the prospecting, exploration and mining activities, a license holder shall
comply with the general obligations set forth in this Article. Failure to comply with the Article
shall subject the license holder to to the penalties set forth in the Clause 66.1.4 of this law. 35.2.
An exploration license holder shall keep the following documents at the exploration site:
35.2.1. a copy of the exploration license;
of February, 2011/
35.2.2 an environment management plan and report;
of May, 2012/
35.2.3 an exploration work plan reviewed by the State administrative body and agency
for specialized inspection.
35.3. A mining license holder shall keep the following documents at the mine:
35.3.1. a copy of the mining license;
of February, 2011/
35.3.2. a feasibility study on mineral mining and a mining work plan reviewed by the
relevant organization;
35.3.3. an environmental impact assessment;
35.3.4. an environment management plan;

of May, 2012/
35.3.5. a property leases and product sales agreements;
35.3.6. a records of establishing and maintaining the borders of the mining area;
35.3.7. a land and water use agreements.
35.4 A mining license holder shall commission the mining activities after it has been accepted by
a commission appointed by the State central administrative agency in charge of geological and
mining affairs.
35.5 The mining license holder shall utilize the mineral reserves completely. It is prohibited for
the license holder to selectively mine in order to make profit.
35.6. The holder of a mining license and the miner who extracts a gold from a micro mine shall
submit all of the gold they extracted by the end of the fiscal year.
of January, 2014/
35.7. If a license holder discovers methane gas while extracting coal, they shall notify the State
administrative body in charge of oil.
of July, 2014/
35.8. if a license holder intends to use the methane gas described in the Article 35.7 of this law,
they may do so in compliance with the Law on Oil.
of July, 2014/
35.9. If a license holder requires goods, works, services, subcontractor which are required for
their operation and they shall give preemptive right to the legal entities that are registered in
Mongolia as taxpayers and have goods, works and services that are meet the relevant standards.
of July, 2014/
35.10. If the mining enrichment and formation activities of a license holder are terminated due to
sudden technical accidents, delays, force majeure, court decisions, and the acts of the state
inspector among other reasons, the holder shall notify the State administrative body in charge of
geological and mining affairs of that termination.
of July, 2014/
35.11. When selling products that are extracted, enriched, or semi-processed, priority shall be
given to processing factories that are operating within the territories of Mongolia. The products
shall be sold at the market price.
of July, 2014/
35.12. If the address, email address, phone and fax numbers of a license holder are changed, the
holder must notify the State administrative body.

of July, 2014/
Article 36. Establishing the boundaries and marking the area held under a mining license
36.1. Within three (3) months following the registration of the mining license in the license
registration in accordance with the Article 26.5 of this Law, the mining license holder shall
establish the boundaries and mark the approved mining area by permanent markers pursuant to
technical requirements specified by the agency for specialized inspection. The establishment of
the boundaries shall be performed by an entity authorized by the State administrative body, who
shall provide the act on determination of boundaries to the agency..
36.2. A mining license holder shall preserve the markers and adjust or replace them if the State
administrative body decides to change the borders of the area.
Article 37. Environmental protection
37.1. License holders shall fulfill an obligations specified the laws and legislations on
environmental protection and the Articles 38 and 39 of this law.
37.2. A license holder is prohibited to conduct prospecting and exploration operations without
written approval from relevant environmental agency or commence mining operations without a
commission act set forth in the Article 35.4 of this law. In case of a dispute arising out of
regarding these matters, the complaint may be lodged with the agency for specialized inspection.
Article 38. Environmental protection obligations of an exploration license holder
38.1. An exploration license holder shall have the following obligations regarding environmental
protection:
38.1.1 Within 30 days of obtaining a license, the license holder shall prepare an
environmental protection plan by consulting with the environmental inspection agency and
Governor of the soum or district where the exploration area is located;
38.1.2 The environmental protection plan as defined in the Clause 38.1.1 of this Law
shall include measures to ensure the level of the environment pollution does not exceed the
accepted limits and to rehabilitate the area by means of backfilling, leveling and cultivation to
allow for future public use;
38.1.3 The environmental protection plan set forth in the Clause 38.1.1 of this Law shall
be delivered to and be approved by the Governor of the soum or district where the exploration
area is located.
38.1.4 Upon approval of the environmental protection plan as set forth in the Clause
38.1.3 of this law, a copy of this plan shall be delivered to the local environmental inspection
agency;
of May, 2012/

