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Aduunchuluun’s license conflict to be resolved

ZGM DAILY
2018-05-11 09:32 GMT+8

During his official trip in local areas in Dornod and Sukhbaatar aimags, Minister of Mining and Heavy Industry Sumiyabazar Dolgorsuren visited the Aduunchuluun JSC’s coal mine, which has been continuously supplying the Eastern Region Energy Systems JSC (ERES) with thermal coal for 63 years. Since establishment, Aduunchuluun has run open-pit and underground mining operations, removing 28.4 million cubic meters of topsoil and produced 14.9 million tons of coal. In addition to ERES, it also provides its products to companies, organizations and households in Dornod aimag. As of 2017, the company allocated MNT 1.16 billion to the state budget.

Area coincided with MAK LLC has a coal reserve of 40-50 million tons 

According to the Mining Minister, Aduunchuluun, which was privatized in 1999, is facing a serious issue of concurrent licenses in its mining areas. Specifically, 134 hectares of area was concurrent with MAK LLC’s mining license granted in 2009. Currently, MAK LLC possesses two licenses on 5104.3 hectares and is conducting topsoil removal on the area. Accordingly, Aduunchuluun was unable to run any operation on its area due to the license dispute. If the issue is settled, the company will have an opportunity to run operation for the next 30-40 years. The coincided area has a resource of 40-50 million tons of coal.

The CEO of Aduunchuluun JSC told the minister that the company is has no area left to mine. The ERES in Dornod has no coal reserves and is in a difficult situation of energy shortage. He was grateful that the delegation had an in-situ visit during the company’s time of difficulty.

The company’s management requested the Mineral Resources and Petroleum Authority of Mongolia to urgently issue its relevant decision based on the Clauses 62.4, 62.5 and 62.6 of the Minerals Law of Mongolia. Mr. Sumiyabazar told the management to submit its request and documents related to the license, and highlighted that there will be no risk of energy irregularity in the area. 

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