Enkhbold: Revoking numerous licenses may scare off investors
8 сар, 1 долоо хоног өмнө
There has been a lot of changes in the mining sector, which accounts for nearly 90 percent of the exports, 75 percent of the Foreign Direct Investments, and 24 percent of the GDP. Mineral Resources and Petroleum Authority of Mongolia (MRPAM) has revoked 50 licenses since 2019. The Executive Director of the Mongolian National Mining Association, Mr. Enkhbold talked about the concerns and further challenges of the mining sector.
-The Government has withdrawn several mining licenses in the last month. How does it affect the mining sector of Mongolia?
-Even though the Government of Mongolia is prioritizing the environmental issues over mineral operations, it might be unfair for some entities in the sector. Mongolian National Mining Association aims to decrease irresponsible mining activities and it will not support the companies which offer indecent mining projects in Mongolia. However, the Government’s decision to revoke numerous licenses simultaneously is inappropriate. It will affect negatively to the external environment and investors. The government should reconsider the decision since it’s posing risk for the mining sector development.
-What are the best options in this case?
-The relevant authorities should make their conclusions and assessments on time so that it will not be necessary to stop the operation of many companies at the same time.
-Mongolia’s coal exports increased compared to the previous year. However, it might be reduced due to the decreasing coal imports of China. What is your view on this situation?
-It is too early to predict the results in advance. Mongolia nearly reached 60 percent of its target to export 42 million tons of coal to China. And the Chinese government has imposed quotas on its imports, but it can be increased or decreased depending on the economic and political situation in the global market. Currently, the main triggering factor of Mongolia’s coal exports is the trade dispute between the U.S and China. The two countries may settle their trade conflict this month.