Mongolia to showcase feasible mining projects at PDAC 2023

Mongolia PDAC 2023 is organized by the Mongolian National Mining Association (MNMA) in collaboration with the Ministry of Mining and Heavy Industry and other member organizations starting this year.

These include the placer deposit of gold “Tsakhirtolgoi” and the nickel and cobalt projects implemented by “Tsogsh” LLC On top of that, we will showcase projects that are ready for production after finishing construction. These include the “Oyu Tolgoi” project, which is close to completing the underground development, and the placer gold projects such as “Erdenes Resources”, “Steppe Gold”, and “Khan Altai Resources”.

This year, we expect around 60-70 representatives of mining companies to attend PDAC. There are also many companies interested in attracting investment. We can see that the sector is becoming more active, which is felt by all stakeholders. The government is also very supportive. Decisions are made quickly. The private sector is also actively seeking investment and developing its operations.

PDAC is a very large annual conference for mining investment. It is a great opportunity for us to learn and gain experience. We see it as an opportunity to learn how the government cooperates with its associations to support and collaborate with the private sector. Therefore, we have invited Bryon Wilfert (Honorable Bryon Wilfert P.C., M.A., ICD.D, Former Member of Parliament) to moderate the Mongolia Investor’s Forum. He is a former member of the Canadian Parliament with the distinguished title of “Honorable”. He has served as President of both the Canadian Mining Association and PDAC for many years. I am pleased that someone with solid knowledge and experience in both the government and private sectors will lead the Mongolia Investor’s Forum on “Mongolia Day”. 

As part of Mongolia Day, Ben Chalmers, Vice President of the Canadian Mining Association, will share his expertise on responsible mining codex and effective collaboration between the public and private sectors.

The Association is working with the government to attract foreign investment in the mining sector. The government is developing relevant laws and regulations to create a favorable environment for investors. The Association is providing accurate information to new investors by leveraging the current investors with experience investing in Mongolia and sharing valuable insights. We have a website that showcases the potential and opportunities of investing in Mongolia’s mineral sector. We have received many requests for cooperation from Asian countries, especially due to the pandemic that affected our southern neighbor. Several investors from China and Japan approached the Association and asked to present specific projects for investment.

But on the other hand, we have many projects that cover various stages of development and types of minerals. MNMA will help match investors with suitable projects based on their preferences and criteria.

At last year’s PDAC, the Ministry of Mining and Heavy Industry announced that it would activate exploration. As a result, special permits have been granted to a certain extent and are underway. Although there is no direct positive impact on our country within one year of the latest measures, it is necessary to pay special attention and work together to create conditions for FDI to enter all sectors in the future without limiting it only by this measure. Our country has good geological potential and many opportunities. The mineral resources are abundant, and there are positive indicators such as having a border with China, the world’s largest consumer. How to use this resource opportunity in the coming years depends on the cooperation of the public and private sectors.

In our country, the law states that the government shall own shares and cooperate on strategic deposits. In connection with this, the government can’t invest in newly found large deposits. This tends to cause delays and lowers its value. This is one of the issues that need to be improved and resolved for countries like ours that are working to attract foreign investment. In our country, it is legal for the government to own shares in strategic deposits. In this regard, If a large deposit is discovered and used, the government is unable to invest, which has negative effects such as delaying the project’s commencement and reducing its worth. For a country like ours that aims to attract foreign investment, this is one of the issues that must be corrected and improved. Thus, we need to think very well about the root cause. We need to understand what problems we have and have a unified and centralized solution to fix them. Ministries responsible for implementing government policies must have a unified approach. The new legal provisions must be relevant to current needs. They must be effective and stable. It is necessary to find the root cause, and take bold steps to fix it, and the private sector needs to give a good voice to it. Important factors in attracting foreign investment are open and transparent policies and the security of licenses.

Those who are conducting business in our country must comply with the laws and regulations in force. I think that the government should provide clear and accurate information about the legal environment to new investors. The lack of complete and reliable information on many laws, regulations, and permits can lead to instability in the operations of investors and can erode their trust.

The Minerals Law does not govern our industry’s activities as a whole.

The standards and government regulations will be added to this. The laws and regulations that have a direct impact on operations together form the legal environment for the mining industry. Therefore, it should not be limited to the Law on Minerals alone. The association made a list of around 100 laws governing mining activities and 1,500 regulations and guidelines issued by the government. These create a very high demand. The inadequate understanding and interpretation of these laws and regulations can lead to misapplication of the law resulting in the revocation of licenses. Therefore, investors need to have a good understanding of the laws and regulations related to their industry. We need to fully understand the requirements of these laws and regulations and know what we have to comply with. To accomplish this, we need a skilled workforce. Individuals who are experienced in this field and capable of developing such ideas are highly valued. However, such people are currently lacking. The management should understand the requirements of these many legal regulations and prioritize management accordingly. This way, the investor will be protected from risks and the investment will be profitable. No unnecessary expenses are incurred, and time is not wasted. Therefore, the Association is considering the concept of a safe environment with the codex. One of the main goals of MNMA is to implement a responsible mining program. The “Responsible Mining Codex” project has been implemented in the mining sector, and it is being introduced and implemented in the operations of member organizations. A significant improvement in public approval could be achieved if mining companies execute this with care. We provide companies with instructions and advice on how to comply with legal requirements in the codex. Legally, if you have such rights and obligations, we will advise and assist you to ensure that there is no risk if you meet them. However, each project is different. There is no one-size-fits-all solution. Nothing is 100% applicable to all projects. Clear legal requirements, registration and approval procedures, and a clear understanding of what needs to be done can attract investors and help streamline operations in the long term.