In the summer days while the war between Russia and Ukraine continued and China and Taiwan were on the brink of an armed conflict, Mongolia’s neutral foreign policy caught the world’s attention.  During his short visit (5 July) to Mongolia, Russian Foreign Minister Sergey Lavrov concluded that “the positions of our two countries in the international sphere coincide.” UN Secretary-General Antуnio Guterres said: “I am happy to visit Mongolia, which is a symbol of peace at a time when peace and tranquility are becoming increasingly rare in the world. Mongolia’s declaration of a nuclear-weapon-free zone is a bold step.” His visit to our country and his speech (08-11 August) raised Mongolia’s image in the international arena.

G.Iderkhangai,  editor for The Mongolian Mining Journal, spoke with N.Tserenbat, CEO of Erdenes Oyu Tolgoi LLC. The members of the working group shared their views on many issues, and some progress is being made You were appointed by the Board of Directors of Erdenes Oyu Tolgoi LLC (1 October 2021) as the CEO of the company. In the subsequent eight months, shareholders have made a number of major decisions. As a result of the agreement reached between the government working group and the Temporary Committee on one side and the investors on the other side, the Oyu Tolgoi underground mine finally began production after 26 months. As the CEO of a state company that owns 34% of the Oyu Tolgoi project, how would you assess the work you have done in this short period?

The Salkhit Mine Closure Plan Pilot (the Project) jointly implemented by “Mongolia: Enhancing Resource Management through Institutional Transformation” (MERIT) project funded by the Government of Canada and Erdenes Silver Resources LLC emphasizes the importance of conducting closure planning from the early stages of mining operation. The key stakeholders meeting was organized to provide progress update on Stage 2 Salkhit Mine Closure Plan pilot project, the stakeholder engagement strategy, and the environmental field studies conducted at Salkhit mine site on 26 August 2022.

The Standing Committee on State Structure of the Parliament (15 June 2022) approved a resolution to celebrate the 100th anniversary of the establishment of State Control in Mongolia. The anniversary this year will be celebrated in accordance with the Austerity Law, which was approved by the Parliament on 29 April and officially became effective on 16 May. However, this historic anniversary could be “suppressed” by the Austerity Law, and nothing special will happen until the autumn. It appears that the government treats such events as an additional economic burden although these sectors carry the country’s economy on their back.

G.Iderkhangai of The Mongolian Mining Journal, spoke to B. Tsengel, Director of the Government Agency for Policy Coordination on State Property and Regulation (PCSP), about current issues facing state-owned companies. We will establish a unified reporting mechanism for state-owned and partial state-owned legal entities No major changes have been made to the Law on State Property since its enactment in 1996. The law is expected to be changed. What principal changes will be made? First of all, my greetings to the readers of your magazine. Since 1990, Mongolia has moved from a centrally planned to a market economy, allowing many forms of ownership. Subsequently,

Gold exports have risen sharply in the last two years and reached more than a billion dollars. Gold exports are expected to get a big share in total exports again this year, offsetting the inevitable decline in exports of coal and other minerals. B. Tugsbilegt, reporter of MMJ, talked to A.Bilguun, Vice President for Business Development of Erdene Resource  Development Corporation, about what Mongolia should pay attention to support the gold sector in the future. Global gold prices are rising. Do you think the high prices would have a positive effect on the Mongolian economy? What can a country like Mongolia, seeking economic recovery, do to take full advantage of favorable market conditions? The recent rise in gold prices is unlikely to have a positive effect on Mongolia. First, the rising gold prices mean high inflation around the world. For Mongolia, which imports most of its consumer goods, this is affecting costs.

A recent study compared the investment climate between Mongolia, Zambia. Chile and Australia. It is not surprising that the latter two mining giant countries are far ahead of us in terms of mining investment and other related indicators. But don’t be surprised if Zambia stands higher than us.  It is very difficult to compare Zambia and Mongolia generally. The average person may imagine that Zambia is about a herd of elephants grazing on the African plain, while Mongolia is thought of as full of horses on the bitter cold steppe. Both are great scenery, but very different.

Oil’s position is getting stronger despite the green transition. We thought that cheap oil would gradually work itself out of the global energy market through green policies, and decreased revenue for oil producers would follow. But the reverse is currently the case. Oil is regarded as a dirty fuel, and the enemy of nature due to its impact on climate change.  But now, its positioning looks very attractive. All countries are eager for oil. It is quite certain that only sufficient oil will ease global inflation. Major oil producers are now key global actors.  The EU’s determination to reverse dependence on Russian fossil fuels (oil, gas, and coal) is only exacerbating these circumstances. Currently, the EU is discussing its sixth package of economic sanctions against Russia. However, they are divided on whether a total embargo on oil will happen despite announcing the ‘RepowerEU’ plan to entirely cut Russian energy imports within five years. i.e. by 2027.

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/