/2022-10-20-ны өдрийн байдлаар орчуулгыг хянасан/              Unofficial translation

LAW OF MONGOLIA

January 9, 2014              Ulaanbaatar city 

LAW ON COMMON MINERALS

CHAPTER ONE

GENERAL PROVISIONS

Article 1.Purpose of the law

1.1.The purpose of this Law shall be to regulate relations with regard to exploration and mining of common minerals and obtaining license, license holders' liabilities, and protection, rehabilitation of exploration field and mining area in use in the territory of Mongolia.

Article 2.Legislation on common minerals

2.1.Common minerals legislation comprises the Constitution of Mongolia, the Minerals Law, and Land Law, the Subsoil Law, Environmental Protection Law, this Law and other legislative acts enacted in compliance with these laws.

Article 3.Scope of the Law

3.1.This law shall apply relations with regard to exploration and mining of common minerals. 

3.2.Relations with respect to use of clay and sand for medical purposes shall be regulated by a regulation approved by the State administrative body in charge of environmental matters. 

3.3.Relations concerning common minerals exploration and exploitation required in specific projects and programs to be implemented in road and railway sector at the decision of the Parliament and Government shall be regulated by a procedure approved by the Government.

Article 4.Definitions of terms

4.1.The following terms used in this Law shall have the following meanings:

4.1.1."common minerals" shall mean concentration of widely spread construction rocks such as sand, gravel, brick clay, trap, pebble that are usable for road and building materials;

4.1.2."common minerals exploration" shall mean geological and exploration survey conducted on and under the earth's surface for the purpose of detailed identification of the location and quantity of common minerals accumulation, and conducting a feasibility study on mining such mineral concentration by researching possibility to utilize resources;

4.1.3."common minerals mining" shall mean the entire range of activities that include separating and extracting minerals from land surface and subsoil, increasing the concentration of its usable contents, producing products, marketing those products, and other activities related therewith in accordance with the feasibility study to mine common minerals; 

4.1.4."common minerals deposit" shall mean mineral concentration that has been formed on the surface or in the subsoil resulting from geological evolutionary processes and alterations, where the quality and proven reserve is economically feasible to mine by industrial methods;

4.1.5."special purpose territory" shall mean land reserved for the national and local levels by an authorized government entity pursuant to articles 17, 18 and 20 of the Land Law for special public needs where prospecting, exploration and mining are restricted or prohibited;

4.1.6."exploration license of common minerals" shall mean a document granting the right to conduct exploration as set forth in this Law;

4.1.7."mining license of common minerals" shall mean a document granting the right to conduct mining as set forth in this Law;

4.1.8."common minerals exploration area" shall mean the area granted under a license as set forth in subparagraph 4.1.6 of this Law;

4.1.9."mining area" shall mean the area granted under a license as set forth in subparagraph 4.1.7. of this Law; 

4.1.10."mining claim" shall mean a part of a geological formation overlapping mining area where mining is to be conducted;

4.1.11."license fee for common minerals" shall mean the payment that an owner makes as set forth in paragraph 35.6 of the Law on State Stamp Duty in order to maintain the license effective;

4.1.12."common minerals' license holder" shall mean a legal entity to whom exploration or mining right has been granted as set forth in this Law;

4.1.13."legal entity" shall mean a company or partnership as set forth in 33.1 of the Civil Code of Mongolia.

Article 5.Ownership of common minerals

5.1.Common mineral resources naturally occurring on surface and subsurface in Mongolia are the property of the State.

5.2.The State, as the owner, has the right to grant common minerals exploration and mining rights as set forth in the terms and conditions of this Law.

Article 6.General requirements on license holder and conducting common minerals exploration and mining operation

6.1.Common minerals exploration and mining licenses shall be granted to a legal entity duly formed and operating under the laws of Mongolia, and which is a legal entity registered in Mongolia.

6.2.License holder shall meet the requirements set forth in paragraph 6.1 of this Law for the duration of valid license.

6.3.One license shall be granted to one legal entity only.

CHAPTER TWO

STATE REGULATION IN COMMON MINERALS SECTOR

Article 7.The full powers of the State Great Khural

7.1.To stablish State policy with respect to exploration and mining of common minerals.

7.2.To oversee the Government's undertaking on the implementation of legislation on common minerals exploration and mining.

7.3.To restrict or prohibit common minerals exploration and mining activities on a particular area, or grants of exploration and mining licenses for certain territories by proposal of the Government at its own initiative.

Article 8.The full powers of the Government

8.1.To ensure implementation of laws and legislation on exploration of common minerals exploration and mining. 

8.2.To resolve matters concerning exploration and mining of common minerals on special purpose areas except those under State special protection and historical, cultural sites and sightseeing areas.

