The Government will stop improper practices, including issuance of mining and exploration license or land ownership certificate directly by one signature under the name ‘according to application’, issuance of hundreds of licenses to few people or company and they sell the licenses under the name granting or transferring to avoid tax payment.

The Government intends to submit a new law, which legislates to issue licenses for land use and ownership, mining and exploration through open bid and auction and MNT36 billion is estimated to be accumulated to the State Budget by approval and realization of the law. According to the Prime Minister, tax will be imposed on indirect transfer of special licenses and ownership rights, registering basic beneficiary of the special license and final users as well as direct and indirect transfers.

The Government expects that hidden and illegal acts related to special licenses will be eliminated as special license will be cancelled, if license holder fails to present tax report or hide necessary information.

A total of 3,476 licenses, of which 1596 mining licenses and 1,880 exploration, have been registered as of first half of 2017.