Current situation of gold sector discussed

Economy
misheel@montsame.gov.mn
2018-10-02 14:30:26

Ulaanbaatar /MONTSAME/ The ‘Gold forum’ kicks off at the Blue Sky hotel today, on October 2. Minister of Mining and Heavy Industry D.Sumiyabazar and Governor of the Bank of Mongolia delivered opening remarks.


Discussions titled ‘Current situation of gold sector’, ‘National Gold to the Fund of Treasures’ and ‘Challenges facing the gold producers’ were held at the forum.


According to the Head of the Geological Policy Department at the Ministry of Mining and Heavy Industry B.Munkhtur, Mongolia has 2500 tons of gold reserves. However, reserves of placer deposits are close to exhaustion. Therefore, the old reserves need to be re-explored. There’s still great deal of difficulty for gold mining entities with local administration and citizens. When the gold miners commence their mining operations with an approved plan, the civil society organizations protest and run demonstrations. According to the Budget Law of 2019, certain percentage of tax revenues will be allocated to rural areas, policymakers believe that it will become a significant support for producers and will reduce protests from local communities.


Currently the gold royalty is 2.5 percent. The Ministry of Mining and Heavy Industry decided to keep it at 2.5 percent until 2020. However, the gold producers requested to keep it the rate until 2024.