Article 9.Full powers of the State central administrative body

9.1.The State Central Administrative Body in charge of mining shall implement the following full powers with respect to common minerals:

9.1.1.to ensure enforcement of legislation on common minerals and resolutions of the Government with regard to implementation of such legislation.

9.2.The State Central Administrative Body in charge of construction and urban development shall implement the following full powers with respect to common minerals: 

9.2.1.to conduct research on supply and demand of common minerals to be used in construction sector and deliver the planning to the State Central Administrative Body in charge of mining issues.

Article 10.Functions of the State administrative body

10.1.The State Administrative Body in charge of geology and mining issues /hereinafter referred to as "State Administrative body/ shall implement the following functions:

10.1.1.to keep record of common minerals licenses;

10.1.2.to keep record of cartography of common minerals licenses;

10.1.3.to draw conclusion on whether it is viable to grant license on areas where mineral exploration license applications were made and have it delivered to the Governor;

10.1.4.to make decision to accept common minerals exploration work reports and feasibility study to utilize common minerals deposits based on the conclusion of Mineral Resources Professional Council; 

10.1.5.to approve a regulation, which coordinated relations with respect to issuance of exploration and mining licenses of common minerals covering the territories of capital city and aimags. 

10.2.The State Central Administrative Body in charge of mining and competent body for inspection shall carry out the state control of common minerals exploration, mining activities and implementation of the Common mineral's legislation.

/This paragraph was amended according to the law of November 11, 2022/

Article 11.Full powers of local administrative and self-governing agencies

11.1.The Citizen's Representative Khural of the Aimag and the Capital city shall implement the following powers with regard to common minerals issues:

11.1.1.to include common minerals exploration and mining area in the general land administration plan of the capital city and aimag; 

11.1.2.to make decision to take lands belonging to common minerals exploration area and deposits under special local needs as per the Land Law; 

11.1.3.to monitor whether pre-exploration and research work have been conducted by specialized paleontological and archaeological organization or whether protection measures are required. 

11.2.The Governors of aimag and capital city shall implement the following full powers with regard to common minerals issues:

11.2.1.to enforce implementation of the Common minerals Law and decisions of the Government in their respective territories;

11.2.2.to ensure the intended use of license area and take measures of cessation of breach in case of breach;

11.2.3.to monitor compliance of license holders of their obligations with respect to human health, environment, reclamation, mine closure and payment of their obligations to the treasuries of local administrative bodies;

11.2.4.to review application for common minerals exploration and mining license; 

11.2.5.to issue common minerals exploration and mining license in their respective territories;

11.2.6.to oversee payment execution of common minerals exploration and mining license.

CHAPTER THREE

EXPLORATION LICENSE OF COMMON MINERALS

Article 12.Requirements on obtaining common minerals exploration license

12.1.Shall meet the requirements set forth in paragraphs 17.1-17.3 of the Minerals Law. 

12.2.The size of common minerals exploration area for each license shall not be less than twenty-five (25) hectares and shall not exceed 400 hectares as per paragraph 17.4 of the Minerals Law.

12.3.License on common minerals shall be prohibited to be granted within 1 km areas from urban settlement and green zone.

/This paragraph was added according to the law of July 7, 2021/

Article 13.Procedure for submitting an application for common minerals exploration license

13.1.A common minerals exploration license shall be granted to the first applicant or legal entity who registers and files an application that meets the requirements of paragraph 6.1 and article 12 of this Law.

13.2.A legal entity set forth in paragraph 13.1 of this Law shall submit application of common minerals exploration license to the Governor of aimag and capital city in accordance with form approved by the Governor of aimag and capital city and shall be attached the following to its application: 

13.2.1.applicant's name, mailing address, phone and fax numbers;

13.2.2.copy of the applicant's State registration certificate, /competent person receiving the documents shall check the documents against the originals and record that the copies are true for free/  notarized copy if delivered by post; 

13.2.3.area map prepared as set forth in the requirements of paragraph 12.1 of this Law and names of marked aimag, soum or district where such map is located;

13.2.4.document showing that the applicant has paid the service fee set forth in subparagraph 25.1.5 of Law on State Stamp Duty;

13.2.5.document proving that the applicant meets the requirements of paragraph 6.1 of this Law.

Article 14.Registering and processing of the application

14.1.As soon as receipt of the application set forth in paragraph 13.2 of this Law, the Governor of aimag or capital city shall carry out the following: 

14.1.1.to register the application in the application registry and record the number, date, hour and minute of registration on each page attached to the application and issue the applicant a receipt acknowledging the filing of the application;

14.1.2.to make special description on the first and last registered application of that day;

14.1.3.to carry out preliminary screening on the application and enclosed documents immediately following the registration whether the requirements specified in paragraphs 12.1, 12.2 and 13.2 of this law are in line and in case such requirements are not met, reject the acceptance of application, give written notice to the applicant containing the grounds for such decision and record it in the application registration book;

14.1.4.following the preliminary screening set forth in subparagraph 14.1.3 of this Law, an application and its enclosed documents must be delivered to the State Administrative Body via electronic form. The filed application and enclose documents shall be determined on whether the requested exploration area overlaps with an area with restrictions or prohibitions on mineral exploration or mining, reserve area, special purpose territory or any area subject to an existing valid license or previously filed pending application for a license.

