The Ministry of Finance and the Government Agency for Policy Coordination on State Property and Regulation (GAPCSP) are very busy with frequent visits to Erdenet and Darkhan. After the Khutul’s “Cement and Lime” plant was taken over by the state, the government renewed the charter of Erdenes Mongol company and terminated the concession agreement with QMC of the Darkhan Metallurgical Plant. The new management team of Khutul’s “Cement and Lime” State Joint Stock Company promised to launch an IPO in 2023 and turn the company into a listed, publicly controlled and open joint stock company. Before that, the company needs to finish paying all taxes to the government. However, the Darkhan Metallurgical Plant, which wasn’t able to build a mining and metallurgical complex for eight years, is now owned by the state, along with the strategically important Tumurtei, Tumurt-Ovoo and Khustai deposits.

Even though the price of coal is reaching its peak in the international market and drives the growth of our country’s exports, there are still delays to process shipments at the border due to the pandemic. At the same time, a number of Mongolia’s commodity export railways are being finished. Journalist from MMJ, B.Tugsbilegt, spoke with J. Zoljargal, the Executive Director of the Mongolian Coal Association. Rising coal prices show that there is great opportunity, but Mongolia’s coal exports are still declining. In the first two months of the year, coal exports were 3 million tonnes less than in the same period last year. At the time of the mining boom, there was speculation that our country would reach the level of Canada and Australia. The difference is that they have a market with multiple direct access routes to the sea, whereas our market is very small and has a very poor logistics system.

The West is set to refuse Russian cheap, high quality commodities. And Russia thirsts for western materials. This is a game of ‘let’s starve together’. When a small economy is hit by sanctions from a big economy, the small economy is usually expected to compromise. But when there are sanctions between bigger economies, mutual retaliation aggravates the situation.  There is no sign of any joint compromise between our northern neighbor and western parties. These hard days are indicating the bleak outlook for this and coming years.

The Mongolia’s Extractive Industries Transparency Initiative (EITI) 2020 report has been released. Due to the pandemic in 2020, the report was based only on 60 companies engaged in gold, copper and coal production. This is the 15th report prepared by Mongolia since joining the initiative. Grant Thornton Audit LLC was appointed as the Independent Administrator for the report. The company prepared a reconciliation report of the material payments made by companies to the Government in 2020 and the revenue stream received by the Government in accordance with the EITI 2020 standards between 6 August 2021 and 25 November 2021.

The global mining sector feels that it has to make ‘green transition’ more rapidly despite the world economy is suffering difficulties due to the pandemic. Canada is regarded as one of the best players in terms of sustainable mining. MMJ’s B. Tugsbilegt talks to Catherine E. Ivkoff, Ambassador of Canada to Mongolia, about the two countries’ cooperation opportunities in the green mining field and other issues.  Could you please introduce yourself briefly to our readers at the beginning of our interview? Thank you for inviting me to this interview. I am pleased to talk with you. I arrived in Mongolia in December 2019 to begin my assignment as Ambassador of Canada.

Any changes related to the issuance of mineral licenses has a positive or negative impact on the development of the mining sector. Under the 1997 Minerals Law, whoever applied first obtained a license. In addition, the license was revoked on only three grounds, and there were no restrictions on transferring or using licenses as collateral. Some industry experts argued that the 1997 law on licensing was the most liberal, transparent, and well-protected in terms of ownership rights. Between 1997 and 2004 when this law was effective, about 6,000 exploration licenses were issued for 40% of Mongolia’s territory, and exploration activities took off.

Interview with G.Yondon, Minister of Mining and Heavy Industry, on the development of the mining sector, changes in legislation, mining industry outlook, transportation and logistics issues in 2022. This year marks the 100th anniversary of the mining industry in Mongolia, with a lot of associated work. The mining sector has a big goal to move from just mining to also processing.  Discussion on draft laws to create a new legal framework have been continuing for a long time. If the draft laws are approved, what changes will take place in this sector? The transition to a new social and economic system was not easy, but as a result of successful  implementation of long- and short-term programs to develop the geological and mining sector, this now generates more than 20% of GDP, 70% of industrial output, more than 90% of export earnings, about 80% of foreign direct investment, and about 30% of state budget revenue.

Mongolia has announced a national campaign to plant “Billion Trees” as part of a global green revolution to combat global warming and reduce the impact of climate change. President U.Khurelsukh announced at the 76th session of the UN General Assembly in September last year to the heads of state and government of 83 countries that  “Mongolia launched a movement to plant billion trees by 2030 to address global climate change”. This statement by the President was received by Mongolians in two ways. Some people supported it by saying “It’s a timely decision because about 80% of our land is affected by desertification.” Some criticized: “it’s impossible to achieve it, there is no research, no analysis”. 

Discover Mongolia-2019 Minerals and Mining Business Summit. September 27, 2019 Shangri La Hotel, Ulaanbaatar, Mongolia

9th Coal Mongolia 2019 International Coal Trade, Investment Conference and Exhibition, September 5-6th, 2019, Ulaanbaatar

It was heartening to see at the latest PDAC (The Prospectors and Developers Association of Canada) convention how Mongolia commanded the attention of many of the 25,843 attendees from more than 130 countries at the world’s premier annual mineral exploration and mining event, held in Toronto from March 3 to 6. 

Photo by R.Delger /MMJ/