Mining product exchange legalized

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Last Friday, Parliament amended the Law on Procurement of Goods, Works and Services with State and Local Funds (commonly known as the Tender Law), passed the bill on mining product exchange and revised the Law on Forensic Science.

In order to ensure the implementation of Parliamentary Resolution No. 106 of 2021 on the approval of the New Revival Policy, the government developed the bill to simplify the participation of citizens and businesses in public procurement and reduce costs for small and medium enterprises.

In accordance with the amendments to the Tender Law, projects and tasks on the list of development projects to be implemented as part of the New Revival Policy will be carried out after contracts are signed. The law states that it will not be applicable if less than 30 percent of the funding for a project is provided by a state-owned or state-controlled enterprise.

Lawmakers informed that in some cases, the budgeted cost for some long-term projects and actions rises beyond the control of clients or contractors. In this regard, the amendment enables to increase the contracted price if the budgeted price has been revised. They added that the newly-amended law will allow clients to establish a contract with a term of up to three years upon reaching an agreement on the price per unit and other terms for the procurement of goods and products in constant demand. To reduce financial burdens on bidding individuals and companies, the law provides for a lower tender guarantee amount.

Under Article 23 of the Law on Legislation, the Law on Mining Product Exchange was approved with seven chapters to organize fair, open and transparent mining trade in Mongolia, provide the opportunity to set real market prices and increase investment in the mining sector by regulating exports through a unified policy. It is also expected to expand the sector’s contribution to the country’s economic growth.

The new law defines the legal and organizational form of the mining exchange, reflects its specific functions and activities, sets standards and defines the types of trading, payments and negotiations. It also sets out detailed relations for ensuring guarantees, granting the right to participate in stock exchange trading, ensuring transparency and fairness of trading, creating a public database and disseminating information to the public.

Deputy Minister of Mining and Heavy Industry O.Batnairamdal clarified, “Starting from July 1, 2023, state-owned and local-owned companies will be able to trade mining products through the exchange. Prior to this, in accordance with the government’s temporary regulation, from January 1 next year, Erdenes Tavan Tolgoi JSC, Energy Resources and local Tavan Tolgoi and Gashuunsukhait container terminals will start online trading of coal.”

The revised Law on Forensic Science was passed to regulate the conduct of forensic examinations, determine environmental and psychological damage and its compensation, clarify grounds and procedures for granting the right to forensic examinations and legalize the system, functions and legal status of employees of forensic organizations.

Next, Minister of Justice and Internal Affairs Kh.Nyambaatar explained that the law revision includes regulations related to forensic identification, databases and their types, use and protection tools. It provides for the establishment of forensic organizations to conduct environmental damage assessments.

In accordance with the law, non-material damage will be considered as psychological trauma or psychological consequences of a victim who has suffered due to a crime. If a victim dies, the victim’s family members or legal guardian may claim compensation for the psychological damage caused, the bill reads.

Lawmakers decided to make the forensic organization a government agency, taking into account the growth of the population and crime rates, as well as the scope and quantity of forensic exams.

The law reflects that damages caused to nature, ecology and environment due to illegal activities will be determined and evaluated by forensic analysis and that a new type of digital technology and engineering analysis will be introduced to forensic institutions. Legislators believe that the revised law will ensure the independence of the forensic organization, increase the possibility of working with technological solutions and improve the safety, social and economic security of the forensic organization’s experts.


On the same day, Parliament reviewed the draft amendment to the Law on Legislation. 

Under the bill, the government can initiate draft amendments and revisions, as well as bills on law annulment and other laws regulating criminal, civil and administrative issues, disaster protection, land ownership, budget, taxes, social insurance, social welfare and education. The president will also be able to initiate laws on matters falling within the scope of his or her mandate as set out in Articles 33.1 and 33.2 of the Constitution and members of Parliament will draft laws on matters not mentioned above.

In addition, the bill will allow law initiators to develop a parliamentary resolution. For instance, Cabinet can initiate parliamentary resolutions on issues specified in the Constitution and other laws, but it cannot initiate laws in connection with a submitted draft parliamentary resolution.

Draft laws initiated by the government are planned for essentially improving legislations. Therefore, Minister of Justice and Internal Affairs Kh.Nyambaatar explained that the main direction should be approved by the government and presented to Parliament. Accordingly, president and member of Parliament will have the right to initiate laws within the scope and limits of the powers and the right to initiate laws stipulated in the Constitution, he said.

The draft amendment stipulates that the presentation of bills will be made either briefly or in detail. Detailed presentations will include reasons and requirements for changes in each article, section and provision of bills, as well as information on the interpretation of the terms and concepts used in draft laws and their regulation. Bill initiators believe that in the event of an unclear situation during the application of laws, explanations mentioned in the introduction can be used as a source.

According to the current legislation, there is no specific legal regulation on the unofficial translation of laws approved by Parliament. Therefore, the draft amendment states that the central state administrative organization in charge of justice and legal affairs will create a database of unofficial translations of laws and upload a copy of them on the official website of legal information.

Moreover, lawmakers will upload draft laws they initiate in the field of trade and investment and research reports to the integrated legal information system within 60 days and receive opinions.

In accordance with the bill, the relevant organizations will be responsible for the unofficial English translation of the laws approved by Parliament within three years after the laws have been enforced.

Misheel Lkhasuren