Mongolia has significant resources of minerals and provides policy support to foreign investment activities. Mining companies are regulated under the Law on Minerals. Within the framework of this law, several laws and regulations, including procedures for artisanal and small-scale mining, license bids, rehabilitation and closure procedures for mines, quarries and concentrators were approved and are now effective.
The Ministry of Mining and Heavy Industry (MMHI), acknowledging the required reforms in the sector, has also started working on a draft revision to the Law on Minerals
The revision to the Law on Minerals is expected to include the following concepts:
The following key changes are expected:
The Ministry of Mining and Heavy Industry (MMHI ) views that the bill will create a positive effect on the sector, such as creating a regulation that covers the overall sector, including geological research, mineral exploration, exploitation, enrichment, sales, environmental protections, land rehabilitation, mine closure, occupational safety, mining risk management, and coordination between local authorities.
Laws on Petroleum, Common Minerals and Subsoil also regulate the operations in the sector aside from the Law on Minerals.
Furthermore, miners must follow the Law on Environmental Protection and other regulatory decisions made by the local authority when engaging in mining and exploration activities.
Legal regulations for licensing activities on the law on minerals
Process of Issuing Exploration and Mining Licensing
Exploration and mining licenses shall be issued on a competitive basis to taxpaying legal entities established and operating under the legislation of Mongolia unless stated otherwise in the Law on Minerals.
If one of the following requirements are met, exploration and mining licenses shall be made public for the open bidding process:
New tender process for exploration licenses (updated in April 2022)
1. Digital signature
2. Payment cards
Payment for the service will be made through the online system. Each tender invitation shall be in accordance with Article 25.15 of the Law
3. Professional staff
List of professional staff /P. S: Fill out the procedure form and prepare documents that prove the qualifications of the workforce and their employment at your company, including the certification of education, diploma, and notarized copies of them/.
4. Vehicles and equipment
List of vehicles and equipment that will be used during the project /P. S: Fill out the form, prepare documents that prove the ownership of the listed equipment for geology, exploration, environmental protection, and rehabilitation, including licenses, passports, and other related documents, as well as notarized copies of them/.
5. Projects and programs on environmental protection
Proposals and expenses for projects and programs on environmental protection and rehabilitation in the designated area.
6. Projects and programs on geological exploration
Fill out and attach the relevant form and prepare proposals for projects and programs on carrying out geological exploration in the designated area, including the types, scopes, duration, costs, and expenditure of exploration.
Steps to sending a request
- Get acquainted with the tender invitation
- Bidders must register in the electronic system
- Pay the service fee using the online system.
- Download the information on land bidding and required documents.
- Transfer the threshold price to the State Bank account 100900018408.
- Prepare and send technical bids in PDF format.
- Submit price bids.
- Evaluate the opening of quotations
- Open and evaluate the technical proposal according to the schedule
- License issuance to the winning bidder.
- Bids are accepted for up to 30 days via the online system. http://tender.gov.mn/
- Monpass and TridumKey e-tokens are accepted.
- Payment cards of all commercial banks with internet pin codes are accepted.
- The status of transferring the threshold price can be checked from the Threshold price section. The transaction value shall include the tender invitation number and the registration number of the company separated by an underline. For instance, (СШ10025_5555555). The threshold price shall be transacted to the treasury account after 16:00 of the day of the transaction, or on the following day if the amount is over MNT 5 million.
- The size of the PDF file shall not exceed 15 MB and up to 20 separate files can be uploaded to the online system.
- Estimated price bids for the land, as specified in Article 18.15 of the Law on Minerals, shall include the threshold price and be filled out in the price bidding section of the online system.
- Evaluation of price bids: As specified in Article 4.2 of the Mineral License Selection Procedure, tender bids shall be evaluated automatically for each invitation and inform the bidders of the results /P. S: bids shall not be evaluated if the threshold price is not transacted completely/
- The members of the Tender Evaluation Committee shall upload their evaluations to the online system as specified in Article 4.3 of the Mineral License Selection Procedure. A mining license shall be issued to the winning bidder as specified in Articles 20.3-20.7 of the Law on Minerals /Threshold price shall not be compensated if the bidder did not pay the amount specified on the price bids/.
Organizational structure of Mineral Resources and Petroleum Authirity of Mongolia
The Government Resolution No.4 of July 27, 2016 issued following the Resolution No.12 of 2016 of the Parliament of Mongolia, has established The Mineral Resources and Petroleum Authority of Mongolia (MRPAM), the Government Implementing Agency, with new structure by merging (formerly) the Mineral Resources Authority and the Petroleum Authority.
The Agency’s main responsibility is to Implement state policy and guidelines in geology, mining, petroleum and heavy industry sectors and has the following structure of 11 divisions and 1 laboratory.
Annex to the Order No.10 of the Minister for Mining and Heavy Industry dated August 25.2016