Mongolia supports sustainable minerals despite crisis
Despite the big fiscal crisis that is hitting Mongolia, the country is actively promoting sustainable development of its minerals sector, an Intergovernmental Forum on Mining, Minerals, metals and Sustainable Development (IGF) Assessment finds.
Over the past quarter century, Mongolia has experienced increased foreign direct investment in extractive industries. But economic growth has slowed significantly in recent years. Yet the Assessment reveals that the Government of Mongolia, continue considering its minerals sector as critical to national plans for stimulating economic growth and aims it meets its commitments to national and international sustainability goals.
IGF performed an MPF Assessment in order to help identify gaps and ensure that the law reflects international best practices, with a focus on achieving sustainable development objectives. The MPF Assessment reviewed the mining laws and policies of Mongolia and the country’s capacity to implement the IGF’s flagship MPF. Several major strengths of Mongolia’s mining sector were identified together with challenges. Among the major problems Mongolia still faces are the lack of management of large-volume and high-risk mine wastes, including, but not limited to, their impact on water resources of government capacity to audit complex tax returns and to deal with transfer pricing, beneficial ownership and related issues. Mongolia also lacks clear criteria regarding which deposits should be classified as “mineral deposits of strategic importance.”