The Mongolian Parliament remains divided on a controversial law that prohibits mining operations in certain areas to protect the environment. The law was passed two years ago but has yet to be fully implemented. Some MPs, along with environmental groups, say the law is crucial to protecting Mongolia’s forests and rivers. But other MPs – along with mine operators and some economists – warn that the law would cost the country MNT trillions in unemployment and lost economic development. Our correspondent spoke with D. Damba, the president of the Mongolian National Mining Association about this issue.

– Will mining operations be curtailed in sensitive area to comply with the Government resolution to implement the law?

– The state has a responsibility to protect the environment, and we support that idea. But it is not appropriate to ban mining operations altogether when they are operated properly and within the law. This is also about many people’s livelihoods. Thousands of people would lose their jobs, increasing unemployment. The Professional Inspection Agency has started to cut mining operations according to the Government’s resolution. By law, if a company’s operation is cut, it must be compensated.

– Parliament considered an amended version of the law. What happened?

– Nothing happened. MPs debated the issue during the spring session. I hope they will take it up again in the autumn session.

– “Discover Mongolia,” the international mining investors’ forum, will be held soon. Obviously mining investors are interested in this issue.

– They must be. But they mainly focus on Tavantolgoi, Oyutolgoi, and other strategic deposits. I guess that final production will be the main issue at this forum. And it is crucial to invest in these kinds of operations. It is better for Mongolians to process raw materials instead of exporting it abroad.