APC Joins the Call of Mongolia People against Boroo Gold

PRESS RELEASE
July 13, 2009

In a statement today, the militant Asian Peasant Coalition (APC) joins the Mongolia people calling for the protection of its human rights against the ‘Boroo Gold’ mining company.

“The Boroo Gold extracted 41 tones of gold for the first 5 years of taxation relief with a profit of 963 billion tug rug (approximately US $ 875.5 million) and enjoyed the taxation relief of 220 billion tug rug (approximately US $ 200 million),” said Shagdar Ganbuyag, APC Internal Auditor.

The ‘Boroo Gold, a Canadian mining company, has said to breached its contract to use a mineral deposit for 15 years and which was granted taxation relief for the first 5 years of the gold deposit’s exploitation in Mongolia.

“According to the Nuclear Energy Authority, Mongolia has 1 million 400 thousand tons of uranium reserve, which could rank them as number 5 in the world. Unfortunately, over 60% of uranium exploration licenses are acquired by foreign companies, mostly invested or owned by the Russian, French, Chinese and Canadian companies. In 2007, more than 40 percent of Mongolia has been licensed for exploration, and gold is being churned out,” said Danilo Ramos, APC secretary general.

“Unfortunately, Mongolia completely overhauled its mining laws and industry regulations which are now touted as being the most ‘progressive’ in the world. This is due to continued liberalization of Mongolia’s economy, including an increased role of foreign investment,” added Ramos.

“Mining is damaging rivers that sustain herding lands affecting largely nomadic herders, where 1 in 3 people still lives on less than a dollar a day. Most of our 2.9 million people live, as ever, in round felt huts known as gers, scattered at less than two people per square mile, vastly outnumbered by the sheep, goats and horses that provide their livelihood,” stressed Ganbuyag.

“We are pushing for laws to prevent corruption and ensure that Mongolia’s wealth would benefit the poor people. We call on the State Great Khural (Parliament of Mongolia) and the Government of Mongolia to hold accountable the Boroo Gold and guilty officials who breached the law, examine other mineral licenses of those company and undertake measures to cancel the licenses immediately,” ended Ganbuyag.

Ramos further stressed that, “We strongly support the call for the protection of human rights of Mongolia people, especially the Boroo Gold miners who is on strike since May 27. We demand to stop plunder of Mongolia’s reserve minerals perpetuated by mining transnational corporations (TNCs) and multinational corporations (MNCs) ##