14.2.After completing the actions set forth in subparagraph 14.1.4 of this Law within five (5) business days after registration of the application lodged by the Governor of aimag or capital city, the State administrative body shall notify whether the application is granted for exploration license or not. 

14.3.The Governor of aimag or capital city shall notify the applicant in writing the rejection of application. In addition, explain it may be due to the requested area overlaps completely or partially with an area with restrictions or prohibitions on mineral exploration or mining, special purpose territory, reserve area, or an area subject to an existing valid license, and record the decision in the application registration book.

14.4.Within ten (10) days of receiving the notice set forth in paragraph 14.2 of this Law the Governor of aimag or capital city shall resolve whether to grant common minerals exploration license after consultation with the Citizens` Representatives` Khural of the soum or district and the presidium of the Citizens` Representatives` Khural of aimag or city. 

/This paragraph was amended according to the law of April 22, 2022/

14.5.The Governor of aimag or capital city shall make a decision to grant the area under a common minerals exploration license and notify the applicant that the license fee for the first year shall be paid within the period set forth in paragraph 24.1 of this Law.

14.6.If the applicant fails to obtain license within one (1) month after the decision set forth in paragraph 14.5 of this Law or fails to pay the first year's license fee within the period set forth in paragraph 24.1 of this Law, the Governor of aimag or capital city shall remove the application from the registry. Governor of aimag or capital city shall notify the applicant of this in written and keep track of it in the application registration book.

14.7.Within five (5) business days after the payment is made for the first year's license fee as per the period set forth in paragraph 24.1 of this Law, the Governor of aimag or capital city shall issue a common minerals exploration license for a three (3) year period. 

14.8.The Governor of aimag or capital city shall notify the State central administrative body in charge of the construction and urban development, state administrative body, organization in charge environmental affairs of aimag and capital where the licensed area is located of issue of common minerals exploration license. In addition, the State Administrative Body shall record the exploration license and the issued area in the registries of license and its cartography. 

/This paragraph was amended according to the law of November 11, 2022/

14.9.A common minerals exploration license shall contain the date of issuance, the license holder's name, and the coordinates of the area covered by the license and an attachment where all subsequent changes regarding the license shall be recorded.

14.10.Paragraphs 19.12 and 20.1 of Minerals Law shall not be applicable to obtaining a common minerals exploration license.

Article 15.Rights of common minerals exploration license holders

15.1.Exploration license holder shall have the following rights: 

15.1.1.to conduct exploration for common minerals as per this Law and within the boundaries of an exploration area; 

15.1.2.to obtain a mining license for common minerals according to its exclusive right for any part of an exploration area upon fulfilling the terms and conditions of this Law; 

15.1.3.to obtain an extension of the term of an exploration license for common minerals for two (2) years for once upon fulfilling the terms and conditions of this Law.

Article 16.Extension of the term of an exploration license

16.1.One (1) month prior to the expiration of a common minerals exploration license, the license holder may apply for an extension of the license by submitting an application to the Governor of aimag or capital city. The following documents shall be attached to the application:

16.1.1.copy of the common minerals exploration license (competent person receiving the documents shall check the documents against the originals and record that the copies are true for free) if delivered by post, a notarized copy; 

16.1.2.receipts for payments of annual license fees, and service fees; 

16.1.3.document proving the renewed approval of the environmental protection plan as set forth in article 29 of this Law; 

16.1.4.report on exploration work completed prior to the extension of the license, and documentation of its acceptance.

16.2.Within ten (10) business days following the receipt of an application for extension as set forth in paragraph 16.1 of this Law, the Governor of aimag or capital city shall review the license holder's compliance with the terms and conditions and requirements of paragraph 6.2 and article 22 and in case there is no violation the license term shall be extended for the period set forth in subparagraph 15.1.3 of this Law, and shall be recorded in the license registry book. 

16.3.Immediately following the extension of an exploration license, the Governor of aimag or capital city shall notify the State administrative body in charge of construction and urban development, State administrative body, organization in charge environmental affairs of aimag and capital.

/This paragraph was amended according to the law of November 11, 2022/

16.4.The Governor of aimag or capital city shall refuse the extension of the license if a license holder fails to meet the requirements of paragraph 6.2 and article 22 of this Law, and will notify the applicant in writing, and record it in the license registry.

