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The Law of Mongolia Artisanal and Small Scale Mining

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CHAPTER TWO<br />

ARTISANAL AND SMALL SCALE MINING LICENSES<br />

Article 5. Type <strong>of</strong> licenses<br />

5.1 <strong>Artisanal</strong> <strong>and</strong> <strong>Small</strong> <strong>Scale</strong> <strong>Mining</strong> shall operate with one <strong>of</strong> the following<br />

licenses:<br />

5.1.1 <strong>Artisanal</strong> <strong>Mining</strong> license;<br />

5.1.2 Micro <strong>Scale</strong> <strong>Mining</strong> license;<br />

5.1.3 <strong>Small</strong> scale <strong>Mining</strong> license.<br />

5.2 <strong>The</strong> licenses shall give the mineral rights for reconnaissance <strong>and</strong> evaluation<br />

<strong>of</strong> minerals, exploitation <strong>of</strong> the mineral occurrences <strong>and</strong> processing <strong>and</strong><br />

selling the mineral product<br />

5.3 Conducting ASSM operations without a valid license is prohibited<br />

5.4 A license holder shall be limited to one license<br />

5.5 A natural person that participates in a registered partnership or for pr<strong>of</strong>it<br />

legal person cannot hold a separate license<br />

Article 6. Pre-requirement for license attribution<br />

6.1 <strong>The</strong> mining licenses referred to in Article 5.1 will be granted to <strong>Mongolia</strong>n<br />

nationals, registered partnerships <strong>and</strong> for pr<strong>of</strong>it legal persons comprised <strong>of</strong><br />

<strong>Mongolia</strong>n nationals<br />

6.2 For pr<strong>of</strong>it legal persons constituted under the incorporation law or<br />

subsidiaries <strong>of</strong> such legal persons are not eligible for an <strong>Artisanal</strong> <strong>and</strong> <strong>Small</strong><br />

<strong>Scale</strong> <strong>Mining</strong> license<br />

Article 7. <strong>Artisanal</strong> <strong>Mining</strong> license<br />

7.1 An <strong>Artisanal</strong> <strong>Mining</strong> license is granted to a natural person to undertake<br />

simplified mining activities with the following parameters:<br />

7.1.1 Extraction <strong>of</strong> up to 25 cubic meters per day <strong>of</strong> mineralized material for<br />

placers or 5 tons per day <strong>of</strong> total material for hard rock;<br />

7.1.2 <strong>The</strong> area granted by the license shall have a minimum <strong>of</strong> 10 hectares<br />

<strong>and</strong> a maximum <strong>of</strong> 20 hectares.<br />

7.2 <strong>The</strong> <strong>Artisanal</strong> <strong>Mining</strong> license may be granted for a term <strong>of</strong> 2 years <strong>and</strong> is<br />

repeatedly renewable for similar periods<br />

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