The green transition and many risk factors that the world is currently facing are forcing countries to rethink the vision of the mineral resources sector, production, consumption of raw materials, and supply chain. It will be too late if Mongolia does not prepare for this inevitable future, develop its mining policy and strategy, and be decisive. Accordingly, Mining Insight has prepared a new issue, hoping that the country will pay attention to the importance of the upcoming trend and reach a social consensus. We are also opening an “Author’s Corner”, asking experienced experts in the field to share their views in this direction.
I would like to reiterate the quote of M.Dagva, a member of the Editorial advisory bof Mining Insight magazine, Founder and CEO of QMC Group, who said in the Author’s Corner, “Today, a new ecosystem is beginning to form around us, from mining to clean energy production. If our country with high mineral potential can become a part of a new ecosystem, it will attract sufficient investment in the next one to two years, and I hope politicians will see the possibility of developing other sectors of the economy in addition to mining. Let us conduct a survey, determine areas with high potential for mining, identify the areas where mineral exploration can be done, reach a national consensus, conduct mining in those areas under the regional development plan, and start taking steps further, but quickly.”
Mongolia’s mining industry has a rather straightforward aspiration. Although it can only be written in two or three sentences, to achieve this goal, there are many factors to consider and address numerous issues. First of all, I hope the government will accurately assess the real potential of the industry and push it forward. The biggest responsibility of the government is to prevent risks in the mining sector and lay a stronger foundation. We called attention to national consensus in the quote above for a reason. Environmental and social issues, which were not considered by the Mongolian mining industry at first, are now in an important position. A careless mistake caused a pile of problems in our mineral sector. The advantage is that mining companies, communities, and all parties that make policy decisions have begun to accept that there is no way forward without a consensus among the various stakeholders in the mining industry.
We invited G.Sugar, General Manager for Communities of “Oyu Tolgoi” LLC, to our “Author’s Corner”. In addition to the economic importance of the mining industry, mining companies need to consider the importance of paying attention to environmental and social issues at all stages of mining and develop a comprehensive communication system with local communities and social performance. There is also a need for concrete assessment and accurate knowledge of the current situation in order to clarify the next long-term position of Mongolian mining at the threshold of 100 years. From this point of view, Mining Insight Magazine selected four major mining companies in Mongolia and tried to clarify their direct impact on the economy. The tax payments and the value of purchased goods and services of Mongolia’s TOP 4 mining companies (“Oyutolgoi”, “Erdenes Tavantolgoi”, “Erdenet Industry”, “Energy Resources”) in the last 5 years amount to MNT 28 trillion, of which MNT 18 trillion is the sum of purchases. The mining sector purchases goods and services worth almost twice as much as the consolidated budget. This shows the existing opportunity for businesses. Our estimate is based on available quantitative data using the simplest methodology.
Of course, there is a need for more accurate and realistic calculations. However, it is important to carry out the research in depth. Mining companies themselves need to estimate their purchases, disclose the balance sheet, and how they supported and promoted national and local businesses, and compete with one another. This is a big indicator of the accessibility of mining growth. The Editorial Board of Mining Insight will focus its editorial policy on promoting the broader concept, which goes beyond accessible mining or responsible mining. This idea is covered in detail in the article “Towards a responsible and inclusive mining future”.