CHAPTER FOUR

MINING LICENSE OF COMMON MINERALS

Article 17.Requirements on obtaining a common mineral mining license

17.1.Only the exploration license holder shall be entitled to apply for mining license in the common minerals exploration licensed area. 

17.2.The application for mining license set forth in paragraph 17.1 shall contain the coordinates of all corners of the requested mining area in degrees, minutes and seconds on a standard map approved by the State administrative body, and the map shall be attached to the application. 

17.3.The requested mining area shall meet the requirements set forth in paragraphs 24.4 and 24.5 of the Minerals Law.

17.4.It shall be prohibited to grant common minerals license within 1 km from urban settlement and green zone.

/This paragraph was added according to the law of July 7, 2021/

Article 18.Procedure for submitting an application for common minerals mining license

18.1.using the approved form, an applicant for a mining license shall submit an application as set forth in paragraphs 17.1 and 17.2 of this Law to the Governor of aimag or capital city and the following documents shall be attached to the application:

18.1.1.applicant's name, mailing address for official postal address, phone and fax numbers, and reference containing the name of the officer authorized to make decisions; 

18.1.2.document certifying that the applicant meets the requirements of paragraph 6.1 of this Law;

18.1.3.map of the area prepared as set forth in the requirements of paragraph 17.3 of this Law and the map shall contain the name of the aimag or capital city and soum or district in which the area is located;

18.1.4.document showing that the applicant has paid the service fee set forth in subparagraph 25.1.5 of the Law on State Stamp Duty; 

18.1.5.decision of the State administrative body as discussed and received the exploration results; and  

18.1.6.verification documents of performance of the duties with regard to the environmental management plan during exploration work.

Article 19.Registering and processing the application

19.1.Upon receiving the application set forth in paragraph 18.1 of this Law, the Governor of aimag or capital city shall carry out the following: 

19.1.1.to register the application in the application registry and record the number, date, hour and minute of registration on each page attached, and issue a receipt to the applicant acknowledging the registration of the application;

19.1.2.immediately following the registration, it shall be determined by preliminary screening whether the application and the enclosed documents meet the requirements specified under paragraphs 17.3 and 18.1 of this Law.

19.2.Following the preliminary screening set forth in subparagraph 19.1.2 of this Law, the Governor of aimag or capital city shall clarify the following:

19.2.1.whether the mining area requested by the exploration license holder is within the boundaries of its exploration licensed area;

19.2.2.whether the requested area overlaps with any reserve area, special purpose territory, prohibited area to exploration and mining or an area already subject to an existing valid license; 

19.2.3.whether the size and evaluation of the mineral reserve estimated by exploration would be sufficient for reclamation of environmental damages that might result from mining activities.

19.3.Within fifteen (15) business days following the registration of an application for a mining license, the Governor of aimag or capital city shall make one of the following decisions based on the clarifications set forth in paragraphs 19.1 and 19.2, and will notify the applicant accordingly:

19.3.1.to reject the application and give written notice to the applicant containing the grounds for such decision if the application and attached documents fail to meet the requirements of paragraphs 17.3 and 18.1 of this Law, and record it in the application registration book;

19.3.2.to grant the mining license according to the exclusive rights of the applicant where the existing exploration license holder submits an application for a mining license in the exploration area and pays the first year's license fee as set forth in paragraph 24.1 of this Law;

19.3.3.if the requested area overlaps with any part of an area with restrictions or prohibitions on exploration or mining, reserve area, special purpose territory or any area subject to a valid license, the application for the mining license shall be rejected and written notice containing grounds for such rejection shall be issued to the applicant. This shall be recorded in the application registration book. 

19.4.If the applicant who has received mining license as per the exclusive rights set forth in subparagraph 19.3.2 of this Law or fails to pay the first year's license fee within the period set forth in paragraph 24.1 of this Law,  the Governor of aimag or capital city shall remove the application from the application registry. The Governor of aimag or capital city shall notify the applicant in writing, and record it in the application registration book.

19.5.Within five (5) business days following the payment of the license fee for the first year made by applicant as set forth in subparagraph 19.3.2 of this Law, the Governor of aimag or capital city shall issue a mining license to the applicant for a term of fifteen (15) years. 

19.6.A mining license shall contain the date of issuance, the license holder's name, address and the coordinates of the corners of the mine area covered by the license and an attachment in which all subsequent changes with respect to the license shall be recorded.

19.7.Within ten (10) business days following the issuance of a mining license, the Governor of aimag or capital city shall notify the respective bodies of issuance of mining license. These bodies include state central administrative body in charge of construction and urban development, the State administrative body, administrative body in charge of aimag and capital city environmental issues, administrative body in charge of taxation and fiscal issues and aimag and soum where the licensed area is located. As such, the State Administrative Body shall register the license and mining area in the registries of license and license cartography.

