Fwd: GOM TO SUBMIT BILL TO PROVIDE FISCAL INCENTIVES FOR LOCAL COMMUNITIES TO SUPPORT MINING/EXPLORATION; PM - NOYON MOUNTAIN WILL REMAIN UNTOUCHED, BUT GATSUURT WILL BE MINED

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Dierkes, Julian

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Apr 8, 2015, 7:34:08 PM4/8/15
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Some movement on local revenue…

JD

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Subject: GOM TO SUBMIT BILL TO PROVIDE FISCAL INCENTIVES FOR LOCAL COMMUNITIES TO SUPPORT MINING/EXPLORATION; PM - NOYON MOUNTAIN WILL REMAIN UNTOUCHED, BUT GATSUURT WILL BE MINED
Date: April 7, 2015 at 3:56:39 PDT

According to news release published by Mongolian Government 7 hours ago, local fiscal revenues will be increased, based on exploration and mining activities
  • it has been decided by today's Cabinet Meeting that relevant bill will be urgently submitted to Parliament
  • according to current legislation, 5% of mineral royalties revenues are distributed to Local Development United Fund to support local development and mining/exploration licenses payment are accumulated 100% to state budget
  • local support is important for development of mining sector at times of economic difficulty, therefore it is proper to increase amount of local fiscal revenues from exploration and mining activities.
  • increased local fiscal revenues are expected to boost exploration/research work and increase discoveries of Mongolian mineral reserves
  • the bill proposes to increase amount of mining royalties and mineral licenses payment to transfer to local budget
Earlier in public address last Sunday, April 5, 2015 Prime Minister Ch.Saikhanbileg has said regarding incentives for local budgets and heated Noyon Mountain/Gatsuurt project
  • " recently from 130 proposals to local communities to get position on exploration licenses only 30 have been permitted and 100 refused"
  • " there is flaw in our system. Indeed there is no interest from local citizens to support exploration in their territory"
  • " Government will submit bill to resolve new local tax system"
  • " according to new law, up to 30% of mineral royalties in case of production will be left in local communities without deducting their budget subsidies."
  • "This means soums and provinces, which will have mining production, will have faster development and more money and capital"
  • "Mandal soum citizens will decide whether to mine Gatsuurt, not folks in Ulaanbaatar, who drive big and fancy cars"
  • " 30% of mineral royalties during Gatsuurt mining , 50% of license payments will be left at local budget by new law, it is estimated that by this method by mining Gatsuurt, over 60 billion MNT(˜30 million USD) revenues will be left at local community."
  • " Let local citizens decide on what to spend their monies, what investment to make"
  • " Let people decide and control whether to build new soum centre or new school or kindergarden "
  • " When citizens will know themselves, control themselves, we will stop making arguments on mining, mountains, graves and cows"
  • " I would like clarify one matter. Noyon Mountain will left with its natural appearance, history and heritage. But Gatsuurt deposit will be mined. There is no requirement whatsoever to be confused, to overstate and misrepresent. Again, Noyon Mountain will remain untouched. But Gatsuurt deposit will be mined.

According to Centerra Gold ( TSX-CG.T,C$6.72), Gatsuurt is exploration property 100% owned by the co, located 35 km from Boroo mine 
  • "It is connected to the Boroo mine site by a 55 kilometre road which was completed in 2010. The Gatsuurt site preparation is complete, awaiting approval to commence mining."
  • feasibility study completed in December 2005. An updated feasibility study was completed  in the first quarter of 2006 that added an economic open pit in the Main Zone in addition to the Central Zone open pit identified in the December study.
  • "At December 31 2013, probable reserves at Gatsuurt for the Central and Main Zones combined were estimated at 1.6 million ounces of contained gold, measured and indicated resources were estimated at 398,000 ounces of contained gold and inferred resources were estimated at 440,000 ounces of contained gold."
  • "In January 2015, the Mongolian Parliament designated the Gatsuurt Project as a mineral deposit of strategic importance. This designation allows the Gatsuurt Project to move forward within the application of the Water and Forest Law.Provided that the final approvals and regulatory commissioning is received for the Gatsuurt Project, it will be developed in accordance with all applicable Mongolian environmental regulations and international standards consistent with the standards adopted by the Boroo mine. The Company plans to mine the ore at Gatsuurt and truck it to the existing Boroo mill to be processed. Under the current plan for Gatsuurt, the Company expects to process approximately 3.6 million tonnes of CIP ore with an average grade of 2.86 grams of gold per tonne through the existing Boroo facility in the first two and a half operating years of the Gatsuurt Project. During this time, a BIOX® facility is planned to be added to the existing Boroo facility which will be used for the processing of the remaining BIOX® ores totaling approximately 13.5 million tonnes with an average grade of 2.92 grams of gold per tonne."


Reference:


Mongolian Government
Ашигт малтмалын хайгуул, ашиглалтын үйл ажиллагаанаас орон нутагт төвлөрүүлж буй орлогын хэмжээг нэмэгдүүлнэ- 

Монгол Улсын Ерөнхий сайд Ч.Сайханбилэгийн олон нийтэд хандаж хэлсэн үг- See more at: http://zasag.mn/news/view/9268#sthash.4ngEMAnC.dpuf


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This is subscription based raw feed of news and information of events happening in real-time or as close to real time in Mongolian Metals &Mining investment, Money Market and Foreign Exchange spaces covered by Independent Mongolian Metals & Mining Research.
 
About Independent Mongolian Metals & Mining Research
 
Independent Mongolian Metals & Mining Research, with headquarters in Ulaanbaatar and representation in London, United Kingdom, is a third party subscription-based research vendor that aspires to be leader in real-time analytic coverage of three key universes of Mongolia-related securities - Metals & Mining, Money Market and Foreign Exchange.

 
For free trial please contact:
 
Independent Mongolian Metals & Mining Research Head Office:
Suite 271/16th floor,
Uildverchin Estate by MDTOF LLC
Narny Zam Street,60 Sukhbaatar District,1st khoroo, Ulaanbaatar 14253, Mongolia
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Julian DIERKES

Institute of Asian Research
Univ of British Columbia
@jdierkes
http://blogs.ubc.ca/mongolia

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