Dear readers, The cover of this issue of Mining Insight Magazine features 33 years of mining production in Mongolia. The article by S. Bold-Erdene provides an estimation of Mongolia’s mining production since the country’s transition to capitalism and a free market economy in 1990. The indicators covered in the article go beyond production volumes to include the scope and industry size of Mongolia’s mining production compared to other mining-intensive countries.
Over the past 33 years, Mongolia opened its economy to the world, leading to the growth of new businesses and the country’s entry into international competitions. Coal was the most produced commodity, followed by iron ore and copper concentrate, as shown in the accompanying chart. However, the copper concentrate was the most valuable export for Mongolia, with coal being the second most profitable. Mongolia mainly used thermal coal for local consumption, while its other productions heavily rely on China’s market demand. Most products are exported as concentrates, with only a small production of copper cathodes. The country’s processing capabilities are limited, even exporting raw coal in some cases. Mining in Mongolia has a long history, dating back to the early 20th century with the production of gold and coal. The country has since produced wolfram (1942), tin (1949), fluorspar (1954), copper, and molybdenum (1978).
The country started mining zinc in the 90s, but the foundations for a processing complex were laid in the socialist era. Back then mining production and consumption were mainly focused on independence and integrity, not national interest or development policy. Additionally, iron ore was the only new commodity Mongolia produced in the past 33 years. We present to our valued readers an overview of the last 30 years of mining production history to bring light to the future of development, potential changes in the next 33 years, and priorities for new manufacturing as they will be important topics for discussion. As humanity transitions to new energy sources in the next 30-40 years, the demand for certain metals will increase, thereby transforming the industry as a whole.
Minerals such as rare-earth elements, uranium, zinc, copper, aluminum, lithium, nickel, cobalt, graphite, manganese, vanadium, titanium, platinum, chromium, and zircon are considered to be the minerals of the future. This shift demands that Mongolia reevaluate the role of its mining industry, which has evolved significantly over the past 33 years. With the declining use of coal, it is crucial to establish a mineral strategy and plan for future development. With that in mind, Mining Insight magazine provides a retrospective look at the past 30 years to inform your analysis and decisionmaking processes. The January issue of Mining Insight features a comprehensive coverage of the Mining Exchange, which is starting trial trading this month. It covers the role of the Financial Regulatory Commission in implementing state control and regulation over the Mongolian Stock Exchange, exchange trades, and brokerage operations. Additionally, interviews with the companies “Energy Resources” and “Erdenes Tavantolgoi”, which started the first trades, are likely to be of interest to you.
