This year’s Mineral Resources Sector 2025 Forum took place yesterday at The Corporate Hotel, and was organized under the title “Comprehensive rural development-partnership”.
The forum attendees focused on and discussed issues concerning partnership and cooperation with local residents for carrying out mining activities. They exchanged views on opportunities benefitting both sides.
Forum attendees highlighted that last year was a year of importance, when several changes were made to main laws regulating the mining sector. In January 2014, the state’s policy for the minerals sector was approved and amendments were made to the Law on Mineral Resources and Law on Oil. They also emphasized that the Law on Common Minerals was adopted, and changes were made to the Law on Nuclear Energy.
Although the mining sector is the pillar of the nation’s economy, the forum attendees noted that local residents don’t support mining activities. Mining Minister R.Jigjid said, “Since January 2015, the Mineral Resources Authority (MRA) started issuing new exploration licenses. When the MRA sent exploration license proposals to province governors, one third of them didn’t accept the proposals. They claimed that even though exploration and mining activities are being conducted in their provinces, no money is contributed to the region.”
The Minister said that changes made to the legal environment will increase benefits for local residents. In particular, 20 percent of the money generated from the mining sector for the state budget will be transferred to the province where activities take place, ten percent of which will be contributed to the soum budgets under a newly amended law that became effective on January 1 of this year.
Previously, 70 percent of mineral resources royalty payments were transferred to the Human Development Fund (HDF), 25 percent went to the state budget, and only five percent was distributed to local development funds. Now, 65 percent of royalty payments will be transferred to the HDF and 30 percent will go to the state budget. Of the 70 percent of payments for the state budget, 30 percent will be issued for regional development.
Mining sector representatives believe that collaboration between the government, regional governments, entities owning exploration licenses, and non-governmental organizations will develop the nation’s mining sector, providing possibilities for mutually beneficial work.
Mining Ministry representatives led by Minister R.Jigjid, representatives from the MRA, province delegates, and representatives from related organizations attended this year’s forum.
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