38.1.5 The license holder shall record all instances of adverse environmental impact
resulting from the exploration activity in its annual environmental management report and
deliver it to the Governor of the relevant soum or district and the environmental inspection
agency;
of May, 2012/
38.1.6 The report set forth in the Clause 38.1.5 shall contain information on measures
taken to protect the environment, new technology used for the exploration work and proposed
amendments to the environmental protection plan directed at preventing the possible impact on
the environment and shall be approved by the Governor of the relevant soum or district;
38.1.7 To provide the State and local administrative agency official in charge of
monitoring implementation of the laws on environmental protection with an opportunity to enter
the exploration area to conduct monitoring activities on the site;
38.1.8 To ensure the fulfillment of his/her responsibilities with respect to environmental
protection, an exploration license holder shall deposit funds equal to 50% of his/her
environmental protection budget for that particular year in a special bank account established by
the Governor of the relevant soum or district.
38.2. Within 10 days of receiving the plan and its proposed amendments defined in the Clauses
38.1.3 and 38.1.6 of this law, the Governor of soum or district shall review and approve the plan
and deliver it to the license holder.
38.3 If a license holder fails to fully implement the measures provided in the environmental
management plan, the Governor of the relevant soum or district shall use the deposit set forth in
the Clause 38.1.8 of this law to implement these measures, and the license holder shall provide
any additional funds required without dispute.
of May, 2012/
38.4 If the license holder performs the obligations of the environmental management plan fully,
the deposited funds set forth in the Clause 38.1.8 of this law shall be returned to the license
holder.
of May, 2012/
Article 39. Environmental protection obligations of mining license holders
39.1 A mining license holder shall have the following obligations with regard to environmental
protection:
39.1.1 a person defined in the Article 24.1 of this law shall an environmental impact
assessment and an environmental management plan before obtaining a mining license, and a
person that obtains the mining license through a tender shall prepare an environmental impact
assessment and an environmental management plan after the obtaining such license;
of May, 2012/

39.1.2 the environmental impact assessment shall identify the possible adverse impacts of
the mining activities on the environment and health of population and shall include preventive
measures that avoid and minimize such adverse impacts;
39.1.3. the environmental management plan shall contain measures to ensure that mining
operations are conducted in the least damaging way to the environment and identify preventive
measures to protect air, water, humans, animals, and plants from the adverse effects of mining
operations;
of May, 2012/
39.1.4. apart from the provisions set forth in the Clause 39.1.3 of this law, the
environmental protection plan shall also include the following:
of May, 2012/
39.1.4.1. storing and controlling toxic and potentially toxic substances and
materials;
39.1.4.2. protecting, utilizing, and conserving the surface and underground water;
39.1.4.3. constructing tailing dams and ensuring the mine area safety;
39.1.4.4. rehabilitating measures set forth in Article 38.1.2 of this law;
35.1.4.5. other measures as may be appropriate for the particular type of a mining
operation.
39.1.5. The environmental impact assessment and environmental protection plan set forth
in the Clause 39.1.1 of this law shall be submitted to the State central administrative body in
charge of the environmental affairs.
of May, 2012/
39.1.6. Immediately following the approval of the environmental impact assessment and
environmental management plan, the license holder shall deliver a copy of the documents to the
Governor of the province, soum or district and local environmental inspection agency of the area
where the mineral deposit is located.
of May, 2012/
39.1.7. Mining license holders shall record all instances of adverse environmental impact
resulting from mining activity, prepare and send a copy of its annual reports on the
implementation of the environment management plan to the State central administrative body in
charge of environmental affairs, the Governor of relevant province, soum or district, and the
professional inspection agency. The report shall contain the following:
of May, 2012/
39.1.7.1. measures taken to protect the environment

