Law on Minerals

This Law establishes Mongolia’s comprehensive legal framework governing the exploration, prospecting, extraction, and management of mineral resources. It defines key concepts, classifies mineral deposits, and sets out the rights, obligations, and regulatory powers of the State Great Khural, the Government, central and local authorities, and the National Geological Office. The law affirms that all minerals found in the ground and subsoil are state property and provides mechanisms for licensing, oversight, and state participation in strategic deposits. Importantly, the law excludes from its scope water, petroleum, natural gas, radioactive minerals, and commonly occurring construction materials, which are regulated under separate legislation. It also regulates land reservation, special‑use zones where mineral activities are restricted, and the conduct of state‑funded geological surveys.
The law provides detailed procedures for acquiring, registering, transferring, renewing, and revoking exploration and mining licenses, including application requirements, competitive tendering rules, and payment obligations such as license fees and minimum exploration expenditure. It sets out environmental obligations for license holders, including mandatory environmental impact assessments, management plans, rehabilitation duties, and financial guarantees. The legislation further regulates mining operations, reporting duties, technical standards, safety, community impact, and conditions for state participation in strategic deposits. It includes provisions on investment agreements, product sales, local procurement obligations, and enforcement mechanisms, including penalties and the grounds for license cancellation.