Following instructions from the President Elbegdorj to the National Security Council, all activities related to mining licenses were temporarily suspended at 5 pm on April 20. The activities cover issue of mining and exploration licenses, re-issue of forfeited licenses and trading in licenses. The President called the heads of Standing Committees and the Director of the Mineral Department to a meeting earlier on the day to explain his decision. The meeting was attended by Presidential advisers P.Tsagaan, A.Ganbaatar and M.Batchimeg.
The President said he had taken the extreme step after careful consideration. Despite numerous complaints about the way licenses were issued, the situation has not improved. Mineral resources are connected to national security but half of license holders violate laws by not giving the necessary annual information. Corruption and other violations of the law are common.
There are 4,706 active mining licenses, 3,610 of them for exploration and 1,096 for usage.
The President has asked the Government to report to the National Security Council on the situation in May. In June, citizens will be given information about this through the Civil Chamber.
The President also urged a change in the Mining license law.