39.1.7.2. new machinery and technology that is utilized
39.1.7.3. proposed amendments to the environmental impact assessment and
environmental management plan with regard to possible adverse impacts on environment due to
expansion of mining operations.
of May, 2012/
39.1.8. A mining license holder shall provide officials of local and State administrative
bodies in charge of monitoring implementation of legislation on environmental protection with
an opportunity to enter the mining area and conduct inspection activities on the site.
39.1.9. Regulate in compliance with the Clause 9.8 of the Article 9 of the law on
environmental impact assessment
of May, 2012/
39.2. Within 30 days of receiving the documents set forth in the Clauses 39.1.5 and 39.1.7.3 of
this law, the State central administrative body in charge of the environmental affairs shall review
and approve the documents and notify the license holder of its decision.
39.3. If a mining license holder fails to fully implement the measures of environmental
rehabilitation, the State central administrative body in charge of the environmental affairs shall
order a specialized organization to implement rehabilitation work with the deposited funds set
forth in the Clause 39.1.9 of this law, and the license holder shall provide any additional funds
required without dispute.
39.4. If the license holder fulfills all the obligations of the environmental impact assessment and
environmental management plan, the deposited funds set forth in the Clause 38.1.9 of this law
shall be returned to the license holder during the closure of the mine.
of May, 2012/
of May, 2012/
39.5. The funds set forth in the Article 39.3 shall be transferred before the extraction activities of
that year commence, and the State administrative body in charge of the environmental affairs
shall notify the Governor of the relevant soum and district of such transfer.
39.6. If license holder fails to transfer the deposited funds set forth in the Clause 39.1.9 of this
law within the period required by the Article 39.5 of this law, the Governor of the soum or
district shall have the right to halt extraction activities for the year.
39.7. In case of failure to complete rehabilitation activities of that year, the Governor of the
relevant soum or district or the agency for specialized inspection have the right to halt the
commencement of extraction activities for the following year.

39.8. The procedures of monitoring the transactions of special accounts set forth in the Clauses
38.1.8 and 39.1.9 of this law shall be approved by the member of the Cabinet who is in charge of
the environmental affairs.
39.9. The State central administrative body in charge of the environmental affairs shall require
the license holder to make amendments to the environmental management plan and
environmental impact assessment if new circumstances that have adverse impacts on
environment arise due to introduction of new equipment and technology during the valid license
term.
of May, 2012/
Article 40. Review of environmental protection plan in connection with extensions of licenses
/The title of this section was re-edited by the legislation enacted on the 17th
of May, 2012/
40.1. Exploration license holders applying for a license extension shall submit their revised
environmental management plan to the Governor of the relevant soum or district for approval
prior to the expiration of the exploration license.
of May, 2012/
40.2. Mining license holders applying for a license extension shall submit their revised
environmental impact assessment and environmental management plan to the State
administrative body in charge of the environmental affairs for approval.
of May, 2012/
40.3. The assessment and plan set forth in the Articles 40.1 and 40.2 of this law shall be
approved as set forth in the Articles 38.2 and 39.2 of the law.
Article 401
. Protection of cultural heritage
401
.1. A license holder shall fulfill the obligations set forth in the Law on Protection of Cultural
Heritage and the Articles 402 and 46 of this law.
401
.2. It shall be prohibited to commence prospecting, exploration and mining activities without
first getting the permission of organizations that specialize in paleontology, archeology, and
ethnic studies after they study and research the mining area.
/Article 401
was added by the legislation enacted on the 15th
of May, 2014/
Article 402
. The license holder’s obligations regarding the protection of cultural heritage
402
.1. The license owner shall assume the following obligations in relation to the protection of
cultural heritage:
402
.1.1. provide the authorized state and local administrative agency officials and state inspectors
that supervise the implementation of the Law on Protection of Cultural Heritage with access to
the exploration area and conduct inspection activities in the area;