/This paragraph was amended according to the law of November 11, 2022/

19.8.The Governor of aimag or capital city agency shall return the application and attached documents to the applicant if the decisions set forth in subparagraphs 19.3.1, 19.3.3 and 19.4 of this Law are made.

Article 20.Rights and obligations of common minerals mining license holders

20.1.common minerals mining license holder shall have the following rights and obligations:

20.1.1.Right to use all common minerals within the mining claim as set forth in the provisions of this Law;

20.1.2.to fulfill obligations set forth in Chapter 6 of this Law;

20.1.3.to sell mineral products and all types of common minerals extracted from the mining claim at international market prices; 

20.1.4.right to conduct exploration for common minerals within the mining area;

20.1.5.right to extend the term of the common minerals mining license two times for a period of ten (10) years each depending up on the reserve of the mineral;

20.1.6.right to enter and pass through the mining area, construct necessary structures and use the mining area in order to carry out mining activities;

20.1.7.to enter and pass through the land owned or possessed by other persons as approved by the owner or possessor of the land in order to exercise the rights provided by this Law;

20.1.8.all mineral products and common minerals extracted from the mining claim must meet the standard requirements; 

20.1.9.right to use land and water in compliance with applicable laws.

20.2.The landowner can use the common minerals in the given area for household purposes on a non-profit-making basis.

Article 21.Extension of common minerals mining license

21.1.Not less than one (1) year prior to the expiration of common minerals mining license, the license holder may submit an application on the form approved by the State administrative body for an extension of the mining license. The following documents shall be attached to the application:

21.1.1.copy of the mining license if delivered by post, a notarized copy /competent person receiving the documents shall check the documents against the originals and record that the copies are true for free/;

21.1.2.receipts for payments of license fee and service fee;

21.1.3.documentation evidencing the inspection of the implementation of the environmental plan as set forth in article 29 of this Law. 

21.2.Within ten (10) business days following the receipt of an application set forth in paragraph 21.1 of this Law, the Governor of aimag or capital city shall verify that the license holder is eligible to hold the license. In case there are no violations, the license term shall be extended for the period set forth in subparagraph 20.1.5 of this Law and it shall be recorded in the license registry book and the applicant shall be notified. 

21.3.Within ten (10) business days following the decision to extend the mining license, the Governor of aimag or capital city shall notify the authorities set forth in paragraph 19.7 of this Law.

CHAPTER FIVE

CONDITIONS FOR HOLDING COMMON MINERALS EXPLORATION AND MINING LICENSES

Article 22.Maintaining the eligibility to hold license

22.1.A license holder shall be obliged to comply with the conditions and requirements set forth in paragraphs 23 and 24 of this Law, and failure to comply shall result in revocation of the license pursuant to article 37 of this Law.

Article 23.License fees

23.1.A license holder shall pay license fees annually as set forth in paragraph 35.6 of the Law on State Stamp Duty.

Article 24.Payment of license fees

24.1.A license holder shall pay the first year's fee within ten (10) business days after the receipt of notification specified paragraph 14.5 and subparagraph 19.3.2 of this Law.

24.2.A license holder shall calculate the subsequent year's fee starting from the date the given license issued and pay annually in advance. 

24.3.The amount of the license fee shall be calculated based on the measurements of the license area allotted for mining area as registered in the registry of licenses, and the amount of the fee shall not change for that particular year.

CHAPTER SIX

OBLIGATIONS OF A LICENSE HOLDER

Article 25.General obligations of common minerals license holder

25.1.While carrying out common minerals exploration and mining activities, common minerals license holder shall comply with the general obligations set forth in article 25 of this Law and failure to comply with them, the license holder shall be subject to the liabilities set forth in Law on Violation.

/The paragraph was amended according to the law of December 4, 2015/

25.2.Common minerals exploration license holder shall keep the following documents at the actual site of exploration work:

25.2.1.copy of the exploration license; 

25.2.2.environmental protection plan and report;

25.2.3.exploration work plan reviewed by the Governor of soum and district and competent bodies for inspection.

25.3.Common minerals mining license holder shall prepare the documents set out in subparagraphs 35.3.1-35.3.7 of the Minerals Law.

25.4.Common minerals mining license holder shall suspend its operation and notify the Governor of aimag or capital city in case it discovers other types of minerals, historical or cultural findings and artifacts during common minerals exploration and mining activities. 

25.5.Common minerals mining license holder shall meet the requirement set forth in paragraph 17.10 of the Law on Cultural Heritage Protection.

25.6.Common minerals mining license holder shall meet the requirement set forth in article 32 of the Law on Subsoil.

Article 26.Environmental protection

26.1.A license holder shall comply with the legislations on environmental protection, and with articles 27 and 28 of this Law.

