In July 2022, Greentrends LLC commenced a collaborative effort through a one-year contract to address the Asset Retirement Obligation (ARO) associated with the Nariin Sukhait coal mine under the ownership of “Mongolyn Alt” (MAK) LLC. This initiative specifically focused on defining the legal and financial responsibilities for the long-term retirement, restoration, and closure of the Nariin Sukhait mine, situated in Gurvan Tes sum, Umungobi province. Subsequently, an ARO plan was formulated and handed over to Mongolyn Alt (MAK) LLC by December 2023.
The ARO assessment was determined based on the present land utilization, assets, and obligations for restoration of the Nariin Sukhait mine. Various methodologies were employed, including compliance with standards such as IFRS IAS 37 (“Provisions, Contingent Liabilities and Contingent Assets”), guidelines for mine rehabilitation and closure, jointly endorsed under Ministerial Order No. A/181, A/458 by the Minister of Mining and Heavy Industry and the Minister of Environment and Tourism dated 28th August 2019. Additionally, accounting standards for exploration and extraction operations as per Order No. 409 of the Ministry of Finance in 2016 were taken into consideration.
With the ARO process completed, Mongolyn Alt (MAK) LLC stands out among the few enterprises that recognize the significance of existing and forthcoming obligations in rehabilitation, demonstrating a commitment to nationally significant ventures.
About Mongolyn Gold (MAK) LLC
Operating in the mining sector since 1993, Mongolyn Alt (MAK) LLC is a nationally invested entity. It has been a leading force in Mongolia’s heavy industry, contributing to the nation’s development by producing essential construction materials such as cement and aerated concrete.