Mongolian Independent Authority Against Corruption (IAAC) seized $1.4 million in the course of an investigation of the corruption case involving “Salkhit Silver Mine” located in the country’s central region.

Following the First Instance District Criminal Court of Ulaanbaatar Resolution No.2020/ШЦТ/319 and the Supreme Court order, IAAC transferred $1.4 million seized during an investigation to the Budget Revenue Treasury converting it into state income on April 7, 2021.

The government of Mongolia had revoked the mining licenses for the “Salkhit Silver Mine”, a large gold and silver mine located in Gurvan Saikhan sum of Dundgobi province in 2018. The mining licenses had been effective until 2043 and 2047. Mining license holder company which had 100% Chinese investment found guilty of violating several Mongolian laws including evasion of tax, misrepresenting, engaging in corruption. Furthermore, the Chinese management of the company disputed over investment which resulted in attempting to bribe judiciary and law enforcement authorities.

In 2019, the special mining licenses were transferred to the state-owned “Erdenes Silver Resources” LLC, subsidiary of “Erdenes Mongol” LLC, and mining activities have been launched without any investment from the government budget.

The “Salkhit Silver Mine” covers a total area of 2,887.85 hectares in Gurvan saikhan sum of Dornogobi province and according to a feasibility study made in May 2020, the silver mine has reserves of 808.3 tons of silver and 1117.1 tons of gold and the resources are likely to double or triple by intensifying exploration works.

In 2020, IAAC had reimbursed 35.6 billion tugriks ($12.4 million) and seized property and cash valued at 10.1 trillion tugriks ($3.5 billion) including real estate, vehicles, and valuables.