Mining in Mongolia
Mongolia is one of the 29 resource-rich developing countries identified by the International Monetary Fund[1] and exploration of copper and coal deposits are generating substantial additional revenue.
Oyu Tolgoi mine is reported to have the potential to boost the national economy by a third but is subject to dispute over how the profits should be shared.
The government institution responsible for overseeing mining development in the country is the Mineral Resource Authority of Mongolia (MRAM).
The deposit is in the Gobi Desert in an area known as Oyu Tolgoi (Mongolian for Turquoise Hill),[10] where in the time of Genghis Khan outcropping rocks were smelted for copper.
It is also found in the Gobi-Tamsag uranium province in southern Mongolia which are part of sediments in smaller Dulaan Uul and Nars deposits.
[19] In November 2024, Mongolia amended its nuclear energy law to unlock its uranium potential while safeguarding national interests.
[20] These changes include a dynamic resource fee structure starting at 5% and climbing to 8% when uranium prices surpass $80 per pound, a ban on foreign radioactive waste imports, and the ability for parliament to replace equity stakes with special payments.
[21] The new legislation set the stage for a $1.6 billion uranium development deal with France’s Orano Group, which was signed on January 17, 2025.
[22] The revised framework is intended to balance enticing investors while securing long-term returns, addressing previous challenges over resource ownership and environmental safeguards.
The project, a joint venture with state-owned Mon-Atom, brings technological expertise and economic benefits while addressing local concerns via compensation mechanisms and plans for domestic processing.
[3] Khalzan Burgetei offers raw material for permanent magnet used in a wide range of applications, from everyday products to life-saving medical devices.
They get the name from the resemblance the green bowls they carry on their backs (which are used to pan for gold) have to the shells of the Teenage Mutant Ninja Turtles.
The social impacts relate to: A negative feeling that politicians and the rich would exploit the revenue denying benefits to the poor; the resource is non-renewable and could last for another 100 years or so and during this time the traditional livestock herding which sustained the country through its ancient Mongolian cashmere industry (the Gobi Cashmere Company in Ulan Bator is feeling the pinch) should not be allowed to wither away (an example cited in this regard is that of the Netherlands where the Shipbuilding industries went into a tailspin after that country embarked on exploitation of offshore oil;[13] it could turn out to be a "resource curse" as in the case of Nigeria or "Dutch Disease" as in the case of the Netherlands when they found oil to exploit.
Key procurement categories included machinery and equipment, vehicles, spare parts, fuel, lubricants, industrial inputs, supply materials, food and catering, and services.
[8] Addressing the environmental concerns raised by the people it is now proposed to build permanent tarred roads to avoid dust.
[34] A 2014 quantitative study revealed that the valuations of Mongolia's mining companies are highly sensitive to Mongolian political events and changes in the legal environment.