402.
1.2. ensure that the cultural heritage artifacts found during prospecting and exploration
activities are protected in their entirety, register them in the cultural heritage database in
compliance with law, and notify relevant organizations to transfer and store the artifacts.
/Article 402
was added by the legislation enacted on the 15th
of May, 2014/
Article 41. Compensation for damages to property
License holders shall fully compensate owners and possessors of private and public residential
dwellings, wells, winter animal shelters, other structures, and historic and cultural landmarks for
the damages caused by exploration or mining operations, including, if necessary, relocation
costs.
Article 42. Relations with local administrative bodies
42.1. The license holder shall cooperate with the local administrative agency on issues related to
environmental protection, operating the mine, developing the infrastructure of the production,
and increasing employment opportunities by making a contract.
42.2. A license holder in cooperation with the local administrative agency may organize a public
forum in relation to issues set forth in the Article 42.1.
42.3. The Citizens may elect a representative whose obligation is to monitor the license holder’s
activities and his/her efforts to rehabilitate the environment.
of July, 2009/
Article 43. Employment requirements
43.1.The license holders and their contractors shall have the obligation to provide job placements
to the citizens of Mongolia and no more than 10% of employees working for the legal entity may
be foreign citizens.
of July, 2014/
43.2. If the number of foreign citizens employed exceeds the percentage set forth in the Article
43.1, the license holder shall pay 10 times the minimum monthly salary for each foreign citizen
for every month.
43.3. The payment set forth in the Article 43.2 of this law shall be submitted to the budget of the
relevant soum or district and shall be disbursed to the promotion of the employment, creation of
new job, educational and health sectors. Relevant procedures shall be approved by Citizens
Representatives Khural of the relevant soum or district.
of February, 2016/
Article 44. Ensure health and safety standards

44.1. The license holder shall carry out activities that ensure the safety of citizens of the relevant
soum or district as well as labor safety and hygiene of his/her employees as set forth in the
applicable laws and regulations.
Article 45. Requirements for closure of a mine
45.1. If the license holder partially or completely closes the mining or enrichment factories,
he/she shall notify the State administrative body at least one year prior to such closure and take
an appropriate preparatory measure pursuant to the Clause 10.1.14 of this law.
of May, 2012/
/This section was re-edited by the legislation enacted on the 01st
of July, 2014/
45.1.1.take all necessary measures to ensure safe use of the mining area for public
purposes and to rehabilitate the environment;
45.1.2. take preventive measures if the mine claim may be dangerous for public use;
45.1.3. remove all machinery, equipment and other property from the mining area except
those permitted by local administrative bodies or the agency for specialized inspection.
45.2. Mining license holders shall prepare a detailed map of an appropriate scale showing
dangerous or potentially dangerous areas created by mining operations and place necessary
warnings and markings in the vicinity of the mining claim and shall submit the map to the
agency for specialized inspection and the local Governor.
Article 46. Registration and sale of precious stones and metals
46.1. All precious stones and metals extracted by mining license holders shall be assayed and
registered by the State administrative body in charge sample.
of December, 2008/
46.2. Regulations on assaying and registration of precious stones and metals and a list of
minerals and precious stones subject to assaying and registration shall be approved by the
Government.
46.3. Mongolbank shall purchase precious stones and metals at the international market price.
46.4. A mining license holder may export the precious stones and extracted metals through the
Mongolbank.
46.5. If a nugget weighs more than 400 grams, a nugget has a peculiar shape but weighs less than
that, or a precious stone has rare color and shape are explored, the license holder is obliged to
sell it to the treasury fund of Mongolbank at premium rate.
Article 47. Royalties
47.1. A mining license holder shall pay royalties to the State budget on the sales value of all
products extracted from the mining claim that are sold, shipped for sale, or used.

Amendment minerals law 2017.11.10

Amendment minerals law 2017.11.10

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