26.2.It shall be prohibited that a license holder to commence common minerals exploration and mining operations without a written approval from the relevant aimag or capital city environmental agency and in case of a dispute arising out of this matter, the complaint can be filed with the competent body of inspection.

/The paragraph was amended according to the law of November 11, 2022/

Article 27.Environmental protection obligations of exploration license holder

27.1.Exploration license holder shall have the following obligations regarding environmental protection:

27.1.1.within sixty (60) days following the receipt of an exploration license, the exploration license holder shall prepare an environmental protection plan by consulting with the state environmental inspection agency and have it approved by the Governor of soum or district where the exploration area is located; 

27.1.2.the environmental protection plan set forth in subparagraph 27.1.1 of this Law shall provide measures to ensure that the level of the environment pollution does not exceed the accepted limits, and reclamation of the area by means of backfilling, leveling and cultivation to allow future public use;

27.1.3.upon approval of the environmental protection plan as set forth in subparagraph 27.1.1 of this Law, a copy of this plan shall be delivered to the local environmental inspection agency;

27.1.4.license holder shall record all instances of adverse environmental impacts resulting from the exploration activity in its annual environmental protection plan report, and deliver this report to the Governor of relevant soum or district and the environmental inspection agency;

27.1.5.the report set forth in subparagraph 27.1.4 shall contain information on measures taken to protect the environment and proposed amendments to the environmental protection plan directed at preventing the possible impact on the environment of new exploration machinery and technology. The  Governor of relevant soum or district shall approve all amendments made to the environmental protection plan;

27.1.6.to provide the State and local administrative body official in charge of monitoring implementation of the laws on environmental protection with an opportunity to enter the exploration area to conduct monitoring activities on the site;

27.1.7.to ensure the discharge of its responsibilities with respect to environmental protection, an exploration license holder shall deposit funds equal to 50 percent of its environmental protection budget for that particular year in a special bank account established by the Governor of relevant soum or district. 

27.2.Within five (5) days after receiving the environmental protection plan and its proposed amendments set forth in subparagraphs 27.1.1 and 27.1.5 of this Law, the Governor of the soum or district shall review and approve the plan and return it to the license holder.

27.3.In case a license holder fails to implement the measures in full provided in the environmental protection plan, the Governor of relevant soum or district shall use the deposit set forth in subparagraph 27.1.7 of this Law to implement these measures, and the license holder shall provide any additional funds required without dispute. 

27.4.In case a license holder complies with all of the obligations of the environmental protection plan, the deposited funds set forth in subparagraph 27.1.7 of this Law shall be returned to the license holder.

Article 28.Environmental protection obligations of common minerals mining license holder

28.1.Common minerals mining license holder shall have the obligations set forth in paragraph 39.1 of the Minerals Law.

Article 29.Review of updated environmental impact assessment and protection plan

29.1.Exploration license holders applying for a license extension shall submit their revised environmental protection plan to the Governor of relevant soum or district for approval prior to the expiration of the exploration license.

29.2.Mining license holders applying for a license extension shall submit their revised environmental impact assessment and environmental protection plan to the aimag and capital city environmental agency for approval. 

29.3.Plan set forth in paragraph 29.1 shall be approved as set forth in the paragraph 27.2 of this Law.

Article 30.Compensation for damages to property

30.1.A license holder shall pay the compensation in accordance with  paragraph 41.1 of the Minerals Law.

Article 31.Ensuring health and safety standards

31.1.A license holder shall carry out activities providing for the safety for citizens of relevant soum or district, labor safety and hygiene for mine employees as set forth in the applicable laws and regulations.

Article 32.Requirements for closure of a mine

32.1.In case if mine is closed partially or wholly, a license holder shall implement measures pursuant to article 45 of the Minerals Law.

Article 33.Common minerals royalties

33.1.Common minerals mining license holder shall pay common minerals royalties to local budget on the sales value of all common minerals products extracted from the mining claim that are sold, shipped for sale, or used.

33.2.Common minerals royalties shall be equal to 2.5 percent of the sales value of all common minerals products extracted from the mining claim that are sold, shipped for sale, or used.

Article 34.Submission of information and reports

34.1.exploration license holders shall accurately prepare the following information and reports on a timely basis, and submit copies to the Governor of aimag or capital city, and competent body of inspection, respectively: 

/The paragraph was amended according to the law of November 11, 2022/

34.1.1.exploration activities plan shall be submitted within sixty (60) days following the grant of the exploration license; 

34.1.2.In a form approved by the State Administrative Body, annual exploration activities reports shall be prepared according to the exploration phases and submitted within sixty (60) days following the report release. 

34.2.The report set forth in subparagraph 34.1.2 of this Law shall contain information on the work completed and expenses incurred in drilling and other activities, information on the labor force, and the results of the exploration work and a map indicating the locations where the work was done shall be attached to the report. This map shall be prepared according to the State geodesy system. 

