Based on certain provisions of National Security Policy documents, and to promptly regulate certain circumstances emerging in the minerals sector, the President and Head of the National Security Council Ts. Elbegdorj ordered a temporary suspension on the issuance and transfer of mineral licenses. On April 23, President Elbegdorj also convened some MPs and the Cabinet, and Government officials to comment on his order.

President Ts.Elbegdorj advises National Security Council on license restrictions

“National Security Concepts of Mongolia, National Security Law, National Security Council Law and some other documents that are rated confidential, provide for certain acts, actions, duties and directions for the Head of the National Security Council. I convened you today strictly within the parameters of these duties. The order I issued addresses and aims to resolve one of the critical issues that has caused a great deal of concern.

National security, balanced economic development, and development and protection of natural resources have always been under my concerted attention. I have been providing concrete orders and directions to pertinent organizations and officials. One of the subjects of these orders was the issue of minerals licenses. When I meet with citizens, when I hold meetings, while working in the rural areas, practically all soums, all local governments, all local people are talking about this very issue. Over the last 5 years, we have talked about ensuring that our people become the true owners of our natural wealth, that our peoples’ ownership rights have been violated; yet nothing has changed and violations persist.

The problems around the mineral licenses are not mere violations, they evolve as organized crime, threatening and damaging our national security. The matter is truly serious, and this is being noted by certain officials as well. I will cite just one example…. Almost half of exploration license holders neglect their legal duty to provide their annual exploration reports. Ignorant of their main duty to explore for minerals, the license holders have turned mineral licenses into a money-making tool for foreign and national groups. It is possible that corruption and bribery are committed in those circles.

According to a report by the authorized organization, as of April 2 this year there were 4,706 valid mineral licenses of which 3,610 are exploration and 1,096 are mining licenses. Most of these titles are held in violation of law.

This disorder leads to the eventual deprivation of Mongolian people of their property, and to situations whereby attempts are made to exert pressure and influence on our sovereign policies. Certain state institutions and certain officials are charged by law with the duty to halt such practices. This lawful and legal duty must be practiced. Occasionally, we lose time, we do not act promptly, and eventually we can fall victim of illegitimate pressures by others. The situation must be rectified.

Therefore, through the relevant organization, I ordered to temporarily suspend the issuance of new and revoked mineral licenses and transfer thereof as of 5 pm, April 20, 2010 to prevent a similar situation that emerged years ago around Decree #20, when many lost while trying to win preemptively. Such decisions should not be given lead time.

Please report to the National Security Council on the enforcement of my order within May, and in June, we should hold an open public discussion at the Citizens’ Hall.

My order will remain in effect until a new law on Mineral Licenses is adopted. I assign the Government to regularly report to me on the status of the implementation and the ways it resolves the issues. It is important to urgently develop the law on mineral licenses and have it publicly discussed. The time has come for us to discuss, exchange information and act accordingly”.

President Elbegdorj had spoken with members of the National Security Council, Speaker of the Parliament, D. Demberel, and Prime Minister, S. Batbold about the order he was issuing. Implementation of the President’s order shall be monitored by the Office of the National Security Council, relevant organizations and the general public.

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