Following the cabinet meeting, Minister of Mining and Heavy Industry J. Ganbaatar reported that there are two licenses, issued in 2001 and 2004, for the Khalzanburegtei deposit, which holds over 30% of Mongolia's rare earth elements.
On April 29, 2023, the Ministry of Mining and Heavy Industry conducted an inspection of the licensee company's operations and uncovered violations, including the absence of an approved environmental management plan from the Ministry of Environment and Tourism.
Consequently, a state inspector temporarily suspended activities related to the deposit. However, as the company continued its operations, the government issued a decree to halt its activities.