34.3.The exploration license holder shall develop a general report on deposit reserve, and exploration outcome in consistent with the approved form, and provide primary documents and submit them to the State Administrative Body before the term of the license expires.

34.4.The State administrative body shall accept the estimate of ore reserves submitted in the final report set forth in paragraph 34.3 of this Law, and shall make a decision to include the ore reserves in the national registry of reserves and have it delivered to the State administrative body in charge of construction and urban development. 

34.5.Common minerals exploration license holder shall submit the following information and reports to the Governor of aimag or capital city within the timeframe indicated below: 

34.5.1.Feasibility study on the development of the deposit within one hundred twenty (120) days of obtaining a mining license; 

34.5.2.Estimation data on the next year's production on an approved instruction within December in every year; 

34.5.3.In a form approved, annual activities reports, general data and graphs on mining works determined and approved under mineral surveyor shall be submitted within 15th of February of the following year.

34.6.The Governor of aimag or capital city shall receive the feasibility study set forth in subparagraph 34.5.1 of this Law and have it delivered to the State Administrative Body in charge of construction and urban development. 

34.7.The report set forth in subparagraph 34.5.3 of this Law shall contain the following:

34.7.1.Number of workdays, number of employees, and all agreements and contracts affecting the license holder's property;

34.7.2.Information on implementation of the mining plan, an estimate of changes in reserves, time periods of operation for the mine, a general overview of production facilities, and any expansion or renovation of such facilities; 

34.7.3.Information on the quantity of ore mined, the quantity of products produced, shipped and sold, the price of the products sold, information with respect to the purchasers, information on investments made during the year, operating expenses, royalty payments and information with respect to the equipment and technology used in the mining operations, and information on other related properties. 

34.8.A license holder shall prepare a report on the implementation of the environmental management plan as set forth in articles 27 and 28 of this Law, and submit it to the relevant authorities. 

34.9.A license holder shall submit a data on royalties as set forth in subparagraph 34.7.3 to the tax office, using its approved form, on the 20th calendar day following the end of the quarter, and a year-end report by January 20 of the following year. 

34.10.A license holder shall report to the public the amount of its product sales for the year and the amount of taxes and payments paid to the local budgets during the first (1st) quarter of the following year.

34.11.The Head of State administrative body shall approve the forms set forth in subparagraphs 34.5.2 and 34.5.3 of this Law.

CHAPTER SEVEN

EXPIRATION OF A LICENSE

Article 35.Grounds of expiration of a license

35.1.Common minerals exploration and mining licenses shall be expired in the following cases:

35.1.1.expiration of the license term;

35.1.2.returning by license holder of the entire licensed area as set forth in article 36 of this Law;

35.1.3.revocation of the license by the Governor of aimag or capital city. 

35.2.Upon expiration of the license, the rights and obligations of the license holder under the license shall cease, except the license holder's obligations with respect to environmental protection, reclamation and mine closure as set forth in articles 27, 28 and 32 of this Law, and other obligations pursuant to laws and legislation on environmental protection.

35.3.Upon expiration of the license, the license holder shall return the license certificate to the Governor of aimag or capital city, and new license may be issued for the area as set forth in this Law.

35.4.The ownership of buildings and structures, equipment and other property allowed to remain on the exploration or mining area shall be settled according to the provisions of the Civil Code.

Article 36.Returning the entire licensed area

36.1.Common minerals exploration and mining license holder may voluntarily submit an application for approval of the State administrative body to return the entire license area.

36.2.Evidence that the license holder has met the obligations under laws, such as the environmental protection law, and reporting and the requirements for mine closure specified in article 32 of this Law shall be attached to the application.

36.3.Upon receipt of an application specified in paragraph 36.1 of this Law, the Governor of aimag or capital city shall make the appropriate changes to the license and cartographic license registries after verifying that the license holder has met the requirements as set forth in paragraph 36.2 of this Law. 

36.4.Upon returning of the entire licensed area, the license holder shall return the license certificate to the Governor of aimag or capital city.

36.5.The Governor of aimag or capital city shall notify the relevant State Administrative Body of the return of the entire licensed area.

36.6.A license holder that returns the particular licensed area shall not have the right to submit a new application for the same area for a period of two (2) years following the return.

Article 37.Revocation of licenses

37.1.The Governor of aimag or capital city shall revoke a license on the following grounds:

37.1.1.a license holder has failed to meet the requirements of paragraph 6.2 and article 22 of this Law;

37.1.2.a license holder has failed to pay the license fees completely within the deadline; 

37.1.3.the organization in charge of the environment has decided, based on a recommendation of the local administrative bodies that the license holder had failed to pay its license fee and fulfill its environmental reclamation duties; 

37.1.4.It is detected that the license holder has explored and used other minerals under the name of common minerals exploration and mining. 

