Mongolia - Advisory services for sustainable mineral resources management

Country / Region: Mongolia / Asia
Focus: Mineral resources / Sustainable economic development

Begin of project: April 1, 2022

End of project: March 31, 2025

Status of project: May 21, 2024

Placer gold mining in Mongolia Source: BGR

Given its small population, Mongolia is one of the most resource-rich countries in the world. The Central Asian state located between Russia and the People's Republic of China has some of the largest known copper and coal deposits in the world and has relevant deposits of a variety of mineral resources such as fluorspar, iron and tungsten. In 2019, the value of all goods and services from the mineral resources was worth a quarter of the country’s GDP. Mining products account for around 90% of the country's export volume, half of which is mineral raw materials and energy raw materials, respectively. The mining sector also generates around a quarter of the national tax revenue. Therefore, the development of the mineral resources sector is currently by far the most important factor for the country's economic development as a whole.

In resource-rich countries, weak governmental institutions and the absence of civil society control often inhibit sustainable economic development. This also applies to Mongolia. Under its recent project "Advisory services for sustainable mineral resources management", BGR therefore aims to support the Mongolian government in different ways to strengthen sustainable resource-led economic development at the benefit of the Mongolian society as a whole.

BGR builds on its previous experience in providing technical support to the Mongolian mining administration bodies since 2014. In the “Advisory services for sustainable mineral resources management” project, BGR expands its partner network beyond the Mongolian Mining Authority (MRPAM) which was a reliable partner since the beginning of cooperation. The new set of partners also comprises of the Mongolian Ministry of Mines and Heavy Industry (MMHI), and the National Geological Survey (NGS).

Mining Administration: Promoting Digital Information Delivery
The project improves a national mining cadastre and digital reporting system for the Mongolian Resources and Petroleum Agency (MRPAM). It builds on experience with the support of digitization of the sector since 2015 and, seeks to make administrative processes for both Mongolian and international mining companies more effective and transparent in order to fuel resources-led economic growth.

Cooperation with the Ministry of Mines and Heavy Industry: Improving transparency in the extractives sector and improving methods for impact analysis
The project supports the Mongolian Extractives Industries Transparency Initiative (EITI) with the aim of making information on mining income streams accessible to the Mongolian public. BGR thereby intends to improve transparent and responsible mining in Mongolia by allowing civil society actors to gain information on benefits generated in the mineral resources sector more easily.
The project also contributes to strengthening sustainable sector management at the Mongolian partner organizations. BGR supports the Ministry in steering a multi-stakeholder dialogue on the appropriate method for socio-economic impact assessments of mining impacts in the country.

Cooperation with the National Geological Survey: Standards for Digital Cartography
In addition, the project builds capacity and creates technical and methodological prerequisites for the development of a coherent geological digital cartography at the National Geological Survey (NGS). Together with the Geological Survey, BGR develops new classification methods, digital cartographic standards, methods and infrastructures for the management of geological data.

Inter-agency cooperation: professional training
A comprehensive programme of training measures for the staff of all three partner organizations ensures the sustainability of the project outcomes and promotes the consolidation of good governance of the minerals sector in Mongolia.

Previous project:
Mongolia – Capacity Development of the Mineral Resources Sector in Mongolia II

Literature:

Factsheet: Advisory Services for Sustainable Mineral Resources Management - Mongolia

Partner:

Ministry of Mining and Heavy Industry (MMHI)

Mineral Resources and Petroleum Authority of Mongolia (MRPAM)

National Geological Survey (NGS)