PM orders to protect Noyon Mountain and to fix size of shares in Gatsuurt deposit

2015-10-21 19:23:37

Ulaanbaatar /MONTSAME/ The Prime Minister Ch.Saikhanbileg convened R.Jigjid, the Minister of Mining; N.Battsereg, the Minister of Environment, Green Development and Tourism; and J.Buyanbat, the deputy head of the General Police Department (GPD), at the “Hour for solution” weekly meeting on Wednesday.

Saying that illegal explorers have entered a zone of Selenge aimag’s Mandal soum-based Gatsuurt deposit, and that a number of crimes and illegal actions have increased, the Premier asked about nowadays situation of the mineral deposit.

According a report of the GPD deputy head, the number of crimes has increased this year in the soum by 20%, against the previous year. Most of the crimes are related to alcoholism and hooliganism. Furthermore, about 1,800 people from Khovsgol, Arkhangai, Darkhan-Uul, Tov and Selenge aimags have been illegally exploiting gold on this deposit, he said.

The Mining Minister R.Jigjid gave a report on a course of talks with investors about exploitation of the Gatsuurt gold deposit, which was registered this January in the list of strategic deposits. The talks have been run with the investors by a working group in charge of fixing a size of the state's shares in the deposit. As accorded with the investors, this size would stand at 34% but it has been replaced by the three percent tax for exploitation of minerals. Depending on gold price, the three percent tax will be resolved by the government, Jigjid said.

The size of first installment has been minimized from USD 350 to USD 250 million. The working group reached a general agreement with the “Centerra Gold Mongolia” LLC, thus has fulfilled its goals, the Minister added.

The Minister of Environment, Green Development and Tourism N.Battsereg said the Ministry intends to submit to the cabinet a draft resolution of parliament on putting a territory near Noyon Mountain in the state special protection. It involves 33 thousand hectares, he added.

The Premier obliged the GPD to intensify action, R.Jigjid and N.Battsereg were told to submit to parliament a draft resolution of parliament on fixing the state ownership and to have cabinet consider the issue of the state protection.


The Ministry of Mining has calculated that proven reserve of the Gatsuurt deposit is 50 tons of gold, and its sales revenue will be USD 1.7 billion.