Although the licensing process has evolved since 2010, challenges related to selling through licenses and lack of transparency remain. The government has announced through the media that the activity of issuing special licenses has been suspended for one year starting from July 2019. During this period, it was aimed to create a unified database and improve monitoring and inspection activities. Despite the government’s announcement, there was no decision to stop the special permit, and there was no mention of it on the government’s official website.
However, in 2019, it was decided to cancel 23 special licenses for environmental reasons, and then the Government established a Working Group to review all special licenses for exploration and exploitation. However, the Task Force’s Terms of Reference (TOR) and work results were not publicly disclosed, which made investors even more skeptical. In addition, the procedure for the allocation of special permits has been reviewed. It was a matter of changing the tender criteria, not to implement the principle of “first-come, first-served” in the sector. The change project was developed and approved in September 2019, and the negotiations on the change continued between the Ministry of Justice and the Ministry of Internal Affairs.
Recall that the investors and the (then) minister’s 2020 round table discussion emphasized that they could not support exploration and information gathering in the current legal environment. At the request of the Ministry of Finance, AMEP 2 programs were implemented in two consecutive fiscal years: “Research and analysis to support the reform of the exploration licensing system” in 2020-2021, and “Electrification of the tender process for mineral licenses” in 2021-2022, respectively. The research project to support the reform of the exploration licensing system was initially started with the aim of providing advice to the Working Group, which is looking into options for establishing a new exploration licensing system in Mongolia. The research consists of three parts: evaluation of the systems of granting special licenses in Mongolia; Analysis of exploration licensing systems in two Australian states; Research on how to use information technology in the allocation of licenses. A specialist in the field wrote a report on the licensing systems of Western Australia and Queensland, which was reviewed and verified by a senior expert in the Western Australian Ministry of Mines. The report highlights the advantages of implementing a first-come, first-served system in combination with clear, coherent and transparent regulation and decision-making.
The study of Mongolian and Australian systems was presented and discussed in detail to the Mongolian Minister of Mining, Deputy Minister, and senior officials of Mining and Heavy Industry. The consultation process formed the basis of the AMEP 2 program to contribute to the development and analysis of the relevant regulations should the revised Minerals Act be approved by Parliament.
The study of Mongolian and Australian systems was presented and discussed in detail to the Mongolian Minister of Mining, Deputy Minister, and senior officials of Mining and Heavy Industry. Throughout the consultation process, and in the event that the revised Minerals Act is approved by Parliament, AMEP 2 has been the basis of the program to contribute to the development and analysis of relevant regulations.
The Working Group was established in 2021 with the aim of introducing transparent, open and competitive electronic operations for licenses and tenders. The Working Group was supported by the Minister of Mining and Heavy Industry, and the Prime Minister identified this work as one of the main priorities. AMEP 2 program At the request of the Ministry of Mining and Heavy Industry, the project to digitize the bidding process for special mineral licenses was implemented in 2021-2022. As part of this work, a sub-menu has been added as an additional program entry to the web page for bidding at www.tender.gov.mn operated by the State Procurement Department. Also, within the scope of the work, the sub-menu was tested, revised and updated, and coordinated with the digitization work. The sub-menu supports the Government’s commitment to the Extractive Industries Transparency Initiative by enabling interested investors to access the system and its services, making it easier to do business. The web area and menu are also gateways to key areas of licensing and tendering. The electronic platform for bidding for special licenses of the Ministry of Education and Culture was officially approved by Resolution A/67 of 2022 and allowed to be fully operational. In this way, to spread awareness and information to the public about the digitalization of the tender and special permit system.
Source: https://www.amep.mn/news 2024.03.13