Mongolia, a country with abundant mineral resources such as gold, coal, and copper, is located next to the world’s largest consumer of mining products, the People’s Republic of China. Taking its geographical advantages, Mongolia is expanding its engagement in the regional infrastructure and economic integration through various development strategies including the Mongolia-China-Russia Economic Corridor Program and the Belt & Road Initiative.
The results from geological surveys, minerals prospecting and exploration works conducted on Mongolian territory indicate that there are over 1,100 known deposits of 80 types of minerals, around 10,000 occurrences and thousands of mineralized areas identified. A mining sector is built on public support and investors’ confidence thus we highly prioritize the need for sound Government policies, stable legal environment, information transparency and active engagement with local communities.
The Ministry’s mission is to promote responsible and transparent mining and heavy industry sectors in order to enrich the state treasury and achieve a balanced and well-diversified economy. To this end, the Ministry develops all relevant policy, laws, regulations and nationals programs within the sectors.
The Parliament of Mongolia has recently adopted Resolution #73 to accelerate the development of Tavantolgoi coal mine and list up to 30% of its shares on domestic and international stock exchanges, raising funds for regional infrastructure development such as railways, roads, a power plant, coal-chemical and washing plants. The proposed infrastructure developments are expected to increase the value of the mineral deposits sitting in the southern region of Mongolia and increase sales turnover of mining products. The preparation work for the proposed IPO is well underway.
Further steps have to be taken to utilize natural resources sustainably without high grading, increase the level of mineral processing, improve border crossing capacity, supply energy from local sources, attract investments in geological exploration, simplify exploration licensing and improve competitiveness. The Government is taking proactive actions in these areas.
The projects including the construction of an oil refinery, coal-to-synthetic gas plant, ferrous and non-ferrous metallurgical plants are being implemented to develop value-added heavy industry production. In addition, the current Government’s one of the priorities is to establish a sovereign wealth fund designed to adequately manage the revenues generated by the mining sector, allocate them for today’s and next generations and ensure inclusive growth.
The Ministry has been actively promoting the country as an attractive and competitive investment destination among investors, particularly mining sector investors