Resource Investment Capital has said in a note on the Mongolian Government decision to
suspend mining activity of 1,782 license holders in areas near river basins and
forests that the legislation prohibiting mineral prospecting, exploration and
mining in environmentally sensitive areas is like those in developed mining
countries including Canada and Australia. Investors have been aware of the risk
for some time, but the largely unknown factor for those impacted is the compensation
claims which need to be assessed and most find it difficult to see the source
for the payment. Good intentions are thus placed against unknown execution and
uncertain impact, the company said.