On 25 May 2026, Mining Insight magazine, together with its Advisory Council, successfully organized a Policy Dialogue on the topic “The Economic Benefits of Mining Deposits.” The discussion focused on the draft law currently being developed by the Government of Mongolia regarding state ownership shares in strategic mineral deposits and derivative deposits, as well as the proposal to allocate 60 percent of the benefits generated by such deposits to the National Wealth Fund. A distinctive feature of the discussion was its effort to broaden the current understanding of economic benefits in the mining sector beyond tax revenues alone. Participants examined the actual structure of economic benefits, the investment climate, and the appropriate forms of state participation, while bringing together perspectives from across the industry. The discussion addressed the following topics: The concept of economic benefits from strategic and mining deposits, What investors expect in terms of returns and the competitiveness of Mongolia’s mining projects, The current impact of state ownership, royalties, and surtax royalties, as well as possible future policy options.
Participants also exchanged views on whether the issue of state ownership in the 16 strategic deposits designated under Parliamentary Resolution No. 27 of 2007, as well as the 39 deposits under consideration for strategic status, could be addressed through a special royalty mechanism based on the type of mineral involved. The potential risks and implications of such an approach were also discussed. The dialogue brought together approximately 20 participants, including investment and financial market experts, economists and researchers who have studied the economic benefits of the mining sector, representatives of professional associations, and companies holding licenses for strategic deposits. Participants shared their views on the potential impact of policy changes on the economy and the investment environment. The organizers emphasized that the purpose of the discussion was to provide an open, multi-stakeholder platform for addressing policy issues affecting the sector and to communicate the views and conclusions of professional stakeholders in a balanced and objective manner to decision makers and the broader public.
At a time when there is an increasing need to explain and define the concept of “benefits” through professional analysis, research, and economic calculations, participants highlighted that economic benefits should no longer be treated as a topic open to arbitrary interpretation or political rhetoric. Instead, they argued that the concept should be approached from a more professional and evidence-based perspective, clearly defined, and incorporated into legislation. Participants also proposed studying international methodologies and models for assessing economic benefits and improving public understanding of the actual benefits generated by mining projects. In addition, participants stressed the importance of differentiating the 39 deposits currently considered for strategic status according to their mineral type and economic significance. Mining companies and economists argued that deposits supplying thermal coal for power generation or raw materials such as gypsum and limestone for the construction industry should not be treated in the same manner as high-value export-oriented deposits such as coking coal and copper projects. Experts also acknowledged the growing need to reconsider the definition of a “strategic deposit” and to update the list of 39 candidate deposits currently being considered for strategic status.
Mining Insight Magazine, May 2026 №05 (054)
