Mining Sector Development: 2006 Witnessed Surge in Petroleum Prospecting (January 18, 2007)

Mining Sector Development: 2006 Witnessed Surge in Petroleum Prospecting (January 18, 2007)

The Mineral and Petroleum Authority of Mongolia discussed a report on the results of the work it accomplished in 2006.  As reported in the Ardyn Erkh newspaper, Mr. L. Bold, head of the Mineral and Petroleum Authority, told journalists that in 2006, the organization replenished the state budget by around MNT 30 billion, in excess of the envisaged MNT 15 billion.  According to him, the Authority collected MNT 18904.9 million in revenues from issuing special licenses whereas initially it estimated to collect MNT 12500.0, and MNT 1626.9 million in service fees, exceeding the original quotas of MNT 370.0 million. All this combined added up to MNT 20.5 billion, which was directed to the state budget.  Last year, the Authority processed 2117 requests for a special license, granting 1105 of them.  

In 2006, the petroleum prospecting works were pursued with new enthusiasm. The amount of work done last year in the field of oil-prospecting is equivalent to that accomplished during the pervious ten years, said Mr. Bold.  The petroleum prospecting and mining saw an increase of 4.3-9.2 and 1.5 respectively compared to the previous year, with a total of 3344738.0 barrels of oil produced and 309145.2 barrels exported.  The cost of geological research carried out using private funds amounted to more than MNT 30 million.  Though some of the research is conducted using budget money, said Mr. Bold, there are problems with funds being dispersed regularly, and thus, it is necessary to ensure that some part of the budget money is earmarked specifically for the purposes of geological research.    

Mining projects carried out jointly with other countries started to yield their first results.  For example, “Support for Artisanal Mining” project carried out jointly with the Swiss Agency for Development and Cooperation (SDC) and aimed at    developing small-scale mining, has significantly contributed to improved living standards of many rural households.  Last year also witnessed the beginning of a project funded by the European Bank for Reconstruction and Development (EBRD), aimed at supporting capacity-building in Mongolia’s mining industry.

Date : 2007-01-18 12:46:10                        

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