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Local Land Permit.
I have emailed the company to ask what is the expected activity/timeline from the vote in favour to receipt of signed off land permit.
I've also asked if there are any delays occurring in the process, and if so, to state what they are and what reassurances the company can give with regards to any resolution and also, what would be the new expected date of receipt of signed off land permit.
I'll report back if/when I hear anything.
Why is the Dornod Governor not signing? Well there's a list and it could be one, some or all of them.
1. He hates non Mongolians profitting from Mongolian minerals.
2. He sees Petro China, decimating the land and not paying taxes and assumes Petro Matad will be just as bad
3. His electorate tell him not to support non Mongolians
4. He has a chip on his shoulder for being challenged by PM
5. He wants a brown paper bag.
Take your pick. However having taken a bit of time to read some of that academic paper I posted 3rd May at 12.10 (just a bit its way too long) I realised just how devastating mining has been for Mongolians. Not just the way that Petro China etc have destroyed very delicate grasslands, in a country which is massively affected by global warming, but also the way that land has been taken from people and they have lost their 'homelands'. Anyone with even a vague knowledge of British social history will know of the effect of the land enclosures acts in this country, where common land was taken from the ordinary people who had to move into city slums and work in factories to earn a living and the emotions that still run high about that - there are slum villages around Ulaanbataar filled with displaced herder so its not a lot different! The politicians are very aware of this, particularly during an election period and need to be sensitive (or not get votes!)
Maybe if we could put ourselves in their shoes we might understand the issues a bit better? Ask ourselves, would we move just so a bunch of 1st world investors can have even more wealth and privilege; all at our expense and damage to our land? The answer is obviously no so we have to make it work in their interest and prove that it will be so.
If we can do that we might actually get somewhere.
Hamm. The delays have been explained in full. We all know (or should know) that Mongolia is a relatively fledgling democracy with both dysfunctional legal and bureaucratic systems, plus a history of corruption.
Much of this is now being addressed, with forward joined up policies and legislation to facilitate international business growth opportunities, but right now Mongolia is in the midst of an election, which naturally politicians will be focussed on. So right now is not the time for PM to upset anyone, (central government, local government, locals, activists etc) by flexing muscle and gobb!ng off.
Our long story will soon start a new chapter headed "Production" . The soum is in agreement. Central government is in agreement. MRPAM, the land agency and the ministry of finance are all in support and all are actively looking at a workaround the district governor.
We just have to be patient a little while longer.
Some bank holiday reading.
The pdf gives an idea of the level of community involvement in the decision making process regarding land use in Mongolia.
https://mokoro.co.uk/wp-content/uploads/Guidelines-for-Public-Consultations-on-Soum-Land-Management-in-Mongolia_final-English-version_2021.pdf
If anyone is interested in a deep dive into the sociopolitical cintext of Mining didputes and resolution in Mongolia, this academic paper is insightful.
https://www.tandfonline.com/doi/full/10.1080/15387216.2022.2132971
And talking of Soum governance, I think I read somewhere that decisions are publicised for a period. Part of way they "do" local politics in Mongolia.
Hopefully this is the reason for the current timeline (i.e. its standard procedure).
Investor, regarding "agencies" and what that means.
Going back over MBs commentary, I note that it was the Matad Citizens' Representative Committee that voted in favour of granting the LP to PM.
Im guessing the committee is an important sub group of the Matad Soum governance and the "agencies" referred to means it is being formalised by executives within the soum structure.
Unless Doc is successful in getting a response from Peter Hitchens regarding the post soum vote timeline to receipt of signed formalities, then that really is all the news flow we're going to get for now.
Imo its been a good week for settling the nerves.
Investor the 25th April RNS refers to agencies (plural). My post in response was.
What OTHER local government agencies? Or Is it just just poor drafting??
· The Company is working with the local government agencies to secure the remaining approvals necessary from Matad District to allow the 2024 operational programme to commence
Doc. My question, if you are able to get a response would be something like, "In the near term it appears that Petro Matad's quickest route to production in 2024 is via the a local soum land permit. Shareholders have been made aware that there was a vote in favour of granting a land permit to PM by Matad Soum, but to date we have had no further update or clarification of any requirements or activities post vote. Therefore could you please clarify, what exactly are the remaining steps in the land permit process and if possible an estimate of the time the said process(es) will take, to enable Petro Matad to start work on Heron ?"
And all the wells we've funded, local sports teams we've sponsored and rubbish we've paid to be cleaned up doesn't seem to have worked!
Although all the above could be the very reason why the soum voted in favour of granting the LP.
Signatures, we know, is a waiting game. We could hear tomorrow,or might be no news until after the elections. If we haven't heard by August then time to start moaning again.
Meanwhile it's quite interesting and informative to hear about the other little discussed part of the business.