-In 2025, the TSM Awards are planned to be presented to top-performing companies based on assessments under the TSM Standard –
Mining Insight's N. Ariuntuya interviewed G. Erdenetuya, CEO of the Mongolian National Mining Association (MNMA).
The MNMA member companies are implementing the Responsible Mining Codex (RMC). How does the “Towards Sustainable Mining” (TSM) standard differ from the RMC? What issues should companies focus on, and what new practices should they adopt when implementing the TSM standard?
The RMC is a voluntary national standard designed to enforce the fundamental principles and legal frameworks of responsible mining in Mongolia. However, the TSM standard distinguishes itself by being developed based on the RMC. The TSM standard incorporates more detailed criteria for responsible mining, aligning with international benchmarks while remaining accessible and implementable for mining companies in Mongolia. It evaluates mining companies' performance based on criteria related to environmental protection, local community engagement, social development, and corporate governance. Since the RMC is built on the foundation of the TSM standard, the implementation processes for both are similar.
In summary, the process for implementing the TSM standard involves the following:
• Conducting an annual self-assessment against 43 requirements and 256 sub-criteria across 9 protocols of the TSM standard.
• Undergoing an independent assessment every three years.
• Ensuring that the independent multi-stakeholder council representing participants from the mining sector reviews the implementation of the TSM standard and monitoring of independent reviews.
The Nine Protocols of the TSM Standard
1. Relationships with Indigenous Peoples and Local Communities
2. Safe, Healthy, and Respectful Workplaces
3. Equitable, Diverse, and Inclusive Workplaces
4. Risk Management and Communication Plans
5. Prevention of Child and Forced Labor
6. Biodiversity Management
7. Tailings Management
8. Water Management
9. Climate Change Management
It is worth noting that most of these protocols align with the legal requirements that Mongolian companies are already obligated to fulfil. Except for relatively new issues such as climate change management, the other areas are ones we have been striving to address and improve over the past 20 years. Therefore, we anticipate no significant challenges in implementing these protocols.
What tangible benefits do mining companies gain from implementing the TSM standard?
Implementing the TSM Standard opens significant opportunities for mining companies, such as gaining the trust of international investors, enhancing their reputation in the market, and securing financial support.
Global manufacturers and investors like Apple, Tesla, BMW, and La Mancha Capital have recognised and begun integrating the TSM Standard into their operations.
For instance, Mongolian Mining Corporation (MMC), a member of our association, completed its selfassessment under the TSM Standard in 2023 and achieved the highest AA+ rating for safety and biodiversity evaluations. This demonstrates the tangible results of the TSM Standard and highlights that Mongolian mining companies are fully capable of its implementation. Furthermore, increasing the number of responsible mining companies contributes significantly to improving public perception, support, and understanding. This, in turn, supports the longterm sustainable development of the mining sector. The implementation of the TSM Standard is independently assessed and overseen by a multi stakeholder council. This ensures equitable participation from stakeholders whose interests may be impacted, emphasising the importance of multi stakeholder collaboration. This approach addresses issues of interaction that cannot be fully regulated by law, offering stakeholders an opportunity to elevate such matters to the next level. Additionally, it is commendable that Mongolian mining companies, despite entering the field later than those in leading resourcerich countries, are adopting and implementing internationally recognised responsible mining standards in a relatively short timeframe. Looking ahead, we believe that the sector's development can be accelerated, productive, and sustainable by further implementing the TSM Standard at an industrywide level, ensuring its effective execution, and making continuous progress year by year.
How do Environmental, Social, and Governance (ESG) criteria align with the TSM standard?
The TSM Standard’s nine protocols encompass key ESG criteria, such as environmental management, local community relations, and corporate governance. This alignment enables companies to fully meet the ESG requirements set by investors. For example, the TSM Standard evaluates areas like water resource management, tailings dam management, air pollution reduction, and measures to improve public health and environmental protection for local communities. Companies implementing the TSM Standard can simultaneously reduce the negative environmental impact of their operations and ensure more sustainable and responsible practices. This also helps them generate the necessary data for ESG assessments and Sustainable Development Reports.
What can you tell our readers about the development of a unified global mining standard?
Efforts to develop a unified global mining standard (The Consolidated Mining Standards Initiative) are underway. This initiative aims to combine standards like The Copper Mark, the Mining Association of Canada’s TSM Standard, the World Gold Council’s Responsible Gold Mining Principles, and the International Council on Mining and Metals (ICMM) Mining Principles. The goal is to create comprehensive criteria capable of addressing a wide range of industry challenges, while clearly defining the responsibilities of stakeholders. This would also eliminate the need for companies to implement multiple standards. As part of this process, extensive discussions are being held to incorporate the perspectives of key stakeholders in the mining sector, including companies, government agencies, researchers, and civil society organisations. The final unified standard is expected to be released in 2025. The MNMA has joined this initiative, working to localize international best practices in Mongolia and adapt them to the country’s unique conditions while actively contributing its feedback.
Lastly, how does the TSM standard shape the future of Mongolia's mining sector?
The implementation of the TSM Standard in Mongolia’s mining sector is a crucial step toward enhancing global competitiveness, promoting transparency, and ensuring responsible and sustainable development. By 2025, we plan to recognise the top performing companies through the “TSM Awards,” based on their TSM Standard assessments. The TSM Standard will serve as a key criterion for identifying companies that are internationally recognised for their commitment to responsibility and sustainability. We believe this will act as an essential lever for not only achieving international benchmarks but also elevating Mongolia's mining sector to global standards.
Thank you. We wish for the successful implementation of this initiative to support the development of Mongolia’s mining industry!
Thank you. We call on all stakeholders to contribute to making Mongolia's mining future more responsible and sustainable!
