Mongolia Revokes 106 Exploration Licenses

Mineweb reported that Mongolia recently revoked 106 exploration licenses it had earlier given out under its Mineral Resource Authority, undermining the Asian nation’s credibility to the mining industry.

As quoted in the market news:

Some see the revocation – now official – as politically motivated, wrapped up in an anti-corruption drive by the Mongolian government. 

The argument for Mongolia’s declining credibility as a mining and exploration jurisdiction comes down especially, but not only, to three outstanding issues: the pending arbitration over the alleged expropriation of Khan Resources’ uranium project; the Mongolian government’s 2010 decision to ban the issue of more exploration licenses until a new mineral law comes into effect; and the push and pull between Rio Tinto and Mongolia over the Oyu Tolgoi copper-gold mine, where the current argument has turned to the question of the funding of the phase II underground development.

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