Mining
companies have come together to oppose the Government’s decision to review and
revoke licenses of explorers and extractors in river basins and forest areas.
Altogether 254 licenses held by gold mining companies have already been
identified for cancellation.

B.Agvaandondov,
head of the movement and Director of Shar Narst, tells our journalist what they
want.

Why are you against
implementation of the law?
Implementation has begun almost a year after Parliament passed the law and not
within five months as is mandatory.

So you want it
repealed?
Yes. The law will lead only to economic loss.

What about protecting
the environment?
It
is necessary, but more crucial is the fact that many mining companies would go
bankrupt if the law is implemented. Thousands will lose jobs and their families
will suffer. The national economy will be the loser. The Government should not
victimize the mining field. Many of our companies received foreign investment
and have worked stably, paying taxes into the state budget. Some companies
might not have worked in a satisfactory manner but a whole sector cannot be
punished in such a way.

But MNT4 trillion
would be paid to mining companies as compensation?
The
compensation amount has not been included in the 2011 budget and where does the
Government have the money? On the other hand, the total amount may look large
but it would be divided among many companies, each getting only a little. Many
companies have large bank loans to repay. If they fail to do so, the banking sector
will be destabilized. Some banks might even go out of business.  Loan
defaulters may be sentenced to prison.

Mining
companies have borrowed from banks at least MNT160 billion, it can also be
MNT180 billion. The Government should support national companies. Foreign
companies would go home after exploiting our mineral resources, but we shall
stay here. Domestic companies already are pressured by laws and taxes. Government
policies and Parliament’s activities appear to be against national companies.

But how can a law not
be implemented? How shall we resolve the problem?
It
can be reviewed and amended, if not repealed.

What do MPs who
initiated the law say?
We have not met with them yet.