37.2.Within ten (10) business days following the determination that grounds set forth in subparagraph 37.1.1 -37.1.4 of this Law for license revocation exist, the Governor of aimag or capital city shall notify the license holder and the notice shall specifically indicate the grounds for the revocation of the license.

37.3.If the license holder disagrees with the grounds indicated in the notice as set forth in paragraph 37.2 of this Law, the license holder shall submit documentary evidence to the Governor of aimag or capital city.

37.4.The Governor of aimag or capital city shall review the documents as set forth in paragraph 37.3 of this Law, and if it determines that the documentary evidence submitted by the license holder does not establish invalidity of the grounds for license revocation, the license shall be revoked and the license holder notified accordingly.

37.5.In case the license holder has sued a claim to the court, the license shall not be issued in the licensed area until a valid court decision has been issued.

37.6.The Governor of aimag or capital city shall notify the component body of inspection in case an exploration license is revoked and the organization and State Administrative Body in charge of taxation, in case a mining license is revoked.

/The paragraph was amended according to the law of November 11, 2022/

CHAPTER EIGHT

INFORMATION, PAYMENT DISTRIBUTION, REIMBURSEMENT

Article 38.Access to minerals related information and reports

38.1.Any interested person shall have access to the licenses and the cartographic licenses registries during office hours in specially designated rooms.

38.2.The Governor of aimag or capital city, upon license holder's request, shall treat reports of exploration work, information with respect to mine operations and feasibility studies prepared by a license holder as the license holder's confidential information during the valid period of the license. The license holder may conclude a confidentiality agreement with the State administrative body when they hand over information and reports.

38.3.Information classified as confidential as set forth in paragraph 38.2 of this Law shall not be disclosed, published or disseminated except pursuant to provisions and procedures established in the Law on State and Official Secrets, the Law on Organizational Secrets, and the Law on Protection of Personal Information.

/This paragraph was amended according to the law of December 1, 2016/

/This paragraph was amended according to the law of December 17,  2021/

Article 39.License fee allocation

39.1.The Law on Budget shall regulate any relations with respect to allocation of license fee.

Article 40.Reimbursement of common minerals deposits exploration financed from the State budget

40.1.Under an agreement, a license holder who exploits a common minerals deposit shall reimburse the exploration expenses to the State budget from the start of mining, where exploration and reserve determination funded through the State budget and registered in the State's integrated mineral registry according to the article 60 of the Minerals Law.

CHAPTER NINE

DISPUTE SETTLEMENT IN RESPECT OF A LICENSE

Article 41.Settlement of boundary disputes

41.1.Boundary disputes between or among license holders shall be resolved by the Governor of aimag or capital city.

41.2.The Governor of aimag or capital city shall give all parties involved in the dispute an opportunity to present their position and arguments in writing.

41.3.The Governor of aimag or capital city shall verify if there is an overlap between disputed areas in the licenses and cartographic licenses registries. If there is an overlap, it shall determine, based up on the original applications and reports of field surveys, whether the coordinates and boundaries of the area were correctly recorded.

41.4.If an overlap is confirmed due to field survey, the Governor of aimag or capital city shall modify the area covered by the most recently granted license, and eliminate the overlap.

41.5.The State administrative body shall have disputed boundaries of a licensed area surveyed and established by an accredited professional geodesic surveyor, and the party that is at guilt shall pay for any cost and loss relating thereto.

41.6.The Governor of aimag or capital city shall verify the disputed boundaries, make decisions as to the relevant modifications, and notify the parties to the dispute accordingly.

41.7.In case the parties disagree with decision of the Governor of aimag or capital city, they may sue a claim to the court.

Article 42.Dispute settlement between license holder and land owner, possessor and user

42.1.Disputes of land access, right of passage and land use between or among license holder and landowner or land user shall be resolved by arbitration in case they have arbitration agreement or in other cases shall be settled accordance with the provisions set forth in Land Law and the Civil Code.

/This paragraph was amended according to the law of January 26, 2017/

Article 43.Filing of complaints to state authorities

43.1.Where any actions or failures to act by civil servants or State authorities have prevented the exercise by license holders of the rights conferred upon them by this Law, the citizens or legal entities may file a complaint with the relevant higher level officials, State authorities or courts.

CHAPTER TEN

LIABILITIES

Article 44.Liabilities for violators of the law

44.1.In case the actions of a civil servant violating this Law have not a criminal nature, they shall be subject to liability specified in the Law on Public Service.

44.2.Any person or legal entity violating this Law shall be subject to liability specified in the Criminal Law or the Law on Violations.

/This article was modified according to the law of December 4, 2015/

CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA ENKHBOLD.Z