Mining
From The Report: Mongolia 2014
View in Online Reader

The mining sector is a major contributor to the local economy, accounting for 22% of GDP, 61% of industrial value-added, 94% of exports by value and 85% of foreign direct investment in 2012, according to figures from the National Statistics Office. Mongolia’s main proven reserves include coal, copper, hard-rock and placer gold, silver, iron ore, molybdenum, fluorspar, zinc, tungsten, lead, tin, uranium and rare earths. Key challenges include inadequate rail infrastructure connecting mines to target markets, a shortage of processing facilities and the fact that the majority of exported coal is semi-soft. While ebbs and flows in the regulatory framework have caused concern over the authorities’ respect for contract sanctity, in 2013 the government appeared intent on clarifying the long-term framework in an effort to restart investment. While global commodities markets are set to remain challenging in 2014, Mongolia’s strong natural fundamentals and location near major demand centres are set to continue attracting investors.
This chapter contains interviews with Jean-Sébastien Jacques, Chief Executive of Copper, Rio Tinto; Ya. Batsurri, CEO, Erdenes Tavan Tolgoi; and D. Dumba, President, Mongolian National Mining Association.

Articles from this Chapter

Overview

Top earner: Addressing challenges to maximise long-term benefits
OBG
plus

For Mongolia’s frontier mining industry, long dominated by the promise of future production, 2013 marked a watershed with the commercialisation of the first phase of the world’s largest undeveloped copper and gold mine, Oyu Tolgoi (OT). Despite uncertainty over OT’s future expansion and challenges for Mongolia’s coking coal miners, a government mandate fresh from the 16-month electoral cycle closed in June 2013 appears intent to engineer a rebound in mining investment, which is key to growth…

Analysis

A welcome revision: The industry’s legal framework is evolving
OBG
plus

Mining investors’ sentiment has ebbed and flowed in line with Mongolia’s regulatory framework, with near-yearly attempts for either wholesale revisions to the Minerals Law or proposals for new legislation covering environmental standards, governance or foreign investment. Conscious of the need for a coherent and consistent regulatory approach, the incoming government proposed a cover-all policy document to parliament in November 2013 meant to form the basis for future laws and rules. The document…

Interview

OBG talks to Jean-Sébastien Jacques, Chief Executive, Copper, Rio Tinto
OBG
plus

Interview:Jean-Sébastien Jacques What additional steps can be taken in order to meet the need for improved infrastructure in Mongolia’s mining industry? What role can the government play in this process? JEAN-SÉBASTIEN JACQUES: While Mongolia has made a great deal of progress in a short period of time, it is quite clear that there is more work to do, especially as the country looks to further develop the mining industry. The government muÉst establish a clear, long-term strategy for…

Interview

Global integration: OBG talks to Ya. Batsuuri, CEO, Erdenes Tavan Tolgoi
OBG
plus

Interview: Batsuuri Yaichil What areas do you envisage will benefit the greatest from foreign investment? BATSUURI YAICHIL: One of the main challenge for Mongolia’s mining sector is the lack of facilities to process, wash and clean coal before exporting it, which blocks our ability to sell our coal at higher prices. In fact, Mongolia is currently one of the few countries that exports raw, unwashed coal. This is why international coal assessment laboratories are very important for our business.…

Analysis

A new start: Restarting the production of uranium
OBG
plus

With the world’s 16th-largest proven uranium reserves according to the International Atomic Energy Agency’s 2011 Red Book, Mongolia is making progress to restart production and export for the first time since 1995. Soviet geological surveys conducted nationwide over 20 years to 1990 revealed reserves in four key uranium provinces covering nine deposits and 100 occurrences, although Russian production of 535 tonnes over 1988-95 came from the open-pit mine in Dornod, in the north-eastern Saddle…

Interview

Digging deep: OBG talks to D. Damba, President, Mongolian National Mining Association
OBG
plus

Interview: Damjin Damba Is there room to introduce environmental safeguards while minimising the impact on exploration? DAMJIN DAMBA: Protection of the environment is a global issue, and our environmental rules and regulations are on a par with the international community. There are several laws in this field, such as the Subsoil Law, the Land Law and the Environmental Law, all of which are good and appropriate. The problem is that the laws are not being implemented and/or monitored directly or…