Mining at Boroo Gold’s mine at Zuun Kharaa is expected to be over in about six months unless the company is allowed by the Minerals and Energy Ministry to extract gold from sand. The company has succeeded in producing 1.2 tons of gold this way in an experiment using a different technology and estimates a further nine tons can be produced.

During a discussion on the issue at the Standing Committee on Environment and Agriculture, E.Bat-Uul said Canadian-invested Boroo Gold has never received a fair deal from Mongolian authorities. He favored grant of permission. Supporting him, Kh.Narankhuu said the Erdenet factory has been using this technology since 1996 and there is no reason to deny Boroo Gold permission.

Boroo Gold has worked to ots full capacity since 2004 to extract 41.2 tons of gold until now. Its sales figures reached MNT880 billion at the end of 2009. It has paid MNT190 billion in taxes. It was exempted from paying the windfall profits tax but it was charged MNT150 for one cubic meter of water instead of the standard MNT6.

Most MPs felt Boroo Gold’s performance deserved an A grade.